Need some help? Close Help

Six to Start

Platform:
Crowdcube
Stage:
Expansion
Industry:
Media & Creative Services
Location:
UK - London
Date Rated:
25/04/17
Raise:
£400,000
Equity:
3.23%
Valuation (Pre Money):
£11,983,901
Industry: Media & Creative Services
Location: UK - London
Platform: Crowdcube
£400,000 Expansion
Valuation: £12,383,901
Date Rated: 24/04/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

Six to Start is a company specialised in smartphone fitness games. Six to Start has co-created Zombies, Run!, a fitness app with four million players, and has designed treasure hunts and games involving millions of players. This round of investment will be used to fund marketing and hire staff.

Financial Overview

Date (y/e) Jun-16 Jun-17 Jun-18 Jun-19
Sales Jun-16£849,373 Jun-17£1,285,457 Jun-18£3,895,009 Jun-19£7,346,733
Gross Profit Jun-16£417,461 Jun-17£592,453 Jun-18£1,897,589 Jun-19£3,784,633
GP as % sales Jun-1649% Jun-1746% Jun-1849% Jun-1952%
Overheads Jun-16£459,151 Jun-17£876,168 Jun-18£1,736,294 Jun-19£2,306,417
Operating Profit Jun-16-£49,194 Jun-17-£288,906 Jun-18£152,108 Jun-19£1,466,129
OP as % sales Jun-16-6% Jun-17-22% Jun-184% Jun-1920%
Closing Cash Jun-16£86,860 Jun-17£243,635 Jun-18£664,483 Jun-19£2,358,762

Note: This financial information has been sourced from the company on 24/04/2017 or from public sources. Financial data is NOT verified by Wheatfromchaff Ltd.
78%
SKILLS:
EXPERIENCE:
COMMITMENT:
Six to Start's team has strong design and product development skills but further sales and marketing acumen seems required to launch the next product.
The management team has deep industry knowledge and they have acquired a great deal of experience growing the business successfully since 2007.
The Founder seems fully devoted to the company where he has invested a decade of his time and most of the team is full-time.
66%
MARKET:
PRODUCT:
COMPETITION:
Given the increasing number of runners and smartphone users worldwide, the global fitness app market is already worth over £60bn and is still growing rapidly.
Six to Start has built a solid base designing apps that have engaged millions of users and the launch of virtual races could provide significant upside.
Many competitors providing similar fitness apps have been acquired by large companies with substantial marketing budgets but the company has a unique product able to seize market share.
60%
PROFITABILITY:
CASHFLOW:
RETURNS:
If the right sales and marketing effort is made, given the current traction of Racelink, the company could now increase its turnover rapidly and become profitable.
This round of investment should provide enough cash to achieve break-even and further funds may not be needed if the team can deliver 80% of its sales projections.
This industry has seen multiple exits but given the high current valuation, investors should not expect more than modest returns if an exit is achieved in the stated of 3 to 5 years time-frame.


Conclusion

The management team has a proven track developing new apps and keeping users engaged; this has provided substantial brand awareness of their products and the next product has already strong traction in the market. The company seems to be on the correct path but investors should note that the pre-money valuation has been set at ten times the current year's projected revenue which is undoubtedly high and superior returns seem achievable only if the company achieves a trade exit on a turnover of over £40m.

Note: We have not received a business plan from Six to Start and therefore this rating is based on the information available within the Crowdcube pitch.

Related Links

Crowdcube Pitch

www.sixtostart.com

 

Right To Reply

Are you the entrepreneur? If you would like to publish a comment on our rating, please contact the ratings team.

Latest Forum Comments

Read All Comments

Disclaimer

The views and opinions expressed on this bulletin board are the sole property and responsibility of the author. Neither Crowdrating nor Wheatfromchaff Ltd, nor any of the directors or officers of Wheatfromchaff Ltd accept any responsibility or liability for them. Readers should be aware that comments do not constitute investment advice and may be inaccurate. Please seek to verify and take advice on all comments before relying on them in the context of any investment decisions you may make. if you wish to use the bulletin board please be aware you are accepting full responsibility and liability for what you write. Please look here for more specific rules we impose on people using our bulletin boards. We moderate all bulletin boards and we reserve the right not to publish your comments.

Disclaimer

Your capital is at risk when you invest in shares and debt securities. You can lose some or all of your money and may not be able to realise your investment. Therefore you should should never invest more than you can afford to lose. If in doubt about the suitability or tax implications of any investment, please seek independent financial advice. 

Information published on this website and any other reports or ratings published on CrowdRating.co.uk or by Wheatfromchaff Limited (trading as Wheatfromchaff) have been prepared by us in the United Kingdom for information purposes only. Wheatfromchaff Ltd is Authorised and Regulated by the Financial Conduct Authority FRN: 751017. 

No content on this website or on any reports or ratings published on this website nor any copy of it, nor any other reports or copies of them published on CrowdRating.co.uk may be reproduced, redistributed or copied in whole or in part for any purpose. Any and all reports have been approved by, and are being distributed in the UK and the European Union (EU) only and are not to be distributed in any other jurisdictions where their distribution may be restricted by law and persons into whose possession this or any other reports come should inform themselves about and observe such restrictions.

This report and any other reports published on CrowdRating.co.uk do not constitute an offer or a solicitation to buy or sell any securities referred to herein. It should not be so construed, nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. The information on this website or in reports or ratings published by Wheatfromchaff, or on which this or any other reports are based, has been obtained from sources that Wheatfromchaff believes to be reliable and accurate, and in accordance with COBS 2.4 of the FSA Handbook we have verified it to the best of our ability. However, it has not been independently verified and no representation or warranty, express or implied, is made as to the accuracy or completeness of any information obtained from third parties. The information or opinions are provided as at the date of this report or any other report publication dates and are subject to change without notice. The information and opinions provided in this and any other reports take no account of the investors/ individual circumstances and should not be taken as specific advice on the merits of any investment decision. Investors should consider any or all of the reports or ratings we publish as only a single factor in making any investment decisions.  

Wheatfromchaff does not accept any liability whatsoever for any direct or consequential loss however so arising, directly or indirectly, from any use of this report nor its contents. Investors may receive back less that they invested as investments may fall as well as rise in value. Investors should obtain independent advice based on their own circumstances before making investment decisions. By accepting this report you agree to be bound by the foregoing limitations.

The Ratings we publish have been approved and issued at Financial Promotions in the United Kingdom by Wheatfromchaff in the United Kingdom who is Authorised and Regulated by the Financial Conduct Authority FRN: 751017. Wheatfromchaff Limited registered office is Kilver Court, Kilver Street, Shepton Mallet, Somerset, BA4 5NF and telephone number +44 (0) 1749 347 577. Telephone calls may be recorded. VAT No: 214 0196 49

© Wheatfromchaff Ltd All Rights Reserved February 2017