A 2nd Round £250k Fintech EIS Raise with HMRC Advanced Assurance Now Open
For first product video see: http://www. https://www.youtube.com/watch?v=Uhz91y04SgU
What is the opportunity & why does it exist?
Back in 2014, the Directors, (an industry recognised SEIS, EIS, BPR & VCT technical team that had previously provided objective and qualitative reviews on opportunities offered in the market), recognised an opportunity to provide a directory service for potential investors and interested parties that listed all publicly available investment products, the information would be held in a central database and made available via subscription to a .guru domain.
The Company raised £150,000 in a single round of funding via a ‘New Founder Shareholder’ offering, issuing 150 Ordinary Shares at £1000.00 per share. The proceeds were used by the Company to purchase a range of .guru domain names, design, develop, deliver the main www.compareinvestments.guru site, build and populate the comparison portal www.comparealternativeinvestments.guru. Funding also maintained the business during its first year of operation whilst the FCA position was examined, the website was soft-launched and tested with ‘real-time’ subscribers.
What is the CAIDG opportunity and how proven is it?
The SEIS-EIS-VCT-BPR alternative investment marketplace has only one objective, independent and uncompromised single point of reference listing all investments that are on offer, and that point is CAIDG. This provides investors and IFAs a ‘one-stop-shop’ for ‘due diligence facts’ pertaining to those investments, together with a simple way of researching and comparing opportunities objectively on a ‘like-for-like’ basis. Following on and using exactly the same search & filter web-engine, CIDG will deliver the following sites:
- Compare Fund Managers Dot Guru, with Discretionary Managed Fund and Manager comparisons provided to users
- Compare Pensions Dot Guru, with straight comparisons on fees, historical returns, target returns, fund management team and Annuity Comparisons as part of a strategy to develop a completely independently rated Pensions Dashboard
- Compare IFAs Dot Guru, providing historical information on the Top 100 IFAs both individual and Group performance, fees charged and client feedback
- Compare Secondary Market Equity Investments Dot Guru, which will be specifically designed for individual’s resident in the UK and Professionals interested in comparing Secondary Market Equity investments and listing the projected £220 Billion of asset value, soon to be released into the investment market, in a fully searchable and comparable database.
What will the Round 2 £250k investment deliver?
CIDG is raising money to fund the following:
- The recruitment and funding of a new Head of Research
- The recruitment and training of at least 3 research interns
- Marketing & Sales campaigns to target prospective Alternative Investors and suitably qualified IFAs in publications and online
- Further site development and report creation.
This funding will enable the company to secure finances to ensure at least 3 years of operation, (on the assumption there are no subscription revenues for this period) from funding draw-down. See page 22 of the IM for more details.
Stage 1 of the project work is scheduled as follows:
- CIDG & CAIDG Sites/Database Design, Build (Completed)
- Test – Data Correlation and Comparison Report Construction (Completed)
- Soft FT Press launch (Completed)
- 2015/16 marketing campaign to Investment Promoter’s and IFA’s (Completed)
- Pre-registration & Site introduction to selected members of the HNWI/PI/SI communication (Completed)
- Above & below the line marketing in specialised print & online publications (Booked)
- 2017/18 marketing campaign to Investment Promoter’s and IFA’s (Booked)
- Recruitment of new Head of Research (On funding drawdown)
- Recruitment of 3 suitable qualified research interns (On funding draw-down)
- Increased marketing efforts to be focused on the yearly tax-season e.g. October through to beginning of April each year as traditionally this is when most HNW Investors investigate the Alternative Investment marketplace
- Ongoing low-cost marketing activities and journalistic content throughout 2017, and continuing through 2018 & 2019.
How will it make money?
There are five product lines to be leveraged in this business model:
- Annual subscription to Directory, Product Comparison and Reporting
- Specialist ‘In-Depth ‘ Due Diligence Reporting
- ‘Rights of use’ fees for multiple use of site featured reports by interested parties e,g. Funds, Promoters or Product Providers
- On-Site ‘Brand based’ Advertising
- White labelling the site to other Countries where similar business drivers & regulatory environments exist e.g. Belgium & Malta where SEIS & EIS are just being launched.
When will it make money?
CAIDG is already receiving subscription revenues via its online payment gateway operated by PayPal.
CAIDG Target marketplace
Market research shows that there are approximately 100 VCTs, EIS Funds and Individual Seed or Enterprise Investment Schemes open at any given time. Unlike current information providers CAIDG does not charge a posting fee per project, instead it has adopted the Directory approach, whereby all market offers are included in a standard reporting entry format. By doing this this we ensure that the site is completely unbiased, objective and uncompromised.
CAIDG will provide full technical reports on all publically available projects. These will then be independently scored by 4 professionals using industry accepted KPI’s (key performance indicators), at no cost to the promoter.
The Directors have confirmed using HMRC data for the period 2014/15 that the Applicable Subscriber accessible market was estimated to be 20,000 individual investors using EIS. In this document we use the term of ‘Applicable Subscribers’ defined as: (1) professional clients, (2) retail clients who confirm that in relation to an investment in the Fund they have received regulated investment advice or investment management services from an authorised person, (3) retail clients who are venture capital or corporate finance contacts (4) retail clients who self-certify or are certified as sophisticated investors, (5) retail clients who are certified as high net worth investors or (6) retail clients who certify that they have not invested and will not invest more than 10% of their net investible assets in non-readily realisable securities.
The Directors will also target those IFAs that actually give advice on AI’s. There are 5850 that have declared to Matrix Data that they are actively involved in this marketplace and this is around 14% of the total number of IFA’s recorded working in the general market. Assumptions are based on winning an initial 100 clients in Year 1 with an annual low-cost subscription fee of £299 including Vat. Whilst this is a small number, there is evidence of year-on-year growth in the alternative investment market that will see more IFAs being asked to advise. CIDG therefore believe that given the correct tools, marketing and consistent service provision, IFA subscription numbers can be increased until CAIDG becomes the industry standard within 5-years.
For further information please download the information Memorandum once you have registered as an interested party at www.vn-cp.co.uk.