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Elfin Market

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We're building a fair and affordable alternative to credit cards.

200%
 - 
Funded 31 Jan 2020
£400,004 target
£804,890 from 685 investors
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Business overview

Location London, United Kingdom
Social media
Website www.elfinmarket.com
Sectors Finance & Payments Digital B2C
Company number 10309136
Incorporation date 3 Aug 2016
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Investment summary

Type Equity
Valuation (pre-money) £6.5M
Equity offered 10.96%
Tax relief

EIS

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Business highlights

  • Using peer-to-peer lending to disrupt the credit card market
  • 75% cheaper representative APR than the average credit card
  • Fully authorised and regulated by the FCA
  • 60% monthly growth since launch
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Key features

  • Secondary Market
  • Seedrs nominee min. £10.16 +
  • Pay by Bank payments not accepted
  • Idea
  • Team
  • Updates
  • Investors 685
  • Discussion
  • Documents

Idea

Introduction

Credit cards are commonplace in the UK. Every day, millions of people use them as a flexible way to borrow money, whether to cover occasional large expenses or to fund their everyday spending. There are actually over 60 million credit cards in the UK and the outstanding credit card debt amounts to £72 billion.

But when it comes to cost, we believe customers could be much better served. Current credit card APRs have reached 24.7% on average - the highest recorded in 13 years. Not to mention the many additional fees: balance transfer fee, annual fee, cash advance fee, late payment fee.

Elfin Market wants to disrupt the credit card market and offer a fair and affordable alternative to “traditional” credit cards. To do that, we use peer-to-peer lending. That means we directly connect borrowers and lenders without costly intermediaries.

With 5.8% representative APR, our line of flexible credit, the Elfin Purse, has a 75% cheaper representative APR than the average credit card, and comes with no additional fees.

Intended impact

With the Elfin Purse, borrowers get a line of credit that they can draw upon as often as they wish, up to their credit limit. Withdrawals are transferred to the borrower’s bank account within seconds, and they can use the funds however they like.

We’re also working on adding a payment card, the Elfin Card, which will be directly linked to the borrower’s Elfin Purse to make it even closer to a regular credit card.

Lenders lend their funds to our borrowers, who have all passed our strict credit checks (we’ve approved less than 7% of borrower applications so far). These funds are used to finance the flexible lines of credit our borrowers receive. Our lenders enjoy attractive returns, automated distribution among multiple borrowers, and flexibility on their investments. Also, thanks to our Innovative Finance ISA, they can earn tax-free interest.

Substantial accomplishments to date

- We received authorisation from the Financial Conduct Authority to run our peer-to-peer lending platform.

- We launched in September 2019 following our beta earlier in the year.

- Since then we've had a 60% monthly growth of our user base, and we now have over 200 borrowers.

- We lent over £300k since our launch and we’re already paying interest to our lenders.

- We previously raised £750k in pre-Seed funding.

Monetisation strategy

We collect a flat servicing fee of 1.5% before passing on interest from borrowers to lenders.

That’s it.

Use of proceeds

- Hire 2 developers to further build up in-house capabilities, including the launch of iOS and Android apps.

- Make additional hires for customer support, community management and marketing.

- Cover our operating costs for the next year (including the launch of the Elfin Card and an increased marketing budget).

Investor Perks

For our investors through Seedrs who also open a lender account on our platform, we offer an additional 1% annual return for any investments made until 1 month after the end of the campaign. This reward amount will be deducted from our servicing fees, so of course we won’t charge borrowers more to give it to you!

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. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.

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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 £6,502,400

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.

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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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