Capnetix is at the point of market entry, and is now searching for the right investor to help us capture this market. As we speak with investors, they ask us questions about our company, and in order to be efficient, we wanted to start an FAQ so subsequent investors can benefit from our conversations with earlier ones..
"Our view is that ‘connector’ companies tend to commoditize quickly and it takes a lot more engineering after that to keep customers happy"
The VCs question was excellent, and we were very fortunate that it points right to an "Unfair Advantage" that Capnetix brings to the financial services record keeping and reconciliation sector, but that we had not yet documented. Please let me explain.
Prior to founding Capnetix, I started another firm, whose core value add was to package and deliver snap together supply chains for mass customized manufactured products. If you are not familiar with mass customization, think of how you purchase a Dell computer from their website. You start with a base product line, then make selections of different options to customize the product for your specific needs. Each of the product options is "pre-engineered" to work correctly. Once you place the order, the manufacturing system dynamically creates a Bill of Materials which defines exactly how your computer will be built, that may be different from all other computers made on the line that day.
As the final manufacturing line assembles your product, it communicates to it's connected supply chain for replenishment.
So how does this apply to Capnetix and InvoiceConnect?
Here is the analogy. Mutual fund companies deliver their funds to end investor through a "supply chain", which is their specific network of intermediaries. The "options" are the parameters that specify the contract between the fund company and the intermediary for reimbursement. Capnetix provides a unique way to quickly and accurately define this combination of multiple products and the parameters associated with the billing. Our ability to quickly and cheaply "mass customize" combinations will differentiate us from the competition and provide a barrier to market entry by larger competitors.
This unique capability prevents commoditization, and allows for very low cost customization (specifically the engineering required to specialize a particular product/parameter combination). To our knowledge, no other competitor can provide this capability, and it is the key to the value proposition that Capnetix provides.
If you are an investor, and would like to learn more, please contact Charlie Peppler at cpeppler@capnetix.com.
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