Borrow A Boat
The definitive boat charter marketplace. Borrow any of 35,000 boats worldwide available in 65 countries.
- Building Britain's leading boat charter marketplace
- Backed by VC Edition Capital, who've invested £1.5m
- 35,000 boats listed with planned expansion in 8 new countries
- Applying for Future Fund, conditional - see Key Info
Learn more about convertible loan campaigns.
How people go boating is changing - and Borrow A Boat is providing a 21st century solution.
Borrow A Boat's boat charter marketplace allows you to book boats of all types online for charter - whether a short notice request for day hire, a long weekend on board, or a 7-14 day boating trip for your summer holiday.
With access to over 35,000 boats listed in 65+ countries, we understand Borrow A Boat to be the UK's leading boat charter marketplace - and was the headline sponsor of the UK's biggest boat show in 2019 - the Southampton International Boat Show powered by Borrow A Boat.
The global yacht charter market is projected to reach $25bn by 2027, yet research shows more people would get out on the water if it was more accessible, and BaB makes it easier than ever for people to go boating.
With international expansion on the agenda, Borrow A Boat aims to launch into eight new countries in 2021 as it lays the foundation for the next stage of growth.
Substantial accomplishments to date
2020 - Encouraged by progress, VC Edition Capital follow on with a further £1m investment early in the year, before the global pandemic impacts the world, and BAB's pivot to a digital first strategy which develops into an exciting international expansion plan for 2021.
Sept 2019 - Over 300% revenue growth yoy in 2019*. As the brand grows, the tech develops and the product diversifies into superyachts, plus BAB is the Headline Sponsor of the UK's biggest boat show in Southampton.
Dec 2018 - Over 200% revenue growth and a Crowdcube round hits 250% of it's target, closing early and bringing the first VC investor, Edition Capital on board. Coined by the press as "the Airbnb of boats".
Dec 2017 - MVP platform developed and building revenue from customers over 2017. First large scale crowdfunding round hits 234% funded and closes early raising £468k for the business.
Jan 2017 - Public launch of Borrow A Boat at the London Boat Show, with a speech by Matt Ovenden to the gathered press hailing it as the future of boating, and a platform to make "make boating more accessible for all".
*Based on unaudited management accounts
Borrow A Boat makes it free for boat owners and boat charter fleets to list their boats on the platform and earns a commission on every booking - between 15% and 20% of every booking depending, with rates varying by region and boat type.
Use of proceeds
60% of funds raised will go on payroll, including for BAB's in-house tech team who are developing the user experience and automation of BAB's tech.
35% of funds raised will go digital marketing including content, and optimised paid ads and search engine optimisation plus digital PR; key to under-pinning growth as BAB aims to expand into 8 new countries in 2021.
5% covers over other normal company overheads such as accounting and legal fees.
Invest £50 - and receive a pair of super cool turquoise Borrow A Boat sunglasses
Invest £350 - and receive £350 off of your first charter with Borrow A Boat for any charter over £2k in value.
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.
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: 10% 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
Valuation Cap: £10m
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 or, if lower, the Valuation Cap share price.
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). Or, if lower, at the Valuation Cap share price.
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.
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.
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.
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.
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).
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.
The company has a number of classes of share with varying voting rights and obligations;
A shares: voting ordinary shares
B shares: non-voting ordinary shares
C Shares: voting ordinary shares, with a right to preferential repayment in an exit below £5m. They participate pro-rata to other shares on returns greater than £5m.
D shares: voting ordinary shares, held by founders, containing certain founder obligations
E shares: non-voting ordinary shares shares, held by employees, containing certain employee obligations
As this is a future fund round, Seedrs investors will receive the highest class of share in the business at the time of conversion.
The company has a £36k government Bounce Back Loan with repayment over 5yrs beginning in 2021.
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