Cudo: Round 1 (£1.5m) complete; £500k over subscription tranche now available, but selling quick

By November 25, 2019News

This content is written for a general audience and is for information purposes only. It should not be taken as investment advice or financial advice. Investing in EIS and SEIS companies does carry risk. The value of your investment may go up or down, and you may receive less back than the value of your original investment.

Those who have followed our Bure Valley Group updates in 2019 will be aware that we are providing fund-raising assistance to Cudo, an innovative business providing the next generation in cloud computing technology.

However, if you are interested in investing in this exciting, promising business, please be aware that this is the last call to take advantage of this opportunity. To quickly remind you of some of the key benefits and highlights:

  • Cloud computing was rated a $160bn industry in 2018, forecast to reach $227bn in total value by 2021.
  • Cudo offers competitive pricing to customers compared to its competitors, who will struggle to match it due to cumbersome infrastructure and business models. An xlarge AI resource on Amazon costs $9000/m. Cudo’s user base will accept $300/m from Cudo to provide the same resources.
  • Current gross profit per standard users device ranges from £0.03 to £50/m. Some are in excess of £1000/m gross profit each.
  • Forecasted to bring £33m in Cudo revenue in 2021. Typical valuation multiples in this space for 100%+ growth are 10x ARR.

 

Exciting recent developments with Cudo

Perhaps the biggest achievement and milestone for Cudo in 2019 is the launch of a partnership on stage in Australia with AMD. Cudo are also imminently providing a live demo of their first distributed computing integration on their own platform, with the aim for these to be paid workloads in December. Once this comes in, Cudo will begin to see large increases in revenue around distributed computing and usage of the token.

Other key developments for the attention of prospective investors include:

  • Introduction of Cudo’s first white-labelled platform (~15m users). The test version has now been handed over. Cudo are testing integration over the next few weeks and user tests, then rolling out to a smaller group before larger rollout.
  • Second white-labelled platform (~70m users). This version will be live in the next few weeks, followed by testing of integration of Cudo’s software.
  • Japanese Video Rendering Partner No. 1. Cudo are now in testing phase with them for their software to run when they are not video rendering. The current version brings in $80k/m user revenue, $4k/m Cudo Revenue. Distributed compute at 100% usage will provide $40k/m Cudo revenue.
  • Japanese Video Rendering Partner No. 2. Another video rendering company in the same configuration as partner No. 1. This method will be used for all other future video rendering companies. This is expected to bring in similar revenues as the other provider.
    Playstation. Cudo are currently re-engineering our software to work as needed for Playstation. This is the same work needed to integrate with many other platforms including their 70m user gaming partner.
  • EU Video Rendering Partner. These will be Cudo’s first Apps on the marketplace. The integrations will enable anyone to go online and create blender videos using Cudo’s distributed computing, bringing in revenue and publicity.
  • CERN. Early-stage conversations are currently underway, with a team meeting in Geneva to discuss using their spare infrastructure. They also have access to 160 Data centres Cudo are looking to work with.
  • Mining Farms. As part of Cudo’s tour they have been meeting with many larger mining farms. They have around 100 megawatts of opportunities around this now. These larger farms require some of the features which Cudo will be bringing out over approximately the next 3 months. If all convert, Cudo expect this to bring in $200-$300k/month from early 2020. This then provides Cudo with a larger compute install base.

Finally, Cudo are currently negotiating to bring on 2 of the most experienced people in the mining space. Both individuals worked on much of the firmware which makes mining possible today on consumer hardware.

As part of this, we would also have access to their users, who currently generate around $5m/month of mining revenue. Cudo aim to integrate these over the next 3-6 months, using their platform to provide the users with greater revenue and also to start distributing out distributed computing workloads.

 

Invitation

To find out more about Cudo, please read our case study here in our Bure Valley Group project portfolio. To start a conversation with our team and request access to the full investment memorandum, please get in touch via:

+44 160 334 0827
[email protected]