Votem

Votem

Early Stage

An Election System That Offers In-Person Voting With Little To No Waiting!

An Election System That Offers In-Person Voting With Little To No Waiting!

Overview

Raised this Round: Raised: $24,485

Total Commitments ($USD)

Platform

StartEngine

Start Date

08/23/2023

Close Date

10/23/2023

Min. Goal
$14,998
Max. Goal
$1,234,998
Min. Investment

$496

Security Type

Equity - Common

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$4.10

Pre-Money Valuation

$10,047,911

Year Founded

2017

Industry

Business Services, Software, & Applications

Tech Sector

EnterpriseTech

Distribution Model

B2B

Margin

High

Capital Intensity

Low

Location

Cleveland, Ohio

Business Type

Growth

Votem, with a valuation of $10.05 million, is raising funds on StartEngine. The company has developed an election system that provides in-person voting services without almost no waiting time. Votem ’s FastPass Voting technology eliminates queues at the polls and helps make voting easier, faster, and more accessible. Votem’s technology has already been installed on more than 30,000 ballot marking devices for Los Angeles County and will soon expand to the larger elections market by the 2024 general election. Peter G. Martin founded Votem in October 2017. The current crowdfunding campaign has a minimum target of $14,997.80 and a maximum target of $1.23 million. The campaign proceeds will be used for engineering, development, inventory, company employment, sales and marketing, and working capital.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$274,710

$79,054

COGS

$68,977

$14,684

Tax

$530

$0

 

 

Net Income

$-418,916

$-274,492

Summary Balance Sheet

FY 2022 FY 2021

Cash

$23,205

$259,898

Accounts Receivable

$60

$2,441

Total Assets

$265,737

$736,967

Short-Term Debt

$1,485,123

$1,522,437

Long-Term Debt

$468,333

$483,333

Total Liabilities

$1,953,456

$2,005,770

Financials as of: 08/23/2023
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Synopsis

Voting is the cornerstone of any democratic society. However, the voting process can often be time-consuming and inconvenient, leading to long lines at polling stations and potentially discouraging citizens from voting. This is a problem that Votem aims to solve.

Votem has developed an innovative election system that significantly reduces waiting times at polling stations. The company's FastPass Voting technology allows voters to pre-mark their ballots on their mobile devices. Once at the polling station, voters can scan their pre-marked ballot, print off a tabulatable paper ballot, and cast their vote. This process makes voting faster, easier, and more accessible to a broader range of voters.

FastPass Voting has already been implemented on over 30,000 ballot marking devices for Los Angeles County. With plans to expand to the larger elections market by the 2024 general election, Votem is poised to impact the voting process significantly. The company's technology has the potential to revolutionize the way we vote, making the process more efficient, accessible, and inclusive.

The current crowdfunding campaign on StartEngine aims to raise funds to develop the company's technology further, expand its inventory, and invest in sales and marketing. The funds will also increase company employment and provide working capital.

Next Section: Price

Price

Votem is offering equity at a $10.05 million valuation. While the company's FastPass Voting technology has the potential to revolutionize the voting process and eliminate long queues at the polls, the valuation seems inflated given Votem's current revenue and stage of development. With an annual revenue of $274,710 and still in the early growth stage, the company's valuation is relatively high, with a revenue multiple of 36.58.

Investors should consider the risks associated with investing in Votem at this valuation. The company has not yet generated significant revenue and has no prior funding rounds, indicating a lack of traction and outside investor confidence. Additionally, Votem's long-term debt of $468,333 and short-term debt of $1,485,123 raise concerns about the company's financial stability.

While the potential market for Votem's technology is significant, to expand to the larger elections market by the 2024 general election, it is important to note that venture capital investors do not currently back the company. This lack of institutional support may impact the company's ability to scale and achieve widespread adoption.

Given these factors, investors should carefully assess the valuation and consider the potential risks before investing in Votem. While the FastPass Voting technology has promising potential, the current valuation appears to be overvalued relative to the company's current stage of development and revenue.

