We’ve built the next generation of light switches and sockets. Now shipping products across the UK!
- London, United Kingdom
Categories: Home & Personal Mixed Digital/Non-Digital Mixed B2B/B2C
- Social Media
- Company number
- Incorporation date
- 18 Mar 2013
- Investment sought:
- Discount offered:
Learn more about convertible campaigns.
Light switches and plug sockets have been around for over 100 years and have hardly changed since. They are extremely dated.
Although some wireless light switches and plug sockets do already exist, we've found they are all really complicated products that no one really understands how to use. Many of these have replaced the familiar rocker-switch with high-tech touch pads and buttons, making them complicated, unfamiliar and essentially not mass-market.
At Den, we're reinventing the light switch and plug socket, and we aim to wipe out the existing standard of switches around the world.
We're building products that we believe are far more intelligent than other wireless switches available, however as you can see in the photo above, our products still look and work in the exact same way an ordinary switch would - our products provide various benefits including energy saving, convenience, security and safety - see examples of use cases below (intended impact).
This funding round is being raised by way of a convertible equity instrument. This means shares will not be issued immediately, but will be triggered by a future event. Please read the Key Terms document attached in the Documents section of this campaign and summarised below:
TRIGGER EVENT CONVERSION
• Shares will be issued on a Trigger Event (of one occurs prior to the Longstop Date), at the lower of: (i) the share price set by the Trigger Event less the Discount; and (ii) the valuation cap (no further discount applies to the valuation cap).
• Discount: 20% discount to the valuation set by the Qualifying Funding Round.
• Valuation cap of £27,500,000. Please note that the discount does not apply to the valuation cap.
• The Trigger Events include:
- A Qualifying Funding Round – defined as the Company raising investment capital of at least £1,000,000 from one transaction or a series
of transactions, in exchange for the company issuing equity Shares; or
- A change of control transaction or an IPO.
LONGSTOP DATE CONVERSION
• The Longstop Date is 12 months from the date of the convertible agreement.
• If conversion has not been triggered by the Longstop Date, shares will be issued on the Longstop Date at a company valuation of £20,307,566 (the
post-money valuation of last funding round).
• The instrument will also convert at this valuation immediately prior to any winding up event.
Leaving appliances on standby amounts for up to 16% of our energy bill. In the UK alone, we're wasting £1.3b in energy every year, which is enough to power almost 2.5 million homes.
- Sleep & Away: Turn off all your chosen lights and appliances before going to bed or leaving to go to work, with one simple tap.
- Monitor how much energy your lights and appliances are using in real time, making sure no energy is being wasted.
- Connect up an occupancy sensor to our switches within seconds, without the need of an electrician; so your lights will only be on when they need to be.
- Forgot to turn off? Next time you forget to turn off your iron or hair straighteners, you will recieve a notification letting you know, and if you don’t reply to the notificaiton the Den Socket Outlet will turn itself off - preventing a fire hazard!
- Next time your child stumbles out of bed in the middle of the night on their way to the toilet, Den’s occupancy sensor will automatically activate your lights to keep them safe.
- Elderly/disabled can control their light switches and plug sockets remotely, reducing the amount of movement required.
- Receive a notification if a loved one hasn’t been active for a worrying amount of time (coming soon)
- Automatically turns off your Den Socket Outlet if pulling more than 13A to prevent fuse blowing or appliance catching on fire! (coming soon)
- Appear as if you’re home: your llights can automatically flick themselves on and off when you're away, giving off the impression your home is occupied to help prevent burglaries.
- If we detect activity or motion in the house while you're on holiday, we can send you a notification to let you know.
- No more arguing over whose turn it is to turn off the light before bed
- You can reposition a switch that was previously in a hard-to-reach spot
- Works with Alexa & Google Home: you can use voice to command the Den products
- “Alexa, I’m Home” Tell Alexa (or Google Home) that you’re home and she will turn on all your chosen lights and appliances.
Substantial accomplishments to date
- After more than 3 years of development, we have finally begun shipping products to customers across the UK.
- More than 35% of our customers returned to buy more products after receiving their first order. This is a great sign!
- We hired Bob Watkins as CEO. Bob was previously CEO at Amstrad where he worked alongside Alan Sugar for 25 years. While under his directorship, Amstrad generated £4b+ in revenue.
- We have a Granted European Patent for our unique manual/remotely operable switch. Also granted in Saudi Arabia and pending in 9 other countries.
- Homebuilders: Inspired Asset a homebuilder in the UK provided us with a letter of intent, committing to installing Den products in 250+ homes annually: and we are currently in talks with Berkeley Homes, Taylor Wimpey, Crest Nicholson and various other homebuilders who we plan to launch into later in the year.
- After 2 years of development, we've completed development for our core 5 products, we've developed a smartphone app for iOS and Android and we've developed our own cloud infrastructure - all in house from scratch.
- We've partnered with a great manufacturing firm in China.
- We’ve passed all of the British Standard regulatory safety approvals and have the certification to legally sell our electronic products in the UK.
- We received investment from the YESSS Group. YESSS are a major electrical wholesaler with over 100 branches across the UK and 400 across Europe.
- To date we've raised £5m+ in funding via Seedrs, making our founder Yasser Khattak the youngest to raise funds on the platform
- We have received international publicity from the likes of Financial Times, Bloomberg TV, Sky News, BBC Radio, TechCrunch, The Guardian, The Times, Mirror, and lots more.
- We've built a great team of 25 people who've previously worked at companies like Google and Amstrad.
- We were nominated for Product Of The Year by London Innovator Awards, making it into the top 5.
1) Hardware: As a manufacturing business plan to generate revenues by selling our hardware (physical products). We plan to sell via wholesale at 40-50% off RRP.
We will be selling our products at the prices shown below:
– 1 gang light switch, RRP £39.95
– 2 gang light switch, RRP £49.95
– Single plug socket, RRP £49.95
– Double plug socket, RRP £69.95
– Occupancy Sensor, RRP £34.95
– Remote, RRP £29.95
– WiFi Hub, RRP £89.95
2) Subscriptions: our iOS and Android app will be completely free, however we are exploring the opportunities to charge a small subscription fee in the future (£1 to £3 monthly).
Use of proceeds
We've completed the first half of our mission: to develop, manufacture and ship our core products to happy customers. Now we need to execute on the second half of our mission: to launch entire range of products and significantly build out sales and marketing.
- Raise convertible note bridge round
- Aiming to raise £6m Series A round
- Hire Chief Sales and Chief Marketing Officers
- Source and close deals with major retailers, wholesalers and homebuilders
- Build out marketing strategy and produce quality marketing content
- Hard launch entire range across various channels with solid marketing campaign. Planned marketing budget for 2020 is £2.8m
- Launch into US
Please note Den Automation Ltd has an interest-free loan for £60,000 from an existing shareholder. None of the proceeds of investment are intended to be used to repay this debt.