SwipeStation is the leading mobile payment provider for the stadium industry.
- Proven to solve the issue of queueing for drinks even at halftime
- Signed commitment from a major stadium to go SwipeStation-only
- Perfectly placed to harness the global uptake of ‘mobile payment'
- Investment conditional upon Future Fund funding - see Key Info
Learn more about convertible loan campaigns.
SwipeStation has solved the problem of queuing for a drink in a large, busy venue.
We have created a unique mobile payment service aimed at stadiums, festivals, exhibitions and other mass gatherings.
How are we unique?
- We are fast. By removing deliberation, ordering and payment from the service area, we have enabled an unskilled, untrained and inexperienced bartender to serve in just 15 seconds.
- We are stable. Our service does not require users to have phone connectivity - which is unreliable or non-existent in most large venues. We’ve built a mobile payment service that works in airplane mode!
With more clients than any other provider, we have led the charge for mobile payment in UK stadiums. As well as a number of independent venues, our existing clients include the biggest caterers in this market: Sodexo/Centerplate, Compass and Delaware North.
Substantial accomplishments to date
We proved that SwipeStation offered the fastest way of getting served in a busy venue:
“Our aim was to get service time down from 50 seconds to 30 or 40 seconds. With SwipeStation coming in we’ve been able to take it down to 15 seconds.” Mike Warren, Head of Concessions. Ashton Gate
We proved we could make money for our clients. For example, we increased sales at the Ricoh arena by 24.2%.
- Increased year on year revenue by 61% and user base by 64%*
- Built up client base to include Sodexo, Compass and Delaware North - the largest players in our industry with 36% of market share.
- Prepared the business for scale by strengthening our infrastructure (office, storage facility and workshop) and expanding the team to include sales & marketing, IT and operations.
- Expanded into music concerts including Spice Girls, Olly Murs, Bon Jovi and Chic
- Ignite "Internet of Things" Award: Runner-up (behind 'Hive' British Gas).
- WireHive 100 "Best Tech": Runner-Up.
- The Lovie Awards: Nominee
- W3 Silver Award Winner
- Digital Impact Awards: Best use of Digital in the Food & Beverage Sector: Bronze.
*Based on unaudited management accounts
Successfully agreed a signed Letter of Intent from one of the ten largest stadiums in the country to become (to the best of our knowledge) the world’s FIRST mobile-payment only stadium - all powered by SwipeStation.
- The global pandemic means that usage of mobile payment has exploded across the world. We are perfectly placed to dominate this market.
We offer our clients a blend of licence fee and revenue share.
Clients hire the SwipeStation units for £50 each per match (typically two units per bar) - as well as paying between 5% and 18% of all the revenue that goes through the app on the day.
The percentage depends on the usage, so that clients are encouraged to introduce the system in more parts of the stadium.
Before the pandemic, the SwipeStation service was a ‘nice to have’ - increasing sales and improving the fan experience. We are facing a world where our offering is a ‘need to have’ - where stadiums and other locations for mass gatherings must adapt if they are to serve visitors safely and profitably.
Use of proceeds
This round of investment is focussed on supporting rapid growth. When the stadiums reopen we are forecasting a huge demand for our offering. We need to ensure that we are able to service this demand.
The funds will be split across five core areas:
35% - Expanding the Business Development and Ops team to provide the best service possible to both prospects and clients.
20% - Product development - we plan to improve our service to better the offering of existing EPOS systems, which will require some development work.
15% - PR and Marketing - launching the world’s first mobile-payment-only stadium is a big news story. We want to make sure we capitalise on it!
15% - International Expansion -We are currently setting up a training programme for potential resellers in 8 other countries. Investment will enable us to cement those relationships and launch into other markets around the world.
15% - Increasing stock - increased demand will require more SwipeStations.
The company has four outstanding directors/shareholder loans totalling £81,417 with no interest attached and repayment due when the company becomes profitable.
The company has the following bank and creditor loans outstanding:
- £6,500.00 BBILS HSBC Bank Loan with at a fixed interest rate of 2.5% and a repayment date of 5th June 2026. The first repayment instalment is due June 2021.
- £33,658.99 PAYE loan with no set repayment date or interest.
- £22,873.33 from Trade Creditors with no set repayment date or interest.
The funds raised from this investment round will not be used to repay these loans.
Convertible loan note terms
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.
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.
• Valuation Cap: None
• Redemption Premium: An amount equal to 100% of the principal loan amount
• 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.
• Maturity Date: 36 months from signing convertible loan agreement.
o The default position is 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).
• 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:
o 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.
o 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.
o 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.
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. 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’, 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.
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.
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).
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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