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SafeToNet

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SafeToNet safeguards children online from risks such as bullying, abuse, aggression and sextortion.

Primary share sale (closed)

168%
£1,500,002 target
£2,527,435 from 136 investors

Secondary share sale (closed)

£183,171 for sale
£183,606 sold to 280 investors
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Business overview

Location London, United Kingdom
Social media
Website safetonet.com/
Sectors SaaS/PaaS Digital Mixed B2B/B2C
Company number 08733316
Incorporation date 15 Oct 2013
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Investment summary

Type Secondary
Last valuation £126.8M in Aug 2020
This valuation 0.00% no change
Investors 136 in primary allocation
Tax relief N/A
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Business highlights

  • Sales of £4.6m* generated from 550k licences sold in 2020
  • Promoted by UK Gov & safeguarding children in 109 countries
  • Worked alongside German police & regional government
  • £2.52m total primary allocation - £300k secondary allocation
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Key features

  • Secondary Market
  • Seedrs nominee min. £11.80 +
  • Pay by Bank payments not accepted

Learn more about secondary campaigns.

Idea

Introduction

SafeToNet is a multi award-winning cyber-safety company that safeguards children around the world from online threats such as bullying, grooming, abuse and aggression.

Our pioneering safeguarding technology uses AI to educate children “in-the-moment” as they use their device. It is a safeguarding assistant that helps them become responsible and safe digital citizens.

Its power lies in a smart keyboard that detects risks in real-time. It steers children away from trouble by filtering harmful outgoing messages before they can be sent and any damage can be done.

Our technology is in use in 109 countries and is having a positive impact on children’s lives and wellbeing every day. SafeToNet is changing the way children interact with friends and others on social networks and messaging apps. This campaign gives you the opportunity to invest in an ethically and socially responsible company and allows you to become part of SafeToNet’s journey to safeguard millions of children around the world.

Substantial accomplishments to date

· Sold over 550,000 licences of its AI-based safeguarding solution in 2020

· Generated sales in excess of £4.6m* in just the last 6 months

· Currently safeguarding children in 109 countries around the world

. Saved the life of a young girl in California

· Raised over £23m since inception

· Endorsed by the UK Government and worked alongside the national German police federation and regional German government.

· Working with world-leading companies including Samsung, the world's largest device manufacturer

· Promoted and sold by telco in over 180 highstreet stores across Germany

. B2B2C model with multiple proven routes to market including telcos, hand-set manufacturers and Ed-Tech

· Multi-award winning including Top 50 market disruptor, best British Mobile Award, Top 50 Game Changer and many more

· Featured in publications such as the The Times, The Daily Mail, The Telegraph, The Independent, The Daily Express, Sky News, BBC and many more

· Strong IP including a number of patents in device-management technology

*Based on unaudited management accounts.

Monetisation strategy

We have a B2B2C business model selling software as a service to telcos, hand-set manufacturers, Ed-Tech companies and also by embedding SafeToNet technology into other companies' products. Our strategy is to sell on a licence basis with bulk purchases bought and paid for in advance or on a revenue share basis with major businesses that already have a significant market presence and who wish to promote SafeToNet alongside their existing products. The SafeToNet brand sits harmoniously alongside that of its business partners although white label contracts also apply.

Secondary sale

We have raised a maximum of £2.52m to invest in the growth of the company. We are now offering secondary shares to investors. Sharon as co-founder of SafeToNet is selling a small number of her shares having founded the business and worked tirelessly within it for over 7 years. She remains fully committed to the business and its cause and continues to work full-time to safeguard children around the world.

Key information

SafeToNet have a large cap table with over 100 investors listed. They manage relations between shareholders via the Articles of Association of the Company and, unlike most companies that raise on Seedrs, do not have a separate Shareholder Agreement. Therefore, rights will be governed by the Articles of Association, which can be amended by special resolution of Shareholders.

However, SafeToNet and Seedrs have agreed that certain rights will be contractually agreed between the parties:

1) Pre-emption rights: Investors should note that pre-emption rights have generally been disapplied by shareholders in SafeToNet, giving the company flexibility to raise funding rounds quickly and flexibly. Seedrs and SafeToNet have agreed that while formal pre-emption rights are waived, on future rounds Seedrs investors will be given the chance to participate in future funding rounds on a proportionate basis in the following situations:
o Down rounds: if shares are issued at a price less than £2.36 per share (the price at which Seedrs investors will purchase shares) or a price less than the share price at which the company most recently issued shares (excluding shares issued on the exercise of employee options).
o Existing shareholders participating: if other existing shareholders are being offered the chance to participate, investors via Seedrs will also be given the opportunity to participate.
If the company raises further funds at an increased valuation from a new third party investor, the Company is not required to give Seedrs investors the opportunity to participate.

2)Information Rights: SafeToNet has agreed to offer Seedrs certain information rights in order to perform the role as nominee and to also update Seedrs investors via the Seedrs platform on a quarterly basis.

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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.

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

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 £126,759,385

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.

Pitch type

There are 5 types of investment pitch available on Seedrs.

  • Equity
  • Convertible
  • Fund
  • Cohort
  • Secondary

Investing in a secondary campaign allows you to purchase shares in a company that is not currently fundraising. Unlike other Seedrs campaigns, you will be buying shares from existing shareholders rather than investing into 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.

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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.

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.

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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.

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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.

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.

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