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Emerald Stay

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The first property and technology company to manage premium second homes in non-urban destinations

125%
 - 
Funded 10 Mar 2021
€1,000,000 target
€1,406,690 from 354 investors
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Business overview

Location Genève, Switzerland
Social media
Website emeraldstay.com
Sectors Property Mixed Digital/Non-Digital Mixed B2B/B2C
Company number CHE-420.659.492
Incorporation date 30 May 2017
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Investment summary

Type Convertible
Discount 20%
Share price N/A
Tax relief N/A
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Business highlights

  • 100% renewal of contracts from our hosts (0-churn!)
  • Generated €1.4m revenue in 2020
  • €150M+ in assets under management
  • 4.6/5 guest satisfaction in 550+ reviews
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Key features

  • Secondary Market
  • Seedrs nominee min. €10.00 +
  • Idea
  • Investor perks
  • Key Information
  • Team
  • Updates
  • Investors 354
  • Discussion
  • Documents

Learn more about convertible campaigns.

Idea

Introduction

Second home ownership is on the rise, especially in non-urban destinations.

The vast majority of owners today intend to rent their second home when it’s vacant.

While “Airbnb do-it-yourself” (1) immediately comes to mind, this isn’t an option for many owners, especially in the premium end. In fact, the majority of properties on Airbnb are now managed professionally. Yet, the property management industry is still stuck in the 90’s: highly fragmented, with low customer satisfaction, and very little digital penetration, making it an ideal candidate for disruption.

Meet Emerald Stay.

The first property and technology company focused on managing premium second homes in non-urban destinations. We launched operations in 2018 and now manage properties worth a total of €150 million. Present in 8 destinations across 3 countries and 2 continents, we are the proud market leaders in our home markets in the French Alps.

Our mission is to transform the future of second home ownership.

(1) this includes others like Homeaway/VRBO, Booking.com.

Substantial accomplishments to date

2018:

🚀 Launched in 1 winter destination in the French Alps
👩🏻‍💻 Developed our proprietary API connecting to multiple third-party and in-house apps
💶 Raised a €180K seed round from Angel Investors
📈 Generated €560k revenue*
🏡 Inventory of 100 beds

2019:

🚀 Launched in 2 new destinations in the French Alps and 1 in Morocco
👩🏻‍💻 Launched our booking engine and proprietary automated pricing model
💶 Raised a €600K seed round
📈 Generated €1.2m revenue (+114% growth)*
🏡 Inventory of 130 beds

2020:

🚀 Launched in 2 new destinations in the French Alps
👩🏻‍💻 Developed the owner’s app where owners can see bookings, reviews, and invoices
💁🏼‍♂️ Hired a new CTO with 15 years of experience leading technology teams
📈 Generated €1.4m revenue (despite covid)*
⤴️ Increased net income by €350k YoY*
🏡 Inventory of 390 beds
🤝 Signed contracts or partnerships to enter 5 new destinations, including the French and Swiss Alps, St Tropez, Spain, and Andorra
❤️ Achieved 4.6/5 rating on 550+ public reviews
🛠 Based on the number of nights booked, we estimate that we have created a potential of one thousand jobs across our locations
🗞 Was featured in international press including:

🏡 Monthly inventory growth since inception:

*Based on unaudited management accounts

Monetisation strategy

Emerald Stay enters exclusive relationships with owners of premium homes in non-urban destinations and finds the best use of the space, from short-term to mid-term rentals, capturing renters from all sources. We then manage all aspects of the experience, both online and offline, and share proceeds with the owner.

✅ Our unit economics are profitable:

๏ On average, after an initial 12 months “ramp-up” period, a property generates €80-100k gross revenue per year
๏ We make a 35% operating margin. ie €28-35k per property per year*

🌎 Our model is scalable:

๏ Our use of technology allows us to have 55% lower costs than hotels
๏ Our focus on guest experience fuels brand recognition and repeat business, making our satisfaction rates exceed industry standards by 2.5x
๏ We have no marketing spend, yet our direct bookings average 40%
๏ We outsource on-demand amenities and automate processes related to pricing, distribution, logistics, and maintenance, thanks to our technology

Use of proceeds

We are on a path to expand our market share and become the leaders of the highly fragmented, low-tech market we are in. The timing of our raise coincides with an economic backdrop that gave us the opportunity to accelerate our growth even further.

🚀 This is why 70% of raised funds will be allocated towards growth.

First, a bit of context: our growth model requires upfront funding, yet generates a high ROI. This is because adding a home to our portfolio requires an upfront cost of €2.6k to €3.7k, but after 12 months, generates €28-35k per year in contribution margin, on average.

