Issuer: Vyke Holdings Ltd
Role-based mobile voice over internet protocol (mVoIP) App launched 29th January 2016 which allows for adding additional mobile numbers to the customers’ profiles and provides free peer-to-peer chat features.
Location: London, UK
Tax Status: EIS
Equity on offer: 20%
Funding Target: £500,000
Pre-money valuation: £2,000,000
Post-money valuation: £2,500,000
Link to crowdfunding campaign: https://www.seedrs.com/vyke
Subsequent to the previous Vyke campaign on seedrs.com not achieving its full funding target, the campaign has been relaunched with revised pre-money valuation from £2.93m to £2.0m and revised target amount from £800k to £500k. As of 31st of March, the campaign was funded ~£399k, close to 80% of the target, from 98 investors with the four largest providing a total of £370k. All Street has not updated the report originally issued in February 2016 but a summary of key changes and key points to consider can be found below:
- Vyke intends to use the £500k funding for marketing (£191k) and necessary operational overheads required for breakeven (£309k), now anticipated in August 2016 compared to previously projected in early 2017. In order to achieve this, the main reductions of costs in the updated budget provided relates to payroll and general overhead costs.
- Except for EBITDA in the first year (now -£525k versus -£860k previously), both Revenue and EBITDA projections remain largely unchanged, only 3 months delayed; previous forecasts were to September, updated forecasts are to December in each year.
- Likewise, the number of users is now expected at 128k at the end of December 2016, versus previously expected at the end of September 2016.
- Vyke has already achieved the first and second white-label contracts, signed respectively in early February and mid-March 2016 with advanced discussion with 3 significant prospects including a global media company according to management. This is considered to be a positive indication of the potential in the technology/App developed and infrastructure already in place, which is highly scalable.
- The built-in referral component has been designed to reward referrers and referees if required, potentially representing a powerful marketing tool. However, the risk remains that the marketing budget will not be sufficient to achieve the rapid growth in customer numbers forecasted, which may consequently necessitate further funding.
The full report on Vyke from February 2016 is available for free for all new All Street users. This should be read in conjunction with the new information and projections available directly from Vyke.
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