Alternet Systems, Inc. (ALYI) ("Alternet" or the "Company) invests in innovative ways to manage digital commerce, information and payments. Through strategic investments and partnerships in such verticals, Alternet is transforming the legacy electronic payments infrastructure and developing advanced predictive data analytics applications for the mass consumer, telecommunications and financial industries. The Company's vision is to become the leading global solutions provider in these key, high-growth industries.
The Company's mission is to provide innovative solutions that facilitate and expedite commerce, enriching the experiences of both its partners and their customers while improving efficiency. Recognizing that the world is becoming increasingly dependent on technological conveniences, Alternet aims to provide its customers with the tools needed to prepare themselves for a new era of digital commerce and payments, financial services, consumer information, and, most importantly, a new era of how to live.
Throughout its history, Alternet has maintained a progressive focus on the high-growth, value-added service industries of mobile financial services and security.
The Company is guided by a team of executives specializing in entrepreneurial endeavors, innovation, corporate strategy, financial and executive management of multi-national organizations, and a vast network of industry resources. Management and the Board of Directors have over a century's worth of combined experience in the fields of technology, financing, and the consensus knowledge of investing where and when in early-stage companies.
Investment Highlights
- Investing in Innovative Ways to Manage Digital Commerce
Progressive Focus on Mobile Financial Services and Security
Innovative, Disruptive Payment Technologies
Capitalizing on Modernization of Legacy Point-of-Sale Infrastructure
Developing Advanced Predictive Data Analytics Applications
Highly Unified, Qualified Management Team
Solutions
Payment Technology Solutions
Alternet delivers technology solutions to financial organizations that manage a wide range of payment channels including development engines that extend the capabilities of processing across all capture devices such as point-of-sale (POS), mobile phones, tablets, PCs and web-based applications. These solutions deliver channel specific abilities. Alternet partners with leading manufacturers that deliver solutions that meet the needs of device and channel management, now and in the future.
In 2015, Alternet signed a strategic partnership with MUXI (a subsidiary of APPI Group) to provide U.S. payment processors and independent sales organizations the most supported and flexible multi-channel point-of-sale payment processing solution. Through this agreement, the company expanded its potential market reach to include over 20 million merchants across the United States.
Growing demand from mobile point-of-sale terminals and increased emphasis on advanced analytics features are significant factors for the growing demand for software in the point-of-sale terminals market. Alternet is strategically positioned to introduce MUXI's innovative, brand agnostic point-of-sale terminal and disruptive payment technology to underserved U.S. markets while providing timely and cost effective solutions across all devices to facilitate multichannel capability to any merchant.
Payment Technologies – Rapidly expanding market
- Legacy from multiple decades of infrastructure for credit card payments and Point-of-Sale (POS) terminals
Merchant acquirers providing POS terminals and payment services want higher consumer usage to maximize revenues
Omni-channel payments will require a complete refresh of the legacy installed base
The only cost-effective, efficient solution is through software
Data Analytics
Revolutionizing how leading organizations optimize data analytics and automate marketing research operations, Alternet's integrated analytics, micro segmentation and marketing automation technology empower marketing organizations to create and develop critical marketing decision matrixes. In addition, the Company's solutions give clients a proprietary market view across diverse data sources, allows discovery of unique audience and location micro-segments, automates data management, and generates recommendations at micro level P&L-oriented yield optimization, across products, price and promotion investment.
Analytics – Large investment opportunity through 2020
- Data is quickly becoming the true measure of value
Big data promises better targeting and decision making
Analytics evolves: Reporting > Predicting > Prescribing
Advanced analytics are moving into mid-market companies in addition to large enterprises
Market Opportunity
Merging Two Massive Technology Markets:
Payment Technologies – A burgeoning marketplace
- E-Commerce in the U.S. is a $263B industry with a CAGR ('11-'15) of 14% projected 12.5% through 2018
Cross-border commerce is estimated at $875B per year
Data Analytics – Growth sector through 2020
- Global big data and analytics market $125 billion in 2015
Analytics-as-a-Service growth $4.2B ('15) to $23.0B ('20) – CAGR = 40.3%
Data Analytics market combines with "Internet of Things" forming "The Analytics of Things"
71% of F500 companies use, or plan to use, analytics in everyday decisions
Sources: Gartner, Forrester, Datameer, International Institute for Analytics (IIA) and payments at retailers in US; Markets and Markets
Point of Sale Systems Industry
Adoption of wireless and mobile point of sale solutions has increased significantly in recent years, creating a substantial opportunity for Alternet to expand upon its current market share while promoting sustainable financial growth. In 2013, the global point of sale market was valued at approximately $36.86 billion, and it is expected to achieve a compound annual growth rate of 11.6 percent from 2014 to 2020, according to Transparency Market Research. The same report shows that the domestic market is expected to account for the majority of this growth, as North America represents approximately 32 percent of the global point of sale market.
