4142 BUSINESS PLAN

4142 BUSINESS PLAN
Agentic AI Startup Factory
February 2026
SECTION 1: EXECUTIVE SUMMARY
The Opportunity
Every business has tasks that are boring, repetitive, and critical - yet nobody wants to do them. Missing a lead follow-up, forgetting to chase an invoice, failing to respond to an enquiry after hours. These small failures compound into lost revenue, damaged reputation, and stunted growth.
86% of SMEs cite technical barriers as their primary obstacle to adopting AI solutions. Meanwhile, 95% of AI implementations fail. The gap between what AI promises and what businesses can actually use is vast.
4142 bridges this gap by providing virtual team members that handle these critical tasks 24/7. They communicate naturally via text, voice, WhatsApp, and SMS. They integrate with existing business tools. They execute tasks, not just chat.
They just happen to be AI.
The Business
4142 is an AI startup factory that develops, validates, and scales vertical-specific AI solutions for SMEs. Our model combines:
One core platform
70-80% code reusability across all deployments
Multiple distribution channels
Direct SaaS (Squidgy), digital agency partnerships (Handled), and vertical spin-outs (FanatiQ, YEAA)
Multiple exit opportunities
Each vertical can be spun out and sold independently whilst 4142 retains equity and licensing revenue
We are not building one company. We are building a machine that builds companies.
Traction
£4K
MRR
with established customers
18
Months
customer retention - our first customer (Garry the Roofer) is still running perfectly
3
Clients
became investors after seeing results
Platform complete - 18 months of development done, ready to scale
Distribution validated - Max Flanigan (Australian digital agency owner) invested £20K and is now deploying to his clients
The Model
Squidgy
Direct B2B SaaS for SMEs
Self-service onboarding, product-led growth
Pricing from $99-$999/month
Target: 1,100 users by end of Year 1
Handled
Digital Agency Channel
Agencies use our platform to solve their clients' lead management problems
£2,000-£3,500 per agency client per month
Spin-out expected Q3 2026
FanatiQ
Sports Vertical
AI solutions for sports clubs (fan engagement, sponsorship, hospitality)
3 pilots live/contracted
Spin-out expected Q2 2026
YEAA
Property Vertical
AI solutions for estate agents
MVP complete, deploying via agency partnerships
Spin-out timing TBD
Financial Summary
Total potential value end Year 3: ~£38M
Squidgy (5x ARR): £26.5M
Spin-out equity stakes: £7.9M
Cash reserves: £4M
The Ask
Raising: £300,000 at £2.5M pre-money valuation
First £50K receives 20% discount (£2M effective valuation)
SEIS eligible - 50% income tax relief available
Effective entry price after SEIS relief: £1M valuation
Use of Funds:
50%
Development (including £30K bounty scheme)
25%
Sales & Distribution
17%
Operations & Customer Success
8%
Reserve
Milestones this funding achieves:
01
Break-even by June 2026
02
1,100 Squidgy users by January 2027
03
FanatiQ spin-out Q2 2026
04
Handled spin-out Q3 2026
05
£130K MRR by end of Year 1
Funding History
Why Now
1
Platform complete
18 months of building is done
2
Distribution validated
Agencies want to resell our technology
3
Competition window open
18-36 months before large tech catches up
4
Team ready
Experienced founders who have built and exited before
5
Market timing
SMEs are desperate for AI that actually works
SECTION 2: THE PROBLEM
The Admin Gap
Every business, regardless of size or sector, has tasks that are:
Boring
nobody wants to do them
Repetitive
they happen daily or weekly
Critical
missing them costs money and reputation
These tasks include:
Responding to enquiries (especially after hours)
Following up with leads
Chasing invoices and payments
Scheduling appointments
Qualifying prospects
Sending reminders
Updating CRM records
In larger organisations, these tasks are handled by dedicated staff. In SMEs, they fall to whoever has a spare moment - which means they often don't get done at all.
Real Examples
Garry the Roofer
Garry was losing jobs while up a ladder. Customers would call, he couldn't answer, they'd call his competitor instead. By the time he returned the call, the job was gone. He estimated he was losing £2,000-3,000 per month in missed opportunities.
Estate Agents
After-hours enquiries from property portals go unanswered until the next morning. By then, the buyer has contacted three other agents. The first agent to respond wins the viewing - and the fee.
Sports Clubs
Championship and League One football clubs struggle to engage local businesses for sponsorship and hospitality packages. Their commercial teams are small, follow-up is inconsistent, and opportunities slip through the cracks.
Digital Agencies
Agencies deliver leads to their clients, but clients fail at nurture, qualification, and follow-up. When results are poor, clients blame "low quality leads" rather than their own execution. The agency loses the client.
The AI Promise vs Reality
Artificial intelligence has been positioned as the solution to these problems. The promise: intelligent automation that handles routine tasks while humans focus on high-value work.
