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December 2007 Presentations

GIS Dynamics: Defining Geographic Perspective

GIS Dynamics is a Geographic Information Systems software company that provides products for video surveillance/GIS integration, landscaping, and spatial modeling. They currently have over $1 million in revenues and are expecting expansion to $6 million in 4 years. Grant Gibson, president, is looking for $750k in investment funds to expand the sales force, increase marketing, increase the number of software developers, and add equipment.

GIS's management team consists of three people who are all experienced in this young, fast-growing market. Grant Gibson, President, is founder of the company and has a background in Geographic Information Systems. William Sabo, Director of Software Development, is an electrical engineer who has worked for Duke Energy and Warren County. Timothy Price, Senior GIS Consultant, also has a background in Geographic Information Systems and has managed all sizes of GIS projects, including multiple 5,000-mile pipeline projects.

Their first product is Argus, a web-based application developed by William Sabo that integrates video surveillance and GIS to help focus on crime prevention. The product allows law enforcement to utilize the integration of video surveillance and GIS to understand relationships between crime and other data and the surrounding geography. This helps them make quick decisions and understand why events are happening by using video as the next piece of data. Since it is a web-based system, there is no software to purchase, maintain or support.

An example of how Argus can be used involves the recent plane crash in Sharonville. Video feed of the two planes and what actually happened in the air and during the crash would have allowed them to see what actually happened without the need for specific hardware, avoiding problems in the future.

Their second product is Go-iLawn, also a web-based application that provides measurement tools and property information to landscape professionals. It allows lawn care professionals to provide a lawn fertilizer quote without driving to the property and physically measuring the area. Instead, it measures the yard based on property boundaries less the footprint of the house, and generates a square foot estimate for fertilizing. This saves landscape companies a great deal of time for a low subscription fee.

Both products are sold on a subscription basis with annual contracts. The company has a low COGS due to partnership with Time Warner. Argus starts at $65 per camera, per month, while Go iLawn starts at $99 per county boundary per month. GIS also provides service consulting and ongoing projects for multiple clients.

The market size is difficult to estimate, but Grant believes the highest growth area is the Geographic Integration Framework for municipal governnment, with business geographics (retail, sales, marketing), healthcare, and planning/development following. GIS currently counts Hardin County, the City of Dayton, Duke Energy, Shell Oil, Marathon Oil, and Cincinnati Children's Hospital among their clients.

There are currently three existing players in the industry: GeoDecisions, CDM and Woolpert. In addition, new firms are emerging and engineering firms will attempt to enter the market. However, there is no regional competition in the area, giving GIS a good basis for establishing themselves.

The company is currently in the process of patenting their software, and strong relationships are set with ERSI and Time Warner to use their data centers and cameras.

Grant projects revenue growth from $1.1 million in 2007 to $6 million in 2010, with net income increasing from $143k today to $2.2 million in 2010. While this is conservative, he feels it is reasonable and reachable and allows them to be a solid regional competitor. He expects a third party sale as exit.

The company so far has self-funded, and they are seeking $750k which is expected to take them through five years. With the funds, they will hire two software developers, two sales associates, and one marketing specialist, plus add additional servers for hosting.

Contact:
Grant Gibson
513-545-3921
ggibson@gisdynamics.com