We plan to add inventory in 3 new destinations in the French Alps, and in new markets that we already have signed contracts for in Switzerland, Costa Brava, Andorra, and French Riviera.

👩🏻‍💻 The next 15% of funds raised will be allocated towards tech product development to further increase operational efficiency and better user experience.

👩🏽‍💼👨🏼‍💼 The remaining 15% will cover the portion of head office salaries that won’t be covered by our contribution margin until we reach profitability.

We believe in changing the future of second home ownership.

Join the movement.

Investor perks

As investors, you are supporting our growth and are part of our journey. To show you our gratitude we will give you two gifts:

1️⃣ 20% of your investment back as booking credits. This means that if you make a €5,000 investment, you will not only own a share of our business; you will also get to enjoy one of our beautiful homes at a discount (or for free!). You will just have to book with us on emeraldstay.com/destinations and use your credits towards your stay.

2️⃣ For any investment above €5,000, you will become an Emerald Stay Club Member. We will be waiving the €400 annual fee (forever) and allowing you to enjoy an UNLIMITED number of 50% discounts on ALL our homes and destinations during off-peak months:
- April to July & September to December for winter destinations
- October to June for summer destinations

Yes, you read it right! Apart from becoming one of our investors, we’d love you to join us as a guest! And if you own a home in one of our destinations, we will be more than happy to review the opportunity to partner with you.

Please be reminded that credits will have to be used before 31st December 2022 and the maximum credit amount will be EUR 10,000 for an investment of EUR 50,000. The credits will not cover cleaning fees. Other Terms and conditions may apply.

Please note that any discounts and/or offer 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.

Key Information

Advance Subscription Agreement - Key Terms

This investment round is being raised by way of a convertible equity investment structure, in this case, an 'Advanced Subscription Agreement'.

The key terms that apply to the Company’s advanced subscription agreement are set out below. See also attached Key Terms document for further details.

Discount – 20%

Valuation cap and default valuation - EUR 8,000,000.

Conversion is triggered by:

(1) An Equity Fundraise – defined as the Company raising investment capital of at least EUR 1,000,000 from one transaction or a series of transactions, in exchange for the company issuing the most senior class of shares;

(2) A Change of Control of the company (transfer of more than 50% of the share capital) or IPO

(3) Longstop Date -12 months from the date of the Advance Subscription Agreement.

(4) Winding up event.

On conversion upon an Equity Fundraise, Change of Control or IPO, the convertible will convert into the highest class of shares at the lower of (i) a 20% discount to the price of the relevant trigger event and (ii) the price a share would be if the pre-money valuation was equal to the Valuation cap.

On conversion at the Longstop Date or on a winding-up event, the convertible will convert into the highest class of shares at the lower of:

(i) the lowest price of any shares issued after the advance subscription agreement is signed; and

(ii) the price a share would be if the pre-money valuation was equal to the Valuation cap.

Outstanding debt

The company has been granted, over the course of 2020, a total of EUR 285,000 covid-19 relief loans:

1. EUR 60,000 loan to be repaid over 5 years from June 2022.
2. EUR 95,000 loan to be repaid over 5 years from October 2022.
3. EUR 130,000 to be repaid as a lump sum payment in April 2025.

These loans carry a fixed interest rate between 0% and 0.25%.

None of the funds raised will be used to repay these loans.

Outstanding convertible loan

The company has a CHF 200,000 (~EUR 184,320) convertible loan from Apeiron Investment Group Ltd. The Company has agreed with the lender that this loan will convert on the same terms as this round.

Share classes


The company currently has only one class of shares, ordinary shares, but has contractually agreed 1x non-participating preference rights for certain existing investors. On an exit or liquidation, these investors will receive the higher of (i) proceeds equal to their initial investment and (ii) their pro rata share of proceeds based on shareholding, before proceeds are distributed to all other shareholders.

On conversion of the convertibles issued in this round, the company intends to formalise this preference and create a class of preference shares with a 1x non-participating preference. Investors in this round will be issued the highest class of shares on conversion.

Phantom shares

The Company has a phantom share plan of 1.86% of the equity of the company. This is intended to be granted to its employees, directors and consultants, for them to be compensated for their contribution to the long-term growth and profits of the Company. These shares entitle their beneficiaries to conversion proceeds in cash, without the possibilities to convert them in common shares of the Company nor receive dividends.

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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

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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 Convertible

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 convertible campaign allows you to invest today, with your investment converting into equity in the future, at a discount compared to other investors.

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.

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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.

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

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