BlockDox is a data science focused proptech company solving complex problems using AIoT.
- Investment is conditional upon Future Fund funding - see Key Info
- Defensible IP - 7+ patents granted internationally
- Installed in UK and globally including in Beijing, Tokyo, Dubai
- Multi-Award Winning incl Digital Innovation of the Year
Learn more about convertible loan campaigns.
BlockDox is a data science focussed proptech company solving complex problems using Artificial Intelligence and the Internet of Things (AIoT).
Space operators (such as facility managers or transport operators) lack the data or interpretation tools to manage physical spaces based on actual need rather than fixed assumptions.
These inefficiencies lead to wasted resources and lost revenue.
Our patented technology leverages AIoT to make spaces responsive to how they are used now and in future helping customers to exceed their sustainability goals, reduce operational wastage and improve space utilisation. The result is a competitive edge.
We are positioned in one of the most valuable layers in the asset management ecosystem: the analytics and insights layer. We are hardware agnostic and interoperable. We aggregate and interpret data from various sources, using data driven intelligence to deliver context and meaning via our dashboard interface and unique data feed.
Substantial accomplishments to date
Our journey began in 2016. Following intense R&D we developed our core product.
Our team has now grown to 15 talented and experienced engineers, data scientists and innovators highy skilled in artificial intelligence, internet of things and user interface/user experience.
We have generated £1.6m+ in revenue over the last 3 years*.
We have installed over 100+ sensors across 100,000+ square feet in 5 countries.
Transport case study video:
7+ patents granted internationally including UK and USA.
We have installed in multiple asset types and are currently focussed on offices, retail, transport, F&B and industrial buildings. There is potential for our product to extend to other asset types in future.
We are installed in multiple locations in the UK but have opened market opportunities worldwide include in Europe, the Middle East and Asia.
Alumni of several smart city accelerator programs in the UK and Internationally including Cognicity, Infiniti Lab HKG and Kickstart Switzerland.
Multi-award winner including Digital Innovation of the Year
Featured in BBC, FT, Sunday Times, London's Evening Standard, CityAM, Channel News Asia
*Source: Unaudited management accounts.
BlockDox is purchased on a B2B Software as a Service subscription model, including an upfront mobilisation fee and an annually recurring data licence fee with minimum term.
Use of proceeds
We've built a strong team and cutting edge technology, which we are confident can be scaled globally to achieve our growth plans.
Funds will be used to support working capital whilst driving our go-to-market strategy and building brand awareness prior to pursuing the further investment required to accelerate product and commercial growth in 2021.
Primary use of proceeds with estimated percentage breakdown includes:
Recruitment & Staff Costs: 70%
This includes attracting and retaining tech talent required for development and application of the company’s products.
Growth Marketing: 20%
This includes costs to target prospective clients and increase inbound leads using the latest digital marketing tools.
This includes new hardware and associated equipment required for product development.
Other Costs: 4%
This includes other sundry overhead costs relating to the ongoing day to day business.
Please note investment is conditional upon Future Fund funding - see Key Info.
The company has the following outstanding loans:
1. A Bounce Back loan of £50,000, interest-free for 12 months, and 2.5% thereafter. This is to be repaid over 60 monthly installments starting in June 2021.
2. A loan of £41,447.03, with an interest rate of 3.15% per month, to be repaid in full by June 2021.
3. An overdraft facility of £25,000
Convertible loan note terms
Seedrs is supporting companies who are intending to apply to the Government backed Future Fund. You can read more about the Future Fund here: https://www.seedrs.com/learn/blog/the-future-fu....
In order for a company to be eligible to seek matched funding from the Future Fund, this investment round must be on the convertible loan terms that have been prescribed by the Future Fund for this purpose. These terms differ to our normal ‘advanced subscription agreements’.
Given this product differs from most campaigns on Seedrs, we urge all investors, including regular Seedrs investors, to read the information below and ensure you understand the terms in full before making your investment.
1. Key terms
You will see a term sheet attached to this Campaign in the Documents section which sets out the key terms of the convertible loan and you can see the full document prescribed by the Future Fund here: https://www.british-business-bank.co.uk/ourpart....
A summary of the key terms is set out below, but should be read in conjunction with the term sheet:
Interest: 8% per annum, non-compounding. On conversion events, the company can choose to repay the interest or convert it to equity (generally without the discount). See the Term Sheet for more details.
Redemption Premium: An amount equal to 100% of the principal loan amount
Qualifying Equity Financing. The convertible loan will automatically convert on an equity financing raising at least the total loan amount, at the lowest share price of equity financing less the Discount.
Maturity Date: 36 months from signing convertible loan agreement.
