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Keen Home

Platform:
Crowdcube
Stage:
Expansion
Industry:
Technology
Location:
International - North America
Date Rated:
18/09/17
Raise:
£570,000
Equity:
4.78%
Valuation (Pre Money):
£11,354,686
Industry: Technology
Location: International - North America
Platform: Crowdcube
£570,000 Expansion
Valuation: £11,924,686
Date Rated: 14/09/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: None

Business Summary

Keen Home is a US company that develops proactive hardware and software products to protect and enhance a home's core systems starting with smart heating & cooling to improve comfort and efficiency. The Smart Vent’s built-in temperature and pressure sensors wirelessly communicate with each other—as well as other smart devices—to regulate and redirect airflow when needed. Keen Home has sold over 35k Smart Vents in the US and has secured strategic partnerships. This round of investment will be used to fund working capital.

Financial Overview

 

 

 

There is insufficient information available to provide a financial overview

 

 

83%
SKILLS:
EXPERIENCE:
COMMITMENT:
The Founders have formed an exceptional management team with the expertise required to develop the business with a strong emphasis on product development.
Most of the team has great start-up experience and one of the Founders has a successful exit under his belt. The Founders know the industry well and they will have an experienced advisory board.
All the management team is full time and has invested over three years developing the business, although we cannot see any evidence they have invested any cash.
81%
MARKET:
PRODUCT:
COMPETITION:
Connected-home devices are expected to hit 1.8bn units shipped in 2019 and the company has estimated its current addressable market to be worth about £4.8bn.
The business has already sold 35k units to a distributor and there are new products in the pipeline. However, there are customer mixed testimonials about the product functionality.
The company has a patented product easy to install and with innovative features but the industry is constantly evolving and there are many players aiming to gain market share.
There is insufficient information available to fairly rate this aspect of the business


Conclusion

Keen Home has developed a great product, secured strategic partnerships with leading companies in the US and gained significant brand awareness since inception. So far the business has relied solely on one large retailer until further distribution channels are obtained. The Founders are developing new products such as air filtration and also plan to monetize their data.

The Founders expect to reach profitability within the next three years but an additional fundraising is likely to be needed to provide further working capital. Therefore, investors in this round could be heavily diluted as the new investment may be offered at a lower valuation. Close attention should also be paid to the complex capital structure that has already accumulated that could also give rise to substantial dilution. Last but not least investors will not qualify for any EIS tax relief.

Given the company's North American focus and lack of tax relief for UK investors, we are curious as to why they have chosen a UK equity crowdfunding platform to raise these additional funds.

All in all, maybe one to avoid despite the strong management credentials and evident product potential.

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

Related Links

Crowdcube Pitch

keenhome.io

 

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