Details
1 | WordPress runs 33.2% of the entire internet - approx 75M websites. |
2 | Managed hosting is expected to grow to $75.6B in 2020. |
3 | New technology, different from other managed hosting providers, at affordable prices. |
4 | Already built, in beta and has very happy users providing great feedback. Ready to go to market! |
5 | Hosting 500+ websites, with more than 90 million requests per month, and increasing each day. |
6 | Deployed 5 clusters: 3 in N. America and 2 in the UK. |
7 | Enable design agencies to harness the power of cloud providers, like Amazon, without the headache, resources, or heavy price tag. |
What keeps you up at night? For a lot of website agency owners, it’s that ever-present anxiety that comes with managing client sites, and having to drop everything at a moment’s notice when a client calls, often at the worst possible times. It’s knowing that your client sites are vulnerable, and it’s that nagging worry in the back of your mind that your backups might not be working.
As the founder of Convesio, I know this anxiety all too well. For the last two decades, I have been helping businesses establish and thrive online. Over the years, I have switched web hosts dozens of times, in hope that I would find a host that was as obsessive about uptime, performance, and security as I was. As technology progressed, it seemed like web hosting providers were frozen in time, with little motivation to truly innovate.
Tired and frustrated, I decided to build it myself.
I was committed to rethinking how a WordPress tech stack would operate. Every component needed to utilize the latest tech and be optimized to get every drop of performance out of WordPress. This would need to be custom built, no cPanel or out of the box server configuration or management tools. It needed to be simple to use, affordable, secure, and scalable, with the ability to handle millions of visitors per site. After thousands of hours, endless cups of coffee, and a too many sleepless nights, Convesio was born.
Convesio is next generation of managed WordPress hosting; the first self-healing, autoscaling, platform-as-a-service for creating and managing WordPress sites.
Convesio has financial statements ending May 20 2019. Our cash in hand is $23,760, as of June 2019. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $2,382/month, and operational expenses have averaged $13,004/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Overview
Convesio provides digital marketing agencies with a platform for hosting scalable WordPress websites without the complexity of traditional cloud providers. Convesio sites outperform traditional hosting providers, reducing client complaints. We simplify hosting, providing a high availability, secure and scalable platform for client sites and streamlined workflows for agencies. This enables agencies to differentiate hosting and use it as a true selling point while maximizing hosting profits.
The hosting market is primed for disruption as businesses realize they cannot reliably host their website on discount legacy providers. Convesio's approach and technology makes it a clear choice over legacy competitors. Our aim over the next 5 years is to have a global server presence, hosting tens of thousands of websites and a company valuation approaching $100m.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Milestones
Convesio, Inc. was incorporated in the State of Delaware in February 2018.
Since then, we have:
Historical Results of Operations
Our company was organized in February 2018 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Convesio, Inc. cash in hand is $23,760, as of June 2019. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $2,382/month, and operational expenses have averaged $13,004/month, for an average burn rate of $15,386 per month. Our intent is to be profitable in 30 months.
Since having our financials completed, we've started incurring the cost of our production server stack as well as full time engineering, support, and operations personnel. We have added new customers to the platform in the form of trial accounts which we expect will be converting to paying customers in the next 30 days. We've also begun the process of charging beta customers and are working to set up auto payments via credit card for our existing active beta customers.
Over the next 3-6 months we expect revenue to ramp up as we continue to onboard new customers from our existing sales pipeline consisting of over 300 companies who expressed interest in our platform. We will also be working to convert existing trial accounts into paying customers and convert new leads into customers. Our founder and co-founder have contributed capital to the business, and have access to additional capital as needed and can sustain the current company for 12 months with no additional funding. By Fall 2019, we expect (although cannot guarantee) revenues to be about $2,000 monthly, and expenses to be about $20,000 - $25,000 monthly.
