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Maecenas

Platform:
Seedrs
Stage:
Seed
Industry:
Art & Design
Location:
UK - London
Date Rated:
03/05/17
Raise:
£400,000
Equity:
12.4%
Valuation (Pre Money):
£2,825,806
Industry: Art & Design
Location: UK - London
Platform: Seedrs
£400,000 Seed
Valuation: £3,225,806
Date Rated: 21/04/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

Maecenas is a marketplace for art investment that allows artwork owners to raise money by selling fractions of top quality works to investors. Investors can then trade these units on the Maecenas platform. This round of investment will be mainly used to fund the sales and marketing budget and to accelerate growth.

Financial Overview

Date (y/e) May-18 May-19 May-20 May-21
Sales May-18£1,440,000 May-19£4,670,000 May-20£24,670,000 May-21£43,720,000
Gross Profit May-18£1,041,000 May-19- May-20- May-21-
GP as % sales May-1872% May-19- May-20- May-21-
Overheads May-18£546,408 May-19£3,050,000 May-20£4,420,000 May-21£6,130,000
Operating Profit May-18£494,592 May-19£1,620,000 May-20£20,250,000 May-21£37,590,000
OP as % sales May-1834% May-1935% May-2082% May-2186%
Closing Cash May-18£994,592 May-19£2,614,592 May-20£22,864,592 May-21£60,454,592

Note: This financial information has been sourced from the company on 28/04/2017. FY 2018 is based on a detailed 12 month budget and subsequent years on the pitch deck. Financial data is NOT verified by Wheatfromchaff Ltd.
79%
SKILLS:
EXPERIENCE:
COMMITMENT:
The Founders are multi-skilled serial entrepreneurs and the talented team has been working together for a long time developing DXMarkets that will be powering Maecenas' platform.
The management team has a deep knowledge of the finance and art industry and they will be supported by an early stage VC firm with a strong international focus and several experienced advisors.
Although most of the team have other commitments and limited time has been invested to date, its other main commitment is a related and synergistic company.
59%
MARKET:
PRODUCT:
COMPETITION:
Over $1 trillion is invested in artwork although the associated art-based lending market is much smaller and unquantified in the pitch, albeit growing at 15-20% per annum.
Although the platform is not live, a functional demo is available and the team has already identified a number of artworks that will be listed. But further clarity on usage cases would be helpful.
Maecenas will use technology to provide clear cost benefits to both owners requiring finance and investors seeking fractional ownership that the incumbents could find hard to counter.
61%
PROFITABILITY:
CASHFLOW:
RETURNS:
Even a few transactions could provide a highly profitable business model, however to source over £250m in loans within 3 years seems very ambitious given the immaturity of the market.
This round of investment will provide enough cash to achieve break-even the first year if at least 70% of the sales projections are met.
Although an exit plan has not been provided, if the team is able to gain commercial traction, investors in this round could expect strong returns in time.


Conclusion

The company has an attractive business model that could attract art owners seeking liquidity at a lower cost than current lenders can provide, and also provide a low cost and potentially liquid route to art investment. The devil will be in the detail however and delivering both sides of this equation could take some time to get right and be adopted by a very conservative group of asset owners.

If Maecenas can demonstrate commercial traction and start to build brand awareness, it could become a highly scaleable and profitable company, that could yet justify its relatively high current valuation.

Related Links

Seedrs Pitch

www.maecenas.co

 

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