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CityFALCON

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Personalised Due Diligence by AI and Big Data. Disrupting Bloomberg, Yahoo Finance, Crunchbase market

265%
 - 
Funded 2 Feb 2020
£200,004 target
£602,201 from 935 investors
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Business overview

Location London, United Kingdom
Social media
Website www.cityfalcon.com
Sectors Finance & Payments Digital Mixed B2B/B2C
Company number 09107763
Incorporation date 30 Jun 2014
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Investment summary

Type Equity
Valuation (pre-money) £7.7M
Equity offered 6.42%
Tax relief

EIS

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Business highlights

  • Disrupting the £23bn financial content market
  • Clients: BNP Paribas, IEX Group, Seedrs, WiseAlpha
  • Two six-figure, non-dilutive grants and university collaboration
  • Paywall-free content from NYT, Fitch, Economist, hundreds more
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Key features

  • Secondary Market
  • Seedrs nominee min. £16.66 +
  • Pay by Bank payments not accepted
  • Idea
  • Key Information
  • Team
  • Updates
  • Investors 935
  • Discussion
  • Documents

Idea

Introduction

Note: CityFALCON has received two six-figure grants not included in the funded amount. See Key Information for more details.

In finance, data is money. Curated and structured data is a lot of money. We are the Spotify of financial content, including paywall-free content.

We transform unstructured financial content into structured data, generate analytics, extract insights, and deliver personalised data to users and clients.

BNP Paribas, IEX Group, and several fintech companies, including Seedrs and WiseAlpha, are clients, along with tens of thousands of end-users.

We’re disrupting the £23 bn market dominated by Bloomberg, Yahoo Finance, and Crunchbase with automation, long-tail coverage, and unrestricted access to our data via API and web at reasonable prices.

Bytedance started off with a similar news aggregation service Toutiao in China and is now reportedly worth $75bn.


Our share price has continued to climb as we have demonstrated product and revenue traction. The below graph is based on share prices paid by investors in each previous fundraise for the duration of the time the company has been in existence. Therefore, the figures refer to the past and past performance is not an indicator of future results. Investments may be EIS eligible, but tax treatment depends on individual circumstances and is subject to change.

Intended impact

In our view, many incumbents have been slow to react to the proliferation of AI, automation, APIs, and Big Data. We have seen that they are expensive, provide poor user experience (UX), and are based on inefficient legacy technologies, relying on manual curation. Free resources like Yahoo Finance and Google are popular but from our perspective, cannot offer deep insights, and they sell user data to advertisers.

High cost and poor UX leaves several audiences underserved. These include wealth managers, retail investors, fintech companies, knowledge management teams, and anyone else who needs quality financial content. CityFALCON users can monitor investments and perform pre-investment due diligence. Internal teams can manage business and market-related knowledge through watchlists and our API, including tracking competitors and business leads. Clients can even perform KYC and AML duties with company filings and by tracking changes in legislation or prominent cases.

The market is large and ripe for disruption:

CityFALCON features and insights coming in 2020 are content summarisations, price action explanations, spam and sentiment scoring, and alternative data, all sourced in 90+ languages.

Our key clients BNP Paribas and Seedrs explain their FinTech strategy and why they are working with us:

How far are we willing to go to support the business? Our founder jumped into an ice hole in the frozen Baltic Sea:

Substantial accomplishments to date

We have built a strong core team that have worked together for over four years, along with many newcomers:

Our API appears in the first few results on Google for the B2B keywords 'financial news API', and for 'business news API', we appear on the first page. Organic inclusion reduces outbound sales spend.

Our scalable technologies process millions of stories in real-time in 30+ languages, sourced from 3000+ publications, including paywall-free and non-public content from hundreds of Premium publications including New York Times, Economist, Washington Post, and Fitch. As a global company, other Premium publications include Xinhua News, Yonhap News, Moscow Times, and Hindustan Times, among many others:

We have built an enterprise API, a web and mobile platform, and voice solutions.

Single Sign-On, Symphony integration, and several other platforms are in the works for 2020.

Our filings service covers filings for public and private companies globally - LSE RNS filings, the US SEC, and companies houses from around the world. Read more on this feature: https://www.cityfalcon.com/blog/the-startup-jou...

