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CityFALCON

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The Spotify of Financial Content disrupting the £25b market led by Bloomberg, Yahoo Finance, Crunchbase

827%
 - 
Funded 28 Apr 2022
£200,007 target
£1,658,240 from 1,273 investors
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Business overview

Location London, United Kingdom
Social media
Website www.cityfalcon.com
Sectors Finance & Payments Digital Mixed B2B/B2C
Company number 09107763
Incorporation date 30 Jun 2014
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Investment summary

Type Equity
Valuation (pre-money) £10.4M
Equity offered 13.71%
Tax relief

EIS

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Business highlights

  • Clients: eToro, BNP Paribas, IEX Cloud, Seedrs, $1t asset manager
  • Disrupting £25b financial content market with Big Data and AI
  • Paywall-free content from Forbes, Economist, and 1,000 others
  • Malta six-figure, non-dilutive R&D grant, €1m soft loan eligible
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Key features

  • Secondary Market
  • Nominee investment min. £10.41 +
  • Direct investment min. £35,000.00 +

Idea

Introduction

Data is valuable, especially structured data. We leverage Big Data and machine learning to structure financial data, generate analytics, extract insights, and deliver personalised data in 50+ languages, then clients use the data for internal teams or externally for their own users.

We’re disrupting the £25 billion market with automation, long-tail coverage, and unrestricted access to our data via API and web at reasonable prices.

In our view, many incumbents have been slow to react to AI, automation, APIs, and Big Data. With this tech, our users can monitor investments, do due diligence, manage knowledge.

Our share price has climbed as we have demonstrated product and revenue traction. The below graph is based on share prices paid by investors in each previous fundraise since the company was founded. Therefore, the figures refer to the past and past performance is not an indicator of future results. Investments may be EIS eligible, but tax treatment depends on individual circumstances and is subject to change.

Substantial accomplishments to date

Notable clients include eToro, BNP Paribas, IEX Cloud, a Fortune 500 company, Seedrs, WiseAlpha, and several others around the world, representing diverse industries from financial services to brokers and data providers.

We have built a strong core team that have worked together for over five years:

Our API appears in the Top 10 on Google in major markets, including in the US, UK, Canada, Australia, Germany, France, Japan, and Israel for the B2B keywords 'financial news API'.


BNP Paribas and Seedrs say why they work with us:

We've pitched from an ice hole to support the business, too!

We process millions of stories in real-time in 50+ languages from 13k+ publications, with paywall-free and non-public content from 1000+ publications, including Economist, Washington Post, Xinhua News, Yonhap News, and more.

Clients have integrated our API publicly and internally:

Derived analytics, generated by our in-house algorithms tweaked for business and finance, include sentiment and summaries. These analytics provide a channel to deeper research and save time by emphasising only the most important points.

Our filings service covers filings for public and private companies globally - LSE RNS filings, the US SEC, and global companies houses. Never again miss filings that could impact your investments or business, like a company fundraise or bankruptcy.

Understand price movements better with News on Charts:

Our 13 Value Investing Meetups educate the 6700 members and provide a channel for feedback and suggestions: https://www.bit.ly/33x2PPW

We’ve received many awards and recognition - https://www.cityfalcon.com/press

Monetisation strategy

We currently focus on 2 key streams of revenue:

1. API licensing fees - Monthly recurring fee or revenue share for licensing our curated content and tech, used internally or white-labelled. eToro, BNP Paribas, Seedrs, IEX Cloud, WiseAlpha, Intellibonds, a Fortune 500 company, and several others from around the world are already using the API. Plans: https://www.bit.ly/32EUcDS

2. Premium subscriptions - low-cost plans that offer select non-public and paywall-free content from 1000+ publications (https://bit.ly/3gYPqaC), filings and alternative data, offline researching, archive search, and curated Tweets. Targets are retail and prosumer users. Plans: https://www.bit.ly/2RE3JV2

Future revenue opportunities include fees for licensing of our NLP technology (e.g. content summarisation, sentiment scoring, entity detection) to manage and curate client internal content, historical structured data sets, specialised private company insights, pay-per-view options, and affiliate fees.

Use of proceeds

We remain lean with an annual net burn of circa £530k in FY 2021-2022 (based on unaudited management accounts), even with a team of ~40 employees, data licensing costs and processing and storage costs of data.

Not only will raised money be used for the people and technology at CityFALCON, our two pillars of strength, but also advertising & marketing costs and Premium content (someone has to pay the paywalls).

Also, we commit the following to our investors: Monthly updates; proper cash flow management; staying lean; breaking even and become self-sustainable; complete transparency.

Investor Perks

Investor Perks

Certain additional rewards for early or large investments - more at https://www.cityfalcon.com/help/articles/360004...

1 Month Free Trial of Silver:
Coupon voucher code: SEEDRSSILVER2022

Valid until 30 June 2022

To use the code:

1) Sign in or register at https://www.cityfalcon.com.

2) Go to https://www.cityfalcon.com/pricing.

3) Click the “Start free trial” button at the bottom of the Silver 1 month plan.

4) You’ll be redirected to the checkout page.

5) Here click on “Apply Coupon”, enter the coupon code SEEDRSSILVER2022, and click on the arrow.

6) Proceed to the regular checkout.

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

Debt

CityFALCON has the following outstanding debts.

1. A Bounce Bank Loan - £33,500.
This loan was taken out on the 22nd of May 2020 and after a 12-month holiday accrues interest from 22 May 2021 at 2.5%, repayable over 6 years (2027).

2. A Directors loan of £7,990 with no interest rate or repayment date attached.

3. A Discretionary employee loyalty bonuses - £36,740. CityFALCON awards loyalty bonuses for employees who complete 5 years with the company.

4. Held salaries of £2,708 in relation to the Ukraine crisis.
Some Ukrainian employees have requested that CityFalcon delay salary payments to their bank accounts in Ukraine until the conflict resolves.

The funds from this round will not be used to repay these loans. The debts will be repaid over time from the revenues generated.

Future Fund Convertible

The company has a Future Fund Convertible Loan Agreement which may convert to equity on completion of this round. Please note, it is not certain when conversion will occur, and therefore this loan has not been factored into the pre-money calculation of this campaign and will cause future dilution.

The key details of the convertible loans are below:

- Principal: £603,480
- Interest rate: 8%
- Discount: 20%
- Valuation Cap: £10,500,000
- Maturity date: 30/11/2023

Depending on the amount raised, this equity round may constitute a Qualified Financing (raise of at least £603,480) or a Non-Qualified Financing (raise of less than £603,480) and trigger conversion as follows:

- Qualified Financing - automatic conversion

- Non-Qualified Financing -

a) If raise is > £150,870 (25% of Principal) - conversion at the election of the Lender Majority. Seedrs investors constitute the majority in this case.

b) If raise is < £150,870 (25% of Principal) - conversion at the election of the Lender Majority and Future Fund.

In all events, the shares will convert as follows:

- Conversion price: the lower of (a) the lowest price per share issued in the round reduced by the discount and (b) the valuation cap. No discount applies to conversion of the interest.

- Share class: the most senior class of shares issued in the trigger round.
Once the Campaign has hit target, Seedrs will be in touch with existing FF CLA investors in respect of next steps in relation to the conversion.

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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.

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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

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 webpage has been approved as a financial promotion by Seedrs Limited (trading as Republic Europe) ("Republic Europe"), which is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Republic Europe platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Republic Europe platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

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 £10,420,868

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.

Find out more

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.

Find out more

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.

Find out more

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

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None of the information in constitutes part of the campaign and it has not been approved or reviewed by Seedrs.

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