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Resolve Divorce

Platform:
Crowdcube
Stage:
Seed
Industry:
Business Services
Location:
UK - East Yorkshire and Lincolnshire
Date Rated:
03/10/17
Raise:
£300,000
Equity:
15%
Valuation (Pre Money):
£1,700,000
Industry: Business Services
Location: UK - East Yorkshire and Lincolnshire
Platform: Crowdcube
£300,000 Seed
Valuation: £2,000,000
Date Rated: 02/10/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: SEIS & EIS

Business Summary

Resolve is an online divorce platform that enables spouses to manage, and conclude, their matrimonial financial disputes online without the need for solicitors, at a fixed fee. Resolve Divorce has already developed and tested the initial software. This round of investment will be used to fund further product development, marketing and hire key roles.

Financial Overview

 

 

 

There is insufficient information available to provide a financial overview

 

 

70%
SKILLS:
EXPERIENCE:
COMMITMENT:
The Founders have the right management and product development expertise and a skilled Marketing Director will be hired further to this funding.
There is an proven experience in all aspects of divorce and financial disputes across the team and the Founders will have the support of a successful advisor.
Although there are no full-time dedicated personnel yet, the Founders have invested three years and £70k through their legal practice Jones Myers Limited.
56%
MARKET:
PRODUCT:
COMPETITION:
If we take into account the £6-9k fee per couple and given there are 118k divorces every year in the UK, the company has a potential addressable market that is worth about £1bn.
Although the product is fully developed and tested, it is not yet available to the public. Several large employers have however expressed an interest in the product for their employees.
The company is first to market with a cheaper solution than traditional methods that guarantees a financial settlement for divorcing couples, for a fixed fee.
There is insufficient information available to fairly rate this aspect of the business


Conclusion

If the company can secure 500 cases in the first year, £3m in sales could justify the current valuation however given the current pre-revenue stage, the valuation seems high versus comparable service businesses. That said given the online approach, Resolve Divorce should have a lean business model and even gaining a small share of the market could provide significant revenues in due course, although substantial marketing expenditure will be required.

It would be interesting to have a better understanding of how development of the automated "settlement indicator" is going, as if it works, this is the core IP that will allow the company to provide the lowest cost solution and build a sustainable competitive advantage.

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

Related Links

Crowdcube Pitch

resolvedivorce.co.uk

 

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