TheCarCrowd

Idea

Introduction

At TheCarCrowd we are building a new way for people to invest in assets they love. Starting with Classic Cars we are offering people everywhere the chance to take a real equity stake in a classic car and benefit from the potential appreciation.

Classic cars appreciated in value 194% over 10 years up to Q4 2019 (Source: Compiled by Knight Frank Research using data from Historic Automobile Group International. Please note that figures refer to the past and past performance is not a reliable indicator of future results). However, these assets were largely reserved for those who can afford to buy, store and insure the car.

Now, with TheCarCrowd, Investors are able to buy shares in cars from just £20 and unlock the benefits of potential appreciation. We are also an appointed representative of Kession Capital Limited who is regulated by the FCA.

Our target market is large. Using data from the FCA financial lives survey we estimate that 8 million Millennials want to invest more for their future, but they currently have no form of investments. Launched in Nov 2020, and now with over 620 registered investors demand has been strong. Our first vehicle funded in just 67 days.

Substantial accomplishments to date

Company founded October 2019

Regulatory permission granted via Appointed Representative status through Kession Compliance Limited.

Platform launched as MVP - November 2020 with fully digital on-boarding, buying and customer management.

First car funded Jan 2021 - Peugeot 205GTI funded in 67 days

620 registered users on the platform within the first 4 months with over 70 individual investors

Total revenues over £27k in the first 4 months

New website to launched March 2021 - https://thecarcrowd.co.uk/

Monetisation strategy

Monetisation strategy has been developed to align with the goals of investors.

TheCarCrowd earns fees in three ways:

1. Curation Fee - Up to 10% fee placed on each vehicle prior to funding to cover vehicle sourcing, provenance checks and storage costs.

2. In Year Revenue Fee - 20% of any income earned by the vehicle for paid work (such as film, tv, press, events or corporate appearances) Remaining 80% returned to the investors as dividends

3. Disposal Fee - 20% of any appreciation taken as disposal fee with 80% then returned to investors as Return on Investment.

This structure means TheCarCrowd are fully incentivised to find the best cars with the best chance of making the most in year and appreciation in order to return fee income to the business but also returns to investors.

At scale, we envisage that the business will earn income from other revenue streams including:

1. Affiliate marketplace

2. Advertising and proportional income (Instagram / youtube)

Rewards

Reward 1

The first 10 people to Invest £1000 (or more) into TheCarCrowd will receive their equity share as well as being invited as our guest to one of the top UK Classic Car Shows in 2021. Choose from joining us on our stand at the London Classic Car Show or British Motor Show and get a behind the scenes look at some of the best events in the UK.

Reward 2

The first 10 people to Invest £2500 (or more) into TheCarCrowd will receive their equity share as well as being invited to an exclusive track event in 2021. Drive some of the best sports cars in the UK and benefit from racing tuition all as our guest. We hire the whole track and its strictly invite-only so you get maximum time in the cars and meet TheCarCrowd team.

Reward 3

Our VIP offering is exclusively for 2 individuals who want to get a bit more involved in the business and help steer the direction. Invest over £25,000 and get monthly calls with the CEO as well as joining us in our UK shows and Track Events. Become an integral part of the team and help us drive this exciting category here in the UK.

Use of proceeds

Public Relations - 12% Goal - Normalise Fractional Ownership
Influencer content to normalise fractional ownership investment.
Editorial pieces on Fractional Ownership.
Investment focussed Press Releases.
LinkedIn campaign on cars as alternative investments.

Marketing - 48% Goal - Mass-market distribution
Content creation – Presence at UK events such as the London Classic Car Show. Video media for a library of strong and engaging content.
Amplify organic reach via paid ads and boosted content.
Influencer led campaigns to promote new cars and events.
Aligned campaigns with PR channel.

Working Capital - 40% Goal - Secure Future

Support cash burn for 12 months to provide space to build the business and generate fee income.
Circa £8k per month for platform and compliance fees.
Small staff wages burn due to the scalability of the platform requiring little physical overheads.