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The Link App

Platform:
Seedrs
Stage:
Expansion
Industry:
Business Services
Location:
UK - London
Date Rated:
17/01/18
Raise:
£300,003
Equity:
15%
Valuation (Pre Money):
£1,700,017
Industry: Business Services
Location: UK - London
Platform: Seedrs
£300,003 Expansion
Valuation: £2,000,020
Date Rated: 15/01/18

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

The Link App is a secure client communications platform for law firms, giving clients a better experience and helping firms to manage privacy and security. Firms are charged a subscription fee for each user they manage on the platform. These funds will be used to build the Sales and Marketing functions, and to further invest in the development team.

Financial Overview

Aug-21
Date (y/e) Aug-17 Aug-18 Aug-19 Aug-20 Aug-21
Sales Aug-17£15,023 Aug-18£294,350 Aug-19£2,988,005 Aug-20£9,373,440 Aug-21£23,491,680
Gross Profit Aug-17-£42,216 Aug-18£250,654 Aug-19£2,504,164 Aug-20£7,873,421 Aug-21£19,763,578
GP as % sales Aug-17-281% Aug-1885% Aug-1984% Aug-2084% Aug-2184%
Overheads Aug-17£82,394 Aug-18£543,650 Aug-19£2,634,120 Aug-20£4,585,679 Aug-21£7,814,796
Operating Profit Aug-17-£124,610 Aug-18-£292,996 Aug-19-£129,956 Aug-20£3,287,742 Aug-21£11,948,782
OP as % sales Aug-17-829% Aug-18-100% Aug-19-4% Aug-2035% Aug-2151%
Closing Cash Aug-17£15,494 Aug-18£3,598 Aug-19£241,162 Aug-20£2,770,943 £12,410,254

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.
64%
SKILLS:
EXPERIENCE:
COMMITMENT:
The management team is complete and further supported by a Chair and an FD, which is reassuring to see at this stage of growth.
The team is experienced and well supported by advisors. There isn't much previous entrepreneurial experience, but an upcoming phase in an accelerator should prove very beneficial.
Most of the team appears able to commit to working on The Link App, but some members have other ongoing concerns. Salaries will represent a significant outlay in the next year.
77%
MARKET:
PRODUCT:
COMPETITION:
While the UK legal sector's growth has largely plateaued in recent years, supporting IT services are seen as an area to be invested in, and The Link App's technology can be applied elsewhere.
The Link App already has paying clients and has received endorsements and a valuable distribution partnership.
Legal communications have changed little since email, but security improvements are now seen as crucial. There are competitors in this space, but the field is still largely open.
54%
PROFITABILITY:
CASHFLOW:
RETURNS:
The Link App's financial projections are detailed and show a reasoned growth plan that is well costed but still ambitious.
The subscription-based business model should provide steady and predictable income. The forecasts show little room for under-performance so over-funding would be desirable.
There is no discussion of the exit strategy. With a future round planned (and the possibility of an unplanned round), investors would be wise to be prepared to follow-on to protect their stake.


Conclusion

The Link App's talented team has brought to market a service that can improve both the experience and security of legal firms and their clients alike. With endorsements from The Law Society, distribution partners and a wealth of press coverage the company is poised to grow rapidly.

Investors may be concerned at how little financial headroom the projections allow, which means that the company may need to scale back its growth ambitions or raise more funds ahead of the planned £750k round in September 2018.

Related Links

Seedrs Pitch

www.thelinkapp.co.uk

 

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The Ratings we publish have been approved and issued at Financial Promotions in the United Kingdom by Wheatfromchaff in the United Kingdom who is Authorised and Regulated by the Financial Conduct Authority FRN: 751017. Wheatfromchaff Limited registered office is Kilver Court, Kilver Street, Shepton Mallet, Somerset, BA4 5NF and telephone number +44 (0) 1749 347 577. Telephone calls may be recorded. VAT No: 214 0196 49

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