Kitfit
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Kitfit Invest in the future of retail technology. The software that makes finding the perfect product 50x faster and 10x more accurate.
  • Consumer Products
  • Health and Fitness
  • Internet Business
  • Mobile Apps
  • Retail
  • Sport and Leisure
  • A$497,520

    invested

  • 331.8% funded

  • 0

    time left

  • 3.5% - 16.4%

    min - max equity offered

  • A$149,900 - A$800,100

    min - max investment sought

  • A$360

    min investment parcel

OFFER IS CLOSED
And another Q

I also see this as a great opportunity to also branch out into the workwear gear with major brands like CAT/ FXD - would this ever be a possibility to grown the consumer base or will it be limited to what it is

Keith Levitt posted on 05.03.2020

Thanks again for the question, Keith. There are lots of great categories expand into. Our current focus is on the active lifestyle market. Cycling is our first launch vertical then we will expand to the whole of the active lifestyle market, examples include running, swimming, hiking, camping, skiing, surfing, yoga, gym and the broader activewear space. This can also include other complementary products such as workwear, electronics, health, wellness, cooking and homewares - anything that supports people in living an active life.

To achieve the true growth potential of Kitfit we plan to license our technology to retail brands and marketplaces giving us the ability to rapidly scale to support thousands of premium brands across hundreds of verticals and niche areas of interest around the globe.

Andrew Jacobs posted on 11.03.2020

Replied to Keith Levitt

Two questions

One - How do you see investors to get a ROI - dividends for many businesses are unlikely so it is more whether you are looking at selling Kitfit to a larger company

Two - How do you plan to grow the user base other than social media as specialising in business development myself, I immediately see partnering opportunities with retailers in the various spaces as an opportunity for growth and at the same time, getting reciprocal advertising signs up like what Afterpay does

Keith Levitt posted on 05.03.2020

Hi Keith, here are the answers to your two questions.

Question One (1):

How do you see investors to get a ROI - dividends for many businesses are unlikely so it is more whether you are looking at selling Kitfit to a larger company

Answer:

Return on investment in the form of capital appreciation is the central focus of the team. In simple terms, an increase in our share price over time.

The three most common scenarios that can provide a cash return for investors are:

1) Tarde sale. Where an acquiring company often makes a strategic decision to purchase the company to acquire the underlying intellectual property owned by, or the market share captured by, the company it is purchasing. This the most likely means of exit for technology companies that show high-growth potential.
2) Private Equity Buyout. As the Kitfit business scales and our commercial model demonstrates its ability to generate strong cashflow and profits, private equity funds provide a viable option for shareholders to exit all or part of their investment.
3) A stock market listing or IPO.

Our track record to date is five acquisitions and one stock market listing within the founding team. The most recent of note was HotelsCombined, which was acquired in 2018 by Booking Holdings for AUD $200M cash. Our Founding CTO Mikkel Bergmann and Head of Software Engineering David Clark were lead developers of HotelsCombined for over 5 years.

Kitfit is a technology company addressing a $500M global marketing opportunity within the active lifestyle space. The three main factors that drive the valuations of tech companies are technical innovation, the uniqueness of data, and addressable market size and revenue. Valuations of 10 - 200 times seed investment have been achieved within a 5-10 year time period by similar technology companies.

Question Two (2):

How do you plan to grow the user base other than social media as specialising in business development myself, I immediately see partnering opportunities with retailers in the various spaces as an opportunity for growth and at the same time, getting reciprocal advertising signs up like what Afterpay does

Answer:

We have had huge success to date building our audience. The three areas we are focused on to grow our user base for launch are:

1) Leverage our existing audience 100K subscribers, 175K+ audience reach
2) Build on our existing brands and ambassadors partnerships. We already have 100 brands live in the system with over 2000 products for sale. We also have 1500+ ambassadors with a network effect of over 1.5Million people worldwide. We have reciprocal marketing arrangements with our launch partners and we will extend these to other brand partners and ambassadors post-launch.
3) Paid Advertising. The primary purpose of the equity crowdfunding round has been to raise the money to fund our growth marketing campaigns and to hit our target of 50,000 registered users. This will give the scale and volume of data our team needs to get our matching algorithms live and to begin the process of data optimization and product personalisation.

