Female empowerment brand leading a global movement through its social network, content and sex education
- £1m+ raised in two successful funding rounds.
- Launched first social network in the mainstream adult space
- 140k members around the world and hosted events in 12 countries
- Investment conditional upon Future Fund funding - see Key Info
Learn more about convertible loan campaigns.
Killing Kittens is a female empowerment brand, promoting positivity for women, men and couples of all ages and sexualities. We do this by creating extraordinary experiences both online and offline. Our social network app is home to over 140,000 liberated members and growing daily, who use our platform to connect with like-minded people, improve their sex lives through education and engage with brands and content.
Our world-famous events are held in over 12 countries, where we partner with top brands to deliver unforgettable experiences the world over. We deliver experiences at all stages of the sexual liberation and empowerment journey.
We employ a female-first attitude in everything we do. We put women in control and encourage integrity, respect, confidence and body positivity for all. KK has been taking the world by storm, enabling the total fulfilment, freedom, expression and safety of women, men and couples globally.
Substantial accomplishments to date
2005: Killing Kittens is founded.
2005: Emma Sayle named in London's Most Influential Movers and Shakers by Time Out.
2009: KK expands globally to Ireland and Australia by popular demand.
2012: New party concepts launched.
2014: First version of the KK social platform launched.
2017: £1m annual turnover for the year to April 2018 20% increase in revenue YOY (Based on unaudited management accounts).
2017: Social platform generates over $350,000 in subscription revenue (Based on unaudited management accounts).
2018: 120,000+ users on KK social platform (30% increase).
2018: Safedate app launched - 5,000 downloads.
2018: Fundraised over £580,000 on Seedrs majority from own KK community.
2019: Socials and Workshops Events launched.
2019 Q2: Sistr app launched.
2019 Q2: Sold rights to the KK origin story.
2019 Q2: Refresh of the member's platform launched.
2019 Q2: Launched Sistr App (Beta).
2019 Q4: Fundraise of over £480,000 on Seedrs completed.
2020 Q1: Re-Brand Complete.
2020 Q2: 140,000+ users on KK social platform (16% increase).
2020 Q2: KK Social Network 2.0 launched.
Online - The KK app is free to use for the basic membership, but users must pay to upgrade to experience premium features, see no ads and get access to exclusive content.
We're currently developing a proprietary ad platform - the first of its kind in our market space (that we're aware of) - that will allow us to monetise our relationships with brands and influencers by delivering ads to our free users and potentially 3rd party publishers.
Offline - we generate revenue through ticket sales for our events held around the world. Ticket buyers must be members of the KK social platform in order to purchase tickets and eligibility rules apply. Our parties are primarily used to generate press and PR and as cost-neutral marketing exercises, or with small profits.
The future will see us expand on brand alliances, sponsorships and retail revenue from brand apparel.
Use of proceeds
We intend to use the funds raised in the following proportions:
45% Growth Marketing - We intend on increasing brand awareness to grow our community. This involves a fully specced marketing activation campaign in the UK and US.
45% Product innovation - With our new technology already being built, we aim to increase online revenue and retention from new and existing subscribers.
5% Preparing for funding - Building a fundraising campaign for Series A growth round.
5% Operations - Maintain running costs of online and offline operations.
Future Fund convertible loan note
Seedrs is supporting companies who are intending to apply to the Government backed Future Fund. You can read more about the Future Fund here: https://www.seedrs.com/learn/blog/the-future-fu...
In order for a company to be eligible to seek matched funding from the Future Fund, this investment round must be on the convertible loan terms that have been prescribed by the Future Fund for this purpose. These terms differ to our normal ‘advanced subscription agreements’.
Given this product differs from most campaigns on Seedrs, we urge all investors, including regular Seedrs investors, to read the information below and ensure you understand the terms in full before making your investment.
1. Key terms
You will see a term sheet attached to this Campaign in the Documents section which sets out the key terms of the convertible loan and you can see the full document prescribed by the Future Fund here: https://www.british-business-bank.co.uk/ourpart....
A summary of the key terms is set out below, but should be read in conjunction with the term sheet:
• Discount: 30%
• Interest: 8% per annum, non-compounding. On conversion events, the company can choose to repay the interest or convert it to equity (generally without the discount). See the Term Sheet for more details.
• Redemption Premium: An amount equal to 100% of the principal loan amount
• Qualifying Equity Financing. The convertible loan will automatically convert on an equity financing raising at least the total loan amount, at the lowest share price of equity financing less the Discount [or, if lower, the Valuation Cap share price].
