Cypher is an EdTech company delivering a creative computer science education online to children aged 6-12
- £990k revenue*, subscription model launching in 2021
- Leading coding school, 15k+ hrs of live online learning last year
- 250+ 5* reviews, with over 2000+ students taught
- 56% repeat customers, 50% of new customers referred by a friend
Cypher inspires children to learn the language of the future - code. Through our transformational creative curriculum, we deliver a Live Online computer science education to children aged 6 -12 in small, teacher-led, creatively themed courses.
Computational thinking is at the heart of coding, providing a foundation for efficient problem-solving. Teaching children the tools to think computationally allows them to break down a real-world problem and work out how to fix it. It’s a skill they can apply to all subjects.
The Cypher curriculum helps children learn to code through:
> Stimulating curiosity and creativity
> Developing 21st century skills - digital, emotional, social
> Embedding a foundation of computational thinking
> Enthralling themes that engage both girls and boys such as conservation, fashion and art
> Nurturing confidence, collaboration, communication and problem solving
Our goal is to get the next generation future ready!
Substantial accomplishments to date
> Turnover £990k to date - in the first four years of trading we have seen strong revenue growth YoY*
> Accelerated the growth of the business from in person to online and selling out in 48 hours
> Taught 2000+ Live Online students (in less than a year), completing over 15,000 hours of teaching
> US students - taught over 900 students with 250+ 5* reviews since August 2020
> Over 100 courses created forming part of our IP
> Launched proprietary online platform for booking courses, managing teachers & stakeholder communications
> Over 40 press articles in the last year including Forbes, Wired, Harper's Bazaar, BBC News, New York Times
> Facebook Ad campaigns have tripled conversions YoY, increasing reach by 248% YoY and visitors to the website increased by 564% YoY
> Partnered with some of the most prestigious primary schools in the UK
> Trained over 65 teachers
> Winner of Female Entrepreneur of the Year 2020, ClubHub
*Based on unaudited management accounts
Currently, the Cypher curriculum is delivered through 7.5 hour courses taught with live teachers and in classes with 3 - 8 students. Courses are delivered during holiday times (1 week x 5 days x 90 mins), during term time (10 weeks x 1 day x 45 mins) and on weekends (2 weeks x 2 days x 1h 50m) to be flexible to different schedules.
The Cypher subscription model is launching this year with the aim of increasing repeat business by maximising the repeat buying behaviour of our customers, driving recurring revenue and ensuring we provide value for our customers. The subscription model will consist of 3 tiers starting as low as £37.50 per month.
Current revenue model:
> Average course price: £170
> Average student spend: £333 per year
> Gross Profit per student: 69%. We aim to increase this margin to 75%
> Customer Acquisition Cost (CAC) per student: £47.50
> Potential lifetime value (LTV) per student: £1,165
By introducing our subscription model, we believe we can enhance our customer acquisition and build on our already strong word of mouth referral (50% of new customers are recommended by a friend*), and strong resale rates (56% of students each camp are returning*). This will all be further enabled by our scalable platform which we are continuing to invest in.
*Figures based on customer feedback from Cypher Camps run between April ‘20 - Feb ‘21.
Use of proceeds
Key hires - 43%
> Chief Financial Officer
> Chief Product Officer
> Growth Team
Platform development - 42%
> Our proprietary online platform is used to book our courses, manage our teachers and classrooms as well as coordinate and automate all parent, teacher and student communications
> The next phase of development includes integration of our subscription model and evolution of the customer journey as well as further advancements in classroom management efficiencies
> Development is scheduled for Q3 this year, which will be followed by a focus to build out the subscription model. We expect that to drive higher subscribers, accelerate revenue and improve margins through the following 18 months, to really hit the KPIs and financial numbers in 2023
Customer Acquistion Costs - 15%
> School Partnerships: Cypher partners with a number of schools both in person and virtually to provide after school clubs, workshops or to guest speak at assemblies in return for distribution of Cypher course offerings to their parent body
> Recommended by a Friend: This is our strongest acquisition avenue, providing parents with the opportunity to - Give £20 to a friend, and Get £20 in return off their next booking. This has created a network effect, helping Cypher to expand our offering internationally
> Online Advertisements: Since moving online we have invested more time and capital into online advertising with focus on Facebook and Instagram seeing great results. We will be investing more into this as we can reach a wider audience through our Live Online offering
The Company has the following outstanding loans:
1. £50,000 Bounce Back Loan from HSBC entered into on 5 June 2020. No repayments for the first 12 months and then an interest rate of 2.5% per annum thereafter. The loan is on a 6-year term, with no early repayment charges.
2. Outstanding PAYE payments of £33,876.05 owed to HMRC. The company is working with HRMC to establish a timeline for repayment.
The funds raised from this investment round will not be used to repay these loans.
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