Introduction:
As the cliché goes, one should not believe everything that one reads in the newspapers. As far as the stock market has been concerned, we reached peak doom, especially regarding AIM around Easter, only to find that in the past couple of weeks the FTSE 100 reached new record highs. Even Goldman Sachs stuck the knife into the market, almost making one think that they were short and hoping that their intervention would prevent the market going over the top. But it has. Indeed, there have been a couple of decent new listings in the form of Energy Green Transition (EGT) and Helix Exploration (HEX), with strong stories and management.
Electric Guitar
But of course two swallows do not make a bull market. UK investors need more fresh blood and this week it arrives in the form of Electric Guitar (ELEG), presumably a company which intends to “lead” from the front. The omens are healthy. This is a company which has chosen to be listed on AIM, originally it was a SPAC on the Standard List. The jewel it is crown is 3radical, which reversed into Electric Guitar last year.
3radical
3radical technology uses gamification to gather data from website visitors which is used to improve marketing return on investment and increase sales. Gamification is the integration of game thinking and game mechanics into non-game experiences to motivate increased levels of engagement. This $51bn market is growing because it replaces the data which will be lost when Google blocks the data from third party cookies by the end of this year. The current market size $51bn growing at 8% CAGR, and so those dreaming of a new UK unicorn may actually be looking in the right place.
3radical’s USP’s
- Secure data infrastructure. Important as advertisers are concerned about being hacked. This is why 3radical has been able to win clients like Mastercard and DBS (largest bank in Singapore)
- More effective at drawing people in by adapting in real time to the data provided.
- It captures more data by asking for information in progressive stages.
- Better customer experience. Recognises returning visitors and existing customers and adapts accordingly.
- Reduced client side resource – Integrates directly with existing ad-tech platforms.
- Lower risk and cheaper than in house development because it is a templated platform, more bespoke and flexible than the majority of the competition as the platform is more extensive. £8m already spent on development.
- Global presence. 3radical has businesses and clients in APAC UK and partnerships in the US.
The Electric Guitar Opportunity
Investing in sales and marketing:
3radical has focussed resources on development to date. Current website and marketing is limited with only 1 dedicated sales person and US sales through a reseller.
Investing in AI:
3radical has a database containing 1/2bn events. A tech partner has already been briefed to create AI product from this.
Acquire complementary tech and vertical markets:
Electric Guitar is already a rapidly scaling buy and build business. A number of conversations with targets are already underway (to the extent that it is able without being required to make an announcement to the market). It already has a good pipeline of deals and partnerships. The ambition to have 2 further deals in the next 12 months and to continue at this pace would not be overly optimistic.
One would assume that the company will plan to make announcements about AI and other areas of development quickly after listing.
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