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Silverfriend

Platform:
Crowdcube
Stage:
Seed
Industry:
Business Services
Location:
UK - London
Date Rated:
11/12/17
Raise:
£150,000
Equity:
20%
Valuation (Pre Money):
£600,000
Industry: Business Services
Location: UK - London
Platform: Crowdcube
£150,000 Seed
Valuation: £750,000
Date Rated: 07/12/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: SEIS

Business Summary

Silverfriend is planning to launch a hotline to help subscribing members avoid being scammed, giving them peace of mind and avoiding the significant costs and negative emotions that come from being a victim of fraud. Currently pre-launch, these funds will be used to launch the business and to provide working capital for the first year.

Financial Overview

Year 5
Date (y/e) Year 1 Year 2 Year 3 Year 4 Year 5
Sales Year 1£158,125 Year 2£1,488,056 Year 3£6,774,778 Year 4£8,652,722 Year 5£9,723,389
Gross Profit Year 1£68,338 Year 2£643,923 Year 3£2,931,631 Year 4£3,744,269 Year 5£4,207,576
GP as % sales Year 143% Year 243% Year 343% Year 443% Year 543%
Overheads Year 1£160,400 Year 2£437,600 Year 3£1,020,600 Year 4£1,325,600 Year 5£1,325,600
Operating Profit Year 1-£92,062 Year 2£206,323 Year 3£1,911,031 Year 4£2,418,669 Year 5£2,881,976
OP as % sales Year 1-58% Year 214% Year 328% Year 428% Year 530%
Closing Cash Year 1- Year 2- Year 3- Year 4- -

Note: This financial information has been sourced from the company on 07/12/2017 or from public sources. Financial data is NOT verified by Wheatfromchaff Ltd.
46%
SKILLS:
EXPERIENCE:
COMMITMENT:
The team appears to lack certain crucial functions at this point - Silverfriend is engaged with an outside firm for PR/marketing for now, but there are no details on the 'Scam Expert' yet.
The Founders are experienced but Silverfriend appears to be their first foray into entrepreneurship, anti-fraud services or consumer protection.
The Founders appear able to fully dedicate their efforts to Silverfriend and are foregoing salaries to help minimise costs.
34%
MARKET:
PRODUCT:
COMPETITION:
Fraud is a significant problem that effects most of Silverfriend's target market and can have dire consequences, but the total UK opportunity for Silverfriend is under £1bn.
Currently Silverfriend is just an idea with even the branding yet to be decided and no training materials or useful educational copy in place.
Silverfriend aims to offer significantly faster service than current free resources. Given the current level of development though, competition could quickly follow if there are signs of traction.
63%
PROFITABILITY:
CASHFLOW:
RETURNS:
A flexible workforce should help Silverfriend to scale costs in line with demand, but a period of such rapid growth in the mid-term could prove challenging.
There is insufficient information available to fairly rate this aspect of the business
If Silverfriend can demonstrate its model and gain traction then investors stand a good chance of seeing significant returns.


Conclusion

Silverfriend has a plan for a novel and potentially valuable service, but there may be some difficulties along the way. Scams work because the victim doesn't believe they're capable of being scammed, so why would they subscribe to a service they never expect to use? There may also be greater regulatory issues to be faced when advising on more complicated (but higher stakes) investment scams - can a casual workforce easily be trained to tell scams from genuine investment opportunities, and can Silverfriend then legally assert so?

Related Links

Crowdcube Pitch

www.silverfriend.co.uk

 

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