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SmartGuide

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Global platform turning every phone into an engaging personal tour guide. Certified Covid-safe.

168%
 - 
Funded 30 Apr 2021
£400,000 target
£685,030 from 378 investors
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Business overview

Location Prague 10, Czechia
Social media
Website smart-guide.org
Sectors Travel, Leisure & Sport Digital Mixed B2B/B2C
Company number CZ07254890
Incorporation date 2 Jul 2018
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Investment summary

Type Convertible
Discount 25%
Share price N/A
Tax relief N/A
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Business highlights

  • Disrupting huge outdated guide market at the right moment (Covid)
  • 270K+ users, 400+ destinations, £150K+ revenues generated
  • 700% growth in 2020 despite Covid-19, Seedstars regional winner
  • Solid exit options to Expedia, Booking, TripAdvisor, AirBnb...
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Key features

  • Secondary Market
  • Seedrs nominee min. £10.00 +
  • Pay by Bank payments not accepted
  • Idea
  • Key Information
  • Team
  • Updates
  • Investors 378
  • Discussion
  • Documents

Learn more about convertible campaigns.

Idea

Introduction

The SmartGuide app turns every phone into a personal tour guide. It guides you using audio, geolocation and Augmented Reality like a live guide, far from the crowds, safe from Covid-19.

The global B2B2C platform allows tourist destinations, tour operators and storytellers to digitize tour guides at a pace orders of magnitude faster and cheaper using Content Management System. Partners improve visitor experience, reduce costs vs. traditional guides, earn extra revenues from selling guides and reopen earlier yet safely after Covid.

B2B partners not only pay for guide-as-a-service but also promote their guide to their visitors which brings free traffic on the platform. SmartGuide keeps such users to guide them in 400 more destinations.

The pandemic started a transformation of travel towards the digital sphere, contactless solutions and individual travel. SmartGuide technology enables this transition.

We are building the future of safe, sustainable and more authentic travel.

Join us!

Substantial accomplishments to date

✅ Over 270,000 users, mostly affluent English-speaking independent travellers
✅ Over 400 destinations covered in English (half are in Europe). Some destinations in up to 6 different languages.
✅ Used as the official guide app by over 40 partners including the city of Prague, Harvard, several UNESCO sites, Singapore Heritage Board, the entire country of Kyrgyzstan or Deutsche Bahn (German national railways). Very strong deal pipeline.
✅ Working with 3 governments on Covid-response programs
✅ As the perfect solution to restore safe travelling, SmartGuide revenues grew 7x in 2020 despite the pandemic. Over 20 paying partners from 7 countries, >£150,000 revenues
✅ Many successful implementations and happy clients provide references - see pitch appendix
✅ Assembled A-team with Harvard and McKinsey alums and great in-house engineers
✅ Introduced a self-service Content Management System that makes it possible to create an engaging audio guided tour in just 4 hours. Our team will be happy to let you try it.
✅ Selected the best regional seed stage startup by SeedStars, TTG Travel Startup of the year
✅ Received the Seal of Excellence in Covid-19 response from the European Commission with recommendation for public funding
✅ Graduated from Singapore Tourism Board Accelerator for travel startups, showcased as a best case example (160 applied)
✅ Featured by Forbes and 30+ other media publications

Monetisation strategy

Initially, we focus on B2B deals - tourist attractions, destinations, tour operators that pay us on average £3-10k one-off to set up the guide and £200-4k monthly in maintenance and revenue share from sold guides. This is 98% of current SmartGuide revenues. There are about 100k relevant B2B customers for us globally.

Over time as the number of end users on the platform grows, so will the user monetisation through premium upsell and 10% affiliate commissions on booking of travel services. As a guide, we are uniquely positioned to facilitate booking of tickets, and activities. This is a rapidly growing market expected to reach £2tn by 2025.

Finally, when we reach a critical mass, we will sell smart advertising space to reputable travel businesses (e.g. a museum, restaurant). We have already verified this revenue stream in Prague where we have a number of local businesses pay £200-£300 a month to be promoted on the platform.

Use of proceeds

SmartGuide has raised £590k in seed capital to date to build the product and prove the product market fit.

Our goal with this financing round is to achieve >£50k monthly revenues to position for a Series A investment in 12 months to further scale-up once the pandemic is over. Several top VCs have already confirmed serious interest to participate in that round.

Funds raised in this campaign will be used primarily to scale up business development internationally and to increase technology leadership (Personalisation engine, Content Management System). The minimum campaign amount (Target Scenario) will support our current product development team (4 FTEs) and growing bus. dev. team (from 2 to 4 FTEs) focused on Europe for 12 months. We hope to raise significantly more than the Target threshold (Stretch Scenario) which will be used for faster global scaling (USA, Latin America, Southeast Asia) and more capacity for product development (customer research, design, UX, analytics, web app).

Still unsure? Try SmartGuide with premium subscription for free (https://smart-guide.org/?_branch_match_id=81008...) until February and get unlimited lifetime subscription if you invest.

Key Information

Convertible key terms

This investment round is being raised by way of a convertible equity investment structure, in this case an "advanced subscription agreement".

The key terms that apply to the Company’s advanced subscription agreement are set out below. See also attached Key Terms document for further details.

Discount – conversion at a 25% discount to the valuation set by a Trigger Event.

Valuation cap of £7,900,000.

Conversion is triggered by ("Trigger Events"):

- An Equity Fundraise – defined as the Company raising investment capital of at least £750,000 from one transaction or a series of transactions, in exchange for the company issuing equity;

- A Change of Control of the company (transfer of more than 50% of the equity of the Company); or

- An IPO – being a listing of the company’s shares on a recognised stock market or secondary market.

Longstop Date is 18 months from the date of the advance subscription agreement.

If conversion has not been triggered by the Longstop Date, the instrument will convert on the longstop date at the Default Valuation, which is the lower of:

- the lowest fully diluted pre-money valuation in connection with any equity issued issued after the date of this Agreement; and

- a fully diluted pre-money valuation of £5,000,000.

The convertible would also convert to equity at the Default Valuation in the event of winding up or liquidation of the company.

Quota structure

The company is currently a quota company. On conversion, unless the Company converts to a Company limited by shares, investors will receive units of quota that correspond to their relevant percentage holding of the Company.

Outstanding debt

Please note the business has the following outstanding debt:

500,000CZK (17,232 GBP) bridge loan from 2 current investors, 9% interest per annum. Will be repaid from current receivables upon collection.

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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

Share on:

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.

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.

Find out more

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.

Find out more

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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