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Pre-emption

Satago

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Satago helps businesses get paid on time by automating their credit-control.

View more details of this business.
100%
 - 
Funded 14 Mar 2014
£9,752 target
£9,759 from 11 investors
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Business overview

Location London, United Kingdom
Social media
Website www.satago.co.uk
Sectors Finance & Payments Mixed Digital/Non-Digital B2B
Company number 08223061
Incorporation date 20 Sep 2012
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Investment summary

Type Equity
Valuation (pre-money) £1.4M
Equity offered 0.69%
Tax relief

EIS

Co investor Seedcamp

Seedcamp is Europe's leading seed stage investment fund & mentoring program. Launched in 2007, the Seedcamp family now includes over 100 of Europe's most promising startups.

  • Idea
  • Market
  • Team
  • Updates
  • Investors 11
  • Discussion
  • Documents

Fundraising history on Seedrs

  • Pitch closing date
    Funding round
    Raised
    Pre-money valuation
    Equity offered
    Equity
    Investors
  • 23 May 2016
    £7,700
    Convertible
    30.00% discount
    12
    View pitch
  • 14 Mar 2014
    £9,752
    £1,403,591
    0.69%
    11
    View pitch
  • 21 Jul 2012
    £30,000
    £184,286
    14.00%
    61
    View pitch
View more details of this business.

Idea

Introduction

Since its initial funding, Satago has evolved in to a platform where small and medium sized businesses can automate their credit control. We are still interested in the late-payment data - the current model is that the credit control tool is free to use if companies share the data about when they get paid. We can then use this data to help them make credit control decisions.

Intended impact

Bad debts and late payment of invoices are endemic problems for UK businesses, causing cash flow problems and an estimated 1 in 4 company bankruptcies in Europe.

Satago automates credit control so companies can spend less effort on chasing their debtors, and more time chasing new customers and doing the work they love.

We still have a vision of sourcing this valuable late-payment data, but first we are concentrating on building the ultimate credit management tool for SMEs.

Substantial accomplishments to date

Satago MVP launched.
Recruited a technical co-founder from a top tech company.
Techcrunch Battlefield finalist.
Web Summit semi-finalist.
Entered Seedcamp accelerator programme.
Approx 450 registered users.
Started chasing first debtors on behalf of users (with positive results!)
Raise ~£600k seed-investment from a range of value-add investors.

Monetisation strategy

Businesses can use Satago for free if they agree to share data about when they get paid. They receive one "credit" for every "payment experience" they share with Satago. One credit can then be used to chase one invoice for payment by email.

Further services, such as hard-copy letters, credit managers on the phone etc., can be purchased for extra credits.

If a business doesn't want to share payment behaviour data, or needs to buy extra credits, they can do so for £1/credit. We are building credit bundles and a subscription model.

Use of proceeds

The Seedrs listing is for Seedrs investors' pre-emption rights as part of a larger seed-investment round of £600,000.

Most of the proceeds will be spent on the team - two founders, two back-end developers, one user-interface designer, and one business development executive.

Market

Target market

All small and medium sized enterprises (SMEs) and freelancers/contractors that work business-to-business. There are 2 Million SMEs in the UK, plus around 1.5 Million freelance workers. Whilst it's difficult to estimate the number of SMEs that are primarily B2B, we assume conservatively there are 2 Million combined SMEs and freelancers in UK that could use Satago.

We plan to initially target those sectors that are likely to be early adoptors of Satago: digital and creative industry freelancers and agencies.

Characteristics of target market

71% of firms had suffered from late payments in the last year, Small firms are paid an average of 41 days beyond agreed terms, UK firms are owed £62bn in late bills (£15bn is more than 120 days overdue), The EU estimates that 1 in 4 bankruptcies are caused by late payments.

We believe that currently the only option for businesses is to buy business credit reports that are based on old filed accounts and don't actually say anything about payment timeliness.

Marketing strategy

As a service dependent on user-generated content, the biggest challenge for Satago would be to accumulate a critical mass of data from users. This would be achieved primarily through partnerships with accounting software provider and business organisations such as the Federation of Small Businesses, who regularly highlight bad payment as one of the main problems affecting their members. Discussions with a number of business and industry organisations have been positive and supportive of Satago. Once we integrate with accounting software APIs they would promote Satago as another useful add-on for their platform in order to boost their own 'ecosystem'.

In addition it is hoped that the nature of the service will prompt small businesses and freelancers to encourage their peers to submit data. Indeed we intend to build refer-a-friend incentive schemes (i.e. receive free reports if you recommend a friend who joins etc.).

Competition strategy

Satago's barrier to entry will be dependent on building a critical mass of data. We would do this by having integration with the widest possible number of accounting platforms and partnerships with business organisations.

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

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

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Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.

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 £1,403,591

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