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Workhorse

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The small business application platform enabling SMEs to work smarter and grow faster.

156%
 - 
Funded 1 Aug 2019
£250,011 target
£391,466 from 219 investors
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Business overview

Location Redhill, United Kingdom
Social media
Website goworkhorse.com
Sectors SaaS/PaaS Digital B2B
Company number 10689291
Incorporation date 24 Mar 2017
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Investment summary

Type Equity
Valuation (pre-money) £1.5M
Equity offered 20.64%
Tax relief

EIS

  • Idea
  • Team
  • Updates
  • Investors 219
  • Discussion
  • Documents

Idea

Introduction

Workhorse gives SME customers the benefits of custom-built software across all areas of their operation. We have designed our product to solve complex business process challenges, to integrate existing business applications where necessary, and all with the look and feel of a bespoke system.

From experience, using spreadsheets to manage business processes is inefficient, time consuming, high on data risk, and limits reporting.

We believe that off the shelf software is failing SMEs because:
• SMEs are diverse and have unique processes.
• SaaS addresses single business areas only, like sales or billing.
• They are overwhelmed with complexity.

We feel SMEs need one, integrated application that supports their specific operation, for a price they can afford and that can be easily customised to the way they want to run their business, both now and as they grow into the future.

Intended impact

Workhorse’s goal is to put SMEs back in control of mission critical software, delivering effective applications with real time savings and enhancing visibility of day to day operations.

As a post-revenue scale-up, we have a firm base of existing customers who have proven demand and verified how to scale our business. We have delivered over 50 applications across many industry sectors and functional business areas.

Our customers operate in Finance, Legal, Events, Marketing, Recruitment, Membership, Manufacture, Installation & Maintenance, E-commerce, Training and Retail. These customers have benefitted in terms of cost saving, efficiency, reporting and data quality.

Workhorse also manages all functional areas from Sales & Marketing, to Operations, Administration and Finance. But our customers only get the functionality they need, they use 100% of their Workhorse application and there is nothing missing.

Substantial accomplishments to date

We have hit our first major milestone, having over 50 customers, generating a monthly recurring revenue of £8,600. They operate in 5 different countries and Workhorse, being multi-language by design, has delivered applications in both English and German.

Our technology platform is now ready for our next stage of growth, having transitioned to a robust, scalable architecture running on Amazon Web Services. In 2019 we launched our first template solutions to enable further customer acquisition and deployment, with proven web-based sales already achieved.

We have built a team with a deep understanding of the problem we are aiming to solve and the high configurability that allows Workhorse applications to be truly customised to our customers’ requirements.

Our customers range from micro businesses to multi-nationals with 750 staff and £85m turnover. Our architecture allows us to offer solutions whose complexity flexes to match the needs of these businesses, tailoring applications to their exact requirements.

We plan to engage with third party Value Added Resellers with the aim of enhancing scale and to offer each reseller a white label solution that will give them the ability to deliver their own customised applications. This is the start of our journey aiming to become the Wordpress equivalent for operations and administration applications.

Monetisation strategy

Workhorse generates revenue from SaaS subscriptions. Some more complex applications require an implementation fee, but for most small businesses we offer our service for a manageable monthly payment, with no upfront fee and no minimum term.

Our monthly subscriptions range from £195 up to £500 for our larger, more complex applications.

We will be targeting resellers that will range from consulting businesses, looking for a tool to help them implement and manage business process changes, to organisations looking to sell our hyper-specialised applications to a specific industry sector. Our pricing model for Resellers will be a yearly license fee and a monthly charge per client application.

Use of proceeds

Over the past 15 months we have invested heavily in the development of Workhorse as a robust, scalable solution and have generated a monthly recurring revenue of £8,600 with 50 customers. Over the next 18 months we plan on leveraging that capability to grow the business and customer base further.

We will need to invest further in the development of our platform, roll out more templates and employ more staff to manage the VARs we are aiming to work with.

We aim to work alongside two resellers, learn with them and support them and their customers, preparing for the next phase of growth that we aim to be driven by multiple international resellers.

We plan to increase traction with our web-based, direct sales. Combined, these strategies will launch Workhorse towards our goal of becoming the Wordpress equivalent for core operations and process support for the vast SME market.

Notices

Please note that the company has a £12,500 director's loan with an outstanding balance of £3,879.25. The loan accrues interest at 6.2% APR over 2 years. The final repayment date is on the 1st January 2020. None of the funds raised on Seedrs will be used to repay this loan.

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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

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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 Workhorse has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 21 June 2019 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 £1,505,000

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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