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CarCloud

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Our mission is to achieve the lowest possible monthly car costs for the UK’s 33.5m drivers.

168%
 - 
Funded 11 Jun 2024
£325,000 target
£551,313 from 165 investors
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Business overview

Location London, United Kingdom
Social media
Website carcloudcommunity.co.uk
Sectors Automotive & Transport Digital Mixed B2B/B2C
Company number 11397547
Incorporation date 5 Jun 2018
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Investment summary

Type Equity
Valuation (pre-money) £6.3M
Equity offered 7.95%
Tax relief

EIS

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Business highlights

  • 90k+ & 110k+ drivers joined our market test phase
  • 2k+ app reviews with average score of 4.75 stars
  • Secured revenue generating contracts: Experian & MSM
  • Customer acquisition partnership: Reach Media
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Key features

  • Secondary Market
  • Nominee investment min. £20.28 +
  • Direct investment min. £25,000.00 +

Pitch

About the Campaign

Car ownership is the 2nd largest household spend after mortgages.

Imagine the time & money you could save by having a car industry expert by your side. That's CarCloud!

Making informed decisions is game-changing.

Our services include: critical date reminders, document storage, monthly running cost estimates, finance tracking, equity forecasting, insurance renewals, mid-term & end-of-term finance.

CarCloud digitises vehicle lifecycle management, optimising the cost of car ownership.

Market Opportunity

More people are driving into their 80’s and beyond, increasing the potential need for more finance agreements & insurance renewals during our longer lifetime of cars.

Car finance is the largest single monthly car cost, but it's the key to flexibility & choice as circumstances change.

We've built what we believe is the UK’s first consumer car equity calculator to give users their live monthly equity position, helping them make the best financing & refinancing decisions at every stage.

We make money, via commissions, when our customers buy finance & insurance products.

Traction & Key Accomplishment

Q4 2021, we reached 145% of our Seedrs target!

Since then? We've been building one platform for drivers, keeping everything car in one place, enabling ‘the better way to car’.

•110k+ vehicles joined our test phase - 2k+ app reviews / 4.75 stars

• Beta showed ultra-low customer acquisition cost (<£1) and churn rate (3.8% vs 74.5% all app av.)

•Contracted with Experian for car finance & MoneySuperMarket for insurance

•Partnered with Reach Media for customer acquisition

•Selected for BNP Paribas Personal Finance Innovation lab

RECENTLY WE'VE ADDED NEW TOOLS

•Automated ingestion of any UK finance agreement

•Monthly estimates for car equity, car value (retail & trade), & running costs

•Premium account for added value services

CAR & VAN MARKET

•December 2022: 33.58m cars & 4.73m vans on UK roads, forecast to increase 7.21% by 2028

•UK car insurance premiums increased on average by 58% in 2023

•With car finance mis-selling in the spotlight (FCA Jan 24) drivers need finance solutions they can trust

Team

The company is led by 3 highly experienced car industry professionals, combining corporate leadership roles with expertise developing start-up & early-stage companies, with proven track records in delivering exits.

CarCloud is supported by a dynamic multi-disciplinary team covering product development, sales & marketing, partner & customer success, operations, finance, HR, and compliance for FCA regulated financial services.

Business Model

CarCloud makes money when our customers save time and money.

3 initial revenue channels:

• Car insurance commission.

• Car finance commission.

• Premium account subscription revenues.

CarCloud’s growth model is built to scale rapidly without expensive direct-to-consumer speculative marketing costs.

Through a revenue sharing model with multiple businesses who need problem solving content for their digital audiences, CarCloud is aiming to access the widest car owning demographic, pressing home our first-mover advantage.

Use of Funds

BEFORE WE LAUNCH NEW SERVICES AND NEW MARKETS:

•Best time to sell - future value calculator

•Best time to switch - next car comparator

•Drive & maintain services - best-in-class partners, all in one platform

•Compliance-checker for businesses - MOT, tax, insurance

•Buy & sell matchmaker - for the CarCloud user community & classified ad platforms (retail & trade)

•International expansion partnerships - significant interest from international markets, to be enabled by partners to maximise the ROI

Key Information

Material Debt:

The Company has the following outstanding debt:

1. £94,547 non-interest bearing Founder’s loan from Geoff Turral. The debt will be repaid from future revenues when the company is in a position to do so.

2. £65,000 owed to HMRC relating to Employers’ NI and income tax. The company has established a monthly repayment plan which has now begun.

The funds raised from this investment round will not be used to repay this debt.

Outstanding Convertible Loans:

The company has the following outstanding convertible loans, which may convert to equity after this round and dilute existing shareholders:

1. £100,000 loan from an individual, with the following key terms:
- Interest rate: 16% per annum
- Conversion trigger: election by the Lender at least two (2) business days before the loan Repayment Date, or at any other time upon written notice by the Lender.
- Conversion Amount: £100,000 + accrued interest.
- Conversion price: £0.39
- Valuation Cap: N/A
- Share class: A Ordinary Shares
- Repayment date: 05/03/2025.

Preference & Exit Proceeds:

In 2022, the company received around £550k investment from an investor at a £0.93 share price (the 'Investment'). The company agreed with the investor that in relation to the Investment only, they will receive a 2x preference on an exit or liquidation of the company (the 'Preference') and this will be paid from the founders' share of proceeds.

This means in the event of an exit or liquidation, proceeds will be distributed according to percentage equity held by shareholders and the Preference will be paid out of the amount the founders receive.

As a result, there will be no impact on the proceeds available on an exit or liquidation to other shareholders including the Seedrs investors.

Share Classes:

The Company has three classes of shares; A Ordinary Shares, B Ordinary Shares and C Ordinary shares. Investors in this round, including Seedrs investors, will be receiving A Ordinary Shares.

The A Ordinary Shares, B Ordinary Shares and C Ordinary Shares rank equally with respect to: (i) rights to participate in dividends; (ii) pro rata voting rights; and (iii) rights to participate pro-rata in proceeds on exit or liquidation.

The C Ordinary Shares have anti-dilution protection calculated on a broad-based average basis. This means if shares are issued at a price below the price that the C Ordinary Shareholders invested at, they will be issued new shares to mitigate the dilution suffered.

The B Ordinary shares have no rights of pre-emption.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited (trading as Republic Europe) ("Republic Europe"), which is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Republic Europe platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Republic Europe platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £6,333,453

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Seedrs

Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

Learn more about investing and pre-emption rights.

Nominee investment

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Nominee investment.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Nominee investment). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Security Token

A security token is a digital asset that represents ownership or other rights. It is a digital form of traditional investments. In the future, you may be able to trade your investment through compatible exchanges.

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None of the information in constitutes part of the campaign and it has not been approved or reviewed by Seedrs.

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