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Transparent

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A progressive audio brand in the $25bn home audio market with 45k+ products sold.

131%
 - 
Funded 23 Dec 2023
€350,001 target
€470,853 from 146 investors
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Business overview

Location Stockholm, Sweden
Social media
Website transpa.rent/
Sectors Home & Personal Mixed Digital/Non-Digital Mixed B2B/B2C
Company number SE5569179517
Incorporation date 4 Jan 2013
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Investment summary

Type Equity
Valuation (pre-money) €9.8M
Equity offered 4.49%
Tax relief N/A
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Business highlights

  • Growing market: $25bn global premium home audio market.
  • 5.5x turnover growth post-angel investment.
  • 45k products sold with selective retailers globally.
  • 150k engaged community on social media.
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Key features

  • Secondary Market
  • Nominee investment min. €13.50 +
  • Direct investment min. €20,000.00 +

Idea

Introduction

Transparent™ is a progressive audio brand that has global brand recognition, with 45,000+ products sold. We are on a mission to steer the design audio segment into a new era inspired with Scandinavian simplicity, functionality, and modularity.

We specialise in crafting timeless, modular electronics that deliver crystal-clear audio, while also offering aesthetically pleasing products that are built to last.

Our brand, Transparent™, has been awarded the Best Overall Bluetooth Speaker 2022 by The Independent (UK), and has been experiencing strong organic growth since our angel investment. Our dynamic team is ready to continue carving out market share in the growing $25bn USD global premium home audio market.

At Transparent™, we believe in working against wear-and-tear electronics. Our product’s modular design allows the speakers to be upgraded over time as technology evolves, which is in line with our philosophy of creating products that are built to last.

Substantial accomplishments to date

- Since the angel investment in 2019, net turnover has surged 5.5x from €0.7m to €4m.

- We have sold over 45,000 products to date.

- We have over 100,000 Instagram followers.

- We have luxury brand collaborations like Louis Vuitton, high-profile endorsements from Netflix and Warner, and features by premier retailers like SSENSE and Mr Porter.

- We have recently launched our new product, "The turntable" and already have hundreds of orders.

- We believe our brand has amassed significant global recognition.

Monetisation strategy

We have been able to benefit from a healthy gross margin of over 50 (year 2021-2022).

Transparent speakers are showcased in exclusive luxury boutiques, both in-store and online. As we expand into new key cities, we meticulously select retail partners revered for inspiring design and audio equipment, like Le Bon Marche, Conran Shop, and FNAC.

The highly targeted sales channel strategy has established selective channels typically elusive to electronics brands like fashion retailer SSENSE. Transparent aims for a balanced retail mix across Fashion, Lifestyle and Audio Stores. The emphasis on design and quality is mirrored in their retail environments and products, while collaborations and partnerships drive an expanding brand universe. We experiment with new materials and engage new audiences with special editions and limited product drops.

Use of proceeds

Aiming for a continued growth in the next 5 years, fund allocation will be towards:

- City & Retail Activation (30%):
Activating key cities to boost market share, brand perception and provide a seamless customer experience from discovery to purchase.

- Online ceremonies & Brand Activation (30%):
Amplifying brand recognition and engagement across digital channels.

- Product development including Multi-room Module Release (15%):
Increasing lifetime value by encouraging more products per home. Enabling current customers to upgrade.

- Grow team 15%):
Recruiting sales and marketing talent to grow the service level and coverage in targeted regions.

- Operational Enhancements (10%):
Streamlining operations to support growth in scale.

We believe that Transparent's next phase of growth is fostered by brand loyalty, diversified offerings, and visionary commitments like the upcoming wireless upgrades for our multiroom functionality, which we believe will significantly contribute to real lifetime value and higher gross margins.

Key Information

Outstanding debt

The company has the following outstanding loans:

1. A check credit line of €610,000 from SEB - Skandinaviska Enskilda Banken AB (publ) with a 50% underwriting from EKN - The Swedish Export Credit Agency with €533,170 currently outstanding at an interest rate of 7,25% per annum and a 1,60% service fee per annum.

2. A green loan from Swedish state owned Almi Företagspartner AB with €111710 outstanding at an interest rate of 8.3% per annum. The loan is repaid in monthly instalments of €3,100 starting march 2024 with the final amount due march 2027.

3. A business loan from Swedish state owned Almi Företagspartner AB with €223,431 outstanding at an interest rate of 8.98% per annum. The loan is repaid in monthly instalments of €6,200 starting January 2024 with the final amount due January 2028.

The funds raised from this investment round will not be used to repay these loans.

Share Classes

All investors in this round, including Seedrs investors, are receiving B ordinary shares, with the following rights: (i) pro rata rights to participate in dividends; (ii) suppressed voting rights (with the voting rights of A ordinary shares being 10:1 of the B ordinary shares); (iii) rights to participate in surplus assets in the event of a liquidation (and on an exit); and (iv) tag-along rights on a change of control. Investors’ rights are administered by Seedrs.

The founders hold A shares which have 10 votes per share.

Exchange rate

Direct investments in the round from investors outside of Seedrs have been paid in Swedish krona (SEK). This is a total amount of 2,551,261.00 (SEK), which has been reflected in the campaign at an agreed Exchange Rate of 1 SEK:0.086 Euro.
The share price paid by direct investors was 78.44 SEK , which has been converted into GBP and rounded to 2d.p, at €6.75.
Investments on Seedrs are made in Euros.

Investor Perks

*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.

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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

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 Transparent has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 24 October 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 €9,802,188

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).

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

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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

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