Houst (Formerly Airsorted)

Idea

Introduction.

In April 2018 we ran a crowdfunding campaign on Seedrs, beating our target in a matter of days. Since then we've put these funds to good use. In the last year, we’ve...

✅ Grown revenue 2.5x*.
✅ Launched in 12 new cities.
✅ Grown the number of homes under management from 1,800 to more than 4,000.

Our mission is to make hosting hassle-free for everyone. Renting out your home can be a hassle – from dealing with guest inquiries to cleaning and arranging key exchanges – especially if you are away or out of the country yourself. We market our hosts’ homes for short-lets, then look after guests from start to finish.

Home sharing is not accessible for many homeowners who don’t have the time or expertise – we’re here to solve that. We host and our clients earn – that's Airsorted. The extra income & freedom enables our hosts to do more of what they love.

Convertible details

This investment round is being raised by way of a convertible equity investment structure, in this case an "advanced subscription agreement".

A summary of the terms that apply to the Airsorted advanced subscription agreement are set out below. See also attached Key Terms in the Documents section for further details.

• Discount – conversion at a 20% discount to the valuation set by a Trigger Event.
• Valuation cap of £47,000,000. Please note that the discount does not apply to the valuation cap.
• The Trigger Events include:
o A Qualifying Funding Round – defined as the Company raising investment capital of at least £4,000,000 from one transaction or a series of transactions, in exchange for the company issuing equity Shares. This funding round does not count towards this total.

• The Longstop Date is 30th June 2020.
• If conversion has not been triggered by the Longstop Date shares will be issued on the Longstop Date at a price per share based on a pre-money valuation of £33,000,000 on a fully diluted basis immediately prior to the Long Stop Date.

• Shares will also be issued at a price per share based on a pre-money valuation of £33,000,000 on a fully diluted basis immediately prior to a change of control or a winding up event. No discount will apply to this share price

This investment round includes £250,000 being invested by Concentric Capital by way of Convertible Loan Notes. The convertible loan notes have some terms that differ from the Seedrs Advanced Subscription Agreement. These are further explained in the Key Terms that investors can find in the Documents section of the campaign.

Intended impact.

Our founder, James, started life in finance in New York and London for a large investment bank. Wanting the freedom to create a business, he quit his job and attended a coding bootcamp. While doing this, he put his place on Airbnb and realised three things:

1. There’s loads of money in it.
2. There’s loads of work involved.
3. No one’s connecting all the dots – cleaning, laundry, guest communications, pricing (etc).

James threw up a landing page to gauge market demand and very quickly realised it was massive. Four years later, and Airsorted has rapidly grown to become a hugely successful platform, managing over 4,000 properties in 22 cities around the world.

Listing your home can take a lot of time…We take care of all of this for our hosts.

Substantial accomplishments to date.

2015.

🚀1st test to gauge market demand.
📍 Airsorted launched in London.

2016.

📍We launch in 2 new cities: Edinburgh and Dublin.
💰Raised seed funding of £1.5 million.

2017.

We launch in a further 6 cities and gather momentum....
📍Sydney.
📍 Brighton.
📍 Bristol.
📍Brisbane.
📍Auckland.
📍Melbourne.

2018 - Present.

💰Completed a £5 million Series A funding round.
💰Raised a further £2 million via crowdfunding on Seedrs.
🏠The number of managed homes grew from 1,800 to over 4,000.
📍We launched in 12 new cities, from Toronto to Cape Town.

Monetisation strategy.

We have a pricing model that starts from 12% + VAT up to 18% + VAT, depending on the market conditions in each city. This model means we only make money when our hosts make money, completely aligning our interests with theirs.

Our strategy in the short to medium term is to maintain focus on delivering the expansion of our core business model, rather than looking at alternative revenue streams. However, we have a breadth of long–term strategic options we are considering. Possibilities are not limited to our host-customers, but also include monetising additional (add-on) services to guests to compliment their stay. Since launching in 2015, an estimated half a million guests have stayed at homes managed by Airsorted.

Use of proceeds.

Continued Growth - In 2018 we more than doubled the number of cities we operate in. We've laid the foundations we need and tested growth strategies. We now want to scale further and go deeper into these new markets.

Product Development - We built technology that enables us to look after the homes and guests of thousands of hosts, in multiple cities around the world. Our tech focus means that as far as we know Airsorted has the best technical product in the market. We have built tools to help deliver operational efficiency, automating as much as possible from scheduling cleans and linen delivery through to setting smart pricing to boost occupancy rates. We want to develop more apps and tools to make it easier for ours hosts to earn more from their property.

Please note that the company has a total credit line of £80,000. Funds raised as part of this round will not be used to pay this debt.

* Based on unaudited management accounts.