The reality:
95%
AI implementations fail
(MIT research)
86%
SMEs cite technical barriers
as their primary obstacle to AI adoption
74%
Struggle with integration
into existing workflows
Generic AI tools like ChatGPT are powerful but require significant expertise to deploy effectively. They don't understand industry-specific workflows. They can't execute tasks - only generate text that humans must then copy, paste, and act upon.
The result is a widening gap between enterprises (who can afford custom AI development) and SMEs (who cannot).
The Cost of Inaction
For an average SME, the cost of not solving these problems includes:
Direct revenue loss:
Missed leads and enquiries: £1,000-5,000/month
Slow follow-up reducing close rates: 10-30% of potential revenue
After-hours opportunities lost to competitors
Indirect costs:
Staff time on repetitive tasks: 15-25 hours/week
Hiring costs for admin roles: £25,000-35,000/year plus management overhead
Training and turnover costs
Reputation damage:
Slow response times damage brand perception
Inconsistent communication erodes trust
Negative reviews from poor service
Why Previous Solutions Have Failed
Virtual Assistants (Human)
Expensive (£15-25/hour)
Limited availability (not 24/7)
Training and management overhead
Inconsistent quality
Don't scale
Chatbots (Traditional)
Frustrating user experience
Can only handle scripted scenarios
No integration with business systems
Customers hate them
Generic AI Tools
Require technical expertise to deploy
Don't understand industry context
Can't execute tasks, only generate content
No integration with existing workflows
Enterprise AI Solutions
Cost £50,000-500,000 to implement
Require 6-18 months to deploy
Need dedicated IT resources to maintain
Completely inaccessible to SMEs
The Market Opportunity
The combination of:
1
Universal pain
every business has these problems
2
Failed existing solutions
nothing works well for SMEs
3
Maturing AI technology
now capable of real task execution
4
SME willingness to pay
proven by our existing customers
...creates a significant market opportunity for solutions that actually work.
We are not selling AI. We are selling relief from the tasks that business owners hate but cannot ignore.
SECTION 3: THE SOLUTION
Virtual Team Members
We provide virtual team members that handle critical business tasks 24/7. They communicate naturally through text, voice, WhatsApp, SMS, and email. They integrate with existing business tools. They execute tasks, not just generate suggestions.
They just happen to be AI.
This framing is deliberate. We are not selling "AI" - a term that has become associated with hype, complexity, and failed implementations. We are selling team members who happen to be powered by AI. The technology is invisible; the results are tangible.
The 5% Framework
Our approach is built on a simple observation: 95% of AI implementations fail, but 5% succeed spectacularly. What separates the winners from the losers?
The successful 5% share common characteristics:
High-frequency tasks
happening daily or weekly, not occasionally
Measurable outcomes
clear success metrics, not vague "efficiency"
Defined inputs and outputs
structured enough to automate reliably
Human oversight
AI assists rather than replaces human judgement
Feedback loops
continuous improvement based on real results
We deliberately focus only on use cases that fit this framework. We say no to projects that don't meet these criteria, even when customers want to pay for them.
How It Works
Natural Conversation
Users interact through natural language - no training required, no complex interfaces to learn. Ask a question, give an instruction, have a conversation. The AI understands context, remembers history, and responds appropriately.
Multi-Channel Presence
Our AI team members are available wherever your customers and staff already communicate:
WhatsApp (most popular for UK SMEs)
SMS (for customers who prefer text)
Voice calls (inbound and outbound)
Web chat (embedded on websites)
Email (integrated with existing systems)
Task Execution
Unlike chatbots that can only answer questions, our AI team members actually do things:
Book appointments in your calendar
Update records in your CRM
Send follow-up messages
Qualify leads against your criteria
Escalate to humans when needed
Integration
We connect with the tools businesses already use:
CRM systems (HubSpot, Salesforce, Pipedrive, GoHighLevel)
Calendar systems (Google, Outlook, Calendly)
Communication platforms (WhatsApp Business, Twilio)
Industry-specific tools (property portals, sports management systems)
AI Teams
Our platform provides multiple AI "teams" that handle different business functions:
1
Content Team
Available now
Social media content creation
Blog post drafting
Email newsletter writing
Marketing copy generation
2
Admin/Support Team
April 2026
Enquiry response
Appointment scheduling
FAQ handling
Document processing
3
Leads Team
June 2026
Lead qualification
Follow-up sequences
Nurture campaigns
Handoff to sales
4
Sales Team
Future
Proposal generation
Quote creation
Contract preparation
Pipeline management
5
HR Team
Future
CV screening
Interview scheduling
Onboarding support
Policy Q&A
Why Conversation Works
We chose a conversational interface deliberately, not because it's trendy, but because it solves real adoption problems:
No training required
Everyone knows how to have a conversation. There's no learning curve, no manual to read, no certification to complete.
