Dear , 

Boxarr spun out of Southampton University in 2003 from an initial collaboration with Rolls Royce. Over the course of the last decade, the company has developed a unique, versatile tool and powerful methodology that is unparalleled in its ability to represent, elicit, reuse and exploit complex networks of interdependency.

The company already has a prestigious client list in the aerospace and defence industries. This investment round is intended to secure the company sufficient resources to scale-up its sales and marketing capability and establish itself as a leading supplier in these sectors and additionally open up new market sector opportunities.

For those familiar with Toyota’s Kanban 'Just-In-Time' production systems (and subsequent Sigma Lean revolution in management processes) Boxarr’s technology could be seen as a 21st century 'upgraded' version.

 The Technology

Boxarr is an Interdependent Systems Management (ISM) tool which solves the problems of complex networks of interdependency which are common in the aerospace and defence industries.

Boxarr combines an easy-to-use, real-time networked, “boxes and arrows” interface, with excellent connectivity to other information systems. Boxarr captures knowledge across potentially hundreds of knowledge workers and computer data sources, to model the complex systems of today’s businesses. It has unparalleled visualization, allowing understanding of models with hundreds of thousands of elements with ease. These elements are combined with novel filtering mechanisms, a resource model, analysis, scheduling, and optimization tools. This makes Boxarr ideal for better decision-making, business operations, and targeted improvements across many domains and applications.

The Opportunity

As companies and systems get more complex, the need for a way to visualise the inter-dependency of component actions and to model the impact of variances has become more pressing. The company has identified key applications in areas such as supply-chain management, multi-team project management, systems engineering and complex fault analysis.

In aerospace, a recent industry forecast has shown a worldwide need to deliver over 30,000 new passenger and freight aircraft in the period 2014-2034. To meet this demand, aircraft manufacturers will need to increase significantly the build rate for new aircraft. A modern commercial aircraft is one of the most complex products made by man. Systems on the aircraft are more interdependent, supply chains are more globalized, and every plane is more highly customized. This results in a massive challenge in ramping up production. 

At a major US aircraft manufacturer, Boxarr is allowing a production system model that existed previously only as plots from drawing tools on massive (21 by 7 foot) pages, to be translated into a real live analytical model that can be visualized, managed, and understood by the production engineering team. Boxarr has augmented this model with queuing network calculations that turn on red warning flags in the key areas where greater effort will yield greater production of aircraft.

The Market

The entire Product Development software market is estimated to be worth $32bn of which $3.2bn is in the aerospace and defence (A&D) industries. Through their existing clients, Boxarr already has visibility on around $8.4m of ISM business. 

High barriers to entry in A&D give Boxarr significant first-mover advantages and the company intends to develop early sales and marketing coverage in other complex industries, particularly automotive where preliminary engagement has already occurred.

The Model

The company initially intends to focus on exploiting its strong position in the aerospace and defence industries where it is already winning in competitive Invitations to Tender (ITTs) because:

• Barriers to entry in Aerospace and Defence are high
• First mover advantage
• Customers are ‘Sticky’ and once Boxarr is locked into a customer it is hard to dislodge 

Growth over the short-term will be driven by 

• Network effect – Manufacturers and Tier-1 companies are likely to require Tier-2 and Tier-3 companies to use Boxarr
• Renewals – multi-year renewal deals from the annual rental model
• Software as a Service (SaaS) delivery option available through an existing Cloud platform for smaller companies

The Team

David Mushin, Non-Exec Chairman, has a wealth of business experience, leading the internationalisation and growth of a number of industrial software businesses including 10 years as EVP of Aspen Technology Inc.

Alasdair Pettigrew, CEO, joined Boxarr in 2014 from IBM where he led the Business for the Rational Systems tool-set. For 15 years he helped the aerospace, electronics and automotive industries deliver complex products and systems more efficiently and effectively. Previously Alasdair worked on military aircraft design at BAE Systems.

Ian Poccachard, Founder Director, is an Aerospace Engineer, with 10 years experience at Rolls-Royce and 12 years sales & consulting with Boxarr.

Dr Rob Smith, Chief Scientific Officer, is a recognised artificial intelligence expert, with 20 years Aerospace & Defence research & development experience.

Dr Kelvin Harrison, Non-Exec Director, is an Aerospace Engineer, and has created and floated businesses in enterprise software.

Professor Jim Scanlan, Non Exec Director, is Professor of Design Engineering at Southampton University, consultant to BAE, Rolls Royce and masterminding the University’s world leading unmanned aerial vehicle program.

The Investment Case

We believe Boxarr’s combination of data visualisation capability and impact modelling gives it a strong market proposition, not only for its existing commercial relationships but for its chosen industry sectors as a whole.

Existing commercial engagements demonstrate the effectiveness and value of the technology. Scale-up will require the company to successfully migrate from a consultancy-led business to an enterprise software-led business and the execution of this phase represents the key risk.

However, we consider the management team both well suited and highly motivated enough to deliver fully their business plan and thus achieve our investment goals. 

This financial promotion is issued by Parkwalk Advisors Limited (Parkwalk), which is authorised and regulated by the Financial Conduct Authority.  Investments referred to in this newsletter are not suitable for all investors.  Interested parties are strongly recommended to seek specialist financial and tax advice before investing in any product.  Capital is at risk and investors may not get back the full amount invested. Tax treatment depends on the individual circumstances of each investor and may be subject to change. Past performance is not a reliable indicator of future results, and the value of investments may go down as well as up. Projections and forecasts are also not a reliable indicator of future performance. Investments in small and unquoted companies carry a higher risk than many other forms of investment. Any investment in a Parkwalk product must only be made on the basis of the terms of the full Information Memorandum. Parkwalk is not able to provide advice as to the suitability of investing in any product.