Trezeo

Idea

Introduction

Employees get the benefit of a regular income, statutory sick pay, paid holiday leave, payment into a pension, access to insurance and other perks.

But what about the self-employed? No one helps smooth out their income across busy and slow periods. They certainly don’t get paid when they’re sick or go on holiday. The income volatility and uncertainty that comes with being self-employed often means that it can be a challenge to look beyond the next week, and even the next gig, so providing financial security for their family and saving towards a pension is a luxury that few are adequately prepared for.

Trezeo’s income smoothing business account provides a consistent weekly pay cheque and access to money for emergencies. We believe it provides financial peace of mind and builds a foundation to access other financial products in the future for the 4.8 million UK self-employed.

Intended impact

People like the freedom and flexibility of being self-employed and it's on the rise.

This is brilliant, but we don’t believe that services supporting the future of work are keeping up with core issues of income uncertainty, inability to save or access to mainstream financial services.

Many self-employed are left with few options when bills come due during a slow period. They may use unapproved overdrafts, credit cards, or take out payday loans, all of which can have outrageously unpredictable and opaque fees. We've seen that many people are underserved for financial products as high street banks and financial providers struggle to understand uncertain income.

Now’s the time to address this. We've started with what we see as the most urgent issue - unpredictable income - and aim to quickly expand to provide solutions that empower the self-employed like savings, insurance, pensions and even mortgages so that these workers can look beyond their next pay cheque and start building their financial future.

Substantial accomplishments to date

Monetisation strategy

SUBSCRIPTION FEE

Our initial core source of revenue will be a subscription fee of up to 1% of the income processed through each customers Trezeo account. We anticipate the average weekly earnings through the platform to be approximately £500, per customer, for the first 18-months. On this basis, we believe our subscription fee will be approximately £20 per month, per customer. The subscription fee will be deducted automatically from income that is paid into the customer’s Trezeo account.

As we scale to different sectors and regions, we anticipate that the average monthly subscription fee will increase to approximately £25 per month, per customer, and we may choose to look at a cap as we engage much higher earners.

REFERRAL FEES

Beyond our subscription fee, we anticipate earning referral fees and a revenue share on other financial products that we may offer customers.

Use of proceeds

We’re proud to be live in the AppStore and Play Store, to have received approval from the FCA as a Registered Payment Institution, and to be finalising our Consumer Credit Authorisation.

But now the real work begins. This round will give us the resources to focus on three key areas ahead of our plans of raising further capital mid-2019 to scale.

1. DRIVER PILOT
Onboard and service initial pilot customers and partners.

2. PRODUCT
Enrich the core Trezeo account and add additional financial products.

3. CUSTOMER ACQUISITION
Establish a playbook for acquiring customers via partners and directly, while building waitlist demand for scale.

IMPORTANT NOTES

1. Trezeo Ltd is an Irish company and shares for this round will all be issued at a share price in euros of €2.31. Investments made into the campaign in GBP will be issued shares based on a fixed conversion rate to give a share price of £2.02. This conversion rate is calculated by averaging the Bank of England exchange rate over the 5 days preceding the launch of the campaign.

2. Trezeo has applied for High-Potential Startup investment of €250,000 from Enterprise Ireland. If the campaign is successfully completed and funded, it is anticipated Enterprise Ireland will complete a due-diligence process to consider the investment request from Trezeo. Enterprise Ireland is a government body responsible for assisting new Irish businesses grow and develop.

Should Enterprise Ireland approve the investment, it is expected to be invested in the form of Cumulative Convertible Redeemable Preference shares. These shares would likely carry the following rights:

• A cumulative and preferential dividend of up to 8% of the investment per year. The dividend will only be paid if the shares are redeemed or on a return of capital to shareholders of the company, without conversion of the shares to ordinary equity.

• The preference shares are convertible into equity if the Company raises investment from a VC or other institutional investor within five years. They will then convert at the same price as the qualifying investment, subject to a discount ranging from 15% to 55% depending on the time at which the qualifying investment takes place.

Please note that this will have a diluting effect on the shareholders equity holding.