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The Rattle

Business Services
UK - London
Date Rated:
Valuation (Pre Money):
Industry: Business Services
Location: UK - London
Platform: Crowdcube
£300,000 Seed
Valuation: £1,799,640
Date Rated: 07/09/17



Tax Status: SEIS & EIS

Business Summary

The Rattle will be a network of co-working spaces designed specifically to accommodate music-focused startups, with features like recording studios, experienced industry mentors and curated occupants. Space will be leased for a monthly fee, with Rattle 1, the first location, set to open in London in November. These funds will be used to equip the space, see it through from MVP to a mature space, and to take the company to break-even.

Financial Overview

Date (y/e) Sep-18 Sep-19 Sep-20 Sep-21 Sep-22
Sales Sep-18£278,850 Sep-19£2,279,625 Sep-20£6,257,473 Sep-21£13,816,066 Sep-22£31,476,973
Gross Profit Sep-18-£47,701 Sep-19-£89,845 Sep-20£2,240,052 Sep-21£2,658,678 Sep-22£8,804,845
GP as % sales Sep-18-17% Sep-19-4% Sep-2036% Sep-2119% Sep-2228%
Overheads Sep-18£54,970 Sep-19£955,609 Sep-20£1,886,421 Sep-21£2,886,324 Sep-22£4,424,178
Operating Profit Sep-18-£102,671 Sep-19-£1,045,454 Sep-20£353,632 Sep-21-£227,646 Sep-22£4,380,667
OP as % sales Sep-18-37% Sep-19-46% Sep-206% Sep-21-2% Sep-2214%
Closing Cash Sep-18£277,329 Sep-19£269,625 Sep-20£623,256 Sep-21£395,610 £4,776,278

Note: This financial information has been sourced from the company on 12/09/2017 or from public sources. Financial data is NOT verified by Wheatfromchaff Ltd. NB: For our own analysis we have considered CAC as an overhead, rather than as a COGS.
The CEO's leadership skills are borne out in his extensive work in accelerators and universities. It would be beneficial to see someone with experience more relevant to marketing and facilities.
The team is very experienced and have built a valuable network of advisors. The CEO has previously achieved a (partial) sale, suggesting he can take the company from seed through exit.
Both team members have other ongoing commitments and have invested a not insignificant amount of their own funds so far. They should be well motivated to build the business.
While the workspace market in the UK is large, the market for recording studio space is much smaller, and growing slowly. Further, many co-working spaces already offer studio space.
The first site, isn't ready yet, but the company expects to have it ready in November. There is a list of potential first clients lined up, with some already confirmed.
The combination of co-working space with studio space is already well explored in London. The addition of a mentoring service is a novel twist, turning the project into a quasi-incubator.
The Rattle's financial projections show a fine-grained awareness of their costs and an aggressively tuned expansion plan.
With an average customer lifetime of 7-10 months, revenue streams should be fairly predictable and it should be possible to maintain high occupancy rates (given sufficient marketing).
If The Rattle can deliver on their projected growth and truly reach £92m in 7 years then investors would see fantastic returns. Indeed, the potential returns in half that time are promising.


The Rattle's CEO's background in accelerators shines through in various aspects of this pitch, such as the curation of Rattle members, the presence of Producers and Entrepreneurs in Residence in each Rattle, and in the option to buy equity stakes in Rattle members in the future. These all help to differentiate The Rattle from other musically focused co-working spaces.

The £1.5m pre-money valuation is steep, given that The Rattle hasn't yet launched an MVP, and that doing so will take some significant capital (and so comes with some risk), but if the team can pull off the projected expansion without any significant hitches then the potential rewards for investors are exciting to say the least.

Investors claiming SEIS relief (should the application pass 'pending' status) should consider the impact of any rewards on their relief. The value of a 1 Year Community Pass (rewarded for >=£1,000 investment) could have significant tax implications of its own.

Related Links

Crowdcube Pitch


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