We Build Bots
Multi-award winning start-up helping the public sector deliver better, faster, cheaper citizen services.
- Applying for Future Fund, not conditional - see Key Info
- 5% UK market share for Local Government sector
- £1m + revenues generated since incorporation*
- 5m citizen interactions processed since incorporation
Learn more about convertible loan campaigns.
We Build Bots (WBB) is a multi-award winning GovTech start-up helping public sector organisations (Local Government, Education, Transport) deliver better, faster, cheaper citizen services.
Proud recipients of Tech Nation’s Rising Star Award: 2019, Technology Start-Up of the Year: 2018 and the Innovative Start Up of the Year: 2017, our core product, IntelAgent integrates AI powered chatbots, voicebots, and data analytics to automate answers to common questions, and execute repetitive tasks.
We are a trusted automation partner for the Public Sector, and also serve the utilities and third sectors. We have processed over 5 million interactions between citizens, customers and their service suppliers, providing us with extremely valuable training data for our AI models and creating a defensive moat around the businesses. A secondary 'Citizen Insights' product is in the offering, leveraging the data and insights we have collected over the past 2 years.
Substantial accomplishments to date
We have accomplished a lot in a short space of time. Here's some of our key achievements...
- 3 years of continuous, triple or double digit revenue growth.
- Multi Award winning; Tech Nation’s Rising Star Award: 2019, Technology Start-Up of the Year: 2018, Innovative Start Up of the Year: 2017.
- Developed sector-specific Natural Language Processing engine.
- Implemented multi lingual capabilities for 120 languages.
- Secured coverage across major outlets including BBC, ITV and Forbes.
- Deployed IntelAgent with 21 public sector clients across local government, education, transport and blue lights.
- Secured accreditation across a number of Public Sector frameworks including G Cloud 11 (soon 12), DOS4, SPARK and the Automation framework.
- Processed 5m+ interactions (affording us lots of data for future monetisation).
*Based on unaudited management accounts
There are currently two revenue streams for IntelAgent...
1) Build/deploy fees
These vary depending on the complexity of integration, and the number of services covered (eg waste collection, tax payments, social care, travel etc).
NB: An encouraging aspect of our revenue model is that we rarely have to 'reinvent the wheel' for each client, as our framework becomes increasingly reusable over time. That gradually reduces development time and costs.
2) 3-year license/support.
Access to the platform and ongoing tech support for a minimum of 3 years.
Our revenues are currently split 70:30 between deploy and license.
Our strategy is to reverse this ratio over the next 12 months by reducing deployment times (and costs), and subsequently increasing our license fees to build a strong recurring revenue model.
Use of proceeds
There's an opportunity to provide IntelAgent to Public and Private sector contact centres. This article shows how contact centres are changed forever and the opportunity that creates for products like us - https://www.technologyreview.com/2020/05/14/100....
We'll increase marketing spend to begin penetrating new sectors, beginning with Utilities and Telcos. We are about to deploy an enterprise scale utilities platform that will act as an exemplar of what's possible and we'll use this to leverage the opportunities brought about by COVID19.
We've also seen an unptick in sales for 'lighter' versions of our product within the local government sector, and with some tweaks we can make this version of the product rapidly deployable, and more SaaS - like. This means bringing in some additional development resource.
Finally, flipping our revenue model needs cash reserves and that will be the final usage of the investment monies.
The company has an outstanding Bounce Back loan of £50,000. Repayments start in 2021 over a period of 6 years.
None of the funds raised in this round will be used to repay this loan.
Convertible Loan Note
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:
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
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.
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:
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 not conditional upon receiving matched funding from the Future Fund. Seedrs will complete the investment and transfer the funds raised even if the application for Future Fund investment is rejected. We will ensure an application is made to the Future Fund for matched funding and will not complete until we know the outcome of the application. But if the application is rejected, the company will still be permitted to complete the investment 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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