Flipping the insurance industry on its head with collective cover for cyclists.
- Already over 10,000 bikes insured worth >£26 million
- 215% YTD Net Revenue Growth
- Reviews score of 4.9/5
- Raised £4.9m from investors including LocalGlobe and Creandum
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Laka is a collective insurance provider, disrupting the cycling and e-mobility industry – where we’re seeing huge growth in users and forecasting a £100 billion in market value by 2025!
Our mission is to fuel personal mobility across Europe, sustainably and with benefits for all.
To do that, we provide collective cover for cyclists.
Traditional insurance is the best business model in the world - just not for customers.
The traditional model is based on insurers taking your money and profiting from not paying out claims. They make money by not doing the very thing you pay them to do. We think that’s insane.
So we have rebuilt insurance from scratch – sharing risk in a true collective. Our members share the cost of all claims, and we only earn our share when settling claims for the collective.
It’s insurance built on transparency and mutuality to benefit the people.
And our collective love it. We have over 10,000 bikes insured with a 4.9/5 service and claims review rating.
Substantial accomplishments to date
🚴♀️ Tobi, Jens and Ben launch MVP for collective insurance for cyclists
🚀 Joined the Startupbootcamp InsurTech accelerator programme
🚀 Accepted into FCA Sandbox Cohort II
🤝 Partnered with Zurich Insurance Group
💰 Raised £1.1m in Pre-Seed Funding from Tune Protect & 500 Startups
🏆 Won 3 Insurance Choice Awards including Best Cycle Insurance Provider and Innovation of the Year
🙎♂️ Mike Jordan (Formerly American Express) joins the Board as NED
👫 Our team grew to 13
🤝 Joined forces with World Bicycle Relief
🏆 Won Best Insurance Startup at the British Insurance Awards
🏆 Won Best Cycle Insurance Provider at the Insurance Choice Awards (again)
🚴♀️ Surpassed 10,000 bikes insured worth > £26m
💰 Raised £3.6m in Seed Funding from VCs Creandum and LocalGlobe, and angel investors
🚀 Rebranded to a fun-loving identity - the antidote to traditional insurance
💪 Launched Health & Recovery Insurance product
🛡 Launched the Laka Club - third-party liability insurance & awesome cycling perks
🎽 Partnered with Rapha to launch our clothing range
🏆 Won Best Cycle Insurance Provider at the Insurance Choice Awards (again, again!)
🇳🇱 Netherlands team hired, license obtained, insurance partner secured: ready for launch later this month!
Laka has loads of potential.
As the world adapts to the effects of Covid-19, there has been a seismic shift in behaviour away from using public transport. The time of the bike has come. And we're here to fuel it, sustainably and with benefits for all.
We already have a range of insurance products that enable us to attract and retain an engaged customer base.
> Bike Insurance
Protect your bike and gear against theft and damage.
> Health & Recovery Insurance
Recover better from accidents with specialist treatments & services.
> Laka Club - just £1 per month!
Get third-party liability insurance & more awesome cycling perks.
Laka members only pay for claims in the collective. And Laka only earns commission when paying out claims.
On top of that, we’re building a brand platform with multiple opportunities for revenue streams - like our brand new Laka x Rapha collaboration!
Use of proceeds
Following years of positive growth, continued through Covid-19, and ongoing support from existing investors, we want to grow faster and bring the collective along with us.
We’ll be investing in three key areas:
1) Expand Customer Segments.
We continue to extend our focus from bike enthusiasts to service a wide range of personal mobility users, including urban and e-mobility, through new and existing products.
2) Launch new products.
Our mission is to fuel personal mobility far beyond insurance and provide everything people need to get on the move. This might extend well beyond insurance; and our Laka x Rapha brand collaboration is a good example.
3) Conquer new territories.
Laka has an immediate European focus. We’re launching soon in the Netherlands, cycling’s motherland. Our Dutch regulatory license will open doors across the EU. Europe, get ready for us!
And, to unlock the full potential, we will be hiring across tech, marketing and operations.
This investment round is being raised by way of an Advanced Subscription Agreement.
The key terms that apply to the Laka advanced subscription agreement are set out in the Key Terms Document attached to this campaign in the Documents section and a summary is set out below.
Valuation cap: A pre-money valuation of £22m
Valuation floor: A pre-money valuation of £10m
Longstop date: 30th April 2022
Conversion of the advanced subscription agreement will take place:
• On a financing round of £2,000,000 or more, at the lower of (i) the lowest price per share paid in connection with the financing round paid by investors, less the Discount and (ii) the Valuation Cap divided by the fully diluted share capital of the Company.
If the lowest price paid per share by Investors in the Financing round is equal to or less than the share price based on the Valuation Floor, the discount shall not apply to the Conversion Price and it shall be 100% of the lowest price paid per Share by the Investors in the Financing Round.
• If no Financing round has occurred by the Longstop Date conversion will happen at the lower of (i) any Shares issued after the date of this Agreement (excluding any Shares issued on the exercise of options granted to employees) and (ii) the Valuation Cap divided by the fully diluted share capital of the Company.
• If a change of control or IPO occurs prior to the above events, conversion will automatically trigger at the lower of (i) the lowest price per share paid in connection with the event, less the Discount and (ii) the Valuation Cap divided by the fully diluted share capital of the Company.
• In the event of insolvency or winding up the ASA will convert automatically at a share price equal to the Valuation Floor divided by the fully diluted share capital of the Company.
The company has 3 classes of shares: Seed 1 Preferred, Seed 2 Preferred and Ordinary Shares. The Seed 1 and Seed 2 Preferred Shares carry a 1x non-participating preference on liquidation and exit, with the Seed 2 shares ranking in priority to the Seed 1 Shares. Ordinary shares do not carry any preference. All shares otherwise carry the same rights.
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