This is a founder's story, from Brighton, about a company that went to the crowd to raise equity for a smartphone app. Nicole Carman worries that many of us are becoming addicted to our gadgets, and would appreciate some help. Her solution? A gadget that helps us to be mindful about the way we use technology, and helps us to improve our behaviour.
Nicole's company, wittily named Glued.to, has made an app that helps families to monitor their daily screen time on laptops, phones, and other gadgets, and helps them reduce device usage and make it more positive.
It works by giving you reward points to reinforce positive behaviour, and there's a competitive element, too. If you're not in a family household, you can do it with your friends.
So, what happened when Glued decided to do an equity raise?
They chose a professional platform.
They made sure they qualified for SEIS.
The Enterprise and Seed Enterprise Investment Schemes deliver strong tax advantages for investors in early stage companies. Seedrs has specialist talent to help entrepreneurs who raise money through the Seedrs platform present their offerings in a way that qualifies them for EIS and SEIS, if it's appropriate. Seedrs helped the Glued team with all the legal requirements including share distribution.
They researched the market for their product.
Ensure that you research every aspect of your business, the competition and the market before you begin the application process. " says Nicole. We were impressed that their Seedrs page quoted data from Ofcom’s Media Use and Attitudes report - a fresh and credible source on media's impact on children and family life!
The chose a realistic valuation.
Glued offered 4.5 per cent equity for £25,000, on a pre-money valuation of £535,000. Nicole, again:
" You’ll need to decide early on how much to value your business, taking into account possible monetization strategies and potential to grow. Take your time over this; look at valuations made by other similar businesses and work out exactly how much equity you need to raise. If you’re accepted, you’ll need to supply evidence to back up every statement in your pitch."
That's the story of a startup company that needed money, and got it from the crowd, with the help of a reputable platform.
The full story is on the Glued website. We think it's a good use of your screen time.