After we hit the 200% funding milestone we brought our customer acquisition specialist Scot McAllan in, and put him to work. We are pleased to report that as of today, after the first week of live campaign testing we are on track to hit our target of 50,000 registered users within the first 30 days of launch.


Andrew Jacobs posted on 11.03.2020

Replied to Keith Levitt

Who you are competitors for you in this business. What different are you doing from them to give you edge and advantage.

Who you are competitors for you in this business? What different are you doing from them to give you edge and advantage

Jogeshwar Preet Singh Kuckreja posted on 04.03.2020

Hi Jogeshwar, great question. Kitfit has two types of competitors, social shopping communities such as Kit.co, Snupps, and Drop; and fit analytics/product personalisation companies like True Fit, Easy Size, Virtusize & Fit Analytics. This can be seen on page 37 of the offer doc.

The problem with both these types of businesses is that they only address part of the problem of ‘misfit’. Social shopping communities are missing the element of fit analytics/product personalisation and the fit analytics companies are missing the social/community elements of online shopping. They are only addressing the problem in 2 dimensions, the shopper + community or the shopper + fit analytics.

Kitfit is evolving a whole new way to discover products (product discovery is 70-90% of a shopper’s time, and has the biggest influence on purchase outcome.) We empower you to discover proven products that are ‘in use’ by the community and fit for your purpose. We do this using our 4-dimensional models of fit, your social graph data (Who you are connected to), interest graph data (Your activities and behaviours), and knowledge graph data (The links between products) with you as the fourth dimension (Your physical measurements, personal preferences and products you already own and love).

In our offer document, we list 3 key pillars for our sustained competitive advantage on pages 24-29. I expanded this below to 6 areas in which we have an advantage over our competition.

(1) Priority technology.
i) Kitfit Rank is our product matching algorithm capable of delivering 50 times faster product discovery with 10 times the fit accuracy of existing systems
ii) Kitfit Bot is our product onboarding algorithm that enables rapid onboarding of products into the Kitfit system 10 times faster than existing tools without the need for API integration.
iii) Kitfit LPT is our proprietary parsing algorithm that translates product descriptions and confusing marketing language into simple, easy to understand product features that product owners can rate, giving superior feature feedback for shoppers.
iv) Kitfit ML is our image recognition & machine learning algorithm from FY 2020 and beyond, Kitfit ML will be developed using image recognition & machine learning to supercharge our Kitfit Rank, Kitfit LPT & Kitfit Bot algorithms increasing the speed & accuracy of product detection & discovery.

(2) Our global community. We have over 200K people a month engaged directly with our social content. Via our core community of influencers, we reach a further 1.5Million people worldwide and growing.

(3) Our business model has been developed specifically for the purpose of incentivising and delivering fast, fun and accurate product discovery. The incentive economics of the Kitfit business model provides a win-win for both shoppers and retailers.

(4) Category defining content. Retailers can’t survive without awesome content and we have it in by the hundreds of thousands. To date, pre-launch, we have had over 200K items of user-generated content submitted for publication by our community.

(5) A world-class team that has spent their whole career developing better ways to connect people with products & services using data and technology. We have five acquisitions and one stock market listing within the founding team. The most recent of note was HotelsCombined, which was acquired in 2018 by the Kayak Group for $200M cash. Our Founding CTO Mikkel Bergmann and Head of Software Engineering David Clark were lead developers of HotelsCombined for over 5 years.

(6) Market timing. The 4 key timing trends that are the core foundations of the Kitfit platform and business model are:
i) Shopping = Entertainment. In her Internet Trends Report 2018, Mary Meeker listed online shopping as one of the stand-out growth opportunities, with mobile shopping app sessions outpacing music media and entertainment as the fastest growth category.
ii) Shopping = Product Discovery. For the average online shopper, 70-90% of shopping time is spent in product discovery & research.
iii) Social product discovery is driving purchase. 55% of people have bought online after discovering a product via social media.
iv) We need a solution to misfit. The rate of unhappy product purchase is growing. 33% of global online sales are returned, an increasing trend over the last decade.

Andrew Jacobs posted on 05.03.2020

Replied to Jogeshwar Preet Singh Kuckreja

Can you explain how shopping experiences are 50 times faster

I'm assuming your app would lead me to a product link on a retail site such as Wiggle. Once there wouldn't I just the samespeed restrictions and returns policy that I currently get by shopping directly with Wiggle? And do you have access to customer review data form retialers such as Wiggle.