1 | Convesio's current business model is not proven or a source of significant revenue. Current revenues do not cover current expenditure of the company. As a result, the Convesio's business model is due to change and adapt according to market conditions, product market fit and finding a successful sales and revenue model. |
2 | A significant amount of the team's time is spent working remotely. Convesio uses the latest communication methods, such as Slack and Zoho message apps, to make sure the team is working towards a common goal and product development, however, as the team expands it is unproven that this method is optimal to product development. As a result, it may be necessary for the team to find a more stable base. |
3 | Convesio's current software applications are new and therefore do not have a stable or significant customer base. It is necessary that Convesio grows the number of customers of rapidly, although, there is no guarantee Convesio will do so. |
4 | The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions. |
5 | Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.potentially result in departures in Convesio if team members did not want to relocate. |
6 | Convesio's limited operating history may make it difficult to evaluate Convesio’s current business and Convesio’s future prospects. Convesio has encountered and will continue to encounter risks and difficulties frequently experienced by growing companies in rapidly developing and changing industries, including challenges in forecasting accuracy, determining appropriate investments of Convesio’s limited resources, market acceptance of Convesio’s existing and future products and services, competition from established companies with greater financial and technical resources, acquiring and retaining users and developing enhancements to Convesio’s products and services. Convesio cannot assure you that the company will be successful in addressing these and other challenges Convesio may face in the future. |
7 | Convesio is reliant on single full-time Officer, which it must retain to ensure continued growth and productivity. The loss of the CEO may have an adverse effect on the business. |
8 | Many of Convesio’s current and potential competitors have longer operating histories, significantly greater financial, technical, marketing and other resources and larger customer bases than Convesio does. These factors may allow Convesio’s competitors to respond more quickly than Convesio can to new or emerging technologies and changes in customer preferences. These competitors may engage in more extensive research and development efforts, undertake more far-reaching marketing campaigns and adopt more aggressive pricing policies which may allow them to build a larger user base or to monetize that user base more effectively than us. Convesio's competitors may develop products or services that are similar to Convesio’s products and services or that achieve greater market acceptance than Convesio’s services. This could attract users away from Convesio’s products and reduce Convesio’s market share. |
9 | Investors will not see a return on Convesio until acquired, IPO, or becomes profitable to start paying dividends to shareholders. None of those events are guaranteed to happen. Also, that dividends will only be paid if and when declared by the Board. |
10 | If adequate funds are not available or not available on acceptable terms, Convesio may not be able to fund its expansion, promote its product as Convesio desires, take advantage of unanticipated acquisition opportunities, develop or enhance services or respond to competitive pressures. Any such inability would have a material adverse effect on Convesio’s business, results of operations, financial condition and prospects. |
Director | Occupation | Joined |
---|---|---|
Thomas Fanelli | Executive @ Aptly | 2018 |
Officer | Title | Joined |
---|---|---|
Thomas Fanelli | Secretary President Vice President Treasurer CEO | 2018 |
Holder | Securities Held | Voting Power |
---|---|---|
Thomas Fanelli | 5,000,000 Common Stock | 76.1% |
Date | Amount | Security |
---|---|---|
$0 | SAFE |
$200,000 | 85% of our capital will be used to fund ongoing support and customer success initiatives, as we scale our customer base. We'll be onboarding new customers who are in our sales pipeline, waiting for access to the platform, as well as additional new customers we acquire during this period.
7.5% will be used for business operations. This includes legal fees and operating costs.
7.5% for the Wefunder Intermediary Fee. |
$1,000,000 | 30% of our capital will be used to fund ongoing support and customer success initiatives, as we scale our customer base. We'll be onboarding new customers who are in our sales pipeline, waiting for access to the platform, as well as additional new customers we acquire during this period.
30% will be used to expand marketing, demand generation efforts and participate in WordCamps across the United States.
25% will be used to expand our engineering department and server infrastructure provided by Amazon Web Services and Google Cloud.
7.5% will be used for business operations. This includes legal fees and operating costs.
7.5% for the Wefunder Intermediary Fee. |
Class of Security | Securities (or Amount) Authorized |
Securities (or Amount) Outstanding |
Voting Rights |
---|---|---|---|
Common Stock | 10,000,000 | 6,575,000 | Yes |
The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.
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