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A peer-to-peer marketplace where families can buy, sell, donate + recycle outgrown children's clothes

215%
 - 
Funded 12 May 2022
£220,000 target
£478,698 from 473 investors
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Business overview

Location London, United Kingdom
Social media
Website www.wearedotte.com/
Sectors Clothing & Accessories Digital Mixed B2B/B2C
Company number 12671379
Incorporation date 15 Jun 2020
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Investment summary

Type Equity
Valuation (pre-money) £2.5M
Equity offered 16.08%
Tax relief

EIS

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Business highlights

  • 2,148% increase in registered users in the first 15 months
  • The official resale partner for 18 brands, including M&S + Clarks
  • Trusted by over 14,000 parents (with 99% 5* reviews)
  • 41% monthly growth in GMV (Gross Merchandise Value)*
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Key features

  • Secondary Market
  • Nominee investment min. £10.62 +

Idea

Introduction

dotte is the UK's first fully circular family-to-family marketplace where parents can buy, sell, donate and recycle outgrown children's clothes all in one place.

We provide a quick and easy way for families to clear out outgrown kids clothes and earn cash to reinvest in the next size up. What's more, dotte sellers get rewarded for extending the lifespan of clothes from our 18 brand partners, including major retailers M&S and Clarks. A major high five for families doing their bit!

With our brand partnerships and taste-maker sellers, we are fast becoming THE fashion destination which aspires to make shopping secondhand feel better than buying new. As seen in British VOGUE, The Times, The Guardian and Business of Fashion.

Substantial accomplishments to date

- Nov 2020: We launched our marketplace!

- Since launch we have shown strong, consistent growth including; 2,148% increase in registered users, 1,313% increase in listings published, and 447% increase in sales*

- Featured in Vogue, The Times, The Guardian, Business of Fashion and more

- Signed 18 brand partners, including major retailers M&S kidswear and Clarks Kids

- Over 3,000 user reviews (99% of which are 5 star!)

- Raised £375,000 in Venture Capital (Startup Funding Club, London Fashion Fund, Founders Factory) and Angel investment

- Since we started to invest in paid growth we have shown strong month on month growth; 83% monthly growth in web traffic, 66% monthly growth in registered users, 41% monthly growth in GMV (Gross Merchandise Volume)*

- Our social following has grown 2.8 times faster than our direct competitors combined

- Named in TechRound's top 5 sustainable fashion companies to watch in 2022

* Based on unaudited management accounts.

Monetisation strategy

Primary revenue stream: We charge 15% on all transactions on the platform.

Secondary revenue streams:

We charge 30% comission on all brand partner virtual pop-ups (deadstock sales).

We charge 20% on all transactions via a new service (MVP stage).

Use of proceeds

30% will be invested into improving the technology behind dotte. This includes hiring an in-house product team and developing a strong tech culture within the team, building an app (the no.1 thing our community want), and significantly improving the user experience and way we work with brand partners.

30% will be invested into profitable marketing to raise brand awareness and increase our growth.

40% will provide runway for the business as we work to become the number 1 kidswear peer to peer marketplace in the UK and beyond!

Investor Perks

Once our funding round closes, you'll automatically receive a community shareholder badge of honour on your dotte marketplace profile and you'll be entered into a prize draw to win £500 credit to spend with us – wahoo!

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.

Key Information

Material Debt

The company has outstanding Director loans totalling £90,000, which accrue zero interest. They are expected to be repaid any time after a £500,000 funding round.

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

Advanced Subscription Agreements

The company has an outstanding Advanced Subscription Agreement ("ASA") from Founders Factory totalling £250k. This ASA will convert to equity on the following terms:

- The company raising a trigger fundraising amount of £500k; or
- On the longstop date of 25th August 2022
- The ASA has no discount
- The valuation cap and the default valuation used at the longstop date is £3,321,428.

The investment target for this round is £220k and it is not expected to act as a trigger round for the ASA. As a result, this ASA has not been priced into the pre-money valuation shown in the campaign. New shares issued when the ASA converts on the Longstop date will dilute existing investors.

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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 dotte has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 23 April 2022 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 £2,470,531

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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