Welcome! We are collecting indications of interest for our planned capital raise through Regulation Crowdfunding. Please reference important guidance regarding Rule 206 under the Disclosures section below.
Experienced leadership - previously started and took a Govtech company public
Cloud & multi-tenant based solutions competing with outdated legacy tech
Happy customer base doubling annually for 3 years
The Current Market
Software for local governments comes from multiple viewpoints with no holistic solution
Instead of making people's lives easier, existing Govtech is expensive to buy and difficult to use
TownCloud's solution starts with an entirely new way of looking at the problem
At TownCloud we believe software should make lives easier for the people that use it. Making things easy to use starts with making them simple. With TownCloud we're rebuilding the local government tech stack from the ground up.
TownCloud is easy to use because we built everything you need in one place. Customers gain access to multiple tools through a single platform avoiding the need to constantly re-enter the same data or manage multiple logins.
Thanks to our cloud-based, multi-tenant architecture, there are no complex onboarding or expensive integration requirements. At a $50 per month entry point, almost no town is too small to afford the platform.
This allows us to short-circuit the lengthy sales and adoption timelines that typically plague Govtech SaaS products. The industry standard for implementing new software is 18 months. We aim to have customers up and running in 5 days.
The value we create is easy to scale and difficult to replicate. New clients do not require new code to be written or education on complex systems. Our all-in-one platform will make it difficult for competitors to offer compelling reasons to stay with their segmented software.
Application suites with everything municipalities need and nothing they don't
Our tools are built without decades of outdated and unused features weighing them down.
We view our sales process as an internal piece of our product. We refused to go the traditional enterprise Govtech software purchase and procurement route. Instead, we demonstrate value and establish trust from day one with an affordable product that does not require the traditional buying processes.
Most importantly we deliver an exceptional experience for our customers with a product that's easy to buy, easy to use, and incredibly valuable.
With our technology, sales process, and ability to execute, we're rethinking how local governments across the US use software to do their jobs.
The GTM Strategy
Land, Expand, Then Dominate
To achieve our goal of reinventing the local Govtech market, we'll follow a three-phase plan. We're nearly through phase 1, establishing a national footprint with our low-cost entry point system.
With the capital from this raise, we'll launch phase 2, continuing to expand our product suite, adding value and customers. Finally, with phase 3 our goal is to target larger organizations and be recognized as the go-to provider in the market.
We have a busy year ahead, starting with this raise. Our goals take us from completing the enterprise product suite to expanding our national footprint.
Rapid Growth and a Product Customers Love
We have doubled every year since launching our first product and are on track to complete our full finance and revenue suites this year.
Since launching our enterprise license to a limited group of customers, our revenue growth has accelerated even faster.
What our customers have to say:
“TownCloud has been the best tool I use to carry out my duties as City Secretary. The program has saved me time and has cut down on the stress of preparing for council meetings. It was taking me around 2-3 business days to prepare the agenda and packets for our meetings. I can now produce an agenda, create packets, and notify council members in about 2 hours from start to finish. I would recommend TownCloud to any City or entity that requires agenda preparation.”
-April Warren, City Secretary
"First, I must thank you for providing a product that is effortless; a product that is easy to use and understand. The Town of Bennett has been utilizing the agenda management program since November, 2018; and it has definitely provided me with a way to streamline my work processes and provide the information to the Town Board and Town Staff without having to create a separate document."
-Lynette White, Clerk
In the 3 years since we have joined Town Cloud, the ease with which we have created agendas for all of our boards and committees has been astounding. We previously used Word Documents, and scanned PDFs to make our packets, a long and drawn out process. Since switching to Town Cloud, these tasks have become much simpler. The ease of inputting information and attachments is second to none. The Agendas always come out on time and look incredibly professional. Being in a small town, budget constraints had kept us away from using an agenda development software, but Town Cloud is so reasonably priced that it was easy to make the switch. I would highly recommend this software to any municipal employee who is responsible for drafting meeting agendas.
-Richard Kohler, Deputy Town Clerk
"The City of Kittitas signed up for Town Cloud in September of 2020. Previously we had used Word to make our agendas and print the packets. I can not stress enough how great this agenda program is! No more re-printing one document because information changed, now we just upload the updated documents. This had saved us a tremendous amount of time, printing costs, and the use of paper. Making the agenda with Town Cloud has also enabled our citizens to view the agenda and minutes on our website. Town Cloud is a user-friendly program and easily learned. The minutes are easy to type and readily available for the public to view. The response time for learning the program was minimal and we received our answer’s in a timely manner. (the few time that we did have to call). I would recommend Town Cloud to any agency it was a game-changer for the City of Kittitas.”
-Debbie Lee, Clerk / Treasurer
Targeting Enduring Enterprise Value
We are targeting ambitious but attainable goals for TownCloud over the next 5 years. With a focused addressable market of 38,000 local governments within our target size (Population 200 - 1M) we are confident in our abilities to capture a significant market share and become a leading player in the industry.
Capturing less than 5% of the market (1800 customers) could yield over $100M in Annual Recurring Revenue and a $1B+ company valuation.
This offering is expected to be for Convertible Note in the Company.
Interest rate of 15%.
Conversion discount of 20% and valuation cap of $10 million.
What is a convertible note?
A form of capital for an early-stage company, a convertible note is an unsecured loan that converts to stock in the future. These delay the task of determining the value of the company and convert to shares at a future qualified financing round. The conversion is intended to be discounted based on a valuation cap, a discount rate, and also accounts for an interest rate for taking the risk of investing earlier.
If another round of funding does not happen, the note becomes due at a set maturity date. If not repaid in cash (which can often be difficult for an early stage company), the note converts to equity at a pre-set target price.
What is the discount rate?
The discount rate simply applies a discount to the share price for note holders as compared to the future investors. For example, if the shares at a future priced round are $5 per share, a 20% discount rate would convert the note holder shares to equity at a price of $4 per share ($5 * 80%).
What is the valuation cap?
The valuation cap sets the maximum price on the stock. For example, if a valuation cap is set at $10 million and the company later raises at a $15 million valuation, the amount of stock an investor gets will be priced off the $10 million. If the raise valuation is $10 million or less, then the stock price is set off the actual valuation (which is where the discount rate would come in).
Dennis Harward, Founder & CEO
Dennis Has spent his entire career bringing innovative solutions to the local government market. He founded HTE, and delivered 40% annual gr..
Investing carries general risks, such as losing all the money you invest. Some key risks will be listed below. Additional general and project-specific risks may be detailed here if the Regulation Crowdfunding securities offering goes live.
You can learn more about the risks of investing through Vicinity here.
This is not currently a live securities offering.
No money or other consideration is being solicited, and if sent in response, will not be accepted.
No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement is filed and only through an intermediary's platform.
A person's indication of interest involves no obligation or commitment of any kind.