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JOTO

Platform:
Crowdcube
Stage:
Seed
Industry:
Technology
Location:
UK - London
Date Rated:
22/09/17
Raise:
£250,000
Equity:
12.2%
Valuation (Pre Money):
£1,799,180
Industry: Technology
Location: UK - London
Platform: Crowdcube
£250,000 Seed
Valuation: £2,049,180
Date Rated: 20/09/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: SEIS & EIS

Business Summary

JOTO is a robotic drawing board developed by the design studio "Those" intending to pursue the use of technologies in design. JOTO combines robotics with old-fashioned pen and ink and the whole thing is controlled via the JOTO app. JOTO is an award-winning product in design and has raised over £362k with Kickstarter selling over 1,900 units in pre-sales to date. This round of investment will be used to fund further product development and to hire the software team.

Financial Overview

Sep-21
Date (y/e) Sep-17 Sep-18 Sep-19 Sep-20 Sep-21
Sales Sep-17£46,316 Sep-18£745,641 Sep-19£2,772,517 Sep-20£6,856,974 Sep-21£11,208,505
Gross Profit Sep-17£42,775 Sep-18£426,254 Sep-19£1,463,897 Sep-20£3,517,360 Sep-21£5,656,600
GP as % sales Sep-1792% Sep-1857% Sep-1953% Sep-2051% Sep-2150%
Overheads Sep-17£227,634 Sep-18£896,192 Sep-19£1,536,388 Sep-20£2,401,638 Sep-21£3,086,700
Operating Profit Sep-17-£184,859 Sep-18-£469,938 Sep-19-£72,491 Sep-20£1,115,722 Sep-21£2,569,900
OP as % sales Sep-17-399% Sep-18-63% Sep-19-3% Sep-2016% Sep-2123%
Closing Cash Sep-17- Sep-18- Sep-19- Sep-20- -

Note: This financial information has been sourced from the company on 03/10/2017. Financial data is NOT verified by Wheatfromchaff Ltd.
75%
SKILLS:
EXPERIENCE:
COMMITMENT:
JOTO has a complete management team covering every key role and has also benefitted from the support of one of the UK’s first hardware accelerators.
The team has been working with drawing machines for over 4 years with the help of several experienced advisors in manufacturing, electronics, product design and business development.
The Founders have invested about £50k into the business during the last three years and all the management team appears to be full-time.
72%
MARKET:
PRODUCT:
COMPETITION:
The business aims to blend the art and technology industry by connecting anybody through a social App, therefore the company's global addressable market could be huge.
The product won an award in a public competition and significant social and commercial traction has been achieved since. Further planned services should help to increase brand awareness.
Competitive analysis has not been provided in the pitch, however, direct competition seems limited and given their first mover advantage, the company could rapidly dominate the category.
52%
PROFITABILITY:
CASHFLOW:
RETURNS:
The team has planned sufficient marketing expenditure to support the intended growth but given the company's high costs, achieving reasonable profit margins may take a long time.
There is insufficient information available to fairly rate this aspect of the business
If these sales projections are met, investors could expect excellent returns within four years but a further investment will be needed to avoid dilution in the next funding round.


Conclusion

The team has made a big effort to get JOTO to this point, the prototype has been well received, manufacturers are in place and the first units are due to ship before Christmas. This round of investment will strengthen the team and help create further revenue streams with new services and content subscriptions. It will not however provide enough working capital to achieve break-even and another funding round has been planned to accelerate growth. Therefore investors in this round should note that a minimum investment of £7k is required to secure pre-emption rights.

Related Links

Crowdcube Pitch

www.joto.rocks

 

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