Playrcart, a v-commerce business enabling checkout and payment to take place within its video player, recently launched an equity crowdfunding campaign on Crowdcube to raise £350,000 for the development of its mobile video app.
Playrcart previously raised funds on Crowdcube and was even named the platform’s People’s Choice Award winner in 2013. Its app allows users to browse and watch video content, then buy the related products, without leaving the Player and is usable on any device.
Typically users that wish to purchase viewed content are being redirected to a third party site to fulfil the transaction. Playrcart gives users the ability to view content then conveniently buy merchandise or tickets from within the app, all in one window. The player has had over 2 Million interactions, and global commercial agreements are in place.
The company revealed:
“Online video is a big growth area and Playrcart offers the possibility to monetize this development. Online video is growing rapidly: 55% of consumer internet traffic by 2016, with global video internet advertising revenue rising at 24% CAGR to 2018. After viewing video, online shoppers are 1.6x more likely to make a purchase. 1 in 3 Millennials purchase a product as a direct result of watching video.
“Playrcart sits at the intersection of these aligned needs by exposing viewers off online video viewing to the direct sales. The Digital audience is constantly maturing and is demanding new ways to engage. By exploiting the ‘moment of interest’ call to action and diluting an industry pain point, Playrcart engages with not only casual browsers but thetech savvy Millennials.”
Funds from this new campaign will go towards the following:
- Development of mobile application
- Recruitment of developers, commercial/new business development resource – to sign up more media owners and local suppliers
It will also fund the second order development requirements:
- Geo location and personalisation functions
- Geographical diversification
- Multi-channel development and implementation
- Cross-channel purchasing
- Research & development
- Hosting
- IP
In return, the company is offering 10% in equity and shared:
“We have calculated investor returns in a 5 year period, assumingPlayrcart has revenues of £10m at the time of exit. We have calculated an average valuation/revenues multiple of some listed comparable companies of over 3x. Applying this to the assumedPlayrcart revenues gives a valuation of £33m. Dividing this by the current post-money valuation of around £3.5m implies a return of investors of 8.6x their investment in the CC round.
“In order of preference we see a Buy Out, followed by IPO as the preferred route.”
The new campaign is set to close at the end of November.
________________________________________________
Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!