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WiseAlpha

Platform:
Crowdcube
Stage:
Expansion
Industry:
Internet
Location:
UK - London
Date Rated:
17/05/17
Raise:
£500,000
Equity:
7.64%
Valuation (Pre Money):
£6,044,503
Industry: Internet
Location: UK - London
Platform: Crowdcube
£500,000 Expansion
Valuation: £6,544,503
Date Rated: 15/05/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

WiseAlpha is an online investment platform that gives members the opportunity to invest in corporate bonds and to manage their own exposure. The business model is based on members paying an annual service fee of 1% on the total amount invested and also a 0.25% sale fee for investments sold. This round of investment will be used to fund further product development and the European expansion.

Financial Overview

 

 

 

There is insufficient information available to provide a financial overview

 

 

59%
SKILLS:
EXPERIENCE:
COMMITMENT:
The Founder and the CTO have strong financial and product development expertise but further sales and marketing skills are required to drive the European expansion.
Although the management team has significant commercial and start-up experience, the current expansion stage will be a new challenge, and without the support of experienced advisors.
The management team has been in place since 2014 but only the Founder and the CTO are full-time.
64%
MARKET:
PRODUCT:
COMPETITION:
The institutional corporate debt market in Europe is huge and provides higher rates of interest and lower default rates on average than other debt offerings currently available to retail investors.
The platform has already 420 active investors with a £7.5k average investment and the team is increasing the number of bonds available to further increase the platform's appeal.
WiseAlpha is FCA regulated and has a first mover advantage in repackaging institutional loans for retail investors, but this product can be replicated by established players if there is demand.
There is insufficient information available to fairly rate this aspect of the business


Conclusion

We have not yet received an updated business plan however we invite potential investors to look at our previous rating HERE that we compiled for their previous round in April 2016.

In this last round, the team was expecting £415k in sales for Jun-2017, yet the latest pitch confirms that no revenues were delivered in FY 2016 so the company is likely to well short of this target. The pre-money valuation of £5.5m a year ago was pretty punchy on zero revenues and investors should assess whether they think the company has developed enough to command a further increase in the pre-money valuation to £6.4m.

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

Related Links

Crowdcube Pitch

www.wisealpha.com

 

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