GoodBox

Idea

Introduction

How often do you pay with a card instead of cash? Debit Cards alone have already overtaken cash, and by 2021 only 27% of transactions will involve coins or notes. This is a major problem for charities as more than half of donations made are cash. An alternative means of giving is urgently needed.

Enter GoodBox.

GoodBox is a technology company solely focused on building solutions that effortlessly connect donors and causes. Our flagship product modernises a familiar but dated form of donating: the coin collection box.

Interest has been overwhelming. Over 180 charities, 40 museums (including 5 of the top 7), 11 hospitals and several high street brands are engaged. We are ready to transform the £9.7bn UK charity sector with the right product at the right time.

With cutting edge and purpose-built technology the charity sector can play a giant role in changing the world for those most in need.

Intended impact

As we move towards a cashless society, cash dependent charities with limited technological capabilities are in a death spiral of declining cash donations, losing both revenues and donors.

Founded in 2016 by Andrew O’Brien (CEO) and Francesca Hodgson (COO), GoodBox combines 4 crucial elements – hardware, software, payments and big data – to provide a fully integrated technology based donation solution. GoodBox allows charities to capitalise on how we technologically organise our money today.

During our trials, we found people will donate larger amounts more often when contactless is available. Our data shows an uplift of at least 20% in total funds raised by charities, while street fundraising data alone suggests a unit cost ROI of less than one day.

GoodBox is a double bottom line business that provides you, as an investor, with the opportunity to monetize this technology driven change whilst leaving a positive footprint socially, environmentally and in your community.

Substantial accomplishments to date

• Incorporated in July 2016, GoodBox secured £100,000 in seed funding, our founders dedicated themselves full-time and we began defining our systems and payment architectures.

• November 2016 - a further £500,000 of funding secured, CTO hired, development team and prototype development identified and kickstarted. Charity & museum presentations began.

• January 2017 - “Tap to Give” Trademark (owned by GoodBox) approved by UK Cards Association. Guidelines issued that all contactless fundraising in the UK should use our trademark.

• April 2017 - initial trials of our MVP units commenced. Having hired a CFO, we identified strategic payment partnerships and commenced the process of defining our strategic architecture and designing our data portal.

• Summer 2017 - our museum trials began. We are engaged with Natural History Museum and are in talks with Tate Galleries, V&A, National Portrait Gallery, and the London Transport Museum. We began beta testing our data portal, achieved FCA Registered Payment Institution status, launched our website and secured key partner agreements.

• September & October 2017 - secured Enterprise Investment Scheme (EIS) approval. CCO hired. £4m Debt facility agreed.

• Interest in GoodBox has continued to grow, creating a strong opportunity pipeline including 100+ charities, Co-Operative Bank, Church of England, Costa Coffee, TOPSHOP, and major hospitals. “GoodBox could be the breakthrough we have been waiting for.” - Costa Coffee Foundation.

Monetisation strategy

We believe a fair and balanced pricing model that works for both fundraisers and GoodBox is a sensible approach to this sector. We have achieved this through a simple and straightforward blend of fixed and shared success fees as set out below:

1) We charge a commission on donations collected on any GoodBox product.

2) In addition, we apply a monthly service charge to cover support and connectivity. We have found this encourages charities to seek optimal locations for their GoodBoxes and also promote their use.

3) We also plan to receive income through our mobile app and web platform which allows users to establish campaigns, build a profile around their activity and invite friends to donate.

4) Further revenue is achieved by charging for premium analytics, renting of units and creating bespoke designs.

Finally, please note that there are a number of other products in the pipeline, both physical and platform based, where we plan to apply to the same pricing model.

Use of proceeds

• Direct box costs & capex £0.39m (17%)
• Staff costs (including tech team & developers) £0.86m (35%)
• Office, warehouse & distribution costs £0.1m (5%)
• Marketing & PR costs £0.33m (14%)
• R&D costs £0.48m (20%)
• Other costs £0.24m (9%)

Total £2.407m

Please note that the Company currently has loan facility of £4m available. This has not yet been drawn down on.