Works in existing tools
WhatsApp is already on every phone. No new app to download, no new login to remember.
Accessible to non-technical users
The estate agent who struggles with email attachments can use WhatsApp fluently. Meet users where they are.
Natural escalation
When the AI can't help, it hands off to a human seamlessly. The conversation continues without friction.
Our data shows 73% higher adoption rates compared to traditional software interfaces. Users who would never log into a dashboard will happily message a WhatsApp contact.
Competitive Positioning
SECTION 4: THE PLATFORM MODEL
One Platform, Many Businesses
4142 is not a single product company. It is a platform that powers multiple businesses, each targeting different markets through different channels.
The core platform provides:
Conversational AI engine
Multi-channel communication (WhatsApp, SMS, voice, web, email)
Integration framework (CRM, calendar, industry-specific tools)
Analytics and reporting
Security and compliance infrastructure
This platform achieves 70-80% code reusability across all deployments. When we build a feature for one vertical, it benefits all verticals. When we fix a bug, it's fixed everywhere.
Distribution Channels
Squidgy - Direct B2B SaaS (Primary Focus)
Squidgy is our direct-to-business subscription product. SMEs sign up, configure their AI team members, and start using them immediately.
Target Market: Solopreneurs to 50-person companies who need AI assistance but can't afford custom development.
Pricing Structure:
Add-on Teams:
Admin/Support Team: +$99/month
Leads Team: +$199/month
Go-to-Market:
NatWest Accelerator
Distribution to 12,000 companies
Product-led growth
Free trial → paid conversion
Content marketing
SEO and educational content
Agency resellers
Unprompted interest from multiple agencies
Why Squidgy Matters: Validates product-market fit with direct user feedback, high-margin SaaS revenue (85-90% gross margin), builds brand awareness for the 4142 ecosystem, creates pipeline for white-label and agency partnerships.
Handled - Digital Agency Channel (Primary Focus)
Handled provides AI-powered lead management tools to digital agencies, who deploy them to their clients.
The Problem We Solve: Digital agencies deliver leads to their clients. But clients fail at nurture, qualification, follow-up, and closing. When results are poor, clients blame "low quality leads" rather than their own execution. The agency loses the client.
Our Value Proposition: "Help your clients get better results from the leads you deliver."
How It Works:
01
Agency signs up as a Handled partner
02
Agency identifies clients with lead management problems
03
We deploy AI lead management to those clients
04
Agency uses our interface, integrates with client CRM
05
Clients get better results, agency retains client, we share revenue
Pricing:
£2,000-£3,500
per client per month
+50% commission
on results (kicks in month 3)
No setup fees
removes barrier to entry
Sales Cycle:
Agency sign-up: 4-8 weeks
Client deployment: 4-6 months
Why Handled Matters: Agencies provide distribution (their clients, not ours to find), faster path to revenue than direct SME sales, each agency relationship = multiple client deals, validates B2B2B model for future verticals.
Spin-out Plan: Q3 2026
FanatiQ - Sports Vertical
FanatiQ provides AI solutions for sports clubs, focusing on fan engagement, sponsorship sales, and hospitality packages.
Target Market: Championship and League One football clubs, Premiership rugby clubs, county cricket teams.
Current Status:
Why Sports:
Clear pain point (small commercial teams, inconsistent follow-up)
High-value transactions (sponsorship deals worth £10K-100K+)
Strong investor expertise (Pete Oliver)
Referenceable clients improve credibility
Spin-out Plan: Q2 2026 (June)
Pete Oliver positioned as CEO candidate
4142 retains 40% equity at spin-out
20% licensing fee on revenue
YEAA - Property Vertical
YEAA provides AI solutions for estate agents, handling enquiry response, viewing bookings, vendor updates, and lead nurturing.
Target Market: Independent estate agents and small chains (10-50 branches).
Current Status:
MVP complete
Pipeline exists (multiple agencies interested)
Deploying via digital agency partnerships rather than direct sales
Why Property:
Previous validation (first client achieved record sales month)
Clear ROI (faster response = more viewings = more sales)
Large market (£1.2B TAM in UK)
Differentiation from Handled: YEAA uses different AI Mates than Handled. Handled focuses on lead management for digital agencies. YEAA addresses the full spectrum of estate agency tasks - enquiry response, viewing scheduling, vendor communications, market appraisals.
YEAA may be deployed through digital agency partnerships (similar to Handled model) but is a separate product line.
