We do private health cover that’s simple, practical, and affordable - for businesses and their employees.
Business overview
| Location | London,, United Kingdom |
|---|---|
| Social media | |
| Website | www.equipsme.com/ |
| Sectors | Healthcare Digital B2C |
| Company number | 10652765 |
| Incorporation date | 6 Mar 2017 |
Investment summary
Business highlights
- A pipeline of over 68,000 potential lives created since March
- Partnership with AXA Health for corporate group opportunities
- 111% gross revenue retention rate*
- Backed by institutional investors, & Fintech50 2020 #1 Angel
Idea
Introduction
The global COVID-19 pandemic, the biggest health crisis the world has seen in over a century, will likely be the backdrop to our daily lives for years to come.
It’s undeniable that the way we live and work has changed forever. We’ve all learnt to juggle the demands of work and home and as we all adapt, employers are changing too as they seek to balance the books, attract and retain talent and ensure the health of their teams.
With the NHS waiting list estimated to reach 13 million, there’s never been a more important or relevant time for Equipsme in the market.
Our award-winning private health cover is accessible, affordable, and easy to understand.
Members can speak to a GP 24/7, have physio sessions, regular health checks and, if necessary, be quickly referred to a consultant for diagnosis and treatment, all managed through a simple to use app.
Substantial accomplishments to date
Large pipeline of sales opportunities.
AXA Health partnership to target the “corporate uninsured” opportunities.
Winner of “Best New Product - Innovation Award"-Cover Excellence Awards 2019 & The Insurtech Start-up Award, British Insurance Awards 2020.
Launched self-employed product to cater to a currently untapped market of 4.9m people.
349% YoY growth in revenue in last financial year*.
Digital Partnership with Starling Bank and Simply Business giving us access to over 600,000 businesses.
Highly Commended - In the Cover Excellence Awards, Best Group Health Insurance, 2020 and Cover Recognising Healthcare Innovation Awards, Best Group Private Medical Insurance, 2021.
Raised over £4.5m through Angels and institutional investors to date.
Economic uncertainty from Covid impacted our sales pipeline and we took fast action to reduce our expenses by 29% whilst maintaining an increase in sales (Apr-Aug 2020 vs Apr-Aug 2021).
Secured an exclusive 5-year insurance capacity deal with AXA Health.
Earlier this year, we launched our joint initiative with AXA to maximise our digital capability to address the need for a “whole of workforce” health plan for those enterprise-sized businesses that only offer traditional private medical insurance as an executive benefit. As a result, we are aiming for our pipeline to exceed 100,000 potential new employees before the end of 2021.
We believe that we only need to achieve a 10-15% conversion rate of this pipeline to achieve break-even while continuing to cap our monthly costs at £100K.
*Based on unaudited management accounts.
Monetisation strategy
Equipsme is on a mission to democratise health insurance by making it an affordable reality for businesses of all sizes. From the self-employed to large organisations, Equipsme offers flexible packages to suit all businesses and budget, with employees being able to pay to upgrade and add family members.
By bundling Health Insurance & Services together in a simple to understand and market leading price, we enable businesses to provide affordable and value for money health benefits to their employees and their families.
We do this by procuring services at lower than average market rates, we can retain a net mark-up of more than 25% while still being more competitive than traditional health insurance benefits.
Future exciting strategies for income generation include the use of unique data, profit sharing with capacity providers and international expansion.
Use of proceeds
Funds in this round will be used in two key areas:
The first £500K will be used with the aim to get to break even. Raising over and above this, additional funds will be used to accelerate SME growth through our investment in marketing and direct sales.
The global pandemic has accelerated the need for companies to do more for their staff in the way of health services and support. We are now seeing real behavioural change in companies, especially the larger ones where traditionally just the senior management would be covered.
Attraction and retention of staff are now more of an issue and therefore a 'whole of workforce' health plan has become a boardroom matter. Our pipeline of larger opportunities has grown since March 2021 and already includes opportunities to cover over 68,000 new employees. We aim to bridge our cash reserves to allow sufficient time to convert enough of the fast-growing pipeline, with the goal of reaching break-even before doing a Series A raise.
Key Information
Outstanding debt
The company has the following outstanding loans:
1. In January 2018 Equipsme Insurance Services Limited received a loan of £1,000,000 from AXA PPP Healthcare, with an interest rate of 9% per annum. This is to be repaid by June 2023.
2. A Bounce Back loan of £50,000, interest-free for 12 months, and 2.5% thereafter. This is to be repaid by May 2026.
None of the funds raised will be used to repay these loans.
Share classes
Funds controlled by Gresham House (Baronsmead and FIS Nominee) hold preference shares while all other investors, including the founders and Seedrs investors, hold Ordinary Shares and will receive the same class of Ordinary shares in this round.
The company currently has 4 class of shares, Ordinary Shares, A Ordinary Shares, AA Ordinary Shares and AB Ordinary Shares.
The AA Ordinary Shares and AB Ordinary Shares are held by Baronsmead Venture Trust and FIS Nominees Limited and together give the investors (i) a preferential dividend equal to 12.5% of the subscription price of each share per year (rising to 15% after Jan 2026), accruing and compounding monthly, and (ii) a 1.75x (rising to 2.75x after Jan 2027) non-participating preference on exit and liquidation - i.e. before proceeds are distributed to ordinary shareholders, the investors will receive 1.7x the amount paid for their shares (rising to 2.75x after [x]) and any unpaid preferential dividend.
The A Ordinary Shares are held by Baronsmead (reflecting its previous investments totaling £1,099,956) have been converted to a new class of preference shares. This class of shares carry (i) a preferential dividend equal to 12.5% of the subscription price per year (rising to 15% after Jan 2026), accruing and compounding monthly and (ii) a 1x (rising to 2x after Jan 2027) non-participating preference on exit and liquidation - i.e. before proceeds are distributed to ordinary shareholders, Gresham will receive 1x the amount paid for the existing shares (rising to 2x after 6 years) and any unpaid preferential dividend.
Once the AA Ordinary Shares, AB Ordinary Shares and A Ordinary shares have received their preferential returns and any unpaid preferential dividend (together the “A Preferred Amount”), the remaining proceeds will be distributed to Ordinary Shareholders up to the A Preferred Amount. This is in effect a catch up amount for the Ordinary shareholders.
The remaining proceeds will then be distributed amongst all shareholders pro rata.
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