Soundpays
Soundpays is a cutting-edge, mobile engagement solution that utilizes patented ultrasonic sound wave technology to digitally connect consumers directly to advertising or broadcast content in real-time. The solution allows advertisers and broadcast content providers to achieve an entirely new level of audience engagement: one of allowing viewers to engage with the broadcast content to receive supplemental information and actionable calls-to-action options, including instant, single-touch purchases, directly from the content that they are seeing or hearing.
The Soundpays solution allows viewers to engage with the content as they are seeing/hearing it. The technology offers a profound opportunity to convert customers in the “power-of-the-moment”. It represents the future of marketing, advertising, sales, and individual convenience in a truly mobile manner. One can be engaging while on the fly in a commuting or shopping environment, or in a casual environment such as watching TV or sitting in a stadium/event premises. All of these represent enhancements in user convenience and lifestyle.
The Soundpays solution is especially relevant, post-COVID, for malls, retailers and sports franchises; all of whom may never be able to attract the same densities of patrons within their premises (as they once did in pre-COVID times). Their new world requires business models that engage and monetizing customers who are remote to their malls, stores and stadiums; which is precisely the opportunity that Soundpays offers. The solution can also be used for touchless, distanced payments between phone and POS device at in-store checkout counters. This is also a post-COVID requirement for retailers who need to offer employees and customers and safe checkout experience that minimizes the handling of cash and/or POS terminals and receipts. Utilizing Soundpays sound wave technology from the POS allows shoppers to pay and receive the receipt without any physical interaction at the counter: checking out while meters rather than millimeters from the cashier and POS terminal.
Soundpays core technology is patented in the United States and patent-pending in 119 additional countries under a PCT application. Since receiving a favourable opinion from WIPO (Switzerland) the company has made individual filings in Europe, China, Canada, and Japan. Soundpays has also recently submitted a Provisional Patent in the US for a second technology which is expected to be revolutionary to the TV and FM broadcast sectors, and is in the process of refining a third technology prior to patent filing.
A number of companies use ultrasonics to transfer data. However, Soundpays is relatively unique in its positioning of digitally connecting to proximity ads and broadcast content. This uniqueness is made possible by technology innovation. A major European telecom and broadcaster recently tested a number of ultrasonic technologies in different environments. They reported Soundpays to be superior in response times from TV and OOH signs, ability to retrieve media from the furthest distances (using low-power beacons), simplest to deploy on TV and in stadiums and effectivenss in filtering out extraneous ultrasonic noise.
Traction
Soundpays’ customer base includes Cadillac Fairview (Canada’s largest mall operator) and Swisscom in Switzerland. The company currently has signed agreements with a major credit card company, a major North American professional sports franchise and a leading global marketing/advertising agency. Soundpays is currently preparing to enter the Japanese market after successful 2020 POCs with two major corporate conglomerates and a TV/FM broadcasting broadcasting company in that country.
Soundpays’ biggest hurdle is to overcome in the following year is adapting their technology to work with the North American broadcast standard. The company’s most recent patent filing is for a technology developed to address this problem.
Team
Peter Misek, Founder and Chairman – Peter has had an illustrious career in the capital markets sector. He is currently a Partner, BDC IT Venture Fund, and also sits on a number of tech company Boards. Prior roles include: Partner at DN Capital, Managing Director at Jefferies LLC, Managing Director at Canaccord Adams, Economic Advisor to Government of B.C., Managing Partner of Orion Securities, Director of Scotia Capital, VP of JPMorgan Chase, and VP of Deloitte.
Steve Doswell, Founder and CEO – Before acquiring his role as CEO of Soundpays, Steve was the CEO of First Information Security. He has been the co-founder or member of the founding teams of start-ups iSTAR Internet, Dexit, and PharmaTrust; all of which were grown to over 400 employees prior to being acquired. He has also served as GM of Ericsson Canada and COO of AOL Canada.
Doug Sutherland, CTO – Doug Implemented the award-winning CIBC- Tim Hortons Double-Double card. He developed social interaction solutions for Timeplay, Canada’s biggest entertainment app (4 M downloads), and has been in C-Level Tech roles for 2 successful IPO’s.
Funding
Soundpays vision is to revolutionize the standard in touchless, contactless payment, and in doing so, they are continuing to seek funding to full growth initiatives. They are currently in the process of closing their Seed 2 offering of US$2 M at US$8.5 M valuation. Prior, they held an early close of US$400k in Q4 of 2019. The remainder is being held for US and Asian VCs in a Q4 2020 close. Once secured, Soundpays plans to allocate the funds to their patentable R&D projects and to support the onboarding of new customers.
Soundpays past financing history has included an initial Friends and Family raise of $330k USD , a $1.5 M USD Seed round and $600k USD from a 2018 Convertible Debenture with existing shareholders. Lastly, as previously mentioned, the company conducted an early-close of the Seed 2 round for $400k USD.
Following their rapid growth trajectory, Soundpays plans for further expansion as they look to add additional engineers and build sales teams that are focused on North American and International markets.
Revenue Model
Soundpays collects a set-up fee and an annual license fee for access to the system (typically US$180,000 with increasing tiers depending upon active users). The company then receives US$0.10 for every download from an audio play (equivalent to a cost-per-click) and 2.5% of all purchase transactions (equivalent to cost-per-acquisition). The acquirers then negotiate their own business deals with the actual advertisers (who pay for the service) and the mobile app/wallet providers.
Details
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