Kim Ryan posted on 12.02.2020

Thanks for your question Kim. The Kitfit web app will enable you to connect your social media account, personalise your Kitfit profile and then discover the best products matched to you that are proven by our community. In the beginning we will link from our app directly to a brand or market place to purchase, but the goal of Kitfit is not to make it easier or faster for you to return products you don’t like. The goal of Kitfit is to get you to buy it right the first time, removing the need for returns in the first place.

Most sites, wiggle included, recommend products based on price, the popularity of purchase and product reviews none of which are personalised to you in any meaningful way. Instead, we assess products based on their ‘use’ within the community. We deliver faster and more accurate product discovery by identifying proven products ‘in use’ by athletes and enthusiasts who match your physical measurements and personal preferences.

Our matching technology which you can read about from pages 24 -29 in the offer document, assesses thousands of data points not currently used by existing platforms. We group these into three categories social graph data (Who you are connected to), interest graph data (Your activities and behaviours), and knowledge graph data (The links between products) with you as the fourth dimension (Your physical measurements, personal preferences and products you already own and love)

As referenced in our commercial validation section on pages 11 -14 and page 25 in the offer document we have tested this with our own e-commerce platform as well as with a manual test comparing the speed and accuracy of purchasing a set of cycling wheels from Wiggle and Chain Reaction. We used the available site filters, supplemented with 3rd party information, advice from friends, product reviews, Google search and social media to make a model of Kitfit’s product matching algorithm (Kitfit Rank). The end result, we were able to recommend products 50x faster than the average shopper takes to make a product purchase with less than 3% chance of misfit compared to the average return rate of 33%.

What this means for a shopper is that once our system reaches scale (50K-100K+ users) we can filter out all the potential bad product purchases. Instead of browsing endless products and making rash or uninformed choices. Kitfit will bring the best products to you: community proven and fit for purpose. So when it comes to making the product purchase from the brand's store or market place, all the hard work is done, allowing you to buy it right the first time.

Andrew Jacobs posted on 14.02.2020

Replied to Kim Ryan

  • > Offer Type: Australian Retail (CSF) Offer This offer is open to Retail and Wholesale/Sophisticated investors in Australia. Whilst in New Zealand the offer is open to Wholesale investors.
  • > Company: Kitfit Pty Ltd Securities purchased are for direct equity in Kitfit Pty Ltd.
  • > Security Type: Ordinary Shares
  • > Fees Paid by Issuer: 6.00% of funds raised Upon successful completion of this funding round a total of 6.00% of capital raised will be paid by the Issuer to Equitise.
  • > Cooling-Off Rights: 5 working days - Retail investors in Australia are able to withdraw their applications for securities with accordance to the Australian Crowd Source Funding (CSF) regulations. For more information please click on the link supplied.
    More Info
  • > Related Parties: None

More detailed information about this offer is contained in this Offer Document

Offer Document
Offer overview

The Company is offering 4,165,000 to 22,222,223 shares under the following terms:

Executive summary

OVERVIEW

Kitfit empowers shoppers with expert community knowledge. We take all the uncertainty & inaccuracy out of shopping via our mobile web application. We leverage technology to identify proven products used by people like you and then provide you with the best fit. 

Kitfit’s breakthrough technology delivers shopping experiences that are 50 times faster, 20 times more personalised with 10 times the fit accuracy of existing systems. 

PRODUCT FEATURES

The Kitfit technological ecosystem offers a range of user features and proprietary back-end innovation to revolutionise the retail experience. Matching algorithms and automated processes enable users to get the best products, while retailers can minimise returns and wastage. 

 INVESTMENT HIGHLIGHTS

Business model

TRANSACTIONAL REVENUE

By reducing the cost of returns and all the flow-on costs associated with it, Kitfit can save brands and shoppers billions of dollars a year. Happy product purchases lead to repeat purchases and customer advocacy and Kitfit takes a % of every successful sale. Our immediate goal is a $25k monthly revenue run-rate following this capital raise.

MONTHLY RECURRING REVENUE

Kitfit plans to develop a premium subscription service that will give customers performance-oriented kit recommendations, access to exclusive kit bundles from partner brands, loyalty discounts, product insurance and more.

