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Buyapowa
Tax relief
Buyapowa helps retailers amplify their customers’ network, turning chatter into actual transactions. Using its technology platform, retailers can encourage and reward their customers for getting their friends to shop too.
Following a successful raise of £1,368,000 earlier this year, financed by Juno Capital and Bright Station Ventures, Buyapowa is extending the Series A round by aiming to raise a further £400K (£750K max.) at the same price to finance its growth.
About Buyapowa
Buyapowa is a technology platform, used by the likes of Tesco, Costco, L’Oreal and others to help them acquire new customers (See http://www.buyapowa.com/). Launched in 2011 and based in London with a team of 15, Buyapowa is focused on technology, retail and word-of-mouth marketing.
The directors understand that retailers find acquiring new online shoppers difficult and expensive. But social media is seen as having the potential to change that. BuyaPowa helps retailers to acquire new customers. Using its technology platform, retailers can encourage and reward their customers for getting their friends to shop too.
The Buyapowa customer referral platform plugs straight into a client´s existing website and, using some pretty clever technology, tracks how and when their customers refer their friends and rewards them accordingly. Buyapowa helps retailers identify their key advocates and then motivates them into action.
Historically Buyapowa has worked with more than 100 brands and retailers across the globe on a campaign basis[1].
[1] http://techcitynews.com/2015/05/12/buyapowa-raises-3m-to-fund-us-expansion/
What sets you apart?
The directors understand that the company´s clients use the Buyapowa social referral marketing platform for a few key reasons:
Features – The platform allows brands and retailers many options for building campaigns, offering many different configurations of incentives and rewards. The client back end allows for sophisticated customer segmentation, A/B testing and analytical approaches to optimize campaign performance.
Experience – Its diverse and experienced team has delivered campaigns for hundreds of brands and retailers across telco, retail, fashion, consumer goods, publishing and financial services. Buyapowa´s clients value its input in helping them launch and manage campaigns.
Approach – The Company offers a managed service for its larger clients and self-service for smaller clients to meet their individual needs. Buyapowa occasionally supports its larger clients with bespoke development work (paid for) and generates valuable insight via data and analytics.
How do you generate revenue?
Buyapowa’s commercial agreements are structured as annual licences with brands and retailers. The company typically limits the licence to a single business unit and geography within larger brands and retailers. Licence fees are paid up front with average payment terms being 45 to 60 days.
A monthly fee is charged based on the number of successful customers referred in a given month.
Occasionally Buyapowa will do bespoke development work for its larger enterprise clients which it bills out at £1,000 per day.
Why should we invest in you?
Buyapowa is a 4 year old business with a strong management team led by Gideon Lask, former Managing Director (MD) of HMV.com and CEO of LetsBuyIt.com.
Buyapowa has made good progress in the United States, selling remotely from London, and the company counts Costco among its clients. Historically Buyapowa has worked with more than 100 brands and retailers across the globe on a campaign basis[2]. As of the end of August 2015, the company had 23 paying clients live on the platform generating monthly fees of £84,500 – this, annualised, translates to annual revenues of £1,014,000 and growing, with customers including Tesco, EE, Argos, Homebase, Johnson & Johnson and Sony.
Buyapowa successfully raised £1,368,000 earlier this year at a pre-money valuation of £3.25m[3] from Juno Capital, Bright Station Ventures (Dan Wagner) and other angels, CrowdBnk is re-opening the Series A round to raise a further £400K (£750K max.) at the same price.
[2] http://techcitynews.com/2015/05/12/buyapowa-raises-3m-to-fund-us-expansion/
What's the market for your services?
The company´s target market is the Digital Marketing Software Market which is estimated to be $56.6bn by 2019 [4]. This market is currently growing at a rate of 17%[5]. This market is comprised of businesses looking to exploit social media for operational or commercial purposes. The directors´ opinion is that this market is growing primarily due to the increase in adoption of digital media and the emergence of software as a service (SaaS) solutions like the Buyapowa platform.
Buyapowa targets businesses that are existing consumers of enterprise software, especially technology platforms as these businesses are more receptive to these sorts of solutions.
The company targets two distinct segments within this space:
- Large enterprises with 250+ employees: 6,000 large enterprises in the UK, 44,000 in the United States and directors estimate roughly 94,000 in the rest of the world. [6] (directors estimate these account for 52% of the market). Buyapowa targets these enterprises with a managed service version of its platform.
- Small and medium size enterprises (SMEs) with between 10 and 250 employees: 178,000 SMEs in the UK, 975,000 in the US and 2,100,000 in the rest of the world [7]. (directors estimate these account for 48% of the market). Buyapowa targets these enterprises with a self-service version of the platform.
[4]http://www.prnewswire.com/news-releases/digital-marketing-software-market-growing-at-17-cagr-to-2019---the-key-players-include-adobe-systems-hubspot-sas-microsoft-sap-marketo-hp-oracle-and-salesforce-500807501.html
[6] Business Statistics Number 06152, 28 May 2015, House of Commons Library (UK figures), and http://www.sba.gov/advocacy/firm-size-data and https://www.bcg.com/documents/file100409.pdf (US figures)
What is the plan for future growth?
The company wants to reinforce its position as the leading referral marketing platform outside of the US, building clients and revenues aggressively and readying itself for a planned trade sale in the next 2-3 years. The directors consider that the largest opportunity for the business is in Europe and Asia where they see online referral marketing to be in its infancy and competition to be scarce.
Read moreInvestment offer
Following a successful raise of £1,368,000 earlier this year, financed by Juno Capital and Bright StationVentures, CrowdBnk is re-opening the Series A round to raise a further £400K (£750K max.) at the same price to finance its growth in Europe and Asia for a minimum of 32.22% (8.33% [7.15% fully diluted] Available to CrowdBnk investors) and a maximum of 36.82% (14.56% [12.63% fully diluted] Available to CrowdBnk investors) equity stake.
The total current round of £1,767,989.20 to £2,118,193.15 is for a total of 435,882 to 534,531 shares plus convertible loan notes of a nominal value of £155,556. The total voting stock of the company is1,352,940 shares for the minimum target of £1,767,989.20 and 1,451,589 for the maximum target of £2,118,193.15
Exit Strategy
Contingent upon a successful fundraise and implementation of the business plan, the directors of the company anticipate acquisition to come from one of the following types of businesses within 2-3 years:
1. A large e-commerce platform (Oracle, SAP, Demandware) looking to add social selling capability
2. A large marketing platform looking to add e-commerce capability (Salesforce, Adobe, Marketwired)
3. One of the company´s US-based competitors looking to expand into Europe and Asia.
| Raised | £1,440,214.15 |
| Days to go | Completed Funding period ended on 15 December 2015 |
| Target | £1,399,999.30 |
| Min. Investment | £249 |
| Equity on Offer | 27.87% |
| Investors (35) | |
Business Contact
24 Greville Street
London
EC1N 8SS
www.buyapowa.com [email protected] 00442030084431
