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Equipsme

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We do private health cover that’s simple, practical, and affordable - for businesses and their employees.

113%
 - 
Funded 22 Nov 2021
£500,000 target
£601,002 from 447 investors
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Business overview

Location London,, United Kingdom
Social media
Website www.equipsme.com/
Sectors Healthcare Digital B2C
Company number 10652765
Incorporation date 6 Mar 2017
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Investment summary

Type Equity
Valuation (pre-money) £12.9M
Equity offered 4.22%
Share price £0.56
Tax relief

EIS

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Business highlights

  • A pipeline of over 68,000 potential lives created since March
  • Partnership with AXA Health for corporate group opportunities
  • 111% gross revenue retention rate*
  • Backed by institutional investors, & Fintech50 2020 #1 Angel
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Key features

  • Secondary Market
  • Seedrs nominee min. £10.08 +
  • Pay by Bank payments not accepted
  • Idea
  • Key Information
  • Team
  • Updates
  • Investors 447
  • Discussion
  • Documents

Idea

Introduction

The global COVID-19 pandemic, the biggest health crisis the world has seen in over a century, will likely be the backdrop to our daily lives for years to come.

It’s undeniable that the way we live and work has changed forever. We’ve all learnt to juggle the demands of work and home and as we all adapt, employers are changing too as they seek to balance the books, attract and retain talent and ensure the health of their teams.

With the NHS waiting list estimated to reach 13 million, there’s never been a more important or relevant time for Equipsme in the market.

Our award-winning private health cover is accessible, affordable, and easy to understand.

Members can speak to a GP 24/7, have physio sessions, regular health checks and, if necessary, be quickly referred to a consultant for diagnosis and treatment, all managed through a simple to use app.

Substantial accomplishments to date

Large pipeline of sales opportunities.

AXA Health partnership to target the “corporate uninsured” opportunities.

Winner of “Best New Product - Innovation Award"-Cover Excellence Awards 2019 & The Insurtech Start-up Award, British Insurance Awards 2020.

Launched self-employed product to cater to a currently untapped market of 4.9m people.

349% YoY growth in revenue in last financial year*.

Digital Partnership with Starling Bank and Simply Business giving us access to over 600,000 businesses.

Highly Commended - In the Cover Excellence Awards, Best Group Health Insurance, 2020 and Cover Recognising Healthcare Innovation Awards, Best Group Private Medical Insurance, 2021.

Raised over £4.5m through Angels and institutional investors to date.

Economic uncertainty from Covid impacted our sales pipeline and we took fast action to reduce our expenses by 29% whilst maintaining an increase in sales (Apr-Aug 2020 vs Apr-Aug 2021).

Secured an exclusive 5-year insurance capacity deal with AXA Health.

Earlier this year, we launched our joint initiative with AXA to maximise our digital capability to address the need for a “whole of workforce” health plan for those enterprise-sized businesses that only offer traditional private medical insurance as an executive benefit. As a result, we are aiming for our pipeline to exceed 100,000 potential new employees before the end of 2021.

We believe that we only need to achieve a 10-15% conversion rate of this pipeline to achieve break-even while continuing to cap our monthly costs at £100K.

*Based on unaudited management accounts.

Monetisation strategy

Equipsme is on a mission to democratise health insurance by making it an affordable reality for businesses of all sizes. From the self-employed to large organisations, Equipsme offers flexible packages to suit all businesses and budget, with employees being able to pay to upgrade and add family members.

By bundling Health Insurance & Services together in a simple to understand and market leading price, we enable businesses to provide affordable and value for money health benefits to their employees and their families.

We do this by procuring services at lower than average market rates, we can retain a net mark-up of more than 25% while still being more competitive than traditional health insurance benefits.

Future exciting strategies for income generation include the use of unique data, profit sharing with capacity providers and international expansion.

Use of proceeds

Funds in this round will be used in two key areas:

The first £500K will be used with the aim to get to break even. Raising over and above this, additional funds will be used to accelerate SME growth through our investment in marketing and direct sales.

The global pandemic has accelerated the need for companies to do more for their staff in the way of health services and support. We are now seeing real behavioural change in companies, especially the larger ones where traditionally just the senior management would be covered.

Attraction and retention of staff are now more of an issue and therefore a 'whole of workforce' health plan has become a boardroom matter. Our pipeline of larger opportunities has grown since March 2021 and already includes opportunities to cover over 68,000 new employees. We aim to bridge our cash reserves to allow sufficient time to convert enough of the fast-growing pipeline, with the goal of reaching break-even before doing a Series A raise.

Key Information

Outstanding debt

The company has the following outstanding loans:

1. In January 2018 Equipsme Insurance Services Limited received a loan of £1,000,000 from AXA PPP Healthcare, with an interest rate of 9% per annum. This is to be repaid by June 2023.

2. A Bounce Back loan of £50,000, interest-free for 12 months, and 2.5% thereafter. This is to be repaid by May 2026.

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

Share classes

Funds controlled by Gresham House (Baronsmead and FIS Nominee) hold preference shares while all other investors, including the founders and Seedrs investors, hold Ordinary Shares and will receive the same class of Ordinary shares in this round.

The company currently has 4 class of shares, Ordinary Shares, A Ordinary Shares, AA Ordinary Shares and AB Ordinary Shares.

The AA Ordinary Shares and AB Ordinary Shares are held by Baronsmead Venture Trust and FIS Nominees Limited and together give the investors (i) a preferential dividend equal to 12.5% of the subscription price of each share per year (rising to 15% after Jan 2026), accruing and compounding monthly, and (ii) a 1.75x (rising to 2.75x after Jan 2027) non-participating preference on exit and liquidation - i.e. before proceeds are distributed to ordinary shareholders, the investors will receive 1.7x the amount paid for their shares (rising to 2.75x after [x]) and any unpaid preferential dividend.

The A Ordinary Shares are held by Baronsmead (reflecting its previous investments totaling £1,099,956) have been converted to a new class of preference shares. This class of shares carry (i) a preferential dividend equal to 12.5% of the subscription price per year (rising to 15% after Jan 2026), accruing and compounding monthly and (ii) a 1x (rising to 2x after Jan 2027) non-participating preference on exit and liquidation - i.e. before proceeds are distributed to ordinary shareholders, Gresham will receive 1x the amount paid for the existing shares (rising to 2x after 6 years) and any unpaid preferential dividend.

Once the AA Ordinary Shares, AB Ordinary Shares and A Ordinary shares have received their preferential returns and any unpaid preferential dividend (together the “A Preferred Amount”), the remaining proceeds will be distributed to Ordinary Shareholders up to the A Preferred Amount. This is in effect a catch up amount for the Ordinary shareholders.

The remaining proceeds will then be distributed amongst all shareholders pro rata.

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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.

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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.

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Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.

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 £12,933,207

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.

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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.

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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 shareholding type is available and the minimum investment required to select it.

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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.

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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.