Next Section: Market

Market

Votem operates in the global voting software market, valued at over $1 billion. The market growth rate is modest but steady, with a compound annual growth rate (CAGR) of 5.14%. However, the market potential is considered relatively low, likely due to the specific and niche nature of the product offering. A few established competitors in this space, such as ES&S, Dominion, and Hart Intercivic, suggest a moderately competitive landscape.

Indeed, this market is highly regulated, indicating that any company operating within it must comply with stringent rules and guidelines. This may present a barrier to entry for some companies but could also serve as a form of competitive advantage for those already established within the market and compliant with its regulations, such as Votem.

With a primary revenue model described as transactional and a B2B distribution model, Votem's target market likely includes government bodies and election commissions. Looking ahead, Votem plans to expand its innovative technology to the larger elections market by the 2024 general election, signaling ambition and growth potential.

Next Section: Team

Team

Votem was founded by CEO Pete Martin. Martin has a background in the technology industry and brings relevant experience to the company. He has successfully led a previous company to an exit, demonstrating his ability to navigate the business landscape. Martin is dedicated to the success of Votem and has assembled a team of experts to support the company's growth.

The team at Votem is small but focused. The company has a strong engineering and development team responsible for creating and improving the FastPass Voting technology.

As the CEO, Martin brings high-level managerial skills to the team. He has the experience and expertise to guide the company through its growth phase. With his leadership, Votem is well-positioned to expand its innovative technology to the larger elections market ahead of the 2024 general election.

Next Section: Differentiation

Differentiation

The key differentiator of Votem's FastPass Voting technology is its ability to reduce waiting times at polling stations significantly. This addresses a significant pain point in the voting process and aims to improve the overall voting experience for individuals. Votem's solution can help increase voter turnout and participation in elections by virtually eliminating queues.

Votem competes with legacy competitors in the voting software market, like ES&S, Dominion, and Hart Intercivic. Votem's FastPass Voting technology sets it apart from these competitors by offering a unique solution to streamline the voting process and enhance accessibility. With its focus on reducing waiting times and leveraging mobile technology, Votem's solution stands out as a disruptive force in the industry.

Votem's differentiation level in terms of quality is high, as evidenced by its successful implementation in Los Angeles County. The company also holds patents for its technology, further solidifying its unique position in the market. 

Votem's FastPass Voting technology offers a compelling value proposition in the voting software market. With its focus on improving the voting experience and addressing critical pain points, Votem can potentially disrupt the industry and gain a competitive edge.

Next Section: Performance

Performance

Votem has made significant progress in developing and implementing its FastPass Voting technology. The company's technology has been installed on over 30,000 ballot marking devices for Los Angeles County, providing in-person voting services with minimal waiting time. This successful deployment demonstrates the effectiveness and potential of Votem's solution in improving the voting experience.

With major customers such as LA County, Rock & Roll Hall of Fame, and NATAS, Votem has established itself as a trusted provider of election systems. These partnerships validate the value and reliability of Votem's technology in real-world voting scenarios.

Looking ahead, Votem aims to expand its innovative FastPass Voting technology to the larger elections market by the 2024 general election. This presents a significant opportunity for growth and market penetration. By combining secure mobile technology with paper ballots, Votem aims to make voting faster, easier, and more accessible, ultimately eliminating poll queues.

Votem's FastPass Voting technology and partnerships with notable customers position the company as a promising player in the voting software market. As Votem continues to develop and refine its solution, it has the potential to revolutionize the voting experience and capture a significant share of the addressable market.

Next Section: Risk

Risk

Votem operates in a highly regulated market, which introduces significant risks to the company. Established players such as ES&S, Dominion, and Hart Intercivic dominate the voting software industry and are well-known and trusted. Votem will face intense competition from these established competitors, which may make it difficult to gain market share and establish a strong foothold. 

Legal issues are also a significant risk for Votem. Given the sensitive nature of voting and the potential for fraud or security breaches, the company will likely face scrutiny and regulatory hurdles. Votem must navigate these legal challenges effectively to ensure compliance and maintain the trust of its customers.

