The money-saving, money-simplifying app – 100% personalised to help you spend, save and live smarter.
- Voted a Top 50 Fintech in Europe, >100k downloads in 5 months
- Founded by Dame Jayne-Anne Gadhia (ex-CEO, Virgin Money)
- Backed by Salesforce Ventures, Havisham Group & Sir Lloyd Dorfman
- Investment conditional upon Future Fund funding - see Key Info
Learn more about convertible loan campaigns.
Managing your money and your spending is at best, unexciting. For millions, it’s complicated and stressful.
Big businesses don’t repay loyalty, so you need to watch your bills or they’ll rocket. And while there’s lots online about saving money, it’s hard to find the stuff that’s relevant to you.
That’s why we created Snoop. With the aim of saving every household in the UK at least £1,500 each year.
Snoop works 24/7, looking over your spending and spotting clever ways you can save.
Connect your bank accounts and credit cards to the app so you can see all your balances and transactions together.
Snoop watches your bills and lets you know if you’re paying too much or there’s a price hike – and looks ahead so you know what’s due in the next 7 days.
Each day, Snoop creates a unique feed of money-saving ideas, 100% personalised for you and your spending. It’s like an Instagram feed for your finances.
And it’s all powered by super-secure FCA-regulated Open Banking tech so it’s safe and easy to use.
Substantial accomplishments to date
Here’s a summary of our story so far:
· Early 2019 – Dame Jayne-Anne Gadhia (former CEO of Virgin Money) provides initial investment and founds Snoop with 10 members of her former top team
· August 2019 – Lord Brownlow’s Havisham Investments joins as a shareholder
· August 2019 – First lines of code written
· October 2019 – Salesforce Ventures joins as a shareholder
· November 2019 – Snoop becomes FCA registered
· November 2019 – Initial build of Snoop’s core, bespoke, tech platform completed
· December 2019 – Alpha launched
· January 2020 – Beta launched
· April 2020 – full public launch, live on the App Store and Google Play
Since full market launch in early 2020, we have:
· Grown to over 100,000 downloads and 75,000 customers
· Connected our customers to 50 banks and credit card companies
· Delivered over 1 million ‘Snoops’ (money-saving and money-management tips) to our customers
· Added 10 new team members, taking us to over 30 people
· Welcomed new investors including Sir Lloyd Dorfman (Founder of Travelex) and raised £9m in total
· Started generating revenue
· Been recognised by national press and broadcast media as a great way for people to save money and spend smarter
· Been consistently rated 4.7 or higher in the App Store
· Been awarded a place in the ‘Top 50 Fintechs’ of Europe – with previous alumni including Monzo, Revolut and Starling
Today, Snoop is free for the customer. We currently have three ways of generating revenue.
1. Switching commission
When a customer acts on a suggestion in their Snoop feed to save themselves money, we may earn a commission from the business they arrange their new product with. We currently have four product streams operating in this way (energy, mobile phone, broadband/TV, and life insurance) and aim to grow to 11 quickly.
2. Partnership deals
We’ve partnered with a select group of at-scale businesses, enabling them to reward existing customers and reach new ones with offers through the Snoop feed.
3. Direct from customer
When a customer saves money through Snoop’s recommendations, we accept a tip as a thank you for offering these insights.
In the next year, we plan to add two further revenue streams: introducing paid-for services based upon exciting new features; and building a new B2B revenue stream by creating data products based on our anonymised consumer spending analysis.
Use of proceeds
Having grown to over 100,000 downloads and 75,000 customers in only five months since launch, we’re crowdfunding to continue our exciting development plans, so we can bring more features and benefits to customers.
With the funds raised in this round we plan to:
· Keep building new features and functionality, especially for money management and budgeting
· Increase our range of switching services to save customers even more money
· Enhance our data analytics capabilities to present more complex insights and spending profiles
· Expand our product team to enable faster app design and development
· Expand our commercial team to uplift and expand revenue-generating streams and partnerships
· Scale our marketing to continue growing acquisition and the Snooper community
Seedrs is supporting companies who are intending to apply to the Government backed Future Fund. You can read more about the Future Fund here: https://www.seedrs.com/learn/blog/the-future-fu....
In order for a company to be eligible to seek matched funding from the Future Fund, this investment round must be on the convertible loan terms that have been prescribed by the Future Fund for this purpose. These terms differ to our normal ‘advanced subscription agreements’.
Given this product differs from most campaigns on Seedrs, we urge all investors, including regular Seedrs investors, to read the information below and ensure you understand the terms in full before making your investment.
1. Key terms
You will see a term sheet attached to this Campaign in the Documents section which sets out the key terms of the convertible loan and you can see the full document prescribed by the Future Fund here: https://www.british-business-bank.co.uk/ourpart....
A summary of the key terms is set out below, but should be read in conjunction with the term sheet:
- Discount: 20%
- Interest: 8% per annum, non-compounding. On conversion events, the company can choose to repay the interest or convert it to equity (generally without the discount). See the Term Sheet for more details.
