There were several webinars, AMAs, etc by some popular crowdfunded businesses this past month. I attended those I could and made some notes - which brings me to this crowdfund update! Let's dive in:
Curve, the "all your cards in one" fintech, recently hosted an AMA with their CEO Shachar Bialick, ahead of their crowdfund coming soon. Here are the highlights, coupled with some key figures from their company accounts (2019 FY):
Since Curve's last crowdfund in 2019, Curve's valuation has gone up by ~3x (from £202m to £592m); the share price has gone up ~2.2x - the difference is due to dilution.
Curve will be more transparent in this raise, e.g. they will share retention Metrics (churn, etc). In their last crowdfund, the opacity of their campaign made headlines.
Features such as "Curve cash auto spend" (spending cashback cash) & "ANTI embarrassment mode" (automatically revert to a different card if payment fails) have recently been released. Curve Credit - a loan offering- is currently in closed beta and is being tested by some UK customers. Curve is still in talks with Amex to bring them back to the Curve app.
Gross transaction volume increased by 57% YOY, reaching ~£1.6bn in 2020+2021 (£826m in 2019, £219m in 2018). In Q1 2021, HMRC and Amazon were amongst Curve's top 5 merchants. Curve currently has 2m customers ~(up from 0.86m in 2019, and 0.23m in 2018). Active users grew 346% YOY 2019/18, although no exact figures were given.
Revenue is up to 5.9m in 2019 (up from ~£3m in 2018). Interchange fees made up 0.75% of revenue, whilst subscriptions made up ~17%. 70% of revenue came from the UK. Losses reached £26.5m in 2019 (up from £6.1m loss in 2018). Curve has ~313+ employees, up from 213 in 2019 and 65 in 2018. “We have a clear path to profitability which we are executing against” says Curve CEO.
Coconut - An accounting app for sole traders (think quickbooks for the creator economy) has reached 50k total signups and a ~£930k Annual revenue run rate. Given COVID-induced headwinds, their upcoming crowdfund will be at a valuation of ~£18m (pre-money), representing just a ~5% uptick in share price.
Above: An infographic from Coconut on their growth
Oval money - A savings app, shuts down. Technically, they were acquired by a CFD broker ETX Capital (i.e. a financial firm), but the acquisition will net virtually no return (i.e. 100% loss) for shareholders. Ultimately, the failure was brought on by failed funding and exit discussions during 2020.
Freetrade will commence their European launch by september (european stocks slated to be added to the app prior to), just in time for their crowdfund; CEO Adam Dodds hopes for freetrade to be in every eurozone and nordic country by year end. According to Investors Chronicle, Freetrade has achieved an annual revenue run rate of £12m, indicating a strong subscriber base; 45% of Freetrade users invest at least once monthly and 22% do so atleast bi-monthly. In terms of features, Freetrade hope to launch their crypto offering by year end also.
Emma, the savings and financial management app, will publish a public roadmap in the next two weeks - a view into their upcoming features and plans (check out a sneak peak below). As mentioned in a prior Crowdfeed update, Emma will crowdfund in June.
Above: A sneak peak of Emma's public roadmap
No rumours today sorry... maybe next time!
Private Live Campaigns 👤
Wisealpha, a retail investment platform for corporate bonds (think freetrade but loans not shares). Invest here.
Tropicfeel - a spanish travel gear (shoes, rucksacks, etc) brand. Whilst the campaign isn't live just yet, it will launch later on today. Pre-register here.
💡 Wisealpha's campaign is a pre-emption campaign. Therefore, it may only be existing shareholders that are given access. Furthermore, information is often limited in pre-emption campaigns, given investors are usually informed through prior shareholder updates.
Upcoming Campaigns 📆
Taster - A delivery-only takeaway startup backed by Octopus ventures (Depop, Cazoo, Zoopla) and LocalGlobe (Tide bank, Transferwise (AKA Wise), Cuvva). They recently completed a ~£26m Series B. pre-register here.
Coconut - an accounting app for sole traders (think quickbooks for the creator economy). pre-register here.
Allplants - a plant-based meal subscription company (think HelloFresh but vegan) is planning a funding round later this year. No pre-registration yet.
Cornish Lithium - A mining company based in Cornwall. pre-register here.
Cheeky Panda - A bamboo toilet paper brand, is wrapping up large institutional round of up to £12m, which includes a crowdfund planned for June. No pre-registration yet.
As some of you might know, i've been working on a due diligence post on Citymapper's crowdfund. As i feared, their campaign closed pretty quickly - so I wasn't able to publish this post whilst everyone could still invest. The post itself is nearly done, but I would hate to publish something people weren't interested in; so if you're still interested in reading the post, please do let me know in the comments below.
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