Financially, Votem's revenue growth has been impressive, but the company still operates at a loss. Net income for the most recent fiscal year-end was negative, indicating that the company has not yet achieved profitability. Votem's burn rate is relatively high, with a monthly burn of $34,909.67. This suggests that the company requires ongoing funding to sustain its operations.

Furthermore, Votem's market valuation appears to be inflated compared to its current financials. The company may be considered overvalued with a pre-money valuation of $10.05 million. Investors should carefully evaluate the company's financial projections and growth potential to determine if the valuation is justified.

Next Section: Bullish Outlook

Bullish Outlook

Votem has developed an innovative election system that has the potential to transform the voting experience. With its FastPass Voting technology, Votem aims to eliminate long queues at polling stations, making voting faster, easier, and more accessible. The company's technology has already been successfully implemented on over 30,000 ballot marking devices in Los Angeles County, showcasing its effectiveness and scalability.

The timing of Votem's expansion into the larger elections market is particularly advantageous, with the upcoming 2024 general election presenting a significant opportunity for growth and adoption. By combining secure mobile technology with paper ballots, Votem's patented and trademarked technology allows voters to conveniently pre-mark their ballot on their mobile device, scan it at the polling station, and print off a tabulatable paper ballot.

The market potential for Votem is substantial, as it targets the global voting software market. With its unique and user-friendly solution, Votem has the potential to capture a significant market share, particularly in jurisdictions seeking to improve their voting processes and enhance voter participation.

The company's revenue growth has been impressive, with sales reaching $274,710 in the most recent fiscal year, representing a remarkable annual growth rate of 247.50%. This strong revenue growth, coupled with Votem's high margin level, demonstrates the viability and scalability of its business model.

Votem has already established partnerships and has a track record of successfully implementing its technology. With the proper funding and resources, the company can further enhance its product, expand its engineering and development capabilities, and invest in sales and marketing efforts to drive greater adoption.

Next Section: Bearish Outlook

Bearish Outlook

Votem operates in a highly competitive industry, facing competition from well-established players such as ES&S, Dominion, and Hart Intercivic. These competitors have established their presence in the voting software market and built strong relationships with government entities and election officials. It will be challenging for Votem to gain significant market share and compete effectively against these established competitors.

Furthermore, Votem's revenue multiple 36.58 indicates that the company is overvalued compared to its current revenue generation. Additionally, Votem reported a net loss of $418,916 in the most recent fiscal year, indicating a lack of profitability.

Lastly, while Votem has developed innovative technology for in-person voting with little to no waiting time, the adoption of such solutions by government entities may face barriers. The voting industry is highly regulated, and implementing new technologies often requires extensive testing, approval, and adoption processes. Votem may encounter challenges in convincing government entities to adopt its technology on a large scale.

Next Section: Executive Summary

Executive Summary

Votem is a technology company that has developed an innovative election system, FastPass Voting, which aims to make in-person voting faster, easier, and more accessible. The technology has already been installed on over 30,000 ballot marking devices for Los Angeles County and is set to expand to the larger elections market by the 2024 general election. Votem's patented and trademarked technology allows voters to pre-mark their ballot on their mobile device, scan their marked ballot at the station, and print off a tabulatable paper ballot.

The company has shown impressive annual revenue growth of 247.5%, albeit from a small base. It has plans to expand its innovative technology to the larger elections market ahead of the 2024 general election. However, the company is still pre-profit, with a net income in the most recent fiscal year of -$418,916.00.

Despite the promising technology and growth prospects, Votem faces a moderately competitive landscape and high barriers to entry. The company's valuation of $10.05 million may be considered high, given its current financial performance and the competitive environment. Therefore, potential investors should weigh the company's growth prospects against these risks.

The proceeds from the current crowdfunding campaign, with a minimum target of $14,997.80 and a maximum target of $1.23 million, will be used for engineering, development, inventory, company employment, sales and marketing, and working capital.

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Votem on StartEngine 2023
Platform: StartEngine
Security Type: Equity - Common
Valuation: $10,047,911
Price per Share: $4.10

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