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Kolanot

Platform:
Crowdcube
Stage:
Seed
Industry:
Business Services
Location:
UK - North West
Date Rated:
22/01/18
Raise:
£150,000
Equity:
15%
Valuation (Pre Money):
£850,000
Industry: Business Services
Location: UK - North West
Platform: Crowdcube
£150,000 Seed
Valuation: £1,000,000
Date Rated: 16/01/18

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

Kolanot is a platform allowing individuals and small businesses to arrange global transport of bulk items without the extensive paperwork normally associated with freight shipping. The platform is operational, having completed its first shipment and is readying for commercial launch. These funds will be used to refine the site as it goes live.

Financial Overview

2022
Date (y/e) 2018 2019 2020 2021 2022
Sales 2018£624,084 2019£1,233,138 2020£1,853,844 2021£2,952,282 2022£4,178,892
Gross Profit 2018£352,402 2019£716,214 2020£1,085,674 2021£1,686,731 2022£2,349,924
GP as % sales 201856% 201958% 202059% 202157% 202256%
Overheads 2018£140,340 2019£291,852 2020£291,812 2021£291,812 2022£291,812
Operating Profit 2018£212,062 2019£424,362 2020£793,862 2021£1,394,919 2022£2,058,112
OP as % sales 201834% 201934% 202043% 202147% 202249%
Closing Cash 2018£346,015 2019£629,585 2020£1,142,145 2021£2,014,989 £3,150,995

Note: This financial information has been sourced from the company on 12/01/2018 or from public sources. Financial data is NOT verified by Wheatfromchaff Ltd.
54%
SKILLS:
EXPERIENCE:
COMMITMENT:
Kolanot has cited a number of skilled developers and architects, but the team lacks members with marketing, sales or leadership skills.
The CEO is experienced and has access to a number of technical and commercial advisors, but this appears to be his first significant entrepreneurial activity, with no prior exit or growth.
Of all the individuals in the pitch only the CEO seems currently fully dedicated to Kolanot, but he has been working on the business for some time and has invested his own cash.
33%
MARKET:
PRODUCT:
COMPETITION:
The global shipping industry is very large and supports a diverse market for broker services that has, in recent years, entertained a number of challenger entrants.
Kolanot has completed a test transaction but is yet to open to full commercial use.
Kolanot is aware of its position within the market and of its most direct competitors. Unfortunately there is little to differentiate it from them, especially while it is pre-launch.
53%
PROFITABILITY:
CASHFLOW:
RETURNS:
Kolanot has provided a detailed set of financial projections that show a modest long-term growth rate, but this hinges on very rapidly achieving sales and keeping overheads low.
If the projected revenues can be achieved then Kolanot should benefit from a business model that allows for rapid growth and has significant headroom built in.
Even if the sales targets can be met, for investors to see significant returns any exit will need to be at a relatively high multiple of revenues for this sector.


Conclusion

Kolanot's platform still has some crucial design issues that need to be addressed. The sales target of launching with almost £20k of revenue in January 2018 is incredibly ambitious and interested investors should enquire as to how well the company is performing against this metric so far.

With cash balances never falling below £129k investors may also question why so much money is being raised - we applaud businesses that allow for some headroom to protect against under-performance and unforeseen costs, but such a large amount of headroom suggests a poorly planned campaign or financial projections which the company does not believe are at all realistic.

Related Links

Crowdcube Pitch

www.kolanot.com

 

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