Photo - A Low-Code Platform to fast create Web applications
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A Low-Code Platform to fast create Web applications

Russia, Nizhny Novgorod Region
Market: Information and media, Production, Transport, Financial services, Another
Stage of the project: Prototype or product is ready

Date of last change: 17.03.2020
Min investment
$  300.000
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Total required
$ 1.000.000
Rating
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Idea

Craft Systems is the world's 1st Low-Code system based on Erlang Open Telecom Platform with unlimited scalability. With Craft Web Designer anyone with minimal or none programming knowledge can create modern data-driven Web business applications of enterprise grade 10-x time faster.

Current Status

The fully operational company with R&D office in Russia (12 employees).
Market-ready desktop version of the SW development platform, a set of ready-to-use business applications made with the platform. The most popular application - CRAFT-Fitness - is used in more than 150 companies in Russia and CIS (about 1,000 end users). The also have Web-schedule service and mobile application for fitness clients.
Revenue at 2019: $170k

Market

Our potential customer are SMB companies, where:
- Large amount of data in need of processing;
- Business processes change frequently, no development team;
- Requirements for scaling business applications, integration with external services.
End users - business analysts, programmers, company employees.
Owner of the budget - the head of the company, business owner, IT director.
In 2018, the global market for Low-Code platforms was estimated at $ 5.98 billion. According to Forrester research, by 2022 the Low-Code market will be $ 21.2 billion at an aggregate annual growth rate of about 40%. According to Gartner research, by 2024, 65% of all business applications will use Low-Code technology.

Problem or Opportunity

Companies need to digitize their non-standard business processes. However, small businesses often cannot find IT solutions that fit their business needs, but ordering custom SW development is very expensive for them. Medium and large enterprises often create SW themselves, but it takes long time, expensive and ineffective. According to a 2017 report from the Project Management Institute (PMI), 14 percent of IT projects totally fail. Of the projects that didn't fail outright, 31 percent didn’t meet their goals, 43 percent exceeded their initial budgets, and 49 percent were late.

Solution (product or service)

We offer simple, cost-effective and flexible tool (SW platform) for fast creation of scalable cloud applications almost without programming ("low-code").
The product consists of 3 parts:
1. Web-designer tool for creating business applications;
2. Web platform for launching applications in the cloud;
3. Cloud store (marketplace) for application distribution.
Web applications are built in Web-designer tool from standard components; the developer does not require programming knowledge. To extend the business logic, a built-in simple event-driven language can be used.
The ready-made application can be published in a cloud storage (marketplace).
After publishing the application, it can be used by any third-party user or company. Applications may be distributed on a paid or free basis.

Competitors

Most existing rapid development systems on the market are BPM systems and use the method of building applications from a graphical description of business processes. This simplifies the development process and reduces the qualifications of developers, but reduces the ability to build truly complex applications.
The Craft platform uses the principles of Low-Code and at the same time includes advanced features inherent in powerful software frameworks. Craft offers building applications from off-the-shelf components without programming, and one can use the built-in simple programming language to describe complex business logic. The platform architecture is designed for unlimited horizontal scaling and processing of large amounts of data, which makes it attractive for large companies.
Main competitors are:
- Mendix
- OutSystems
- PegaSystems
- Appian
- Comindware

Advantages or differentiators

Advantages:
1. High-performance business logic execution platform based on Erlang OTP.
2. Unlimited applications scalability due to micro-service architecture.
3. Fast Web UI using Web-sockets, comparable in speed to desktop applications.

Differentiators:
1. Assembling applications from ready-to-use programming components.
2. Ease of business processes definition (own meta-programming language).
2. Openness and extensibility (flexible meta-components model).
3. Easy integration with existing software using external connectors.
4. Enterprise features: multi-tenancy, project versioning, team work.
5. Distributing ready-made applications via cloud store (marketplace).

Finance

Revenues from initial sales have already begun. The company projects significant sales within the third year of operations and becoming cash positive in year four.
Revenue at 2019: $170k
Projected revenue at 2020: $300k
Projected IRR = 141%

Business model

Craft Systems will generate revenues through:
* Selling online access to the development platform (Designer) based on the SaaS model— from $10 user / month.
* Sale of online access to applications (CRM, Fitness, etc.) using the SaaS model— from $20 user / month.
* Sale of a marketplace (platform) for ISP providers using the SaaS model — from $5 user / month.
* Selling licenses for the local (Enterprise) version of the platform — from $50 user / month.
* Selling technical support for development platform and applications — from $10 user / month
* Development and implementation of custom applications based on the platform — from $50K for a project

Money will be spent on

R&D, Sales and Marketing, Strategic Partnerships.

Offer for investor

Current company evaluation $5.000.000.00 pre-money.

Team or Management

Risks

One of the risk is that the platform itself might not become very popular soon, due to the difficulty of growing the developer ecosystem fast. To mitigate that risk we will not rely on the platform only, we will also distribute the business applications built on the platform. We will start with the existing one - the application for Fitness industry, migrating it from desktop platform to the new cloud platform. Then we will add other applications. Another big source of revenue is developing custom business applications using the platform. The platform will dramatically reduce the time and efforts to build such projects hence increasing ROI.

Incubation/Acceleration programs accomplishment

Skolkovo (Moscow, Russia)

Invention/Patent

Certificate of state registration of a computer program No. 20099615625.

Photos

Photo 1 - A Low-Code Platform to fast create Web applications
Photo 2 - A Low-Code Platform to fast create Web applications
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Photo 5 - A Low-Code Platform to fast create Web applications

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video
Website address