Strategy & Vision

OUR VISION

Fun, fast and accurate product fit. Instead of browsing endless products and making rash or uninformed choices, Kitfit brings the best products to you: community proven and fit for purpose. With an initial focus on the cycling community, we plan to revolutionise the entire activewear industry.

TECHNOLOGY STRATEGY

Kitfit continues to develop unique technologies to move the product towards a B2C and B2B community solution. 

The primary goal of Kitfit is to build SaaS tools for retailers with a Business Intelligence (BI) interface & dashboard. The service will empower retailers to personalise the shopping experience for their customers. The BI interface will help retailers make more informed decisions on product development, manufacturing, inventory, marketing, sales and business partnerships. Kitfit already has a waitlist of 87 brand partners. 

With MVP testing complete, the proceeds of this capital raise will enable us to launch the product and further invest in its ongoing development and expansion. 

THE WIDER ACTIVEWEAR MARKET

We have proven our ability to build a niche community by becoming the No. 1 Instagram account for premium road cycling kit, surpassing numerous cycling vertical giants in just 8 months. This market represents our initial focus for launch strategy.

Our ongoing market strategy is to scale niche by niche and into adjacent sportswear verticals. This gives us access to the fastest growing retail fashion category: activewear. Given our proprietary technology and marketing flexibility, we are well-positioned to rapidly scale into these additional markets. 

NETWORK EFFECT 

Our rapid community development and brand growth are facilitated by a network effect. It all starts with the Kitfit influencers, a mix of industry professionals and enthusiasts with high category expertise and natural flair for creating authentic viral content.

Kitfit has proven its ability to scale from a very small niche community of influencers, as little as 1,400, to a networked audience of over 1.4 Million people 5x faster than any other brands in market.

This network effect provides the foundation for rapid later expansion into additional activewear markets. This will only multiply as the brand grows its existing community. 

Use of funds

The table below sets out the intended use of funds raised under this Offer based on the minimum and maximum subscription amounts.

For further information please refer to section 3.2 of the Offer Document. 

Financial summary

For a full breakdown of the financials for Kitfit Pty Ltd please see section 2.13 of the Offer Document.

Risks Facing the Business

The table below is a summary of the main risks facing the business. Please refer to section 2.15 of the Offer Document for a full breakdown. 

Andrew Jacobs

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Joe Bramwell-Smith

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David Clark

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Mikkel Bergmann

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Offer Document

Kitfit Pty Ltd Offer Document

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The investors below have committed capital to the business in this funding round.

