Trezeo provides a unique range of financial services for independent, self-employed workers.
|Location||London, United Kingdom|
|Sectors||Finance & Payments Digital Mixed B2B/B2C|
|Company number||586176 (Ireland)|
|Incorporation date||19 Jul 2016|
- £20bn+ Market Opportunity in Europe & US
- Partnership signed for expected 10k-20k members in 12-18 months
- Launched Wellness & SickPay add-on bundles in March 2020
- FCA Authorised
Learn more about convertible campaigns.
Trezeo has built a financial safetynet for the rapidly growing population of self-employed and gig workers who lack the benefits and protections that come from standard employment.
We work with debt providers, insurers and other partners to deliver a range of protections and benefits that these workers deserve, such as stabilising income, insuring income against accident and sickness and building credit via interest-free top-ups.
In the midst of the COVID 19 crisis, there are numerous reasons to feel bleak for many of the self-employed workers who perform essential services, but we have an opportunity to make a positive change for the future. We are working with platform companies and other stakeholders to address the trade-off between personal freedom and financial security, because these workers can, and should, have both.
Since our last funding round, we have achieved many important milestones and we look forward to welcoming more investors to our community as we prepare for scale.
In a world where a large and growing proportion of the workforce doesn’t have the usual safety net provided through traditional employment, Trezeo’s mission is to deliver inclusive financial services for independent workers to support their lives today and tomorrow.
Trezeo membership provides a unique range of financial services and protection for independent workers, giving them financial peace of mind and reducing their work-related stress while increasing their financial stability and supporting their future aspirations.
Trezeo also enables (platform) companies to deliver greater value and financial well-being for their flexible workforce, attracting and retaining valuable talent while also doing the right thing.
In this way, Trezeo is creating a world where workers have access to inclusive financial services irrespective of how they work, creating a better future and contributing to a stronger society.
Substantial accomplishments to date
● July 2018: FCA Authorisation.
● September 2018: European winner and global finalist for Financial Inclusion at the MIT Inclusive Innovation Challenge.
● December 2018: Closed funding round via Seedrs.
● December 2018: First credit top-up completed on Boxing Day.
● January 2019: Selected for the Barclays Accelerator, powered by Techstars and received investment from Barclays and Techstars.
● January 2019: Chosen by Nationwide to deliver a solution for income volatility as part of the Open Banking for Good challenge.
● March 2019: Selected to participate in the Economic Security Impact Accelerator run by the RSA in partnership with the Mastercard Center for Inclusive Growth.
● April 2019: First revenue from both weekly subscriptions and Nationwide.
● June 2019: Startup Pitch winner at Money 20/20 Europe in Amsterdam.
● August 2019: Agreed a partnership with Labour xchange for them to pay for Trezeo membership and add-ons for workers on their platform.
● September 2019: Added Personal Accident Insurance to Trezeo Membership.
● January 2020: Launched a completely new version of our mobile app incorporating a redesigned UX, extended saving functionality and more.
● March 2020: In response to the arrival of COVID 19, we provided sickness insurance to existing members for free and launched our first two add-on bundles - Wellness and SickPay - along with our new website.
● April 2020: Became part of the IEP BOOST programme, a scale-up programme led by the Cabinet Office.
Our projected annual Average Revenue per User (ARPU) is £300 in Year 4.
This will come from three key sources:
1. Membership fees - fees from membership subscriptions paid directly by customers or by their platform. We are currently generating £10 per month per user (£120 ARPU) from basic membership and we are projecting an ARPU £190 within 12 months.
2. Partner revenue - we will generate further revenue from partners including:
a) Transaction and subscription fees for processing payment collections on behalf of partners - including vehicle rental or insurance payments
b) Licence fees from partnerships with banks and other financial services firms
c) Data and analytics services - including income verification services
3. Product revenue - we will receive commission and affiliate revenue on other products sold to Trezeo customers – including savings, pensions, general insurance and mortgages
Use of proceeds
While we have never been busier supporting our members through the COVID 19 crisis and delivering further products, the crisis has delayed the roll-out of our key partnerships, including Labour xchange, and our next funding round.
● We are raising £200,000 funding to bridge us to our next full round which we are aiming to complete in the coming months.