Spin-out Plan: TBD (likely 2028)
Platform Economics
Squidgy (Direct SaaS):
Gross margin: 85-90%
Customer acquisition cost: Low (product-led growth, organic channels)
Lifetime value: £2,000+ (based on 24-month average retention)
Handled (Agency Channel):
Gross margin: 60-70% (more implementation support required)
Customer acquisition cost: Near-zero (agency's clients, not ours)
Revenue per agency: £50K-150K/year (multiple clients per agency)
For Spin-outs:
4142 receives 20% licensing fee on all revenue
4142 retains 40% equity at spin-out (diluting to ~27% after fundraising)
Spin-outs raise their own capital for growth
Spin-outs are positioned for acquisition within 3-5 years
Why This Model Wins
Capital Efficiency
One platform serves multiple markets. Development costs are shared. Each feature benefits all verticals.
Risk Diversification
If one vertical struggles, others continue. No single point of failure.
Multiple Exit Paths
Spin-outs can be sold independently to strategic acquirers, or hold the portfolio and collect licensing revenue.
Compounding Value
Each vertical generates data and insights that improve the platform. The more we deploy, the better we get.
SECTION 5: TRACTION & VALIDATION
Current Performance
£4K
Monthly Recurring Revenue
18
Months
Customer Retention (oldest customer still active)
3
Active Verticals
generating revenue or pilots
Platform Status: Core functionality complete, ready to scale
Clients Who Became Investors
Three of our customers have invested in 4142 after experiencing the product firsthand. This is the strongest possible validation - people who use the product daily choosing to put their own money behind it.
Garry Sephton
Our first customer, a roofer who was losing jobs while up a ladder. After 18 months of using our AI to handle calls and enquiries, he invested in the company. His system is still running perfectly.
Pete Oliver
Experienced vertical SaaS operator who saw our sports solution in action. Now an investor and positioned as CEO candidate for FanatiQ spin-out.
Max Flanigan
Australian digital agency owner who saw our platform and immediately recognised the opportunity. Invested £20K and is now selling to his clients.
The Max Validation
Max Flanigan runs Noble Five, a performance marketing agency in Australia. His story illustrates our value proposition perfectly:
01
Max saw our platform demonstration
02
He immediately understood the application to his business
03
He invested £20K
04
He started deploying to his clients
05
He connected us to university recruitment opportunities
06
He introduced us to his network of agencies
Max didn't just invest - he became a customer and a distribution partner simultaneously. He chose to partner rather than build because the economics are clear:
Building in-house:
6-12 months development time
£350-500K+ investment
Ongoing maintenance costs
Risk of failure
Opportunity cost
Partnering with us:
Deployed in weeks
Fraction of the cost
Proven technology
We handle maintenance and updates
Focus on client relationships, not technology
Live Deployments
Handled (Digital Agency Channel)
FanatiQ (Sports)
Squidgy (Direct)
Pipeline
The following opportunities are in active discussion but not yet contracted:
Digital Agencies:
Multiple UK agencies evaluating partnership
Australian agencies via Max's network
Agency resellers approaching us (unprompted)
Enterprise:
Enterprise automotive company (workshop completed, demo follow-up pending)
Birmingham City Council (want services + channel to local SMEs)
Education:
Solihull College (reviewing AI Mates for lead management)
University pilots via Max partnership
Other:
Blueprint (verbal "100% certain" - awaiting contract)
Ergo (car leasing company)
Syzygy (solar company - feasibility study automation)
Proof Points
Response Time Improvement
Our estate agency deployments reduced lead response time from hours to seconds. After-hours enquiries that previously waited until morning now receive immediate responses.
Conversion Rate Improvement
After-hours conversion increased by 140% for our first estate agency client.
Time Savings
Sales teams report saving 20+ hours per week on repetitive tasks.
Record Performance
Our first estate agency client achieved their record sales month (most home sales instructions) in March 2025, following February implementation.
What We've Learned
Direct SME sales are slow.
Selling directly to estate agents took 12+ months to educate the market. Many didn't understand AI, didn't trust it, or couldn't see the ROI.
Agency partnerships are fast.
When we pivoted to working with digital agencies, everything accelerated. Agencies understand technology, see the value immediately, and already have client relationships.
Clients who see results become advocates.
Every successful deployment generates referrals. Our best marketing is customers telling other customers.
The "leads problem" is universal.
Every agency we've spoken to has clients who blame lead quality when the real problem is lead handling. This is a massive, validated pain point.
Price is not the primary objection.
When prospects understand the ROI, price objections disappear. The challenge is education and trust, not cost.