The default position is on the maturity date is that the loan will convert to equity unless the investor majority elect to redeem.
If redeemed, the company will repay the principal together with the Redemption Premium.
If converted, the conversion price will be at the most recent funding round share price less the Discount, provided that funding round happened after 20 April 2020 and was at least a quarter of the size of the convertible loan investment. If no such funding round has occurred, conversion will be at the share price of the last funding round prior to 20 April 2020 (no Discount).
Other events of default or conversion: There are various other scenarios in which the convertible loan may convert or be repaid and investors should reference the term sheet:
Non Qualifying Funding Round: The convertible loan can convert on an equity financing round which does not meet the size criteria of a ‘Qualifying Equity Financing”, at the election of the majority of investors under the loan. Please see the term sheet for how this conversion is priced.
Exit: The convertible loan will automatically convert or be redeemed on an Exit, whichever would give investors the higher cash return. Please see the term sheet for how conversion is priced and payments on redemption in this scenario.
Events of Default: The convertible loan is to be repaid on the events of default, such as liquidation or winding up. See the term sheet for more details.
2. Government matched funding
The company intends to apply to the Future Fund for matched funding on the total eligible amount invested in this funding round. Subject to eligibility criteria and the Future Fund's approval, the Future Fund will “match” the funding raised via Seedrs or other eligible sources, subject to a minimum investment of £125,000 and a maximum investment of £5m. The Future Fund is to be allocated on a ‘first come, first served basis’ to eligible and approved businesses, so there is no guarantee that a company will receive the Future Fund matched funding.
This campaign is conditional upon receiving matched funding from the Future Fund. Seedrs will not complete the investment and transfer the funds raised until we have confirmation that the Future Fund matched funding application has been approved and that the Future Fund is ready to make the investment. If the application is denied, the campaign will be cancelled and funds will be returned to investors.
Because this campaign is conditional upon the matched funding, you will see that we have reflected the Future Fund investment as part of the round. It is distinguished in pink in the progress bar of the campaign. This is to give investors an indication of the potential total size of the funding round (and potential dilution on conversion), but to also distinguish it from regular investment through the Seedrs platform.
Seedrs does not charge any fees in relation to the Future Fund matched funding, application process or for acting as lead investor with respect to applications.
3. Conversion to equity
The convertible loan agreement prescribed by the Future Fund is equity focused and favours conversion of the loan to equity as the default position.
Redemption is only available in certain scenarios and is often subject to the vote of majority of the investors. Where a vote of investors is required, Seedrs will vote on behalf of any investors it represents as nominee.
There is a possibility that the convertible loan will convert in some scenarios without the consent of Seedrs (if we do not make up a majority of investors). It is also Seedrs’ position that this is primarily an instrument for investing in the equity of the fundraising business and our default position would be to vote in favour of converting the loans to shares in the company, unless there is a clear or compelling reason not to.
As always, investors should be aware of and accept the risks involved in investing in early stage and growth focused businesses: https://www.seedrs.com/pages/risk-warnings
In addition to the usual risk warnings included above, investors should be aware of and accept the following with respect to convertible loans:
The convertible loan agreement is intended as bridge funding to a future funding round, but there is no guarantee that a company will be able to secure further funding.
The Future Fund is to be allocated on a ‘first come, first served basis’ and there is no guarantee that a company will be successful in its application to receive the Future Fund matched funding.
There is a risk that the Company may not have sufficient funds to repay the loan on the maturity date, pay interest when it becomes due or pay the redemption premium included in the terms.
Convertible loans are unsecured obligations and in the event of a winding up or liquidation event will rank behind secured creditors of the Company.
5. Secondary market
Investors will not be able to sell their interest in the convertible loans on the Seedrs Secondary Market unless and until they have converted to shares in the company (and then only subject to eligibility and the terms and conditions of the Seedrs Secondary Market).
6. EIS Relief - past, current and future
As noted above, the convertible loan instrument is not compatible with EIS requirements, so no EIS applications will be made with respect to investments in the convertible loan.
The government has confirmed that investing in the convertible loan will not impact EIS relief previously claimed on investments in the fundraising company:
“The government has confirmed that such previous investments will not be affected where the convertible loan converts into shares. Where the convertible loan note redeems, we have been alerted that the government intends to make changes to the rules to clarify that this is compatible with such previous investments.”
However, investing in a convertible loan could impact your ability to claim EIS relief on future investments into the same company. The government has not clarified the position on this and has said it is a matter for HM Treasury and HMRC.
Seedrs is unable to provide tax advice. Tax treatment depends on individual circumstances and is subject to change.
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