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Crunch

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Crunch is an online accountancy software & service platform for freelancers and small businesses.

162%
 - 
Funded 11 Dec 2021
£600,002 target
£1,009,240 from 345 investors
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Business overview

Location Brighton, United Kingdom
Social media
Website www.crunch.co.uk/
Sectors Finance & Payments Digital Mixed B2B/B2C
Company number 06014477
Incorporation date 19 Dec 2007
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Investment summary

Type Equity
Valuation (pre-money) £15M
Equity offered 6.10%
Tax relief

EIS

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Business highlights

  • Disrupted accountancy industry with software and service in 2009
  • Launched V2 of our scalable Tax & Accountancy platform in 2020
  • 70,000 community / 20,000+ software users / 10,000 paying members
  • eBay Europe founder Michael Van Swaaij is Crunch's Chairman
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Key features

  • Secondary Market
  • Nominee investment min. £14.10 +

Idea

Introduction

We believe everyone deserves a life where they love what they do. We delight in empowering self-employed individuals to create the life they want and build a business to support it. Our super slick software means that small businesses don’t need an accountant at all. No more chasing calls or unread emails - with Crunch, you don’t need a traditional accountant. This presents a huge cost-saving and allows freelancers, contractors, and small business owners to stay in control of their finances.

If you’re ever in need of further support, we have experts on tap. We’re the next generation of SAAS; software AND service - the best of both worlds.

Even better, you can join us for FREE. Our revolutionary Crunch Free package allows you access to Open Banking, invoicing, and accounting services, so you can get back to doing what you love without the hassle of expensive accountant's fees. No hidden fees, no trial periods - we’re free forever!

Substantial accomplishments to date

⭐Crunch landed in 2009 with its unique all-in-one Ltd company accounting software and service, at one-third of the price of a traditional accountant. We then started to grow… a lot.

⭐We became the fastest growing accountancy firm in the UK*, jumping up the AccountancyAge 50+50 Top 100 Accountancy Firms at a rapid rate. (*organic growth based on AccountancyAge rankings)

⭐Featuring on the Chris Evans Radio 2 drivetime show with 5m listenership in our launch year.

⭐2019
Mid-Tier Firm of the Year | British Accountancy Awards
Large Firm of the Year | AccountingWEB’s Accounting Excellence
Content Marketing Award | British Accounting Marketing Awards

⭐Launched our new Accountancy & Tax platform, enabling us to bring Crunch Free to the market. From October 2020, 1000 businesses signed up every month.

⭐Today, we have over 10,000 Crunch Free members, achieved in less than 10 months, and without any investment.

⭐Refreshed our Crunch Chorus Community in June 2021, adding a host of new features increasing our membership to a massive 68,000 members

Monetisation strategy

✔ Direct: Software and Service sales of Sole Trader Pro, Limited Company Pro, Limited Company Premium, and the Small Business package.

✔ Upgrades to Crunch Free: Software add-ons, bite sized services like 'Ask an Accountant' and upgrades to the software and service products.

✔ Partner sales for complimentary products like Crunch Mortgages, Insurance, Investments and Pensions, as well as other partners.

✔ Payments commission - from payments links in Crunch Invoices via a payment partner like Stripe.

Use of proceeds

✔ Substantial investment into growth marketing tactics and talent to deliver our ambitious 3-year omnichannel marketing strategy.

✔ Amplify investment into product development to build Crunch functionality and features; not only for a faster delivery rate but also to remain at the forefront of innovation.

Investors perks

Crunch Coins is a voucher system that not only allows you to redeem the value against Crunch's products and services but also redeem the vouchers against community members' products. We will be announcing our members businesses that want to be involved next week.

One Crunch Coin has an equivalent value of £1 when used to purchase products and services from Crunch or its community, The cash value of one Crunch Coin is £0.01 per coin.

Key Information

Outstanding Debt

The company has the following outstanding loans:
£1,271,496.27 loan from Barclay Bank PLC at an interest rate of 3.95 per cent per annum plus the Bank of England rate. Interest and capital are repaid quarterly. The loan was fully drawn in January 2020 with a repayment period of 4 years. The loan will be repaid in January 2025.
£250,000 loan from Uncapped at no interest rate, a fixed fee and repayable in 10 monthly instalments.

Group Structure

Investors in this round are investing into and will become shareholders of E-Crunch Ltd (06014477). This is the holding company for the group. The following businesses are group companies and 100% owned by E-Crunch Ltd

Crunch Academy Ltd Company Number 08893103 (Non-Trading)
Crunch Bookkeeping Ltd Company Number 12087260 (Dormant)
Crunch Investments and Pensions Ltd Company Number 09270395 (Dormant)
Crunch Ltd 12936019 (Dormant)
Crunch Project Ltd Company Number 12091820 (Dormant)
Crunch Umbrella Ltd Company Number 09937224 (Trading)

Funds raised

Please note that £250k of funds raised as part of the round and reflected in the progress bar was received by the company 5 months ago. The investment was made on the same terms as this campaign.

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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

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 campaign for Crunch has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 11 November 2021 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

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 £15,020,918

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.

Find out more

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.

Warning

You are following a link outside of europe.republic.com.

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

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