SnapDragon Monitoring Limited
Removing counterfeit products from online marketplaces to protect consumers and stop funds flowing to criminal activity
SnapDragon offers a SaaS based solution for brands to protect themselves against counterfeit goods using their name being sold online. The company’s proprietary software scours online marketplaces and flags IP infringements. Removing items from marketplaces takes just a few minutes and the team boast a 96% success rate and excellent client retention.
Based in Edinburgh, SnapDragon has recurring revenues of £40k per month.
The company is looking to consolidate its market position by raising £750,000 to meet the rapidly growing demand by expanding the team and further developing the automation of the SaaS product. Existing investors and two business angels (inc incoming Chair) have committed £450,000 of the round.
Business and Market Opportunity
Counterfeit goods account for $0.5 trillion in lost revenue each year and the problem is growing at 25% a year. At the same time, online shopping is growing rapidly and is predicted to reach $4 trillion in 2020.
As well companies losing revenue, counterfeit goods have a significant impact on company reputations. Consumers are at risk from potential health and safety issues caused by fake products. Counterfeit items are often produced in poor working conditions, are a key source of funding for terrorism and other criminal activity and a popular means of laundering money obtained through crime.
Products and Services
SnapDragon has a proprietary, AI powered system called Swoop that continuously monitors online platforms and marketplaces (from Amazon and Alibaba to Walmart and Wish). Using sophisticated algorithms, supply chain intelligence and multi-lingual capabilities, Swoop analyses product descriptions, prices, images and trademarks to quickly and accurately identify and report on intellectual property infringements. Items can be removed from platforms in as little as four minutes. SnapDragon removed items with estimated value of £100m from marketplaces in the period March – Sept 2020.
Why is it impactful?
- SnapDragon takes a thought leadership role in highlighting the breadth and complexity of problems caused by counterfeit goods. The SnapDragon team is involved in international groups that seek to address illicit trade.
- Counterfeit items are often manufactured in poor working conditions by children and other vulnerable groups.
- Money generated from the sale of counterfeit items is often used to fund human trafficking, drugs, terrorism and other crimes (some of the issues are illustrated in this article).
- Counterfeiting is a primary means of the money generated by criminal activity being laundered into the mainstream economy.
- By removing counterfeits from platforms, SnapDragon plays an important role in reducing all of these criminal activities.
- Counterfeit goods have serious dangers for consumer health and safety as fake products (from medicines, personal goods and baby products to automotive parts) can cause significant health problems even fatalities.
- Revenue protection for SMEs is the most easily measured impact, preventing £100m of lost sales of genuine products in a few months is significant. In the UK SMEs employ 16m people and account for 3/5th of UK employment.
Rachel founded SnapDragon after experiencing counterfeiting with her previous business, TotSeat (a baby product that generated £10m retail sales). Rachel has won many awards including Entrepreneur of the Year 2020 by the China Britain Business Council
Head of Product
Kieron studied AI and software engineering. Kieron has worked with JP Morgan and Goldman Sachs, in Business Continuity, Data Analytics and Client Intelligence
Head of Nurture
Mary has more than 20 years’ experience in sales, fundraising, manufacturing and brand development. Mary worked with Rachel at Totseat and previously managed new sales and emerging market opportunities for Blackbaud Europe
Director of Engagement
Jet has a background in law and criminology, Jet is part of the founding team and leads SnapDragon’s Brand Protection department. She has strong relationships with IP enforcement teams and senior staff within key online marketplaces
|Impact Sector||Responsible consumption & materials|
|Investment Sought||£750,000 (£50k mimumum investment)|
|Indicated Pre-Money Valuation||£3,000,000|
|Target Close Date||30/11/2020|
|Form of Investment||Equity|
|Potential EIS/SEIS Eligibility||EIS|