● These funds will provide working capital to see us through the COVID 19 crisis.
● We have also reduced our overheads to approx. £40k per month and taken steps to extend our runway including accelerated tax credit refunds and evaluating Government supports available in the UK and Ireland.
● Completing this funding round will enable us to continue to support our current customers, prepare for our roll-out with Labour xchange and ensure we are ready to capitalise on the recovery by engaging with further partners to support their workers in recovering from the COVID 19 crisis.
Convertible Key Terms
This investment round was raised by way of a convertible equity investment structure, in this case an "advanced subscription agreement".
The key terms that apply to this investment round are set out below. This convertible differs in a few key ways from Seedrs standard advance subscription agreement, so please read carefully. See also attached Key Terms document for further details.
• Discount – conversion at a 15% discount to the valuation set by a Trigger Event.
• No valuation cap.
• Conversion is triggered by ("Trigger Event"):
- A Qualifying Equity Fundraise – defined as the Company raising investment capital of at least €1,000,000 from one transaction or a series of transactions, in exchange for the company issuing equity shares. On a Qualifying Equity Fundraise, the conversion is triggered automatically;
- A Change of Control of the company (transfer of more than 50% of the share capital); or
- An IPO – being a listing of the company’s shares on a recognised stock market or secondary market.
• Longstop Date is 14 August 2020.
• If conversion has not been triggered by the Longstop Date shares will be issued on the longstop date at the Default Share Price, which is the lower of:
- the price per Share of the most recent priced equity funding; and
- (ii) two euros and thirty-one cent (€2.31) per Share;
• The instrument will also convert at the Default Share Price on a share sale, asset sale, winding up event or liquidation event.
Please note that whilst this campaign is being raised in £, the conversion of investment into shares will be based on a share price in €. Therefore, investment made into this campaign will be issued shares at that point based on the ECB reference rate at the start of this campaign on 5 May 2020, which is 1.14863 € per £.
In addition, there are some reflected funds in this raise from direct investors which were originally in € and shown in £ using the same rate. Any other funds in € invested directly as part of this raise will be reflected using this exchange rate.
Outstanding Convertible Investments
EUR75,000 convertible loan notes from private investors, with the following key terms:
- Interest rate: 6% per annum, payable only on maturity or default.
- Qualifying financing round for conversion: €1m financing round
- Discount: 20%
- Valuation Cap: €5m
- Conversion price: The lower of (i) 20% discount to the price per share of the qualifying financing round or (ii) €5m divided by the fully diluted number of shares in the Company at the time of conversion.
- Share class: Class of shares issued in the qualifying funding round
- Maturity date: 31 Jan 2022
USD100,000 convertible loan note from Techstars, with the following key terms:
- Interest rate: 5% per annum, payable on redemption or default. Coverts to equity at the conversion price below.
- Conversion trigger(s): USD 250,000 qualifying equity round or at maturity on election of the noteholder.
- Discount: 20%
- Valuation Cap: USD 5m
- Conversion price in qualifying equity round: The lower of (i) 20% discount to the price per share of the qualifying financing round or (ii) USD 5m divided by the fully diluted number of shares in the Company at the time of conversion.
- Conversion price at maturity (if elected): USD 5m divided by the fully diluted number of shares.
- Share class: Class of shares of the qualifying equity round or ordinary shares is converted at maturity.
- Maturity date: 8 Feb 2021
Fixed Percentage Convertible Equity Agreement with Techstars and Barclays, with the following key terms:
- Converts to ordinary shares equal to 6% of the fully diluted number of shares immediately on issuance of those shares, not including shares issues in the qualifying financing round.
- Conversion trigger(s):
- Qualifying financing being an equity financing not less than USD 250,000 ; or
- Change of control; or
- Initial Public Offering; or
- Company dissolution event.
The company has been approved for a €50k COVID-19 Business Loan from Microfinance Ireland. They are considering whether to accept this offer and will make a final decision based on the amount raised in this campaign, but it is available should it be required. If accepted, this loan would have an interest rate of 5.5% pa and be repaid over 3 years with 0% interest and zero repayments for the first 6 months followed by monthly repayments of €1,784.66 per month for the remaining 30 months.
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