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Prelinks

Platform:
Crowdcube
Stage:
Expansion
Industry:
Leisure & Tourism
Location:
UK - London
Date Rated:
31/08/17
Raise:
£750,000
Equity:
17.65%
Valuation (Pre Money):
£3,499,292
Industry: Leisure & Tourism
Location: UK - London
Platform: Crowdcube
£750,000 Expansion
Valuation: £4,249,292
Date Rated: 25/08/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

Prelinks is an app allowing people to find events in their area and pre-socialise with other attendees. It launched in September 2015 and has over 50,000 registered users across 6 university towns. These funds will be used to continue growing the business.

Financial Overview

 

 

 

There is insufficient information available to provide a financial overview

 

 

47%
SKILLS:
EXPERIENCE:
COMMITMENT:
In growing Prelinks to its current size the team have demonstrated their skills, but scaling will present a new set challenges. There seem to be no hard tech or finance functions filled.
The team lacks depth of experience and this appears to be the Founders' first entrepreneurial activity, though there is some experience in events and marketing to students.
The team are all full time and this is the CEO's only business. Previous investment has already diluted the management to under 50%, but they should still be well motivated to succeed.
39%
MARKET:
PRODUCT:
COMPETITION:
The broad events and nightlife markets are large, though nightclub attendance has been falling in recent years and many venues are being forced to close.
Prelinks has been operating for some time now and has received very good reviews from users. An initial trial has validated the plan to monetise by selling event tickets.
While not discussed in the pitch, there are competitors taking the same social approach to events. A similar platform could be rapidly developed, though the expansion network would be trickier.
There is insufficient information available to fairly rate this aspect of the business


Conclusion

Prelinks has achieved good traction, and initial attempts at monetisation by adding ticket sales are very promising, however it is worth asking why it took from launch in September 2015 until early 2017 to run this short trial. The lack of any numbers demonstrating the revenue and profit margins achieved during this trial also confound meaningful analysis. Further the absence of financial projections, description of how the company has been funded to date, vague description of the use of funds (what will spending £125k on product development add to the service?) and no user acquisition statistics to support a £300k marketing budget, there are a lot of highly significant unanswered questions.

Related Links

Crowdcube Pitch

www.getprelinks.com

 

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