Need some help? Close Help

VONCRANK

Platform:
Crowdcube
Stage:
Seed
Industry:
Business Services
Location:
UK - London
Date Rated:
22/09/17
Raise:
£250,000
Equity:
17%
Valuation (Pre Money):
£1,220,588
Industry: Business Services
Location: UK - London
Platform: Crowdcube
£250,000 Seed
Valuation: £1,470,588
Date Rated: 21/09/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: SEIS

Business Summary

VONCRANK is an on-demand mobile bike service app enabling cyclists to book a service or repair at home, work, or roadside straight from their smartphone. VONCRANK's App is free for cyclists and mechanics and earns 20% commission on all parts and labour jobs. VONCRANK has already signed up 120 mechanics and over 1.3k users have been registered. This round of investment will be used to strengthen the tech & marketing team and to support growth.

Financial Overview

 

 

 

There is insufficient information available to provide a financial overview

 

 

58%
SKILLS:
EXPERIENCE:
COMMITMENT:
The team has demonstrated competence to date in building the App and securing partnerships, however further marketing expertise seems required to help achieve the intended coverage.
Although the management team has limited commercial experience, they have relevant start-up knowledge and the Founder has been in the mobile bike repair industry for the past 8 years.
Although the Founder seems fully committed, he has invested limited time and cash into the business to date and his salary may be enough to offset any failure risk.
44%
MARKET:
PRODUCT:
COMPETITION:
The maintenance market for bikes in the UK is worth about £0.7bn, but VONCRANK's ambition to achieve 70% market share in London seems unrealisable due to low barriers to entry.
Although there are already bookings flowing through the website and the company has many users registered, there are not many supportive testimonials and the App has suffered delays.
Competitive analysis has not been provided in the pitch, however the company intends to compete by providing a more accessible service while maintaining competitive prices.
There is insufficient information available to fairly rate this aspect of the business


Conclusion

The team aims to provide a solution that benefit both cyclists and mechanics and the App could provide great value making the company easily scalable. That said the existing maintenance providers in the market could however start delivering this service relatively quickly as there are no apparent barriers to entry. The business has already achieved relevant traction with 120 mechanics but the ambition to achieve 70% of the London market seems unrealistic, although additional growth could come from expanding into Europe, given the reported level of interest from mechanics in Denmark.

Without any financials is difficult to foresee what investors could expect but given the level of investment to date and the current market traction, the valuation seems high.

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

Related Links

Crowdcube Pitch

www.voncrank.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