We believe traditional tents and fabric structures are very uncomfortable and basic. As users we needed a tent that is more than a 'tent'. We wanted it to be a comfortable environment that would be warm in the winter and cool in the summer. One that could also regulate sound and light. In a moment of freezing clarity, we realized that we were going to have to build it ourselves.
At Crua Outdoors & Crua Industrial (trading names of Thermo Tents Ltd.) we have begun our 'Tent Revolution' by designing and developing what we understand to be the world's very first thermally and acoustically insulated tent or tenting system (also regulating light) through the use of our (patent pending) multi-layer design and new technology.
We have now also developed, built and delivered a number of blast resistant and insulated tents for the Oil and Gas industry.
Crua develops its own bespoke marketing tools (based around Augmented Reality) to help us sell direct to consumer. Our sales strategy is based on proven eCommerce principles.
Crua is a business born in the 'crowd' which has reacted to user needs. We have progressed from product development through growth and market expansion. Now we want your help to maximise the enormous potential of both the outdoor recreational and E&P markets.
We are creating what we believe is the worlds best thermally insulated tents, hammocks and fabric structures to allow people to reach new limits for their camping adventures. That is, creating the tent for all seasons, for any terrain, for any type of camping user, from novice to advanced.
Let’s be honest, there is a 'fairweather' camper in us all. Most of us love the outdoors. But we identify the lack of comfort associated with tents as being one of the main reasons that we don't enjoy the outdoors more often. Once temperatures drop outside, conventional tents follow suit and become very cold. The opposite is also true. In warm climates, once the sun rises, traditional tent design means that tents become unbearably hot and bright. When camping in a busy campsite or noisy area, one can find it hard to sleep due to the noise. Dreams of the romantic getaway or the great family camping adventure are still that, dreams. Until now. Our customers love our tents – just check the feedback:
“The Tri is over the top nice. I have never experienced a ‘bomb-proof’ tent with such luxury. It is easy to set-up, and the 25 Knot wind we experienced was nothing. All that was promised is true.” - EJ, Trustpilot
"Hands down the best tent, ever!! My friends refer to it as the Cadillac of tents. Your attention to detail is second to none!! From reflective strips in the guidelines, to the amazing insulated core, ya’ll have left nothing out. I have taken my Crua Tri out a handful of times and every time I return from the woods, I can’t wait to head back out!! My last trip I got over 5 inches of rain, thunder and lightning and I was snug as a bug in a rug in my Crua Tri. Also your customer service is amazing. I’m looking forward to being your customer for a long time and can’t wait to see what Crua has in store for us in the future. I have my eye on the Crua Hybrid next...” - SB, Facebook
We have a growing global ambassador network, which helps with our persuasion marketing. These ambassadors are typically customers that become fans.
This is also true in industry. As mentioned, we feel that we have identified significant gaps in the design and development of safe & comfortable fabric buildings - in Oil and Gas for instance. We've solved the problem by developing the Crua Haven. And we've already sold these to Blue Chip E&P customers in the USA and Saudi Arabia. Timing is perfect as the E&P market is just starting to set itself up for substantial growth.
And we have only scratched the surface, so we're preparing to scale right now.
Substantial accomplishments to date
• Over $1.1m total revenues in the H1 2018 which is already double that of the entire year for 2017.
• 2 patents pending on product technology.
• Tents shipped to over 50 countries in 5 continents.
• Klarna payments – to enable multi stage payments.
• WeChat – a primary platform and sales channel where a vast amount of ecommerce in China takes place.
• Oru Kayak and Yeti Coolers – Aggregated marketing partners to create brilliant campaigns leveraging the customer base of others.
• Moosejaw/Walmart/Amazon/Cabela's – Approved for listing on some of the best and most well known US retail sites.
• Distribution in ANZ market now in place.
• Crua industrial was born March 2018.
• 4 insulated & blast resistant shelters sold and delivered to 'Blue Chip' customers from Oil and Gas,.
• New Product Launched in 2018 with over 4,600 new customers acquired
• Superb service ratings. 'Excellent' (9.1/10) rating on Trust Pilot
• Management team with significant and demonstrable track records in relevant disciplines assembled, including eCommerce and NPIs
• Developed bespoke Augmented Reality technology in-house, specifically for our eCommerce
• Products tested and validate by the FBI
• Enterprise Ireland High Potential Start-Up
• Voted among 100 Hot Start Ups by Sunday Business Post
• Seven successful crowdfunding campaigns, including four successful product launches:
- June 2018:
US$625,787 raised in pre-orders from 4,034 backers
- January 2018:
£268,689 raised in Seedrs (Round 3) 305 investors
- September 2017:
US$120,200 raised in pre-orders from 301 backers
- May 2017:
£169,890 investment raised in Seedrs (Round 2) 232 investors
- September 2016:
US$300,003 raised in pre-orders from 965 backers
- August 2015:
£70,005 investment raised in Seedrs (Round 1) 119 investors
- May 2015:
€50,891 raised in pre-orders from 175 backers
• Expanding IP portfolio
• The company's valuation has increased from £720,000 at the time of the first funding round in 2015 to £4.8m for the current round.
*source: unaudited management accounts
As we are a product based company, our profits come from sales of Crua products, primarily across The UK, Europe, North America and beyond. Our products are currently manufactured by third parties, although we have brought some prototyping in-house.
We attain an average of 50% gross margin across the business as we know we need this to maintain a sustainable and growing business. As our sales become more omni-channel we will adjust pricing to ensure 50% is achieved.
Recreational: We sell both B2C (online) and B2B (strategically chosen re-sellers - e.g. Cabela's).