SECTION 6: FINANCIAL PROJECTIONS
Revenue Model
Squidgy (Direct SaaS)
Add-on Teams:
Admin/Support: +$99/month (~£77)
Leads: +$199/month (~£155)
Key Assumptions:
Founding tier capped at 100 users (NatWest Accelerator cohort)
50% lifetime discount for founding members
ARPU grows from ~£100 (Year 1) to ~£165 (Year 3) as mix shifts to higher tiers
5% monthly churn, offset by expansion revenue (add-on teams, upgrades)
Handled (Digital Agency Channel)
Per client
£2,000-£3,500/month
Commission
+50% after month 3 of each client relationship
Average deal
£2,500/month base
Setup fees
None
Key Assumptions:
Each agency brings 3-4 clients at maturity
New agencies take 2-3 months to bring first client
Client acquisition accelerates as agencies gain confidence
Post spin-out: 4142 receives 20% licensing fee
FanatiQ (Sports)
Retainer: £1,000/month where applicable
Revenue share on closed sponsorship/hospitality deals
90-day delay on revenue share to reflect sales cycles
Key Assumptions:
Post spin-out: 4142 receives 20% licensing fee
4142 retains 40% equity at spin-out, diluting to ~27% after fundraising
Year 1 Monthly Forecast (Feb 2026 - Jan 2027)
*Post spin-out: 4142's 20% licensing revenue only
Year 1 Summary:
£702K
Total Revenue
£389K
Total Costs
£313K
EBITDA
45% margin
£130K
Exit MRR
£1.56M
Exit ARR
1,100
Squidgy Users
Squidgy User Growth (Year 1)
Comparables:
Sintra: 5,000 users in first month
Blaze AI: Over 1 million users
Our target of 1,100 by month 12 is conservative given product quality and distribution channels
Handled Growth (Year 1)
Post spin-out (Sep 26): Handled continues growth independently. 4142 receives 20% licensing.
Year 2-3 Quarterly Forecast
Year 2 (Feb 2027 - Jan 2028):
Year 2 Summary:
£2.32M
Revenue
£975K
Costs
£1.35M
EBITDA
58% margin
£3.3M
Exit ARR
2,500
Squidgy Users
Year 3 (Feb 2028 - Jan 2029):
Year 3 Summary:
£4.39M
Revenue
£1.62M
Costs
£2.77M
EBITDA
63% margin
£5.3M
Exit ARR
4,000
Squidgy Users
36-Month Summary
Cash Flow
Spin-out Equity Value
In addition to operating revenue and licensing fees, 4142 retains equity in spin-outs:
Total spin-out equity value (Year 3): £7.9M
Total Potential Value (End Year 3)
£26.5M
Squidgy
5x ARR
£7.9M
Spin-out equity
£4M
Cash reserves
Total: ~£38M
SECTION 7: COST STRUCTURE & TEAM
Current Team
Leadership
Seth Ward - Founder & CEO
Serial entrepreneur building AI solutions since 2017. Deep expertise in vertical SaaS, go-to-market strategy, and platform architecture. Successfully exited Scout7 in 2017 - a sports data SaaS serving enterprise clients.
Lee Jamison - Co-Founder & COO
25-year business partnership with Seth. Co-founded and scaled Scout7 to successful exit. Brings operational excellence, financial discipline, and deep understanding of what it takes to build and sell vertical software businesses.
Development Team
Operations
Tauseef Zahid - Operations, "Holding The Team Together"
Advisory Board
Current Cost Structure (February 2026)
Total: £13K per month
Post-Raise Cost Structure
Team Expansion
Marketing Spend
Monthly Cost Build-Up (Year 1)
Team Scaling Plan
1
Year 1 (End: 10 people)
4 developers (including CTO)
1 sales
1 customer success (from Oct)
2 ops/admin
2 leadership (Seth, Lee)
2
Year 2 (End: 15 people)
6 developers (including senior)
2 sales
2 customer success
2 ops/admin
3 leadership (Seth, Lee, Ansley FT)
Year 2 monthly average cost: £80K
3
Year 3 (End: 25 people)
10 developers
4 sales
4 customer success
3 ops/admin
4 leadership/management
Year 3 monthly average cost: £131K
Bounty Scheme
Included within the development budget is £30K allocated to our bounty scheme.
The platform has been architected to support external developers building AI Mates from our roadmap. This approach:
Accelerates development without fixed salary commitments
Pays only for completed, working features
Attracts specialist talent for specific use cases
Reduces cash flow pressure (pay on delivery, not monthly)
Tests potential hires before committing to employment
Bounties range from £500 for simple AI Mate configurations to £5,000+ for complex integrations.
Cost Efficiency Measures
AI-Assisted Development
Our team uses AI tools extensively in their own work, achieving 60-70% efficiency gains compared to traditional development approaches.
Equity Compensation
Key team members receive equity alongside salary, allowing us to attract talent at below-market cash compensation.
Remote-First
No expensive office. Team works remotely, meeting in person for key sessions.
University Partnerships
Potential for internships and knowledge transfer partnerships to access talent cost-effectively.
SECTION 8: GO-TO-MARKET STRATEGY
Priority Order
Our go-to-market follows a clear priority sequence:
01
Platform
The foundation everything else depends on
02
Handled
Digital agency channel for immediate revenue
03
Squidgy
Direct SaaS for scale and product validation
04
FanatiQ
Sports vertical to prove spin-out model
05
YEAA
Property vertical (follows agency partnerships)
This order reflects where we can generate revenue fastest with least friction.
