Need some help? Close Help

Agroop

Platform:
Seedrs
Stage:
Expansion
Industry:
Technology
Location:
International - Europe
Date Rated:
20/07/17
Raise:
£200,000
Equity:
9%
Valuation (Pre Money):
£2,022,222
Industry: Technology
Location: International - Europe
Platform: Seedrs
£200,000 Expansion
Valuation: £2,222,222
Date Rated: 18/07/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: None

Business Summary

Agroop is a company developing technological solutions for the farming sector to help farming entrepreneurs improve their management capacity, increase the sustainability and efficiency of their production, and the profitability of their businesses. Agroop has validated its product in Portugal and is already generating revenues. This round of investment will be used to fund further product development during 2017 and to invest in sales and marketing to support growth in the beginning of 2018.

Note: Raise (200,000€) and Valuation (2,022,222€)

Financial Overview

Date (y/e) Dec-17 Dec-18 Dec-19
Sales Dec-17£81,940 Dec-18£1,558,081 Dec-19£4,869,802
Gross Profit Dec-17£55,541 Dec-18£815,560 Dec-19£2,661,371
GP as % sales Dec-1768% Dec-1852% Dec-1955%
Overheads Dec-17£287,253 Dec-18£601,760 Dec-19£1,026,890
Operating Profit Dec-17-£231,712 Dec-18£213,800 Dec-19£1,634,481
OP as % sales Dec-17-283% Dec-1814% Dec-1934%
Closing Cash Dec-17-£33,722 Dec-18£151,345 Dec-19£812,324

Note: This financial information has been sourced from the company on 18/07/2017. Financial data is NOT verified by Wheatfromchaff Ltd.
82%
SKILLS:
EXPERIENCE:
COMMITMENT:
The management team has the right expertise to finish the product development and a Marketing and Sales Manager will be hired to complete the team and support the business' growth.
The management team has gained significant start-up experience and relevant industry knowledge and they will be supported by an engaged and experienced board of advisors.
The management team has invested €44k and over four years into the business and the team's salaries will remain low throughout the plan.
74%
MARKET:
PRODUCT:
COMPETITION:
In Europe alone there are more than 1.8m farmers and Agroop's addressable market is estimated to be worth over £9bn in its eight targeted countries combined.
Agroop already has some positive testimonials but it is finishing the product development with added features while gaining initial commercial traction.
Key competitors are raising substantial funds in other countries but Agroop intends to compete with a more scalable solution and to gain market share in less sought-after markets.
45%
PROFITABILITY:
CASHFLOW:
RETURNS:
The company has grown slower than anticipated due to delays for new product development but current sales projections are supported by a higher marketing budget.
This round of investment does not provide enough cash to reach break-even and the company will be dependent on the next funding round of about £300k to get there.
An exit plan has not been provided in the business plan and investors will not enjoy UK EIS tax benefits, but they could still expect around a five-fold return within three years.


Conclusion

In the last funding round, the founders stated that dividends were planned from Year 4 onwards and a potential buyback within 5 years but the current business plan does not mention any of this or the intended exit, therefore investors should ask for clarification in this matter.

Given delays in product development, sales have been lower than expected in the previous round but the company has added further features providing a complete solution and creating a new revenue stream that could help to enhance sales and recover the lost ground.

Related Links

Seedrs Pitch

agroop.net

 

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