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Stay in a Pub

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Stay in a Pub is an online booking platform matching pubs with guests, featuring over 1,300 quality pubs

101%
 - 
Funded 29 Dec 2021
£200,001 target
£218,768 from 265 investors
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Business overview

Location Colchester, United Kingdom
Social media
Website stayinapub.co.uk/
Sectors Travel, Leisure & Sport Digital Mixed B2B/B2C
Company number 08434545
Incorporation date 7 Mar 2013
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Investment summary

Type Equity
Valuation (pre-money) £1.8M
Equity offered 10.34%
Share price £0.74
Tax relief

EIS

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Business highlights

  • 24 key pub groups incl. Wetherspoon, Fullers, Youngs, Greene King
  • Growing social media / email following totalling over 59,000
  • Directors include Rightmove co-founder and Cask Marque founder
  • Previous investment of £745,000 from angels and directors
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Key features

  • Secondary Market
  • Seedrs nominee min. £10.36 +
  • Pay by Bank payments not accepted
  • Idea
  • Key Information
  • Team
  • Updates
  • Investors 265
  • Discussion
  • Documents

Idea

Introduction

Alongside food and drink, accommodation is an important income stream for pubs. There are an estimated 6,000+ pubs with rooms in the UK but they operate in a highly fragmented market and often lack online presence.

Brainchild of Cask Marque MD, Paul Nunny, Stay in a Pub is an online platform dedicated to matching pubs and guests. We believe we are the largest source of directly bookable pub only accommodation in the UK. The site features over 1,300 quality pubs and the B2B2C business is based on a blended membership fee / commission model.

The pub accomodation market is worth in the region of £800m pa. and key target audiences extend beyond traditional 55+ short breakers to include family holidaymakers and 25-34 year olds looking for experiential stays.

We are seeking investment to expand our tech-led distribution, grow our collection of pubs and enhance our customer acquisition strategy.

If you’re someone who appreciates a more authentic way to stay, join our community founded on passion, built on loyalty, protecting and promoting the great British pub one room at a time.

Substantial accomplishments to date

A successful Angel investment round in 2019, raised £745k enabling the development of a content-rich, mobile-first website with cutting-edge search functionality, optimised UX and an integrated booking engine.

After a year of enforced pub closures, we launched our new website publicly in April 21 and achievements to date include:

· Enhanced geographical coverage with an estimated 16% of all pubs with rooms in the UK listed (1,300 pubs)

· Partnerships with 24 major pub groups inc. Wetherspoon, Fullers, Youngs and Greene King

· Loyal following of 377 Full Member pubs paying an annual fee for enhanced service as well as commission

· A database of over 6,200 pubs with rooms

· Valuable endorsements from Visit Britain, The Outdoor Guide, Paws Across Britain and several travel and lifestyle influencers

· Media coverage inc. Daily Mail Online (October 21), Guardian (July 21), Independent (March 21), Yorkshire Times (April 21) and numerous regionals

· Ranked on page one of Google's search results for 1,300 key terms

· Increased web traffic by 82% to an average 50,000 user sessions pcm

· Doubled social media followers and email subscribers to 59,000

· 21% sales growth versus previous year (£79k revenue and -£174k EBITDA) despite the pandemic sector disruption*

· Over 1,100 bookings, 3,500 guest nights and £210,000 gross booking revenue over the summer

· Ownership of both the stayinapub.co.uk and .com domain names

*Based on unaudited management accounts.

Monetisation strategy

A blended B2B2C model where revenue is generated from annual membership fees (£195 pa) and commission on bookings made (8-10%), both paid by the pub. We offer pubs the choice of Full Membership with enhanced service and support or a simple commission-only price plan.

Over 600 pubs are currently connected to our booking engine, and a further 567 are connected to Booking.com where we earn 4.5% affiliate commission share. There are a limited number of non-bookable pubs generating membership fees only.

Our aim is to increase the number of directly bookable pubs earning commission and to increase membership fee over time as we prove our ability to generate bookings through customer aquisition, conversion and loyalty.

The key growth drivers for bookings and associated commission revenue are improved brand awareness and SEO, web traffic growth (100,000 pcm), 'Look-to-Book' or conversion rate (target 1.5%), booking value (av £220) and repeat buinsess.

Use of proceeds

We have a strong proposition and scalable business model. Our focus now is on B2C marketing and customer acquisition. The proceeds of this fundraise will support the business though to a cashflow positive position in 2023/4, and enable us to:

- Ramp up marketing activity with brand awareness, engagment and conversion objectives to include search engine optimisation, content marketing, PPC and online display advertising, social media, email, loyalty programmes and conversion strategies; 70%

- Further develop our website technology, improve functionality and enhance content and user experience (UX); 10%

- Improve our B2B sales strategy to increase both the number of members and overall number of pubs connected to our booking system; 10%

- Support working capital (salaries, office expenditure, IT infrastructure etc): 10%

Existing shareholders are supportive of our fundraising, the directors are investing a further £50,000 and we have Advance Assurance of EIS eligibility from HMRC.

Key Information

Loans

Please note that the company has the following loan outstanding:

- £15,736 Covid Bounceback loan from Lloyds TSB repayable over 10 years. Each monthly instalment is c.£185. Interest rate is 2.5%.

The funds raised as part of this round will not be used to repay the loan.

Preference shares

A founding shareholder contributed £40,000 to the Company as initial start up capital. Rather than being treated as a traditional shareholder loan, the capital was structured as a preference share class. The preference shares only have the right to:

- A cumulative preference cash dividend at a rate of 5% per annum; and
- A 1x non-participating preference on a liquidation or exit.

The preference shares do not participate in capital distributions above the initial investment amount, do not hold voting rights or any other economic rights and are not convertible to ordinary shares. The original subscription amount is only repayable in the event of a liquidation or exit.

The funds raised as part of this round will not be used to repay the preference shares

All investors in this round will receive ordinary shares in the business.

Founder interest

Paul Nunny, founder of Stay in a Pub is also a director of Cask Marque which is a not-for-profit beer and cellar accreditation body.

Occasionally, Cask Marque subcontracts staff to Stay in a Pub and shares advertising costs.

Paul works part time on Stay in a Pub and has a team in place to run the day to day operations and strategy of the business.

Team

Charles Cryer was previously CEO of Stay in a Pub and will be stepping down to Non-executive director following this round. Sophie Braybrooke who was previously CMO of Stay in a Pub will be taking the CEO position.

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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

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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 £1,762,063

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 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

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.

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