Handled: Digital Agency Channel
Target Agencies
Primary:
Performance marketing agencies
Lead generation agencies
Digital marketing agencies with client lead delivery
Secondary:
Recruitment agencies
PR agencies with lead gen services
Marketing consultancies
Value Proposition
"Help your clients get better results from the leads you deliver."
Every digital agency faces the same problem: they deliver leads, clients fail to convert them, clients blame lead quality. The agency loses the relationship.
We fix the conversion problem. Better results → happy clients → retained accounts → agency growth.
Sales Process
Stage 1: Agency Sign-up (4-8 weeks)
01
Warm introduction (via Max network or inbound)
02
Discovery call - understand their client portfolio
03
Platform demonstration
04
Pilot proposal for 1-2 clients
05
Agreement signed
Stage 2: Client Deployment (4-6 months per client)
01
Agency identifies suitable client
02
Joint discovery with client
03
Integration with client CRM
04
Deployment and training
05
Monitoring and optimisation
06
Results review and expansion
Pricing
No setup fee removes barrier to entry. Commission alignment ensures we're motivated to deliver results.
Growth Model
Each agency relationship compounds. As agencies gain confidence, they deploy to more clients. As clients see results, they expand usage.
Squidgy: Direct SaaS
Target Market
Solopreneurs to 50-person businesses who:
Need AI assistance for repetitive tasks
Cannot afford custom development
Are comfortable with self-service tools
Value time savings over cost savings
Go-to-Market Channels
NatWest Accelerator
Access to 12,000 companies. Warm audience (already engaged with business support). Founding member offer exclusive to this cohort.
Product-Led Growth
Free trial → paid conversion. In-product upgrade prompts. Usage-based expansion (add teams, add users).
Content Marketing
"Admin horror stories" - relatable content about tasks everyone hates. Tutorial content showing time savings. Case studies with real results.
Agency Resellers
Multiple agencies have approached us unprompted. They want to offer Squidgy to their clients. Affiliate/reseller programme in development.
Entrepreneurs Circle
Warm audience of business owners. Integrates with their existing tech (GoHighLevel). Natural upsell opportunity.
Pricing Strategy
Founding Tier ($99/month - 50% lifetime discount)
Limited to 100 users (NatWest cohort). Creates urgency and exclusivity. Early adopters become advocates.
Standard Tier ($199/month)
Primary price point post-launch. 1 brand, 1 user, Content Team included.
Pro Tier ($399/month)
3 brands, 3 users. For agencies and multi-brand businesses.
Agency Tier ($999/month + $99/client)
Unlimited users. 10 clients included. For agencies managing multiple clients.
White Label ($10K setup + monthly)
Full rebrand capability. Custom deployment. Enterprise features.
Launch Timeline
Growth Model
FanatiQ: Sports Vertical
Target Clubs
Tier 1 (Primary):
Championship football clubs
League One football clubs
Premiership rugby clubs
Tier 2 (Secondary):
League Two football clubs
County cricket teams
National League clubs
Value Proposition
Sports clubs have small commercial teams trying to:
Engage local businesses for sponsorship
Sell hospitality packages
Manage fan communications
Handle enquiries
Our AI handles the repetitive outreach and follow-up, freeing commercial teams to focus on closing deals.
Sales Process
Leveraging Pete Oliver's expertise and network:
01
Warm introduction via Pete/SAIC connections
02
Discovery call with commercial director
03
Pilot proposal (typically revenue share)
04
3-month pilot deployment
05
Results review and expansion
06
Case study and referrals
Current Pipeline
Spin-out Timeline
Q2 2026: Spin-out as independent entity
Pete Oliver as CEO candidate
4142 retains 40% equity
FanatiQ raises own funding for growth
YEAA: Property Vertical
Approach
YEAA is deprioritised relative to Handled and Squidgy. However, the opportunity remains significant.
Our strategy is to deploy YEAA through digital agency partnerships where possible, rather than direct sales to estate agents.
Rationale:
Direct sales to estate agents proved slow (12+ months education cycle)
Many digital agencies serve property sector clients
Agency deployment is faster and more capital efficient
When We Scale YEAA
Once Handled model is proven with 3-5 agencies, we will:
01
Identify agencies with estate agent clients
02
Deploy YEAA AI Mates through those agencies
03
Build case studies from agency deployments
04
Consider direct sales for large chains
Spin-out Timeline
Timing TBD (likely 2028)
Dependent on agency deployment success
4142 retains equity and licensing
SECTION 9: COMPETITIVE LANDSCAPE
Market Positioning
We operate in the intersection of three markets:
Vertical SaaS
Industry-specific software
Conversational AI
Chatbots and AI assistants
Business Process Automation
Workflow automation
Our differentiation comes from combining all three in a way that's accessible to non-technical SME users.
