Despite a relative calm in the market of initial public offerings in Tel Aviv, after several intensive months of raising capital – more companies are trying to reach the public market in the near future. Globes has learned that technology company AIQ Home NIS 35 million, with the requested value being NIS 320 million.
Founded in 2018, the company is developing online platforms designed to provide a comprehensive technological solution for professionals operating in the US home services market, in order to optimize their business operations.
The market it is targeting includes about 5 million professionals who provide services to about 140 million households, with a market size estimated at hundreds of billions of dollars – with the market also characterized by growth during the corona period. Data published on the company’s website shows that on average, 20% of service providers in the field spend over $ 20,000 a month on advertising and marketing their services, and less than 4% use technology to run their businesses.
However, as of the end of 2020 the company is still in the research and development stages and therefore has no activity that generates significant revenue. The balance of its accumulated loss since its inception is about NIS 10 million, it has a deficit of about NIS 2 million in equity and a live business note appears in its financial statements.
AIQ Home’s revenues last year amounted to NIS 1.4 million, compared with NIS 2.1 million in 2019. The company made a gross profit, and in the bottom line, the loss attributed to shareholders was NIS 3.6 million, compared with NIS 3.9 million in 2019.
Target: 7,000 contractors
AIQ Home has developed a marketplace that it believes may reshape the market, allowing it to contact financing entities for loans to carry out projects, make contacts with service providers from various fields and in the future also order equipment from various suppliers. Among other things, you can find in its trading arena professionals in the fields of design, air conditioning, solar energy, electricity, gardening, plumbing, Jacuzzi installation, making the home safe for babies and more. AIQ Home’s system is based on artificial intelligence and based on the activity of each professional it draws conclusions and provides recommendations, while offering transparency on its performance compared to the relevant competitors.
The purpose of the offering is to raise capital in order to penetrate the US market – which is AIQ Home’s target market – after it has already demonstrated technological feasibility. At the feasibility stage the company enlisted 59 contractors, mostly in Florida and California. The goal is to reach 7,000 contractors within a year and a half, with an investment that is expected to reach NIS 6.5 million.
AIQ Home is going public without underwriters, as in its estimation these are having a hard time analyzing its value. The advisor to the company’s board of directors is Arik Arad, a partner in the American venture capital fund Stonecourt Capital and with over 30 years of experience in merging and acquisition processes (M&A), business development and capital raising for technology companies. The offering will be accompanied by Adv. Reut Alfia, managing partner and another Gal Cohen from the law firm Sullivan & Worcester Tel Aviv.
The company’s CEO and founding partner is Adir Dayan, a former consultant to several international companies. Another founder is Amir Tal, who comes with experience in digital marketing. So far, AIQ Home has raised about NIS 15 million from private investors since its establishment in 2018. The company is requesting As stated, to issue at an ambitious value of approximately NIS 300 million, and based on companies operating in the United States in a manner similar to its activities, such as the old HomeAdvisor as well as Houzz, Thumbtack and Porch.