Since 16 December we are publically live on Symbid with our crowdfunding campaign, and the amount raised is already ~88.000 euro.
During the crowdfunding campaign, you can invest in a convertible loan (more info) with 8% interest and a 5 year installment. You can convert this loan to equity in MotoShare.
When converting to equity, you will get a discount on the valuation of MotoShare:
- Within 0 - 3 months: 0% discount
- Within 3 months - 1 year: 15% discount
- Within 1 year – 5 years: 30% discount
The return for the investors in the convertible loan (before conversion) is hence approx. 23% yearly: 8% interest + ~15% yearly discount on the valuation of MotoShare. After conversion, your return is the yearly increase of the value of the company.
12 months after the crowdfunding campaign, an informal investor invests €100,000 into MotoShare and gets 10% shares in return. Then the valuation of MotoShare is €1.000.000.
At this moment, investors in the convertible loan can convert their loan to equity. They will get a 15% discount, so the valuation against which they will convert the loan is €850.000. The loan after 12 months is €200.000 (face value) + 16.000 interest (8% yearly) . Thus if all crowdfunders convert the convertible loans to equity, they will have 25% share of MotoShare (€216.000 of €850.000).
Ample room to grow
We distinguish three scenarios within 5 years:
A: MotoShare is successful in a large part of Europe (our ambition!). Refer to the P&L forecast of Europe: EBITDA is €1.5 million by 2021.
B: MotoShare is successful in the Netherlands & Belgium. Refer to the P&L forecast of the Netherlands & Belgium: EBITDA is €0.5 million by 2021.
C: MotoShare is active in the Netherlands.
The assumed market penetration by 2021 of ‘shared motorcycles’ is still limited: 0.3% in Europe and 1.8% in the Netherlands & Belgium. Hence there remains ample room to grow, based on the current (13%) willingness to share motorcycles.
The industry average EV / EBITDA multiple for internet companies is 23.8x. Thus the estimated company valuation by 2021 is ~ €36 million (A) or ~ €12 million (B).
Good exit scenario’s in fast growing sharing market
The overall sharing economy in Europe is expected to grow 35% annually up until 2025, based on a recent (2016) study by PWC for the European Commission.
The exit scenario’s for investors are:
- Sell your shares in a future financing round (e.g. Series A or B Financing).
- Sale of MotoShare towards a car sharing platform like Drivy.
- Sale of MotoShare towards an European motorcycle rental company, e.g. Sixt.
- Sale of MotoShare towards a leading motorcycle brand like BMW.
Return on your investment
Assuming the investors in the crowdfunding campaign (aim €200 k) retain around 5% equity by 2021 after dilution from future financing rounds. Then the potential return on investment (between scenario A and B) ranges between 160%* - 40% yearly.