A sustainable British activewear brand for climbers with a passion for the outdoors and our planet
Business overview
| Location | BELPER, United Kingdom |
|---|---|
| Social media | |
| Website | www.3rdrockclothing.com |
| Sectors | Clothing & Accessories Mixed Digital/Non-Digital Mixed B2B/B2C |
| Company number | 07120773 |
| Incorporation date | 9 Jan 2010 |
Investment summary
Business highlights
- 215% DTC revenue growth in last 12 months, 65k+ garments sold
- Established B2B + DTC channels
- Founded by climbers with industry know-how & experienced advisors
- One of fastest growing sports globally: new to Olympics 2020
Key features
Idea
Introduction
3RD ROCK is a sustainable activewear brand founded in 2010 with one goal in mind - to make the best and most ethical climbing clothing in the world.
Founded by a team of passionate climbers, the brand has developed a worldwide reputation for extremely comfortable, better fitting, Made-To-Move garments that perform on the rocks, meet extremely high ethical standards, and transition seamlessly into your everyday lives.
With a strong connection to the climbing community, proven products and steadfast ethos 3RD ROCK are perfectly positioned to benefit from the recent explosion of interest in the sport and the crossover appeal of climbing apparel into other activities and sustainable lifestyles.
With 215% growth in the last 12 months, over 65,000 units sold, and after expert guidance from the Goldman-Sachs accelerator programme, the brand is now ready to enter the next stage of growth.
#EquityforEarthLovers
Substantial accomplishments to date
● Revenue to date - £1.3m*
● 215% revenue growth in the last financial year, despite COVID and the wholesale channel being almost non-existent
● 65,000 Garments sold to 20+ Countries
● Winner of the chamber's sustainability and impact award Nov 2020
● Own online e-commerce portal - shipping worldwide. This allows us to base our growth plans on existing in-house sales and conversions data.
● All styles designed in-house - an extensive range of sustainable & innovative activewear
● Strong Team: Climbers, skilled designers and industry experts with new non-exec from Rapha Cycling
● Wholesale accounts in EU, Japan and Canada. With key accounts such as Ellis Brigham (UK), BergZeit (DE) and many independent or gym-based shops
● High repeat online customer purchase rate (33%)
● Incredibly happy customers - nearly 2,000 5-star reviews.
● An established ambassador team of world-class athletes represents the brand
● A returns rate significantly under industry averages (13%).
● Over 12,000 plastic bottles recycled into our garments and over 1 tonne of sea waste used in our leggings and bra-tops
● Goldman Sachs accelerator programme alumni
*Based on unaudited management accounts.
The brand and the market
In line with surging consumer interest in sustainability, 3RD ROCK offers an ethical choice - a tried and tested product range with a cheeky playful voice.
The garments are cut by resident designer and St.Martins trained pattern wizard, Jessica. She makes sure all the styles have the ‘holy trinity’, flattering-fit, made-to-move and cut-for-comfort, that provide the wearer with the conditions to perform better when crushing rocks for breakfast!
Climbing has exploded onto the world stage. It’s inclusion in the 2020 Olympics, and Oscar winning documentary “Free Solo” - have helped drive a double-digit growth in the climbing sector.
This has resulted in a new market for technical, style-forward, apparel, that can be worn for active pursuits, as well as everyday wear.
Monetisation strategy
3RD ROCK is a thriving e-commerce and wholesale business. Offering a narrative of outdoor activity and ecological responsibility, there’s an exceptionally strong customer bond based on garment quality, as well as shared values. With high customer retention rates, every customer reached is a potential lifelong relationship.
The current monetisation model is built upon this strong B2C attachment, through 3RD ROCK’s online e-commerce portal. Further, a worldwide network of wholesale clients and athletes supports the brand awareness and reach, through first-hand product exposure in retail spaces, as well as on the rock.
With enormous room for expansion, and rapid growth in the climbing sector, 3RD ROCK’s proven track record with B2C is poised to scale as larger audiences are reached. A highly skilled marketing team will be executing a multi-platform global growth strategy, to increase brand awareness and drive acquisition of new customers.
Use of proceeds
Investment funds will be used to kick-start the next exciting stage of growth. This will involve:
1. Range Expansion & Innovation
Offer customers extra opportunities to integrate 3RD ROCK products into their lives, with exciting new offerings of both clothing and non-clothing items. Broadening the range will ensure that no matter whether performing in the office, the gym, or the great outdoors, it can be done in sustainable style.
2. Direct Sales Focus
Going forward 3RD ROCK will focus on a DTC model, whilst still retaining and developing key wholesale accounts. As well as increasing margins, this will develop deeper customer relationships, and facilitate greater control over how the products are marketed and sold.
3. Strategic Hires
With an exceptionally talented team already in place, growth will require some extra hands on the deck. Part of the funding received will be used to make strategic hires, driving DTC growth, expanding the range and penetrating into exciting new markets
Key Information
The company has the following outstanding loans:
1. Bounce Back Loan from HSBC of £36,000 entered into on May 27th 2020. The Loan has a 2.5% interest rate, payable over 6 years, with no repayments due in the first 12 months.
2. Non-interest bearing Director’s Loan of £64,009.46 from Jessica Mhari Mor, one of the Founders of the business, entered into on 23/10/2019. The Loan will be repaid by the company on the earlier of two occasions; a) Sale of the company b) The company’s net profit is £100k/year or more for two consecutive years.
Please note, £50,000 of this Loan will be converted into equity as part of this round at the same share price. This will leave the outstanding balance of the loan at £14,009.64. The repayment terms of the loan will remain the same.
3. Non-interest bearing Director’s Loan of £42,277 from Christine Taylor, an existing shareholder, entered into on 23/10/2019. The Loan will be repaid by the company on the earlier of two occasions; a) Sale of the company b) The company’s net profit is £100k/year or more for two consecutive years.
4. Non-interest bearing Director’s Loan of £14,995.82 from Guy Mor, one of the Founders of the business, entered into on 23/10/2019. The Loan will be repaid by the company on the earlier of two occasions; a) Sale of the company b) The company’s net profit is £100k/year or more for two consecutive years.
The funds raised from this investment round will not be used to repay these loans.
There is a charge over the company’s assets relating to the company’s £30,000 overdraft facility with HSBC. The company is not currently using this overdraft facility.
Please note, the share price for this round is £1.40. The investment multiple for the campaign is £30.80 which constitutes 22 shares.
Investor Perks
Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company.
It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.
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