Anna Money

Idea

Introduction

ANNA is a mobile business account aimed at the creative industries, small business owners and freelancers. We take care of banking and business admin, aiming to save our subscribers time and money.

Our functionality is accessed through a chat interface, using AI and Natural Language Processing (NLP) backed up with a brilliant customer support team in Cardiff.

Features we offer right now:

• Fast online on-boarding (includes KYB and KYC). 25% of our customers have an account open in less than 10 minutes.
• Business current account with a UK sort code
• Debit card provided by Mastercard®​
• Smart invoice creation and sending
• Digital receipt storage to track expenses
• Tax calculation help and reminders
• 1% cashback on a range of business services
• 24/7 chat support from our team in Cardiff

What's on the horizon:

• VAT returns and tax self-assessment tax returns
• Cashflow forecasting with profitability insights​
• Payroll and pension contributions​
• And a whole lot more…

Intended impact

Did you know that self-employed people now count for around 15% of the UK workforce? That number’s been on the rise since 2001. Being your own boss is great. The admin that comes with it? Not so much.

That’s where ANNA steps in. Designed for freelancers, small businesses, and creative types, we’re a mobile business account and virtual assistant rolled into one. We aim to save our customers time and money by handling their business banking and admin so they can focus on doing what they do best.

Our product is designed to be used as little as possible, giving people information and options as and when they need them. Our AI preempts your tax deadlines and spots unpaid invoices and cash flow issues before you do.

Our brand shows off the fun side of ANNA, too. When you’re doing less admin you have more time for the fun and enjoyment of being your own boss. So our marketing does exactly that.

Substantial accomplishments to date

In just over a year we have built both a product and brand from scratch.

Monetisation strategy

We drive revenue in 3 different ways:

1. Interchange revenue

This is the amount charged to merchants when anyone spends using card payments. This is traditionally shared between the card issuer (ANNA) and the payment provider (in our case, Mastercard®). The more customers we have and the more they use their ANNA card, the more interchange revenue we receive.

2. Banking / Account subscription

Once any promotional time period expires, ANNA charges a monthly subscription for our core services. For Limited companies, this is £5 or £11 dependent on their monthly revenue. For Sole Traders, it’s always £5 a month.

3. Extra admin services

Future features such as VAT calculation, filing or expense management, may carry extra costs once they are built, tested and deployed. We always try to offer our services on a promotional basis to prove their value to our customers, and launch new features on a beta basis to achieve rapid testing and improvement.

Use of proceeds

The next 12 months are very big for us at ANNA. As our core product matures and our customer base grows, we can begin to push our ambition much harder in the product space.

We're raising funds to:

• Enhance our tax calculation and expense processing services
• Deepen our AI capabilities to better serve our customers

Investor Rewards

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 and listed above. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.

Convertible Key Terms

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

The key terms that apply to the Anna Money deferred subscription agreement are set out in the Key Terms Document attached to this campaign. In Summary:

Conversion of the deferred subscription agreement will take place:

• On a Qualifying Equity Fundraise of £1,000,000 or more, at the lower of (i) a 20% discount to the share price paid by investors in the Qualifying Equity Fundraise, or (ii) the share price based on a valuation cap of £85,000,000 (the discount does not apply to this valuation cap).

• If no Qualifying Equity Fundraise has occurred, on the “Longstop Date”, (which will be on the 7th of September 2020), or a winding up event, conversion will happen on the Longstop Date or the winding up event at a share price of £1.40 (this was the share price of the company's last funding round and equates to a current company valuation of £36,000,000), or, if lower, the price per share issued after the date of the deferred subscription agreement.

• If a change of control or IPO occurs prior to the above events, conversion will automatically trigger at a price per share which is the lower of (i) the lowest price per share issued or sold as apart of an IPO or change of control, discounted by 20%, or (ii) the share price based on a valuation cap of £85,000,000 (the discount does not apply to this valuation cap).