We have accomplished something incredible at Bricknode, let us just look at a few points that come to mind.
The problem with this though is that it creates a burden to explain in a short format and it might be difficult to grasp the extent of the opportunity that our wide product suite permits us to act upon.
It might be difficult to take in that a small company based in Skövde, Sweden has been able to build a product that can be used to rival or complement products built by multiple billion-dollar firms. One of the best confirmations of what we have created is real, is when new staff members join Bricknode from large tech companies and after a few months tells us how incredible it is that we have been able to create such a system on such a small team.
By using new tech and thinking in new ways I view what Bricknode has accomplished in the financial industry in the same way as what SpaceX is doing in the space industry. No one thought it was possible until it was!
Getting this message relayed to the world is the real challenge. Most of our efforts over the years has been spent on building extremely smart and generic solutions in the back end which could support any type of financial operation and customer segment that we would choose to target in the future.
In our interim report for Q1-2022 we talked about our revenue model and how we are working to make the growth less “bursty” by adding more product segments, like Bricknode Investment Manager, Bricknode Deposits, Brokerage as a Service using our own brokerage license, etc.
The current focus is, and has been, on the product segment called Bricknode Broker where the ticket sizes are large, but sales cycles are long (5 – 6 months). This is where the sales team that we assembled 5 months ago started to work.
The main limiting factor on growth rate right now is what capital is available for starting organized and sustainable efforts on selling and marketing various verticals.
In addition to the Bricknode Broker segment the sales team started to work on Bricknode Lending during 2022 and now we are getting ready to start working on Bricknode Investment Manager and Bricknode Deposits. As soon as we can conduct regulatory business using a brokerage license we will be working on Brokerage as a Service too.
All these product possibilities have been sitting within our product core but we have not had the resources to expose them by associating each one with marketing, sales, and customer success efforts but that is where we are now.
This short video illustrates what we have been doing at Bricknode.
So, where do we see our competition? We have a hard time finding someone that can perform as wide an aspect of services like we can but within the different segments we have competition. The main difference with Bricknode compared to other suppliers is the fact that we have been, and are, operators of our own software which we use ourselves. We build stuff that we have a need for and thus we do not work in just theory when developing products which is a huge advantage.
Developing product is no longer an issue for us but getting the word out to explain who we are and what we can do to everyone from potential customers to other stakeholders is an issue. This is a challenge that we humbly take on and increasing our transparency and communication to all stakeholders is one step on the way to understanding and recognition!
Good things sometimes take a little time. As founder and CEO of Bricknode I am incredibly proud to compare the first half (H1) of 2021 with H1 2020 and reflect on what we have achieved. With incredible endurance we have taken a long-term view to make sure that we build a sound product foundation before scaling up our sales and marketing activities.
Between H1 2019 and H1 2020 our revenue growth rate was flat, but a year later is now over 40%. At the end of H1 2020, we numbered six full-time employees and now we are a team of more than 30 spread across offices in London, Stockholm and Skövde. How did we do it? We certainly did not do it alone; this has been a team effort together with long-term customers who have stuck with us through thick and thin and believed in us. We have also received great support from past investors and newer ones like Backing Minds.
We operate one of the few cloud-native financial platforms that is mature enough from a product perspective to facilitate most financial operations. Bricknode was always built for the global marketplace with international customers. Our press release from earlier this week announcing our newest customer, TBC Capital (part of TBC Bank), really validates the product that we have created. Even though we have not focused on sales and marketing efforts historically, we onboarded customers, early adopters, in 2011, and generated over SEK 75 million in subscription revenues. This has been reinvested directly into our product.
Recently, we entered into several exciting partnerships , including one with additiv, who just released a white paper describing the huge opportunity within embedded wealth. Over the next few years, Bricknode is going to be on the front line supporting everything from distributors and brokers of financial products to asset managers and family offices.
We like to compare what is currently happening within the financial markets to the PC revolution, where Microsoft managed to capture a piece of every PC sale and build a well-diversified and exciting business. By utilizing Bricknode Core as an operating system, both Bricknode and other software suppliers can build new financial applications in a matter of months, not years!
Speed of execution and delivery is our main benefit and has been a big part of our DNA over these past 11 years. Another important ingredient is our culture in which we show warmth, transparency, openness, and support towards all team members and stakeholders. Behind every business are real people, and we want to operate responsibly and sustainably to ensure we play a meaningful role in our global society and in tackling new challenges.