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Pre-emption

Satago

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Satago is a credit control management tool for small businesses that also provides single invoice finance

View more details of this business.
114%
 - 
Funded 23 May 2016
£6,700 target
£7,900 from 12 investors
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Business overview

Location London, United Kingdom
Social media
Website www.satago.com/
Sectors SaaS/PaaS Digital B2B
Company number 08223061
Incorporation date 5 Feb 2016
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Investment summary

Type Convertible
Discount 30%
Share price N/A
Tax relief N/A
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
  • Team
  • Updates
  • Investors 12
  • Discussion
  • Documents

Learn more about convertible campaigns.

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

Summary

As this is a pre-emption round open to existing shareholders only, limited details about the business are being provided.

Debtor-tracking CRM
Satago’s CRM automates and manages the process of chasing customers for payment. All communication is centralised in Satago providing users with a full history of all actions taken to collect payments.

Integrated Credit Risk Analytics
Satago provides credit risk data on UK limited companies which helps SMEs understand the credit risk profile of their accounts receivable, warn them when their customers exceed recommended credit limits and lastly whether their customers are paying them faster or slower than other suppliers.

Selective single invoice finance
If users want to get paid even faster, Satago will advance payment for up to 85% of the value of invoices. Satago’s risk engine is based on a combination of credit risk and user’s own payment performance history. Satago effectively provides a flexible credit line.

Key Terms of the Convertible

Satago recently raised £250,000 pursuant to a convertible equity arrangement. As an existing shareholder, you now have the right to also participate in the convertible round on the same terms.

The key terms that apply to the Satago convertible are as follows:

• Valuation cap - £6m
• Discount - conversion at a 30% discount to the valuation set by a Trigger Event.
• Conversion is triggered by ("Trigger Events"):
o An Equity Fundraise – defined as the Company raising investment capital of at least £3m from one transaction or a series of transactions. The Seedrs fund raise does not count as a transaction;
o A Change of Control of the company; or
o An IPO – being a listing of the company’s shares on a recognised stock market or secondary market.
• If conversion has not been triggered by the longstop date of 29 June 2017, shares will be issued based on a pre-money company valuation of £4m.
• On conversion, investors in the convertible round will receive Series S shares, which have a 1x preference over ordinary shares in the company if the proceeds available for distribution on liquidation or exit is less than £2m. However, they will rank below the preference shares to be issued to the new investor in the equity raise outlined below.

Disclosure of current negotiations

Satago is in advanced discussions with an institutional investor in relation to combined equity investment and debt financing facility.
The current term sheet with the proposed investor provides for:
• An equity investment of up to £1.3m over two tranches. The initial investment will be £600k. The remaining £700k investment will be subject to certain milestones being met within 6 months. The investment will be made at a pre-money valuation of £6m.
• The investor will also provide a debt financing facility of up to £3m for the purpose of lending to clients of the Satago Finance business.
• As this investment is not more than £3m in equity, it will not be a trigger event for the convertible when it is made. Unless Satago raises further equity funds prior to 29 June 2017 to get it up to the £3m threshold, the convertible will convert on the longstop date as described above.
• As communicated to investors, Seedrs and other existing shareholders in Satago have agreed to waive pre-emption rights on this equity investment in order to allow it to go ahead.
• The new investor will receive preference shares with a 1.5x non-participating preference on liquidation, winding-up or exit. These will rank ahead of the existing Series S preference shares being issued under the convertible.

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

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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

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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 Convertible

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 convertible campaign allows you to invest today, with your investment converting into equity in the future, at a discount compared to other investors.

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.

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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