Brooke McGlashan

2020-03-16 20:48:32

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Warren Walker

2020-03-16 20:48:18

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Lucy Mallick

2020-03-16 20:42:30

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Adam Flay

2020-03-16 20:38:57

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China

2020-03-16 20:33:55

Andrew Curthoys

2020-03-16 19:57:59

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Sophie Moss

2020-03-16 19:37:02

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Nicholas Figueira

2020-03-16 19:10:15

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LeighMJ

2020-03-16 18:52:13

Tony Wheatley

2020-03-16 18:42:14

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Luke Harvey-Palmer

2020-03-16 18:40:54

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Jason Bamert

2020-03-16 18:28:51

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Jilly

2020-03-16 17:43:13

Grant Napier

2020-03-16 17:28:43

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Aamer Shedam

2020-03-16 17:20:43

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Satyam Thakar

2020-03-16 16:55:00

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Tony Judd

2020-03-16 16:36:11

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Belgravia

2020-03-16 15:46:14

G.Matthews

2020-03-16 15:19:30

Piers Dumaresq

2020-03-16 13:25:55

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Matthew Dray

2020-03-16 13:11:09

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Sheba

2020-03-16 12:41:22

Stuart Napthali

2020-03-16 11:39:23

Jannicke Climax

2020-03-16 10:44:15

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Phil

2020-03-15 22:47:35

Paolo Gava

2020-03-15 22:16:48

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Elizabeth Sourlango

2020-03-15 21:41:59

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Marion Di Benedetto

2020-03-15 17:05:40

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Tembo

2020-03-15 12:26:10

Ngoc Pham

2020-03-15 06:34:36

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Andrew James

2020-03-13 18:43:16

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Nicholas

2020-03-13 16:01:29

Posearn Seo

2020-03-12 20:27:40

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Rob Hartnett

2020-03-12 17:05:41

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Sean Porazinski

2020-03-12 09:39:14

Baiping Guo

2020-03-11 21:15:56

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IGONZAL

2020-03-11 18:37:01

Taconnaz

2020-03-11 15:38:45

Nemani Malo

2020-03-10 22:25:48

Mr

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PEDMINI

2020-03-10 17:19:47

Deborah

2020-03-09 17:35:12

Mat

2020-03-07 09:59:43

Biliana

2020-03-06 14:24:10

Adam Roberts

2020-03-06 11:37:45

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Hussain Hussaini

2020-03-04 00:47:45

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Josh Murphy

2020-03-04 00:22:18

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Zac Newman

2020-03-03 13:57:31

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Benjamin Smith

2020-03-03 01:39:09

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Mohamed Taha

2020-03-01 23:12:40

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Chris Lopez

2020-02-27 21:34:31

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Mark Skrzypiec

2020-02-27 17:10:06

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Rob Morris

2020-02-24 23:01:59

CEO at Prismatik

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Jacques Liebenberg

2020-02-24 18:08:03

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Marselly Yapi

2020-02-23 08:51:28

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Carmina Patricia Tesoro

2020-02-23 06:16:36

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Ivo Kolinsky

2020-02-21 10:38:54

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Tracy Tong

2020-02-20 20:59:42

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Dana

2020-02-20 11:46:37

Richard Murrell

2020-02-19 22:26:16

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Luanne Damiao

2020-02-19 21:54:54

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Robert Presser

2020-02-16 17:03:42

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Paul Creighton ATF Creighton Holdings Trust

2020-02-14 11:04:28

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Waltraud Wightman

2020-02-13 13:22:13

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Nicolas Couvret

2020-02-13 12:14:51

Investment Analyst

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Tom Scruby

2020-02-12 20:29:31

Friend of owner

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Damien Hughes

2020-02-12 15:01:43

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Collins Mayaki

2020-02-12 06:42:12

Director

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George Fragopoulos

2020-02-10 18:33:39

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Benjamin Lowe

2020-02-09 19:11:49

Mortgage Broker

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michaelh

2020-02-09 08:41:12

Peter Rose

2020-02-08 12:40:06

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Rod Walker

2020-02-08 11:36:52

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Summerofdave

2020-02-07 18:21:14

delpiersos

2020-02-07 14:40:44

A H

2020-02-06 11:32:22

Zouhair Diab

2020-02-06 11:09:23

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Raje

2020-02-05 18:25:09

Charlie Raper

2020-02-05 15:37:32

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Bryan Graham

2020-02-05 14:36:30

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Noel Mathews

2020-02-04 18:43:07

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Coco

2020-02-04 16:36:57

RobOD

2020-02-04 15:32:39

EmptyInvestor

2020-02-04 15:31:32

Steven Wearing

2020-02-04 15:24:10

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Priya

2020-02-04 13:21:44

Marlene Medeiros Nascimento Camargo

2020-02-04 12:24:00

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Douglas Spiegelhauer

2020-02-03 14:53:16

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Tim Cocks

2020-02-03 12:17:27

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Laurent Laclaverie

2020-02-03 10:51:51

Director

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Geoffrey Munn

2020-02-03 10:40:41

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Joe Bramwell-Smith

2020-01-31 17:37:06

Founder and CPO

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Dave Attard

2020-01-31 17:04:19

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Nigel Parry

2020-01-31 14:38:20

Angel investor, Entrepreneur, Business Professional

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Cavin Kurtz

2020-01-29 14:59:16

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grace jakes

2020-01-24 14:11:01

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Matt

2020-01-24 10:10:00

Patrick Maloney

2020-01-24 02:25:13

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lee blackmore

2020-01-22 14:48:15

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Kyle Su

2020-01-22 12:42:32

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TvV

2020-01-22 12:31:03

Rebecca LAU

2020-01-19 18:08:02

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Edward Mandla

2020-01-17 13:28:54

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Adam McWhinney

2020-01-16 08:36:27

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Ultreya

2020-01-14 21:48:46

Mikkel Bergmann

2020-01-10 17:28:28

Founder & CTO

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Douglas Farrell

2020-01-08 12:12:23

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David Clark

2019-12-27 18:52:31

Head of Software Engineering

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James Hogg

2019-12-26 20:43:38

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Andrew Jacobs

2019-12-24 18:04:01

Founder and CEO

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