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Buzzbike

Platform:
Crowdcube
Stage:
Expansion
Industry:
Environmental & Ethical
Location:
UK - London
Date Rated:
14/11/17
Raise:
£300,000
Equity:
13.04%
Valuation (Pre Money):
£2,000,613
Industry: Environmental & Ethical
Location: UK - London
Platform: Crowdcube
£300,000 Expansion
Valuation: £2,300,613
Date Rated: 10/11/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

Buzzbike is an urban cycle club providing members with a complete rider kit that includes: servicing, lock, lights and insurance aiming to make cycling the dominant mode of urban commuter transport. Members pay a £30/month subscription unless the scheme is sponsored by a local business. Buzzbike's first 200 bikes have already covered over 50k miles and 3k Londoners have already applied to be a member. This round of investment will be used to strengthen the management team, to fund further product development and marketing.

Financial Overview

 

 

 

There is insufficient information available to provide a financial overview

 

 

53%
SKILLS:
EXPERIENCE:
COMMITMENT:
The company has a balanced management team with the marketing expertise needed to drive growth but the business will remain extremely dependent on the Founders in the near term.
Although this stage of business is completely new to the Founders, they have managerial experience and they will be supported by an advisory board from different and complementary backgrounds.
Both Founders are full time and considerable time has been invested in the business, although we do not know how much hard cash.
55%
MARKET:
PRODUCT:
COMPETITION:
Although branded bike advertising remains a niche, the intended expansion, first to major cities in the UK and then on to the US should help to increase the company's addressable market rapidly.
There is a strong base of cyclists interested in the offering already and the team has built an engaging Social App with rewards that could help increase its brand awareness further.
The business has a hybrid business model combining brand funded sponsorship and direct client subscription that together should offer some marketing synergy and commercial resilience.
There is insufficient information available to fairly rate this aspect of the business


Conclusion

We have not been provided with the financial projections, so it is difficult to fully evaluate Buzzbike's business plan. The 2% penetration rate of the number of people who currently cycle on a weekly basis in the UK seems a reasonable goal, however the plan to roll-out to the US by 2020 seems over-ambitious.

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

Related Links

Crowdcube Pitch

www.buzzbike.london

 

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