Furthermore, Transparency Market Research shows that on the basis of revenue, the global point-of-sale terminals market was $36.8 billion in 2013, forecast to demonstrate 11.6 percent CAGR during 2014-2020.
Through its partnership with MUXI, the Brazilian leader in multichannel technology solutions for the electronic point of sale industry, Alternet is strategically positioned to introduce an innovative, brand agnostic point of sale terminal and disruptive payment technology to the domestic market, which currently includes the largest outdated legacy point of sale infrastructure in the world.
The potential benefits of mobile point of sale platforms are expansive, and this has led North American retailers of all sizes, particularly department stores and specialty retailers, to consider implementing the technology in recent years. In 2013, research firm IHL Group estimated that North American mobile point of sale hardware and software sales totaled $2 billion, and an estimated 85 percent of larger retailers will utilize these devices by 2016. While adding considerable operational benefits, mobile point of sale technology also presents retailers with significant cost savings. According to a report by the Yankee Group, large retailers typically spend upward of $20,000 and need around 75 square feet of floor space in order to install five fixed point of sale terminals. However, for as little as $2,500, these companies can provide five fully-loaded mobile point of sale terminals without sacrificing valuable floor space.
In total, the report estimates that a high-end retailer with 50 stores producing $525 in sales per square foot could generate an additional $1.2 million in annual sales by replacing just three stationary point of sale terminals with mobile point of sale devices. When combined with the October 2015 shift to EMV-compliant card readers and the growing popularity of NFC payments, the market potential for Alternet's licensed point of sale technology is effectively limitless.
Board of Directors
Sustainable growth of this caliber is driven by the leadership of an experienced Board of Directors with the knowledge to capitalize on the Company's rising momentum.
 | Henryk Dabrowski – Chairman & CEO Henryk Dabrowski has more than 25 years of experience creating, leading and successfully harvesting information technology and telecom ventures in North and South America. Previous ventures include; RKM IT Solutions, a Latin American IT & telephony integrations solution provider; Vox2Vox, a global IP telephony and value added services provider and Tekvoice, a Miami-based IP telephony and wholesale billing platform provider. In 2008, Dabrowski orchestrated the reverse merger of Tekvoice into Alternet Systems. Since that time he has led Alternet's transformation into an investment and management services company focused on high growth digital commerce, information and payment industries. |
 | Michael T. Viadero – Chief Financial Officer Michael Viadero has more than 25 years of financial and executive management in leading multinational organizations throughout Latin America, including managing the Brazilian operations of MasterCard, WR Grace & Co. and The First National Bank of Chicago. Prior to joining Alternet he was the Regional Financial Officer of MasterCard International where he was responsible for financial operations, product and service pricing strategy, and transitioning MasterCard from privately held to public company. |
 | Fernando Cisneros Fernando Cisneros is an entrepreneur and private equity investor with deep financial expertise. He is currently a partner at Octagon Group, a Peruvian real estate development firm, and spearheads multi-million dollar residential and commercial projects. Prior to Octagon Group, Cisneros was a vice president in LXG Capital, a boutique Latin American investment bank, where he worked on mergers and acquisitions, divestitures, general strategic advisory services, and capital raising. Cisneros has also served as a partner in Flow Investments, a global macro hedge fund, where he focused on equities. Lastly, he began his career as an analyst at Lazard Frères in mergers and acquisitions. Cisneros holds a BA in economics from Duke University and an MBA from Columbia Business School. |
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