IIO S.r.l.

StartUp Name

IIO S.r.l.

Summary

IIO is the fastest conversational vocal AI platform powered by human and generative AI that allows corporates and SMEs to easily create multiple AI agents specialized on all company's knowledge base to automate and scale human-like processes of sales assistance, customer care, onboarding and education, through a user friendly plug&play platform

We help enterprises to narrow the distance between the company and its employees and customers reducing waiting time wasting, enhancing the user experience and optimizing costs.

Full StartUp Description

IIO is the fastest conversational voice AI platform for SMEs and enterprises currently on the Italian market, which uses advanced technologies such as generative AI and human AI (emotional intelligence). Thanks to our patented technology, we transform complex corporate knowledge into intelligent voice agents that in just a few minutes of training can support companies in automating information, training and customer care processes.

Our positioning stands out for the creation of personalized and private voice agents for companies characterized by a complex commercial offer and continuous pre-sales and post-sales services. These agents are designed to understand and effectively respond to the needs of employees, sales agents and customers, ensuring complete privacy of personal data. Our team operates in Milan, within the offices of Fool Farm SpA. IIO is an innovative startup created by FoolFarm's internal R&D and founded in October 2022. In line with the Venture Builder business model, the startup was born therefore 100% within FoolFarm, after a structured design and validation process lasting approximately 6 months, conducted by a multidisciplinary team of approximately 30 FTEs.

The startup completed a Pre-seed fundraising in Q2 2022 of €315k through “Convertendo” - Payment into account for a future capital increase which will be converted by July 2024. The investors include around 30 business angels, C-levels and experts in the tech sector. The available funds, in accordance with the FoolFarm business model, were therefore invested (in the following months) mainly in the technological development activity of the MVP (Minimum Viable Product).

Business Model

IIO's business model is based on a complex but flexible offering of conversational AI solutions, designed to perfectly adapt to the specific needs of each company through a Platform as a service model. At the center of our proposal are Knowledge Assist and Scope Agent, two pillars that transform corporate knowledge bases into virtual assistants capable of managing both incoming and outgoing conversations, improving efficiency and user experience. We offer our solutions purely to the B2B market or to professional services SMEs, the characteristics of the target companies for IIO have:
Producers of complex goods or services that require knowledge
Complex intellectual activity that represents a company production factor
Pre sales and post sales activities that correspond to a relevant element of the company value chain

IIO Pricing Model:

Setup Fee: A one-time initial cost that varies depending on the complexity of the project and customizations required, averaging €15,000 for new enterprise customers.
Monthly Subscription (Recurring ARR): Based on a flexible SaaS model, this subscription covers ongoing use of the Knowledge Assist and Scope Agent platforms. Pricing varies based on the volume of interactions and complexity of integrated solutions, with a focus on scalable offerings that can grow with the client company.
Premium Features: Include additional services such as advanced integrations with CRM and other business systems, predictive analytics, multilingual support, and deep conversation flow customizations. These features are designed to further improve the interaction between companies and their customers or employees, ensuring an even richer and more personalized experience.
Extra Conversation Credits: For businesses that exceed the monthly usage limits of their subscription, we offer additional credit packages to extend your ability to interact without interruptions.
Our consultative approach allows us to deeply understand each client's needs and work together to implement our solutions in their digital environment. Every element of our business model is designed to make technology accessible, scalable and incredibly effective based on the size and needs of the partner.

User Acquisition Process

Sales Channels

In the 2024-2025 period, our commercial strategy will focus on the implementation of a
go-to-market divided into different stages and sales channels to maximize market penetration and
optimize available resources.
● Direct Channel
In the first phase of the business plan, the main approach will be through the direct channel, which
it will initially involve the management and co-founders and, in a subsequent phase, the intervention of agents
commercial. This approach will allow you to build direct relationships with key customers and obtain immediate feedback from the market. We have estimated that, for the first year, the direct channel will represent 80% of sales.
● Software as a Service (SaaS) platform
As the available investment increases, we expect the creation of a SaaS platform. This
it will allow us to scale the business model, improve product accessibility and reduce the cost
marginal on the retail version of IIO. The SaaS platform will gradually replace a portion of sales
direct (from the financial plan the value will remain equivalent), allowing to increase efficiency and market coverage of the micro SME segment.
● Indirect Channel (VAR)
We are making use of the support of Value-Added Resellers (VAR) first-rate partners such as KPMG and Strategic Partners. This is allowing us to reach a wider audience by leveraging the internet and the experience of the partners thanks to whom we have opened a substantial pipeline. Their importance strategic strategy derives not only from connections with important companies, but also from level collaboration of insights that allows us to refine the go-to-market strategy, helping us and prospect companies to overcome AI adoption barriers, as mentioned in the “Problem” section.

