Close

Jump to:

  • Navigation
  • Content
  • Footer
Freeflow Technologies hero image

Freeflow Technologies

Follow

Designer & manufacturer of E-Bike technology, on a mission to sell to global bike brands.

106%
 - 
Funded 19 May 2023
£625,331 target
£1,012,934 from 214 investors
More
Less

Business overview

Location Glasgow, United Kingdom
Social media
Website www.freeflowtechnologies.com/
Sectors Automotive & Transport Mixed Digital/Non-Digital B2B
Company number SC420118
Incorporation date 22 Mar 2012
More
Less

Investment summary

Type Equity
Valuation (pre-money) £14.7M
Equity offered 4.32%
Share price £2.62
Tax relief

EIS

More
Less

Business highlights

  • Completed MVP - Compact mid-drive eBike solution
  • Patented technology around the world
  • Looks & rides like a normal bike, even with the power off
  • Serviceable at any bike shop in the world
More
Less

Key features

  • Secondary Market
  • Seedrs nominee min. £10.48 +
  • Direct investment min. £20,000.00 +
  • Idea
  • Key Information
  • Team
  • Updates
  • Investors 214
  • Discussion
  • Documents

Idea

Introduction

FreeFlow sells an eBike motor, allowing riders to have an eBike that looks and rides like a normal bike with all the benefits of rider assistance. It can be serviced locally and quickly, replacing parts, rather than the whole system. At the core of the motor is the innovative, patent protected transmission system. Selling initially to handmade, influencer bike brands, with development orders from national SME brands and significant engagement with global blue chip bike brands.

Substantial accomplishments to date

Development Milestones

- Completed development of MVP
- Sold first 30 systems for test & development

Customer Traction

- 12 of those brands are developing bikes for launches already
- One customer launched a bike with our system at Goodwood Revival 2022, generating repeat orders

Brand Traction

-Excellent traction with blue-chip global brands, several of whom have ridden demo bikes
-Includes 2 international bike consortiums

Awards

- StartUp Awards Scotland 2022 - category winner
- Scottish MTB Awards 2022 - Scottish MTB Product of the Year for Innovation

Monetisation strategy

FreeFlow is an OEM supplier of eBike motors to the bike industry, aiming to supply high volume to blue chip bike brands. We have segmented the market into three tiers which we plan to go after:

Use of proceeds

Key planned allocations are as follows:

Alongside this, we will allocate funds towards important expenses such as continued patent registration, UL certification, and stock holding to maintain rapid fulfilment.

Key Information

Rolling Raise

The company is aiming to run a second institutional funding round of £2M to accelerate growth & exit, targeted for 6 months’ time. If the funds are raised within 3 months, the share price will be the same. After 3 months, the price will be adjusted to reflect FreeFlow’s progress.

Related parties fees

Pursuant to the terms of the investment agreements, certain shareholders of the Company (and some of their professional advisors) are contractually entitled to the following one-off and ongoing fees payable by the Company.

- Kelvin Capital, a one-off arrangement fee of 5% of funds invested (plus VAT).
- Equity Gap, a one-off research fee of 5% of funds invested (plus VAT).
- Wright, Johnston and Mackenzie LLP (Equity Gap's legal advisors), legal fees of £2,000 (plus VAT and expenses).
- Davidson Chalmers Stewart LLP (Kelvin Capital's legal advisors), legal fees of £12,750 (plus VAT and outlays).
- Equity Gap, a monthly monitoring fee of £300 (subject to certain increases due to inflation and pro rata increases in line with further investment by members of the Equity Gap investment syndicate).
- Kelvin Capital, a monitoring fee equal to the greater of (i) £12,000 per annum; and (ii) a per annum sum equal to 1.25% of the aggregate sum invested by members of the Kelvin Capital investment syndicate (payable monthly and subject to certain increases due to inflation and pro rata increases in line with further investment by members of the Kelvin Capital investment syndicate).

Share Classes

The company currently has 2 classes of shares, Ordinary Shares and A Ordinary Shares. All investors in this round, including Seedrs investors, will be receiving Ordinary Shares. The rights attached to both share classes are in all material respects equal (1x non-participating preference on liquidation and exit and voting rights).

Ownership structure

FreeFlow is majority-owned (65.4%) by a series of EIS funds and financial intermediaries. The founder, Neil MacMartin, owns 16.3% of the company and has no other ongoing role. The management team has 7% plus 9% in options.

Management team commitments

The Director of Finance & Operation, David Milton, is a director at Good Story Limited, his Wife's retail business. The company has no commercial relationship with FreeFlow and demands less than 1 hour of work a month from him.

Open an account to get access to the team members of Freeflow Technologies

Sign up

Already have an account? Log in

To comply with financial regulations, we can only show full campaign details to registered users.

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

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Share on:

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 £14,736,593

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.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

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.

Find out more

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.

Find out more

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.

ContinueCancel