Industrial: We sell B2B, either to end user or facilities supplier.
Military: We plan to sell B2B through Aspetto Inc, a registered US Military supplier.
Glamping: We sell B2B directly to the sites and through our partner in the UK (Clear Sky Safari).
As sales volumes increase, we anticipate that margins will increase by up to 10%, once we process efficiencies are achieved, however it is important that quality and unique design remains the main objective through the short-term. This is critical to our customer acquisition strategy.
Use of proceeds
We will hire a specialise FTE for the industrial sales arm of the business, capable of acquiring the right network and presence to maximise the opportunity.
Assistance with stock order for 2019.
Increase of omnichannel sales channels and integrations.
Increased online marketing activity (ambassador program, content creation, ads, etc.).
Building of further collaborations suitable partners within both markets.
Three New Product Introductions – broaden the range and increase up-sell / cross sell opportunities.
On-going development of both websites, including further Augmented Reality additions.
Continued IP protection.
Outstanding Convertible Investments
Investors should note that the company has two outstanding investments that may convert to equity (and dilute existing shareholders):
POINT POSITIVE CONVERTIBLE
Point Positive investors have invested US$262,500 in the form of a promissory note, based on 6% annual interest rate, maturing on 31 December 2020. Point Positive has the option to convert the principal and accrued interest into equity at the Maturity Date (rather than seeking repayment) at a conversion price of US$4.116 per share (the share price of this investment round is £13.54).
However, if Thermo Tents raises US$1,000,000 or more in equity prior to the Maturity Date, then the promissory note will automatically convert to equity at a 20% discount to the price set by the trigger raise.
ENTERPRISE IRELAND CONVERTIBLE PREFERENCE SHARES
Enterprise Ireland have invested €250,000 in the form of Cumulative Convertible Redeemable Preference shares. These shares carry the following rights:
• A cumulative and preferential dividend equal to 3% of the investment per year. The dividend will only be paid if the shares are redeemed or on a return of capital to shareholders of the company, without conversion of the shares to ordinary equity.
• The preference shares are convertible into ordinary equity if the Company raises €250,000 or more from a VC or other institutional investor within 5 years. They will then convert at the same price as the qualifying investment, subject to a discount ranging from 15% to 55% depending on the time at which the qualifying investment takes place.
We have a truly global, non seasonal product. Crua is focused on two primary markets.
1. Recreational camping with our Insulated camping tents & hammocks for the outdoors person that wants to camp year round, in more comfort. $184 Billion spent annually on outdoor equipment in US alone. This is our primary market.
2. Industrial - Middle East and North America - We have already delivered four blast resistant and insulated fabric structures to Blue Chip customers in the Middle East and the largest construction company in the USA. $470 Billion annual Cap Ex spend in Oil and Gas so there are massive potential revenues.
Military / Law enforcement - We have collaborated with Aspetto Inc., a current supplier to the US Military, and developed a blast resistant and ballistic proof tent for military applications.
Note: that the founders of Aspetto Inc. have just been listed on Forbes 30 under 30 so this is a very strategic partnership for us. US military spent US $126 Billion on procurement in 2016 and this is on the rise.
Our products have already been tested and validated by the FBI.
Characteristics of target market
A) Demographic is the 25-60 + year old
North America, UK and the EU directly.
The Chinese and ANZ markets through controlled distribution agreements.
Above average disposable income. Tech 'savvy'.
B) With our smaller tents and hammocks we target 20-35 year old
US based primarily.
(All of this targeting is 100% data based - we make decisions based upon what the market tells us)
A) We target construction companies that do the work for Oil and Gas companies on their sites.
B) We target rental companies and facilities suppliers that supply plant, machinery and services to these construction companies, and directly to the Oil and Gas companies.
The main characteristics of both of these types of customers is their scale - so by customising an insulated shelter exactly for their needs, we have opened very large volume possibilities.
As our partners supply the US military specifically, we will be focusing on this initially.
1. Online through digital marketing of our own website as well as through strategically selected ambassadors (16 existing). This is true for Crua Outdoors and Crua Industrial, who have separate websites. Cutting edge eCommerce is the future for Crua, which opens up many opportunities. We now also have 5 Amazon stores (.com, .co.uk, .de, .ca and .fr) & Amazon is a huge opportunity for us. It's also vital for review status, especially in the USA.
2. Through reselling partners and retailers (specifically for recreational), carefully selected as we must be careful with how our brand is portrayed. Not every outdoor shop is suitable, so we have hand-picked some that we are focusing on at the moment. (B2B and B2C - drop-ship).
3. Through strategically selected trade shows and distributors in the ANZ market.
4. Direct engagement, particularly with Industrial and Military partners, is essential. This is done through building contacts within those industries, which we have acquired ourselves and through the 32 localised Enterprise Ireland offices around the world. We strive to always meet face to face as this is much more effective, especially in the B2B relationships.
Because we believe what we do is completely unique, we don't consider there to be any direct competitors. But we do have indirect competitors so we make it our business to analyse the major players in our key market segments.
However, we very much feel that concentrating on getting our own unique offering correct, and in front of the right people, is much more important. So, although we observe what the competition is doing, we don't obsess over it, striving instead to become thought leaders.
We also monitor best online practices in selling and displaying products in other industries. eCommerce is ever evolving and as this is an important part of our strategy, we must be sure that we are ahead of the curve.
In Oil and Gas, we have been careful to discuss what we are doing with the companies themselves, ensuring that we are solving an actual problem for them, thus aiding productivity on site.
We protect our IP, with two patents pending. We're have also begun filing our Trademarks.
All IP is owned by the company.