• Maturity Date: 36 months from signing convertible loan agreement.
The default position is on the maturity date is that the loan will convert to equity unless the investor majority elect to redeem.
If redeemed, the company will repay the principal together with the Redemption Premium.
If converted, the conversion price will be at the most recent funding round share price less the Discount, provided that funding round happened after 20 April 2020 and was at least a quarter of the size of the convertible loan investment. If no such funding round has occurred, conversion will be at the share price of the last funding round prior to 20 April 2020 (no Discount).
• Other events of default or conversion: There are various other scenarios in which the convertible loan may convert or be repaid and investors should reference the term sheet:
Non Qualifying Funding Round: The convertible loan can convert on an equity financing round which does not meet the size criteria of a ‘Qualifying Equity Financing”, at the election of the majority of investors under the loan. Please see the term sheet for how this conversion is priced.
Exit: The convertible loan will automatically convert or be redeemed on an Exit, whichever would give investors the higher cash return. Please see the term sheet for how conversion is priced and payments on redemption in this scenario.
Events of Default: The convertible loan is to be repaid on the events of default, such as liquidation or winding up. See the term sheet for more details.
2. Government matched funding
The company intends to apply to the Future Fund for matched funding on the total eligible amount invested in this funding round. The Future Fund will “match” the funding raised via Seedrs or other eligible sources, subject to a minimum investment of £125,000 and a maximum investment of £5m. The Future Fund is to be allocated on a ‘first come, first served basis’, so there is no guarantee that a company will receive the Future Fund matched funding.
This campaign is conditional upon receiving matched funding from the Future Fund. Seedrs will not complete the investment and transfer the funds raised until we have confirmation that the Future Fund matched funding application has been approved and that the Future Fund is ready to make the investment. If the application is denied, the campaign will be cancelled and funds will be returned to investors.
Because this campaign is conditional upon the matched funding, you will see that we have reflected the Future Fund investment as part of the round. It is distinguished in pink in the progress bar of the campaign. This is to give investors an indication of the potential total size of the funding round (and potential dilution on conversion), but to also distinguish it from regular investment through the Seedrs platform.
Seedrs does not charge any fees in relation to the Future Fund matched funding, application process or for acting as lead investor with respect to applications.
3. Conversion to equity
The convertible loan agreement prescribed by the Future Fund is equity focused and favours conversion of the loan to equity as the default position.
Redemption is only available in certain scenarios and is often subject to the vote of majority of the investors. Where a vote of investors is required, Seedrs will vote on behalf of any investors it represents as nominee.
There is a possibility that the convertible loan will convert in some scenarios without the consent of Seedrs (if we do not make up a majority of investors). It is also Seedrs’ position that this is primarily an instrument for investing in the equity of the fundraising business and our default position would be to vote in favour of converting the loans to shares in the company, unless there is a clear or compelling reason not to.
As always, investors should be aware of and accept the risks involved in investing in early stage and growth focused businesses: https://www.seedrs.com/pages/risk-warnings
In addition to the usual risk warnings included above, investors should be aware of and accept the following with respect to convertible loans:
• The convertible loan agreement is intended as bridge funding to a future funding round, but there is no guarantee that a company will be able to secure further funding.
• The Future Fund is to be allocated on a ‘first come, first served basis’ and there is no guarantee that a company will be successful in its application to receive the Future Fund matched funding.
• There is a risk that the Company may not have sufficient funds to repay the loan on the maturity date, pay interest when it becomes due or pay the redemption premium included in the terms.
• Convertible loans are unsecured obligations and in the event of a winding up or liquidation event will rank behind secured creditors of the Company.
5. Secondary market
Investors will not be able to sell their interest in the convertible loans on the Seedrs Secondary Market unless and until they have converted to shares in the company (and then only subject to eligibility and the terms and conditions of the Seedrs Secondary Market).
6. EIS Relief - past, current and future
As noted above, the convertible loan instrument is not compatible with EIS requirements, so no EIS applications will be made with respect to investments in the convertible loan.
The government has confirmed that investing in the convertible loan will not impact EIS relief previously claimed on investments in the fundraising company:
“The government has confirmed that such previous investments will not be affected where the convertible loan converts into shares. Where the convertible loan note redeems, we have been alerted that the government intends to make changes to the rules to clarify that this is compatible with such previous investments.”
However, investing in a convertible loan could impact your ability to claim EIS relief on future investments into the same company. The government has not clarified the position on this and has said it is a matter for HM Treasury and HMRC.
Seedrs is unable to provide tax advice. Tax treatment depends on individual circumstances and is subject to change.
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