Due to a combination of factors during the spring (as explained in the latest Investor update), Pointvoucher ended up with serious liquidity challenges at the end of May. We therefore received a mandate from our Board to undertake a down-round and lower the valuation to £3.5m (30% of the previous target) and offer this opportunity to existing and new investors.
We have already managed to secure £270,000 from a combination of existing and new investors and we are now offering our Seedrs Investors the opportunity to invest based on some recent changes to our composition and strategy. This is an exclusive opportunity that will close very soon.
Despite the cash flow issues the rest of the business is performing as planned and we are making the expected progress on product, business development and marketing. We are therefore optimistic about the future.
We have evolved into two brands and in the future intend to to create two separate subsidiaries from these:
- Pointvoucher Studio: providing mobile games for global brands
- Pointvoucher: a mobile loyalty platform that benefits developers, brands and end-users
Games from Studio support user growth on the platform, which can lead to better deals with voucher providers and faster overall growth.
The 2019 plan for the Pointvoucher group is:
- Aim to become cashflow positive early 2020
- Set up an advisory board for each brand with industry professionals
- Materially increase user base growth
- Release the SDK for iOS & Android
- Launch premium memberships in the UK
- Add more voucher platforms to cover US and most of EMEA
- Onboard the first 3-6 3rd party developers
- Prepare for 2020 SDK marketing activity
- Publish the ITV Loose Women game
- Release 2 additional games
- Build partnerships with publishers for the Mr Bean Solitaire and Emoji Blast games
- Close contracts with 2-3 US or international broadcasters
Substantial accomplishments to date
Studio & Games
- In 2019 we have launched four new games: Mr Bean Solitaire Adventures, ITV’s Loose Women Words, Emoji Blast Puzzle and Billies bedste Børneapp (for Bilka, the Danish supermarket brand)
- Both Mr Bean Solitaire Adventures and Emoji Blast are currently being tested with global publishers
- We are building another game for ITV and have two major US broadcasters in the pipeline
- Mr Bean Solitaire Adventures was recognised by Apple in the prestigious “New Games We Love” section of the App Store
- Our games have received global coverage from a number of popular and influential media outlets including TouchArcade, Gizmodo, Gamasutra and USA Today
SDK & Platform
- We have got commercial agreements with a number of voucher providers: The Entertainer, HeadOut, Tiquets and WeGift
- We have on-boarded our first SDK client and have three more already in the pipeline
- We have completed the commercialised version of the Android SDK
Pointvoucher was nominated at the London Business Award 2019 in the “Highest Domestic Growth” category and for the Great British, Entrepreneur awards 2018.
Most of our revenue has so far been generated from game development and in-game revenue shares. We expect that this will scale up as we aim to grow the Pointvoucher Studio mobile gaming business. Additionally, as we move forward to demonstrate 3rd party traction with our SDK, we expect that this will provide a substantial and scalable revenue stream.
Revenue streams today:
Revenue Streams from 2020:
Later this year the users will be able to sign up for a premium monthly paid membership that will give them access to better offers. A recent survey among 1200 of our users showed that almost 30% of them would pay up to £19.99 for a premium membership.
We anticipate that the Pointvoucher SDK & premium memberships will be the significant revenue drivers from 2021.
Use of proceeds
We believe the investment we are now seeking with this private campaign will enable us to:
- Aim to be cash-positive early 2020.
- Develop our SDK on IOS and web and continue development on Android so that we are ready to onboard the first third-party developers later this year.
- Keep building the developer pipeline, and perform marketing outreach activity.
You will be investing in the group and the two brands.
Please note: The company has outstanding loans from existing investors of £188,283.10 with a 7% p.a. interest rate. This is expected to be repaid by R&D tax relief cash-back and in instalments paid from revenue from Q2 2020. Further the company has a convertible loan of £250,000 to be paid back by February 2022 or converted into shares based on a fixed share price of £2.08, which is the share price of the previous fundraising round. Conversion of this loan will lead to shareholder dilution. The company has put the IP of the business as security for this loan. None of the funds from this round will be used to repay these loans.