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Locket

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Technologically-advanced, prevention-first home insurance

148%
 - 
Funded 17 Dec 2021
£750,000 target
£1,128,180 from 469 investors
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Business overview

Location Harrow, United Kingdom
Social media
Website locket.insure
Sectors SaaS/PaaS Digital B2C
Company number 12787431
Incorporation date 3 Aug 2020
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Investment summary

Type Convertible
Discount 15%
Share price N/A
Tax relief

EIS

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Business highlights

  • Entire tech-stack built in-house
  • Two new insurance products brought to market
  • Terms agreed for distribution on top UK Price Comparison Sites
  • Series of high profile partnerships agreed
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Key features

  • Secondary Market
  • Nominee investment min. £15.00 +
  • Idea
  • Investor Perks
  • Key Information
  • Team
  • Updates
  • Investors 469
  • Discussion
  • Documents

Learn more about convertible campaigns.

Idea

Introduction

We're Locket, and we're everything your old insurer isn't.

Insurance is a $7tn industry that’s in dire need of a shake-up. Old insurers treat our world as replaceable. Everything has a price. When “bad things” happen, payouts fix them.

However, we know that the things that matter most can never be replaced.

We’re on a mission to change the odds. Using advanced technology, including automated quote & buy journeys, ML-based pricing models, smart device integrations, and gamified coaching, we aim to increase satisfaction and help homeowners to reduce their risks – leading to lower premiums and fewer claims. Everybody wins.

We’re building a flexible, fair, and socially responsible alternative to the old home insurance proposition. Insurance for things worth money, and assurance for things worth so much more.

Join us, and be part of the movement to change insurance for good.

Substantial accomplishments to date

Built our own tech stack in-house. Backend, frontend apps, cloud infrastructure, ML-driven pricing engine, Policy Admin System, and more. The stack has been built in a way that enables us to offer multiple, easily adjustable insurance products and bill for them in real-time, on-demand.

Developed two new insurance products. Both on a monthly subscription, not an annual policy - more like Netflix than traditional home insurance. They’re extremely flexible, too, with MTAs (mid-term-adjustments) applied in real-time, via the app. We ‘ve also removed cancellation and admin fees. Isn’t this refreshing?

Innovated in our approach to pricing risks, developing a gradient-boosting, machine-learning model that doesn’t rely on historical claims data.

Grown our team, bringing in some truly exciting talent to work alongside the founders.

Curated high-profile partnerships with big names in smart home technology, including Ring, Yale, Philips Hue, and many more. This means we can talk to customers in spaces where no other UK insurers operate.

Agreed terms to bring Locket to the masses on top UK price comparison sites, securing a route to significant traction.

Delivered a complete rebrand which secures our potential to expand internationally, and more importantly, gives us a brand identity that we feel more truly represents our mission.

Built a community of over 700 investors, who helped us deliver one of the fastest crowdfunding campaigns of all time.

Monetisation strategy

To start with, we’ve structured as an MGA (Managing General Agent), meaning that we earn a percentage commission from every policy we sell. The level of commission increases as we write better risk, allowing us to benefit financially from our knowledge that smart homes are safer homes. Ultimately, we want to become a full-stack insurer, at which point, we will start underwriting some of the risk ourselves, with reinsurance backing.

By coupling our flexible monthly subscription with our personalised, rewards-based services, we believe that we can achieve industry-leading retention rates and, ultimately, a significant improvement in customer lifetime value compared to old insurers.Our members-only marketplace represents a second revenue stream - equipping homeowners with the best tech to protect their homes at extremely aggressive prices.

On the roadmap are more services, like gamified coaching, professional home wellness checks, AirBnB add-ons, and further insurance products.

Use of proceeds

This transitional funding round will provide us with the firepower to keep moving fast ahead of a planned Series A fundraise in Q2 2022. We plan to recruit 5,000 new members with these funds. They will be deployed in three key areas:

Fully launch our go-to-market strategy, coupling our price comparison site integrations with digital advertising, influencer campaigns, growth-hacking tactics, content-led social media campaigns, partnerships, affiliate marketing, and much more.

Research & Development. We’ve made enormous strides by building an entire insurtech stack fit for 2022, but that’s just the beginning.

Our overheads are very low compared to traditional businesses. However, we will need to grow headcount in a few key areas to keep moving fast, ensure we meet our legal and regulatory obligations and put the infrastructures in place to support future growth.

Investor Perks

*Designs subject to change.

£10 - £99
Invitation to investor events

£100 - £999
Exclusive Locket Tote Bag
Locket Investor Lapel Pin
Invitation to investor events

£1,000 - £9,999
All the above +
Locket Protection Set: umbrella and towel

£10,000 - £19,999
All the above +
Exclusive Locket T-Shirt
Ask Me Anything session with the team (online)

£20k+
All the above +
Lunch/dinner with the team

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. 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

The key terms that apply to the Company’s advanced subscription agreement are set out below. See also attached Key Terms document for further details.

• Discount – conversion at a 15% discount to the valuation set by a Trigger Event.

• Valuation cap of £22,500,000 in the event of an Equity Fundraise and £15,000,000 in the event of a change of control or IPO.

• Conversion is triggered by ("Trigger Events"):

- An Equity Fundraise – defined as the Company raising investment capital of at least £3,000,000 from one transaction or a series of transactions, in exchange for the company issuing of ordinary shares;
- A Change of Control of the company (transfer of more than 50% of the share capital); or
- An IPO – being a listing of the company’s shares on a recognised stock market or secondary market.

• Longstop Date is 31 May 2022.

• If conversion has not been triggered by the Longstop Date shares will be issued on the longstop date at the Default Share Price, which is the lower of:

- the lowest price of any shares issued after the date of this Agreement; and

- a price per share based on a pre-money company valuation of £15,000,000 on a fully diluted basis.

- The convertible would also convert to equity at the Default Share Price in the event of winding up or liquidation of the company.

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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

Share on:

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 Locket has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 3 December 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 Convertible

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 convertible campaign allows you to invest today, with your investment converting into equity in the future, at a discount compared to other investors.

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.

Find out more

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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