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CarCrowd

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TheCarCrowd is a global investment platform, unlocking fractional investment in Classic Cars

132%
 - 
Funded 22 Jun 2023
£500,003 target
£664,326 from 446 investors
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Business overview

Location Newark, United Kingdom
Social media
Website www.thecarcrowd.uk
Sectors Finance & Payments Digital Mixed B2B/B2C
Company number 12286089
Incorporation date 6 Oct 2019
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Investment summary

Type Equity
Valuation (pre-money) £3.4M
Equity offered 16.40%
Tax relief

EIS

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Business highlights

  • Grown to over 3600 registered investors and £800k AUM
  • 10x increase in revenues between 2021 and 2022*
  • 89% gross margin for Q4 '22*. Low CAC and strong unit economics
  • Target market worth over $35bn and addressable audience circa 50m
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Key features

  • Secondary Market
  • Nominee investment min. £15.33 +

Idea

Introduction

These amazing returns are reserved for those who have the space and capital to buy, store and insure a collection of classics plus the time and knowledge to pick the right ones. Until Now.

Based on our research, with over 50 million UK Millennials and Gen X feeling underserved by traditional investment options and 67% having no investments at all, we believe there is a huge opportunity to disrupt tradditional investments.

The CarCrowd have found a way to unlock Alternative Assets for the mass market.

Our regulatory compliant, fractional investment platforms gives investors a way to own a piece of their dream classic, backed by the underlying asset.

With proven returns of 24% with our first full cycle asset, more and more people are turning to invest in their passion to save for their future.

Substantial accomplishments to date

Grown to 3600 users, doubling our audience each year from 2021.

Average monthly revenues were up to £27,000 based on Q4 2022, with an average investment amount of £1,100 per investor on our most recently funded car.

Blended CAC of £62 with each investor returning revenue of £157, resulting in almost a 3x contributing margin in 2022.

We now have £800,000 of assets under management and our fastest assets funded in just 14 business hours. The last two funded assets have an average time to fund of just 19 hours. Demonstrated a net return of 24.7% on our first full cycle investment for investors.

30% return rate for investors and on average each returning investor, investing in 2 further assets.

*based on unaudited management accounts.

Monetisation strategy

Revenue Sources:

- 12.5% Curation fee applied for each vehicle paid at point of funding.

- 10% Realisation fee taken as asset disposal on the appreciation only.

- 3.91% Asset Under Management charged as an operational fee to cover Storage, Insurance and Maintenance of each asset.

We plan to introduce a 20% fee on any appearance or asset usage during time held

Further revenue sources include:

- Affiliate marketing revenue for associated products and services.

- Merchandise.

- Community hub and events - including cars and coffee, drive outs and tours.

Use of proceeds

The funds will be used to invest in our marketing strategy as we look to scale globally and maintain our first mover advantage.

Seeking additional partnerships and Direct to consumer opportunities. We will also scale the team with a marketing manager and commercial partnerships lead.

Our other main focus is around technology. We plan to invest in tech development to ensure a market leading customer journey and looking into strategies such as distributed ledger technology to enhance our digital capabilities.

Investor Perks

Reward level is accumulated across all investments Via the seeders platform into Thecarcrowd during the period of funding ending in June 5th 2023.

Investors will only receive communications of their tier level via email if they are registered on
Thecarcrowd platform Travel mug and flight tag can be collected from our Nottingham based café orders can also be posted if requested by the investor via email.

Invites to TCC events will be notified via email, these will be released at least 28 days prior to any event, TheCarCrowd cannot be held responsible if an investor is unable to attend.

Qualifying investors will be invited to at least one track day per year, 28 days notice will be given via email for the date set by TheCarCrowd, this date cannot be changed if an investor cannot attend and will not be exchangeable for any other event.

Supercar driver secret meet dates will be set by the organisers of the event, TheCarCrowd have no input on when dates will be set but we will notify qualifying investors of the dates and locations as they are published by the event hosts via email.

Investors that qualify for VIP hospitality tickets will be given a choice of dates and locations 28 days prior to any race day and will be able to choose one event per year and will receive two tickets to the event.

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 and listed above. 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

Group Structure

Investors in this round are investing into and will become shareholders of THECARCROWD LIMITED, Company number: 12286089. This is the holding company for the group.

The group structure is as follows:

TheCarCrowdLimited (Top Co)
THE CARCROWDAR LIMITED (14130016)
THE CARCROWD CAFE LTD (14243452)

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To comply with financial regulations, we can only show full campaign details to registered users.

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

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 CarCrowd has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 17 April 2023 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 £3,380,664

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 regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

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.

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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.

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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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