Competitive Analysis
Generic AI Platforms (ChatGPT, Claude, Gemini)
Their Strengths:
Massive investment and research
General-purpose capability
Strong brand awareness
Their Weaknesses:
No industry-specific knowledge
No integration with business systems
Cannot execute tasks, only generate text
Require technical expertise to deploy effectively
Our Advantage: We build on top of these foundation models, adding the industry knowledge, integrations, and task execution that make them useful for specific business workflows.
Traditional Chatbot Platforms
Their Strengths:
Established market presence
Enterprise relationships
Proven deployment at scale
Their Weaknesses:
Scripted, frustrating user experiences
Limited to FAQ deflection
Customers actively dislike using them
Cannot handle natural conversation
Our Advantage: Natural language understanding and generation creates conversations users don't hate. We handle unexpected queries gracefully rather than failing to a "I don't understand" message.
Vertical SaaS Without AI
Their Strengths:
Deep industry knowledge
Established customer relationships
Proven business models
Their Weaknesses:
AI is becoming table stakes
Retrofitting AI is harder than native build
Legacy architecture limits capabilities
Our Advantage: We're AI-native. The conversational interface is our primary UX, not a bolt-on feature.
Emerging Vertical AI Players
Their Strengths:
Focused on specific verticals
May have industry expertise
Well-funded competitors entering
Our Advantage:
18-month head start
Proven customer retention
Platform approach (multiple verticals, shared development)
Distribution partnerships already forming
The Competition Window
Large technology companies will eventually build vertical AI solutions. When they do, they will have advantages in capital, talent, and distribution.
However, we have a window of 18-36 months where:
Enterprise AI vendors are focused on large accounts, not SMEs
Big tech is building horizontal tools, not vertical solutions
SMEs are underserved and desperate for solutions that work
Our strategy is to capture customers, build relationships, and create switching costs before well-resourced competitors arrive.
Defensibility
Data Moat
Every deployment generates data about what works in each vertical. This accumulates into proprietary knowledge that improves our solutions.
Relationship Moat
Agency partnerships create sticky relationships. Once an agency is deploying our platform to their clients, switching costs are high.
Speed Moat
Our AI-assisted development and bounty scheme allow us to ship features faster than traditional development teams.
Vertical Knowledge
Deep understanding of industry workflows, terminology, and pain points cannot be replicated quickly by generalist competitors.
SECTION 10: RISK MITIGATION
Technical Risks
Risk: AI quality inconsistent across use cases
Mitigation:
Modular platform with standardised testing
Human oversight built into all workflows
Continuous monitoring and improvement
Clear boundaries on what AI can/cannot do
Risk: Platform scalability issues
Mitigation:
Cloud-native architecture
Load testing before major launches
Experienced CTO with scaling background
Market Risks
Risk: Vertical doesn't achieve adoption targets
Mitigation:
Multi-vertical strategy spreads risk
Fail-fast approach (3-month validation periods)
Agency partnerships validate demand before direct investment
Revenue-funded market discovery
Risk: SME market too price-sensitive
Mitigation:
Clear ROI demonstration
Multiple price points (from $99/month)
Commission-based pricing aligns incentives
Competition Risks
Risk: Large tech companies enter our verticals
Mitigation:
Speed advantage (18-month head start)
Relationship-based sales (hard to displace trusted partners)
Vertical specialisation vs generalist approach
Exit optionality (sell before competition intensifies)
Risk: Well-funded startups target same markets
Mitigation:
Platform economics (shared development costs)
Distribution partnerships reduce CAC
Focus on execution over fundraising
Execution Risks
Risk: Managing multiple channels simultaneously
Mitigation:
Clear priority order (Platform → Handled → Squidgy → Verticals)
Dedicated focus areas for each team member
Staged expansion (don't do everything at once)
Risk: Key person dependency
Mitigation:
Building team depth
Documentation of processes
Equity incentives for retention
Financial Risks
Risk: Revenue ramp slower than projected
Mitigation:
Staged spending tied to revenue milestones
Bounty scheme provides flexible development costs
Multiple revenue streams reduce single-point-of-failure
Risk: Cash flow timing issues
Mitigation:
Monthly cash flow monitoring
Conservative assumptions in projections
Buffer in funding ask
SECTION 11: CORPORATE STRUCTURE & SEIS
Entity Structure
1
2
3
1
4142 Ltd
Platform Company
2
TheAi.Team Ltd
Trading Subsidiary
3
Planned Spin-outs
FanatiQ, Handled, YEAA
4142 Ltd - Platform Company
Holds all intellectual property
Receives all investment
Licenses platform to trading entities and spin-outs
SEIS eligible as software development and licensing company
TheAi.Team Ltd - Trading Subsidiary
Receives consultancy and services revenue
Delivers client implementations
Trades as 'Handled', 'YEAA', 'FanatiQ' until spin-out
Planned Spin-outs (formed by shareholders, not subsidiaries)
FanatiQ Ltd - Sports vertical (Q2 2026)
Handled Ltd - Digital agency channel (Q3 2026)
YEAA Ltd - Property vertical (TBD)
Spin-outs are formed by existing shareholders rather than as subsidiaries of 4142. This structure preserves SEIS eligibility for future investment rounds into the spin-out entities.