Never again miss filings that could impact your investments or business, like Den Automation’s bankruptcy:

We have received two grants from Malta Enterprise and have partnered with the University of Malta to expand our NLP capabilities. We retain the intellectual property from the project. More in the Documents tab.

We’ve received awards and recognition and have graduated from many institutions and competitions:

See all the awards and press: https://www.cityfalcon.com/press.

For the community, we manage a social and educational Value Investing Club in 12 cities across Europe, counting nearly 4k members https://www.meetup.com/pro/value-investing/

Monetisation strategy

We currently focus on 2 key streams of revenue:

1. API licensing fees - Monthly recurring fee or revenue share for licensing our curated content and tech, which is either used internally or white-labelled for their own customers. BNP Paribas, Seedrs, IEX Group, and WiseAlpha are already using the API. See plans: https://www.cityfalcon.com/products/api/financi...

2. Premium subscriptions - low-cost plans that offer select non-public and paywall-free content from hundreds of publications (https://www.cityfalcon.com/help/articles/360034...), on-demand translation, and curated Tweets. Features to launch in 2020 include archival search, offline reading, and personal API access. Targets are retail and prosumer users. Single sign-on for business teams is slated for 2020 release. See plans: https://www.cityfalcon.com/pricing

Additional revenue opportunities for the future include fees for licensing of our NLP technology (e.g. content summarisation, sentiment scoring, entity detection) to manage and curate client internal content, historical structured data sets, specialised private company insights, pay-per-view options, and affiliate fees.

Use of proceeds

We remain lean with an annual net burn of under £400K in 2019, even with a team of ~40 employees, data licensing costs and processing and storage costs of tens of millions of datapoints.

Over 75% of the funds from this round will be earmarked for salaries and technology costs while the rest will be used for marketing and premium content. This money will also support the private capital requirement for the Malta R&D grant. See Documents for more information.

Our basis of valuation is explained in detail here: https://www.cityfalcon.com/blog/the-startup-jou...

Also, we commit the following to our investors: Monthly updates by the 10th of the month; proper cash flow management; staying lean; breaking even and become self-sustainable; complete transparency.

Perks

Certain additional rewards for early or large investments - more at https://www.cityfalcon.com/help/articles/360004...

1 Month Free Trial of Silver:

Coupon voucher code: Seedrs_2020
Valid until 31 March 2020.

To use the code:

1) Sign in or register at https://www.cityfalcon.com.
2) Go to https://www.cityfalcon.com/pricing.
3) Click the “Start free trial” button at the bottom of the Silver 1 month plan.
4) You’ll be redirected to the checkout page.
5) Here click on “Apply Coupon”, enter the coupon code Seedrs_2020, and click on the arrow.
6) Proceed to the regular checkout.

Since CityFalcon use a third-party out-of-the-box solution, you will need to provide credit card details to receive the trial. Cancel before the trial ends and you should not incur any charges.


Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company and listed above. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.

Key Information

Government Grants:

CityFALCON have received two six-figure, non-equity-dilutive grants from Malta, and the value of these grants are not included in the funded amount. One grant funds business operations and the other an R&D project with the University of Malta to cover 90+ languages. A linguistics and data science team, plus a 100%-funded, full-time post doc, will assist them while CityFALCON retain all IP. See Documents tab for more details.

Debt

Please note that CityFALCON has the following debts outstanding:

Directors loan - £8k. This loan does not accrue any interest and is repayable on demand.
Deferred Directors Wages - £33k

The proceeds of this campaign will not be used to repay any of these debts.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

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Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited ("Seedrs"), which is authorised and regulated by the Financial Conduct Authority. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Seedrs platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Seedrs platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Seedrs does not make investment recommendations to you. No communications from Seedrs, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Seedrs does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £7,728,807

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

Pitch type

There are 5 types of investment pitch available on Seedrs.

  • Equity
  • Convertible
  • Fund
  • Cohort
  • Secondary

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Seedrs

Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

Learn more about investing and pre-emption rights.

Seedrs nominee

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Seedrs nominee.

Find out more

Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Seedrs Nominee). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

Find out more

Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Warning

You are following a link outside of www.seedrs.com.

None of the information in constitutes part of the campaign and it has not been approved or reviewed by Seedrs.

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