Sprout magazine: pitch Cloudtract

Sprout/ Article, editor Sprout

Sprout is the network for a new generation of entrepreneurs and editor Robert van den Oever interviewed Angelique Schouten, CEO from Cloudtract, for the “Pitch” column in their magazine. This pitch was judged by two investors who gave their expert opinion. Patrick Leers (founder Mind Hunter) and Michael Lucassen (Managing Partner TIIN Capital) gave their honest opinion about the Beta version of Cloudtract.

1. The Idea

“Contract management tends to be neglected by most companies. Contracts are often spread out throughout numerous departments, cabinet files and spreadsheets; nobody has an overview. Resulting in unwanted renewed contracts, failing to seize cost saving opportunities and possibly even the closing double contracts. Annually, this can save costs up to ten thousands of euros. Cloudtract, a free online contract management tool offers a central storage place and an overview of contracts and their expiration dates. Ample time before an expiration date ends, you receive an alert, allowing you to cancel contracts on time, to modify or renegotiate the terms of the contract.”

2. Distinctiveness

“It’s free, simple and safe. For our target audience, companies that have about ten to several hundreds of employees, a software package with ERP-accounting programs is often too expensive and complex. Cloudtract works easily and intuitively: in one glance you have an overview of your contracts and their expiration dates. In Cloudtract you are also able to distinguish various user rights: not everyone can and has to have access to everything. This contract management software is based on the latest cloud technology available and uses the same software that is used for securing bank account details.”

3. Business model

“We have developed Cloudtract because we were not able to find a simple, affordable contract management system for our sister company, an insurance company. Cloudtract is a free service for companies and will stay free in this current form. Naturally, we do want to generate money, for which we have different ideas. For example, we want to offer users a feature to compare costs or offer a white-label application for accountants. But our first priority is to establish a large amount of companies that use Cloudtract and who are satisfied about it.”

4. Results and ambitions

“There are over 250 companies, from eight different countries, who are now using Cloudtract. We are currently in the process of making the website suitable for multiple languages and I expect that in the course of 2016, we will head towards 50.000 to 100.000 companies internationally. In addition to this, we have the ambition to make Cloudtract available for individuals, since they have a similar issue and we have often received a lot of requests.”

The Verdict

PATRICK LEERS Risk capital expert and founder of Mind Hunter

“The idea is simple and originates from a frustration every entrepreneur has once experienced. The website looks fresh and neat and contains everything needed to offer the service. But the business model is still unknown, add the fact that there is a huge competition in (online) accounting packages and Excel, and you may face the possibility that Cloudtract will stay a ‘hobby-project’. To prevent this, it will be best for Angelique Schouten to cooperate with accountants and (online) accounting package providers. Linking Cloudtract to third party websites can also be a business model. I would advise Cloudtract to generate as users much as possible, and then connect itself to other parties. This way, marketing costs are being limited.”

MICHAEL LUCASSEN Managing Partner at TIIN Capital

“When I started working, I had an index-card box on my desk that I checked every morning for warnings. It was always up-to-date and was part of my work- and thinking-system. Is Cloudtract similar like that? Its promise is powerful: important expiration dates or conditional terms of contracts are notified through simple, safe and free alerts. Unfortunately, there are already multiple solutions existing, that provide these kind of warnings. These other solutions are also able to be used alongside other software packages. The only thing new about Cloudtract is that it’s free. The fresh, modern and simple website is appealing and invites you to try and test it out (because it is free). For investors, it does not seem ready yet. There is no business model, they aren’t making money and it is not part of a system. Ultimately, the only thing that seems to be of value is the amount of users, which makes collaborating with strategic partners sound rational. Otherwise, large parties will be able to launch something similar in a much faster and bigger way. Does Cloudtract wishes to be successful, it has to become a part of a system.”

Original article
Click here to read the actual Dutch article as it was published in Sprout Magazine.