SEIS Compliance
4142 Ltd qualifies for SEIS as a trading company conducting software development and platform licensing.
Evidence of trading activity:
External platform licensing (Max/Noble Five)
Revenue from software services
Active development and commercialisation
Not a holding company: Does not merely hold shares in subsidiaries. Actively develops and licenses technology. Direct trading relationships with customers.
Investment Terms
This Round:
Tax Relief: Investors may claim 50% income tax relief on SEIS-qualifying investments, plus capital gains exemption on profits if shares held for 3+ years.
Previous Investment:
Spin-out Economics
When verticals spin out:
Licensing:
Spin-out pays 4142 Ltd 20% of revenue as platform licensing fee
Ensures ongoing revenue stream for 4142
Provides clear SEIS-qualifying trading income
Equity:
4142 shareholders hold 40% of spin-out at formation
Dilutes to ~27% after typical 2x fundraising rounds
Multiple potential exit events (acquisition, further funding)
SECTION 12: INVESTMENT SUMMARY
The Opportunity
4142 is building a machine that builds AI companies. One platform powers multiple vertical businesses, each targeting underserved SME markets with AI solutions that actually work.
We have:
Proven technology
18 months of development complete
Validated distribution
Agencies want to resell our platform
Paying customers
£4K MRR with 18-month retention
Experienced team
Founders who have built and exited before
Clear path to value
Multiple spin-outs, each a potential exit
The Ask
£300,000 at £2.5M pre-money valuation
First £50K
Receives 20% discount (£2M effective valuation)
SEIS eligible
50% income tax relief
Effective entry price
After SEIS: £1M valuation
Use of Funds
Milestones This Funding Achieves
Break-even
June 2026
1,100 Squidgy users
January 2027
FanatiQ spin-out
Q2 2026
Handled spin-out
Q3 2026
£130K MRR
January 2027
8 agency partners
January 2027
Return Potential
Year 3 potential value: ~£38M
On a £300K investment at £2.5M pre-money:
10.7%
Ownership
£4.1M
Potential value
14x
Multiple
This assumes no additional dilution from future fundraising into 4142. Spin-outs raise their own capital.
Why Now
1
Platform complete
The hard engineering work is done
2
Distribution validated
Max proved agencies want to partner
3
Competition window open
18-36 months before large tech catches up
4
Team ready
Experienced founders executing proven playbook
5
Market timing
SMEs desperate for AI that works
Investment Highlights
1. Clients become investors
Three customers have invested after experiencing the product. This is the strongest possible validation.
2. Capital efficient
Built complete platform on minimal capital. 70-80% code reuse across verticals.
3. Multiple exit paths
Spin-outs can be sold independently, Squidgy valuable as standalone SaaS, platform acquisition by larger player, or hold portfolio and collect licensing.
4. SEIS eligible
50% tax relief reduces effective entry price to £1M valuation.
5. Traction
£4K MRR, 18-month retention, pipeline building across multiple channels.
6. Experienced team
Founders previously built and exited Scout7. Not first-time entrepreneurs learning on your money.
Next Steps
01
Review this business plan and financial model
02
Schedule call with Seth to discuss questions
03
Review platform demonstration
04
Complete due diligence
05
Sign SeedFAST
06
Funds deployed
APPENDICES (To Be Developed)
Appendix A: Detailed Financial Model
Monthly cash flow projections (24 months)
Scenario analysis (conservative, base, optimistic)
Unit economics by channel
Sensitivity analysis
Appendix B: Squidgy Product Detail
Feature roadmap
User interface screenshots
Technical architecture
Integration capabilities
Appendix C: Handled Pipeline Detail
Agency pipeline with status
Per-agency economics
Commission structures
Case studies
Appendix D: FanatiQ Detail
Club pipeline
Revenue share structures
Sports market analysis
Spin-out plan
Appendix E: Technical Documentation
Platform architecture diagram
Security and compliance framework
API documentation
Data handling policies
Appendix F: Cap Table
Current ownership structure
Post-raise projections
Option pool planning
Spin-out equity mechanics
Appendix G: Team Biographies
Full CVs for leadership team
Advisory board backgrounds
Key hire profiles
Appendix H: Market Research
Vertical market sizing
Competitor analysis detail
Customer interview summaries
Industry trends
Contact
Seth Ward
Founder & CEO, 4142 Ltd
Email: seth@theai.team
Phone: +44 7700 168075
Website: www.4142.ltd
End of Business Plan