Damson Global, a Yorkshire-based company that designs and produces consumer audio products, is raising a £100,000 24 month venture loan on Crowd2Fund. The investment opportunity comes with a steep 14% APR for investors.
Damson was founded in 2012 by James Talbot, who was formerly the Head of International Sales for a multi-national real estate company. According to the company, Talbot was inspired to start Damson during his travels, where he found it difficult to find a portable speaker that he could use in his accommodation.
Damson’s speaker, the Cisor, is a flagship product, interestingly skips over a speaker cone, but instead uses the surfaces it is placed upon to amplify sound. Damson Global has generated some success with this concept and has since developed a range of products to market, including more speakers, headphones, and a wireless home cinema system available.
Under the offering page notes, Damson indicates it is “balance sheet positive” and expects to generate a small profit for the year. Damson says that revenues in 2017 reached £670,000, representing a 458% (up from £119,000) increased from the prior year.
So why raise the debt capital at such a hefty interest rate?
Damson indicates it is considering an equity funding round but right now they believe that debt is more manageable (plus there is no dilution for existing shareholders). The loan will be used for “purchase of stock and improving payment process.”
Previously, Cisor has gone the pre-sale route having completed a number of rewards-based campaigns, including a Cisor campaign on Indiegogo, which raised over $300,000.
Talbot says he believes he can be a force in audio, particularly in wireless systems that would normally be associated with players like Sonos or Sony. An ambitious goal.
“I expect us to become a household name in the UK, and possibly even the USA. We’re working on some exciting partnerships that will enable us to achieve this,” said Talbot.
The campaign has already raised £50,000 backed by 169 individual investors.
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