The platform is really starting to take shape this month with the completion of sprint 3.1, this includes much of the buyer’s workflow and some of the search functionality. During development, we have noticed some small flaws in the UX and have ironed these out in the bug fix cycle of this release. However, as a result, our release date has slipped by 1 week from the 17th to the 24th of August. This does not present an issue to the business plan as much of our content loading for our BETA clients will take place well in advance of this. So, we’ll be perfectly timed for being up and running for September, which, in London real estate, represents one of high points in the annual sales calendar. In other product news, our copywriter Richard has completed all the copy for the site which has truly brought the platform to life.

Riccardo Dawson - CPO

Elsewhere, this month has seen us raising awareness with investors, slightly ahead of where we anticipated. We exhibited at the Private Investor Summit where Craig and Shaw presented our solution to seasoned investors. The response from this was great and we’re in discussions with more potential investors. The next big investor event on our schedule, is Google’s ‘Startup Grind’ on the 13th June, where we hope to meet even more potential investors. Craig and I will be out and about continually strutting our stuff on the prop-tech scene for the next few months, making connections, raising awareness and investor interest for Yourkeyz.

Buzzacott

Craig also met the Corporate Finance team of Buzzacott who would typically manage the process of a £2M raise and they offered the following advice:
  • Extend our financial model into Year 5 to demonstrate bigger financial prospect
  • Include international expansion
  • Do not raise less than £2M in our raise in 2019 as it will reduce the number of companies interested
  • We should qualify for an enhanced benefit of SEIS being extended into another £150k of EIS funding (but on the same terms as SEIS) through being approved by HMRC as ‘Knowledge Intensive’
  • For a £2M raise – investors will want around 25% (more than that the founders are not properly incentivised – less and they are not that interested)
  • Oct/Nov is good timing for tax efficiency reasons for the EIS raise
  • You should allow 6 x months to raise £2M
  • With a £2M raise and a valuation of £6M they would expect revenues to be around £75k a month (at least on a trajectory of that) double digit growth for the previous 3 x months
  • If you use a professional corporate fundraiser – they will help with DD / ensuring all presentation docs are correct / checking financial model / introducing to potential investors
  • They typically take £10k up front and 5% of the raise
  • To allow ourselves greater traction before the big raise (minimum 6 months) we should consider raising more on EIS and delaying some of the big hires for a couple of months
Revised Financial Model

Following the meeting with Buzzacott we have revised the financial model (V7) which is available to any existing investors or we can meet and discuss with any potential new investors. Key highlights include:
  • We have included a new revenue stream (now a total of seven) which are commissions from lettings and furniture packages for international buyers
  • Extended the model to Year 5
  • Included costs and revenues for one international expansion (broad brush strokes)
  • Increased the raise to £2M and pushed back a month to May
  • Ploughed more revenues into digital marketing from Year 3
  • Allocated budget to recruit a Chinese speaking digital marketing agency
  • The valuation at Year 5 is £151M
  • The valuation at Year 4 is c£62M
  • Increased the number of Non Exec Directors
Team

Internally, we have a new team member, Chris Foot, who has joined us as our new marketing executive, Chris is a smart, young, ambitious professional with a good background in digital marketing and customer service. We’ve also formalised agreements with 2 highly experienced NED’s – Mark Brighton (ex-CTO of Nectar Card – Sainsbury’s) and Peter Preedy (Director of Residential Sales, JLL) who have joined our team of advisors.

In other news:
  • Riccardo attended a dinner with William McQuillan of Frontline ventures an early stage B2B VC who gave some great feedback on what VC’s are looking for and the best way to approach them – we’re looking to talk further with Frontline over the coming months. They are also putting us in contact with a few other ‘early stage’ VC’s who may be of interest for our £2m raise in May next year.
  • Images of our stand and presentation at the ‘Investor summit’ can be found in the data room below, along with the marketing collateral that was used at the event.
  • Our latest pitch deck to new build house developers can be found in the ‘Sales and Marketing’ folder, this will be the document we present to developers to win their business. If you have any feedback or someone you think may be interested to see it, please let us know.
  • We had a few very productive meetings with ‘aCASA’ – a Blockchain company we are working with to develop a ‘white paper’ investigating the potential applications for blockchain in the Yourkeyz platform – We will keep you all abreast of this progress as it develops.
Read More

Resources

Investment Funds Timeline

Please Help

Is he in your circle of contacts? Adam Williams – LinkedIn
Is he in your circle of contacts? Neil Woodford – Website

KPI's

Success

Concern

Issue

KPI - Monthly Tracker
May Target
May Actual
YTD - Target
YTD - Actual
Number of Monthly Developer Meetings
0
0
0
0
Number of Live Clients Selling New-Build Homes
0
0
0
0
Number of Mega Developer Clients (10,000+)
0
0
0
0
Number of Large Developer Clients (1,000+)
0
0
0
0
Number of Medium Developer Clients (100 - 1,000+)
0
0
0
0
Number of Small Developer Clients (50 - 100)
0
0
0
0
Housing Association or Regional Clients (100)
0
0
0
0
Total Units Live on the Platform
Average Time to Exchange Contracts
Number Who Register Their Details on the Platform
0
0
0
0
UK Full Time Headcount
3
3
3
3
Overseas Content Loaders
0
Number of Houses Sold Through the Platform
0
££ Revenues from Sales Transactions
0
Total Revenues from Platform Licenses Fees
0
££ Revenues from Mortgages
0
££ Revenues from Convetancers
0
££ Revenues from Insurance Products
0