MRGN

Setting the Scene

  • Many small business owners, especially those running local mom-and-pop shops, lack a business degree.

  • While a business degree isn't necessary, it often helps in navigating areas like revenue forecasting, modeling, and predictive analytics.

  • However, due to this expertise gap, numerous business owners:

    • Rely on unsophisticated bookkeeping methods like pen and paper or cluttered Excel files.

    • Remain unaware of how data can empower their decision-making.

  • This week's company provides an automated platform that simplifies financials and uses machine learning to help small business owners make data-driven decisions.

In a Sentence

MRGN is an AI-powered platform designed for SMBs to simplify financial analytics and guide business decisions. 

  • SMBs: Target customers include small to medium-sized businesses such as retail stores, restaurants, and franchises.

  • Simplify: Input basic financial information, or connect your accounting software like Quickbooks, and MRGN generates budgets, intuitive charts, analytics, and predictions.

  • Guide: Utilizing internal and external data, MRGN puts together an operating plan for business owners to follow.

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Bulleted Version:

  • Think of MRGN as Google Translate for a company’s financial data, translating complex analytics into an easily understood and digestible format. πŸ’¬

The Basics

  • Headquarters: NYC
  • Employee Count: 11 FTEs
  • Funding amount: $250k pre-seed
  • Business model: B2B SaaS (3 plans based on number of seats)
  • Early traction: On-boarded 1,000 SMBs in open beta, secured a deal with a large fast food chain, and in late-stage discussions with a large household name and two municipalities

Due Dilligence

WHAT WE LIKE

  • βœ… Market opportunity: Although big businesses often steal the spotlight in the US, they make up a mere 0.01% of the landscape, while the vast majority of businesses are small.

  • πŸ‘©β€πŸ’» Consumer demand: 80% of small businesses in the US aren't fully leveraging available tech tools, yet 65% of business owners are keen on investing in AI technology.

  • 🏁 Competitive Pricing: With a pricing model that's accessible for small to medium-sized businesses, MRGN provides a cost-effective solution in a market where similar services can be expensive.

POTENTIAL RISKS

  • πŸ€” Over-reliance: While MRGN aids decision-making, it's vital for business owners to use it as a guiding tool, not the sole source, as it may not cover all aspects of business operations.

  • πŸ”’ Security: Given MRGN's access to sensitive financial data, maintaining robust security measures is crucial to uphold consumer trust and comply with data protection regulations.

  • 🐌 Slow adoption: Established small businesses, especially those accustomed to traditional methods, may require convincing to transition to a new solution, which may slow down the platform's adoption rate.

Founder Profile

Comps

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Why MRGN

  • By simplifying financial data through a user-friendly interface and guiding small business owners to make data-driven decisions, we predict MRGN’s success is imminent.

*Nothing in this content constitutes investment or legal advice. The information provided should not be used as the basis for making investment decisions. Readers should conduct their own research and consult with investment advisers before making investment decisions.*