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Storemates.co.uk

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The 'eBay of Storage' Enabling households to rent their extra space to people needing cheap storage.

100%
 - 
Funded
£40,000 target
£40,000 from 34 investors
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Business overview

Location London, United Kingdom
Social media
Website -
Sectors Home & Personal Mixed Digital/Non-Digital B2C
Company number 07726269
Incorporation date 2 Aug 2011
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Investment summary

Type Equity
Valuation (pre-money) £360K
Equity offered 10.00%
Tax relief

SEIS

Idea

Introduction

Storemates is an online service that aims to match people needing affordable self storage with people looking to turn their spare household space into extra cash. Users use the website to rent out all or part of a garage, loft, wardrobe, spare room to people searching for cheap storage in their local area. We have put in place a range of safeguards and contracts to make the process safe and secure to use.

Intended impact

Storemates plans to disrupt the ever-expanding self storage industry by offering a cheaper, greener and more community focused alternative the large commercial storage warehouses.

Storemates is geared towards the many households who are challenged by the economic downturn and need extra space which they cannot normally afford. We think that commercial self storage is too costly and upgrading to a larger property is simply not an option for many. As people are increasingly turning to the sharing and renting economy Storemates hopes to become what AirBnB has become to accommodation, Whip Car has become for car sharing, Park At My House has become to parking spaces and eBay has become to second hand trading. Storemates also offers a secure and easy way for individuals to earn an extra income from their household - literally, cash in the attic.

Substantial accomplishments to date

Website (v.1) with multiple functions developed -currently testing.
Approximately 1500 registered users so far either actively seeking for storage or hoping to make money from their unused space.
Over 650 households from all over the UK have listed their spaces.
Widespread national press coverage.

Monetisation strategy

The platform is web based allowing storage searchers and space providers to list and search for space for free.

Revenue would be generated by EITHER charging the storage owners the first two weeks of their listed storage rates, forecast average revenue £20 per transaction, as the current version is, OR through charging each storage a percentage of their rental income (like a lettings agent) - an option we would like to test with users. Secondary revenue would accrue by premium storage listers paying £5 for a premium listing upgrade. Additional income streams planned are affiliate deals with providers of auxiliary services to self storage, packing, moving, boxes, and a bespoke insurance product. Website banner display advertising would be considered once traffic to the website grows to scale.

Use of proceeds

To develop the website functionality in particular an efficient booking and payment system to ensure all transactions are processed via the website. Currently we feel it is too easy for users to transact outside the site and avoid paying the admin fee. We believe a tech solution needs to be developed to prevent this from happening. In addition we plan to develop a smart phone version of the site (or app) to meet the evolving patterns of internet use. Other proceeds would be on SEO to improve search engine rankings and some very focused marketing to raise the profile of Storemates (e.g online advert on Gumtree's garage rental section) plus a PR campaign aimed at the potentially lucrative student market prior to the Summer term break.

Market

Target market

235,000 people currently use self-storage facilities in the UK each year (and this is growing by 14% each year). Our target market is a percentage of these people, as well as a percentage of society currently not using commercial storage due to the high cost. Storemates also targets households who may want to earn a second income through renting out some of their space e.g families with lofts, spare rooms, unused garages etc - A growing market in a recession.

Characteristics of target market

The Self Storage industry is currently worth £360m in the UK with over 800 facilitates. We have found that a percentage of these are open to using Storemates as a cheaper alternative, especially those looking for short term storage and seasonal items. Other pent up demand is being discovered by targeting the people put off by the high cost of commercial storage, such as students, people with young families storing baby items between children, and those wishing to declutter to sell property or create more space.

Marketing strategy

Targeted online campaign on websites where people currently search for storage, ie gumtree, and other local websites. Also more further testing of google adword campaigns. A small focussed PR campaign is also planned, as well as current press strategy used in localised areas as we promote Storemates across the UK.

Competition strategy

We have built a robust site and continue to test and improve it, with the aim of it becoming the market leader in the 'collaborative consumption' storage space. With press exposure to date we feel we are currently the only credible player in this field. We would continue to innovate and develop the user experience to ensure that we stay as the 'global leader.'

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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 Storemates.co.uk has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 25 September 2012 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 £360,000

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

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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).

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