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Broker Compare

Platform:
Crowdcube
Stage:
Expansion
Industry:
Business Services
Location:
UK - East
Date Rated:
22/09/17
Raise:
£250,000
Equity:
21.74%
Valuation (Pre Money):
£899,954
Industry: Business Services
Location: UK - East
Platform: Crowdcube
£250,000 Expansion
Valuation: £1,149,954
Date Rated: 19/09/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

Broker Compare is a service allowing individuals to compare different Execution Only broker services to find the best deal for them according to their actual usage. Broker Compare acts as a lead-generation service for brokers (taking a cut from new sales), and as a useful service for publishers. These funds will be used to continue developing the service, adding useful new features.

Financial Overview

Date (y/e) Dec-17 Dec-18
Sales Dec-17£19,438 Dec-18£256,832
Gross Profit Dec-17£19,438 Dec-18£256,832
GP as % sales Dec-17100% Dec-18100%
Overheads Dec-17£203,258 Dec-18£232,934
Operating Profit Dec-17-£183,820 Dec-18£23,898
OP as % sales Dec-17-946% Dec-189%
Closing Cash Dec-17- Dec-18-

Note: This financial information has been sourced from the company on 14/09/2017 or from public sources. Financial data is NOT verified by Wheatfromchaff Ltd.
42%
SKILLS:
EXPERIENCE:
COMMITMENT:
The core team is small and currently lacks a dedicated marketer/salesperson, though this hasn't prevented the company negotiating key early partnerships.
Due to the team's size and relative youth they have little previous commercial experience, but that they do have is valuable and applicable, and they have an experienced network of advisors.
The existing team will be entirely full time post-funding, with key technical roles to be filled. Multiple rounds offering significant equity have left the CEO highly diluted for such a young company.
62%
MARKET:
PRODUCT:
COMPETITION:
By Broker Compare's informed estimates there is a reasonably sized market for their service, and this can be broken down into distinct groups according to their needs and behaviours.
Broker Compare has good traction for such a young company and is generating positive testimonials. The planned Digital Investment Manager review service should add significant market reach.
The team is clearly aware of their competitors and has a unique set of features. The rapid development time, though, demonstrates susceptibility to replication.
There is insufficient information available to fairly rate this aspect of the business


Conclusion

Broker Compare has rapidly developed a service which has been adopted by some major brands and receives good reviews. Despite the lack of experience on the team it is plain that there is an abundance of talent. The lack of a marketer or any plan to hire one is a concern though, even with the agreements that have already been won.

We have some concerns that the addressable market may be overstated currently given the focus on comparing execution-only stockbrokers, however the move to compare Digital Investment Platforms more broadly will rapidly increase that.

With only 18 months financial projections we are unfortunately able to provide any investment analysis.

Related Links

Crowdcube Pitch

www.brokercompare.info/

 

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