The Company has invested a total of £1,450,000 in Engage Technology Partners Limited (“Engage”) comprising 72,121 shares at a blended average price of £19.42 per share and £50,000 in a Convertible Loan Note representing approximately 4.0% of the issued capital in Engage. The last capital raise completed by Engage secured £7m at £22 per share.
Founded in 2013, Engage builds software to assist with finding, hiring, compliance and paying of the rapidly growing contingent workforce in the UK. Their platform supports the entire workflow, and simultaneously services employers, recruitment agencies, payroll companies, accountants and workers. Having everyone in the supply chain sharing the same platform makes a difficult, expensive, and error-prone process simple and more cost effective.
At present the recruitment industry is fragmented by dozens of software suppliers providing only part of the functionality required, to one customer at a time. This generates duplication of effort, administration errors and fraud as data is re-keyed and passed manually between parties. Engage’s solution to this is a SaaS platform hosted on Amazon Web Services, available securely via the Cloud on any internet device, by the whole market, simultaneously.
Engage is sold via a referral and viral sales model and does not have a marketing budget as part of its business model. Its directors believe it is already challenging the large enterprise-based incumbents via a low-cost SaaS model of charging GBP1.99 per worker per week.
In the world of SaaS, scale is everything, thus Engage is load testing to deal with 100,000 paid workers with multiple transactions per week, and 10,000+ customer service tickets per week with current product and resources to stay ahead of demand. In the coming year, Engage aims to complete the development of product automation to lift all scalability limitations.