- Redemption Premium: An amount equal to 100% of the principal loan amount
- Valuation Cap: £25,000,000
- Qualifying Equity Financing. The convertible loan will automatically convert on an equity financing raising at least the total loan amount, at the lowest share price of equity financing less the Discount or, if lower, the Valuation Cap share price.
- Maturity Date: 36 months from signing convertible loan agreement.
The default position on the maturity date is that the loan will convert to equity unless the investor majority elect to redeem.
If redeemed, the company will repay the principal together with the Redemption Premium.
If converted, the conversion price will be at the most recent funding round share price less the Discount, provided that funding round happened after 20 April 2020 and was at least a quarter of the size of the convertible loan investment. If no such funding round has occurred, conversion will be at the share price of the last funding round prior to 20 April 2020 (no Discount). Or, if lower, at the Valuation Cap share price.
Other events of default or conversion: There are various other scenarios in which the convertible loan may convert or be repaid and investors should reference the term sheet:
- Non Qualifying Funding Round: The convertible loan can convert on an equity financing round which does not meet the size criteria of a ‘Qualifying Equity Financing”, at the election of the majority of investors under the loan. Please see the term sheet for how this conversion is priced.
- Exit: The convertible loan will automatically convert or be redeemed on an Exit, whichever would give investors the higher cash return. Please see the term sheet for how conversion is priced and payments on redemption in this scenario.
Events of Default: The convertible loan is to be repaid on the events of default, such as liquidation or winding up. See the term sheet for more details.
2. Government matched funding
The company intends to apply to the Future Fund for matched funding on the total eligible amount invested in this funding round. Subject to eligibility criteria and the Future Fund's approval, the Future Fund will “match” the funding raised via Seedrs or other eligible sources, subject to a minimum investment of £125,000 and a maximum investment of £5m. The Future Fund is to be allocated on a ‘first come, first served basis’ to eligible and approved businesses, so there is no guarantee that a company will receive the Future Fund matched funding.
This campaign is conditional upon receiving matched funding from the Future Fund. Seedrs will not complete the investment and transfer the funds raised until we have confirmation that the Future Fund matched funding application has been approved and that the Future Fund is ready to make the investment. If the application is denied, the campaign will be cancelled and funds will be returned to investors.
Because this campaign is conditional upon the matched funding, you will see that we have reflected the Future Fund investment as part of the round.
Seedrs does not charge any fees in relation to the Future Fund matched funding, application process or for acting as lead investor with respect to applications.
3. Conversion to equity
The convertible loan agreement prescribed by the Future Fund is equity focused and favours conversion of the loan to equity as the default position.
Redemption is only available in certain scenarios and is often subject to the vote of majority of the investors. Where a vote of investors is required, Seedrs will vote on behalf of any investors it represents as nominee.
There is a possibility that the convertible loan will convert in some scenarios without the consent of Seedrs (if we do not make up a majority of investors). It is also Seedrs’ position that this is primarily an instrument for investing in the equity of the fundraising business and our default position would be to vote in favour of converting the loans to shares in the company, unless there is a clear or compelling reason not to.
As always, investors should be aware of and accept the risks involved in investing in early stage and growth focused businesses: https://www.seedrs.com/pages/risk-warnings
In addition to the usual risk warnings included above, investors should be aware of and accept the following with respect to convertible loans:
The convertible loan agreement is intended as bridge funding to a future funding round, but there is no guarantee that a company will be able to secure further funding.
The Future Fund is to be allocated on a ‘first come, first served basis’ and there is no guarantee that a company will be successful in its application to receive the Future Fund matched funding.
There is a risk that the Company may not have sufficient funds to repay the loan on the maturity date, pay interest when it becomes due or pay the redemption premium included in the terms.
Convertible loans are unsecured obligations and in the event of a winding up or liquidation event will rank behind secured creditors of the Company.
5. Secondary market
Investors will not be able to sell their interest in the convertible loans on the Seedrs Secondary Market unless and until they have converted to shares in the company (and then only subject to eligibility and the terms and conditions of the Seedrs Secondary Market).
6. EIS Relief - past, current and future
As noted above, the convertible loan instrument is not compatible with EIS requirements, so no EIS applications will be made with respect to investments in the convertible loan.
The government has confirmed that investing in the convertible loan will not impact EIS relief previously claimed on investments in the fundraising company:
“The government has confirmed that such previous investments will not be affected where the convertible loan converts into shares. Where the convertible loan note redeems, we have been alerted that the government intends to make changes to the rules to clarify that this is compatible with such previous investments.”
However, investing in a convertible loan could impact your ability to claim EIS relief on future investments into the same company. The government has not clarified the position on this and has said it is a matter for HM Treasury and HMRC.
Seedrs is unable to provide tax advice. Tax treatment depends on individual circumstances and is subject to change.
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