We expect the indirect channel to gradually increase its market share from 20% initial (first 12 months) to a more significant percentage over time.

● Original Equipment Manufacturers (OEM)
In the third phase, we will integrate the OEM channel, collaborating with legacy OEM software manufacturers. This channel will allow us to insert our product into broader solutions offered by
manufacturers, further expanding our presence on the market. Although OEM is not foreseen in the first year, we expect a significant contribution in subsequent years.

In the first year, we expect a sales split of 80% coming from the direct channel and a
20% from the indirect channel, excluding the OEM. As the plan evolves, the weight of the direct channel will decrease progressively, while SaaS will increase its internal share compared to direct customer service.
Simultaneously, the indirect channel and the OEM will gain share, balancing and diversifying ours
sources of revenue.

Specifically regarding the Funnel Scheme of client acquisition:

IIO's sales funnel is structured into several key stages, each of which is designed to guide prospects from first contact to deal closure. Here is a predictive statistical description of the stages of the direct funnel.

Description of the Annual Funnel Steps:
Contact Reached: Starting point with 10,000 initial contacts reached, marking 100% of our initial input into the funnel.
Lead Generation: Phase in which interest is generated, with 2,000 potential leads identified (20% conversion from initial contacts).
Pitch: Detailed presentation of the product/service to 200 potential customers (10% conversion from leads).
In-depth Interest: Further qualification of prospects, with 100 contacts showing greater interest (50% conversion from pitches).
Identification of Use Cases: Identification of use scenarios with 80 prospects (80% conversion from in-depth interest).
Feasibility Study: Analysis of the feasibility of the product/service for 60 cases (75% conversion from use cases).
Offer Received: Preparation and sending of commercial proposals to 48 potential customers (80% conversion from the feasibility study).
Offer in Negotiation: Negotiation phase with 24 prospects (50% conversion from offers received).
Contract Closing: Closing contracts with 12 clients, representing a 50% conversion from the negotiation phase.

Growth Opportunity

IIO's 2024-2028 Financial Plan has been developed to most accurately depict
possible the economic expectations that the company undertakes to achieve within the indicated timescales according to the defined methods. The growth that will be possible to appreciate from the plan is the result of a vision ambitious that wants to bring the startup to occupy a leadership role in the target sector and according to the desired placements.

From a business perspective, our plan includes the following milestones for the
next months:
- generate at least 8 deals by 2024
- reach at least double the number of recurring customers by 2025.
- Obtain at least 2 Proof of Concept (PoC) during H2 2024, with large corporate customers, who
We aim to turn into ongoing Annual Recurring Revenue (ARR) contracts in 2025.
- Creation of strategic partnerships with indirect channels in order to lighten the burden
operation of the direct commercial channel
For 2025, IIO has set itself the ambitious goal of significantly increasing turnover compared to the year
previous year, aiming to exceed €900k. This increase will be based on the expansion of ours
existing Annual Recurring Revenue (ARR) contracts, with a particular focus on strengthening and
to the expansion of our relationships with large companies and the penetration of new market sectors.
We expect to consolidate at least 12 new ARR contracts over the course of the year that will demonstrate value
and the scalability of our AI solutions.

Furthermore, we aim to strengthen our strategic alliances and explore new partnership opportunities that can further expand our range of action and our market offering, guaranteeing
thus sustained growth and an even stronger positioning in the conversational AI landscape.

Tech Stack Used

Kubernetes, Terraform, Cloud Agnostic, CI/CD GitLab, proprietary STT-TTS, Kibana log, Jango

Monthly Revenue

00

Annual Recurring Revenue

00

TTM (in USD)

9997

Reason for Asking Price

The startup was born in FoolFarm SpA, the major italian venture builder. We believe in our model of creating with and industrial repetitive process multiple revolutionary early stage companies, with the aim of intercepting the best fit on the market that can embrace a high tech valuable product startup and integrate it into its portfolio or business catalogue. At this point IIO has gained its market fit and validation to get incorporate into a bigger reality, allowing both parties to reach a proper satisfaction in terms of market opportunity.

Why are you selling?

We aim to make a consistent short term ROE of our investors and to keep fulfilling our development pipeline.