Canopy EIS – existing investors only

Canopy (“Canopy” or the “Company”), the digital rental marketplace, is raising £3 million in a private offer under EIS. This is available to existing investors and arranged by West Hill Capital. Canopy is the trading name of InsureStreet Limited.

Wealth Club investors who have previously invested in Canopy can participate in this latest round.

Building on its partnerships with OnTheMarket, one of the UK’s leading property portals, and rental service providers Zero Deposits, Fronted, Just Move In and The Bunch, the Company intends to use the funding to support continued commercial traction. See PPM for further details.

Predicated on a successful fundraise, the Company expects its revenues to be £1.2 million for the year to September 2022, up from £180k in the prior 12 months, and expects to reach profitability in FY24. By FY26, it forecasts revenues of £46 million and EBITDA of £18.8 million by FY26 – see PPM for details on historical and forecast financials. Note: these are forecasts and not guaranteed. 

 The minimum investment for existing investors is £10,125 (4,500 Ordinary Shares at £2.25 per share).

Important: The information on this website is for experienced investors. It is not a personal recommendation to invest. If you’re unsure, please seek advice. Investments are for the long term. They are high risk and illiquid and can fall as well as rise in value: you could lose all the money you invest.

Read important documents and then apply

The deal at a glance

Type Single company EIS private offer
Stage Growth capital
Date started trading 2017
Funding to date c.£10 million from Direct Line Group, Experian Ventures, Pollen Street Capital, OnTheMarket, West Hill and Wealth Club EIS investors and c.£300k UKRI Innovate UK grant
Sector Property Technology (PropTech)
Pre-money valuation £11.9 million
Fully diluted post-money valuation £16.3 million
Market size c.£6 billion UK PropTech market
Business model B2B and B2C
Revenue to date c.£300k (September 2019 to September 2021)
Revenue model Referencing services (RentPassport), partnership commissions, subscription revenues
Profitability forecast from* 2024
Forecast revenue in year 4 (2026)* £46.0 million
Forecast EBITDA in year 4 (2026)* £18.8 million
*These are forecast and not guaranteed. Capital is at risk – you could lose the amount you invest.

Highlights

  • Experienced management team and board advisors
  • Single company deal with no diversification, high risk
  • Minimum investment for existing investors £10,125 (4,500 Ordinary Shares at £2.25 per share)
  • You can apply online 

The overview provided on this website is based on the information available in the Private Placement Memorandum ("PPM") prepared by the Company in conjunction with West Hill Capital and information provided by the management team and/or West Hill Capital. Wealth Club has not reviewed, verified or audited this information. Please read the offer documents carefully to form your own view and ensure you wholly understand the potential benefits and risks.

Canopy EISThe Company and its growth plans

Canopy is based in London and currently employs 42 staff. It won B2B Insurance Start-Up of the year in the Digital and InsurTech Awards 2018.

The Company has built a scalable commercial platform used by leading property portals, letting agents and institutional landlords such as OnTheMarket, Hamptons, Get Living and Moda Living. Its key products, RentPassport and RentTracking, help simplify the process of renting a property and tenant screening.

Key highlights since the last fundraising

  • Tech entrepreneur Scott Walcheck investing and joining as Non-Executive Director
  • New key executive hires from Gousto and LiveMore Capital
  • Growth in key metrics including numbers of renters, letting agents and revenues
  • Strategic investment by OnTheMarket
  • Increased number of partnerships for commission-based products and services

Private offer

The Company is seeking to raise up to £3.0 million at £2.25 per Ordinary Share. At least one existing corporate investor, potentially one new strategic investor and members of the Board are expected to invest in this round – not guaranteed.

The Company last issued EIS3 certificates in late 2021.

How is the funding intended to be used?

The Company is seeking to raise equity capital to help:

  • expand its product offering and drive an increase in the lifetime value of each user
  • grow conversion through the use of data to personalise offerings to renters
  • streamline technology processes to increase efficiencies e.g. Optical Character Recognition
  • provide working capital

See the PPM for details.

Financials

The Company forecasts £1.2 million of sales for the 12 months to September 2022, growing to £46.0 million by 2026. It expects to reach profitability in 2024 and generate EBITDA of £18.8 million by 2026 – high risk and forecasts are not guaranteed. 

The projections assume the fundraising target of £3 million is raised in full in the offer.   

For further information on the financial forecasts and historical performance, please see the PPM.

Board and management 

The executive team is led by CEO Chris Hutchinson who was appointed CEO in August 2021 from CFO. He is supported by Chief Product Officer Matt Hobbs, previously with Just Eat and Unilever, and Head of Sales Lee Power, previously with Bairstow Eves, Zoopla and Zero Deposit.

Chairman Mark Witherspoon brings a wealth of experience as the former CEO of Hometrack and ex-senior executive at Zoopla. Mark is well connected across the property industry and works closely with Chris to develop Canopy’s expansion strategy. 

Recent joiners include Head of Data Joe Cooper, previously of Gousto, and Head of Engineering Ben George, previously at financial services start-ups LiveMore Capital and Molo Mortgages.

For information on additional members of the management team, see the PPM.

The advisory board includes:

  • Peter Rollings, Ex-CEO Marsh & Parsons, Ex-Managing Director of Foxtons
  • Chris Lacey, Former Head of Institutional Investment at CBRE
  • Herman Heyns, CEO Anmut, former Partner at EY and KMPG for Data Analytics
  • Fred Uribe, Ex-CMO Burberry, Ex-SVP Brand Lululemon
  • Spiros Margaris, Global no.1 FinTech influencer
  • David Dickins, former customer service director at John Lewis, Bupa and RBS

Risks – important 

This is a single company offer with no diversification. It involves investing in an early-stage, loss-making business, which is by nature high risk and prone to failure. There is a risk that the capital raised may not be sufficient to achieve the Company’s objectives. You could lose the amount you invest.

Like all investments available through Wealth Club, it is only for experienced investors happy to make their own investment decisions without advice.

There is no ready market for unlisted EIS shares: they are illiquid and hard to sell and value. There will need to be an exit for you to receive a realised return on your investment. Exits are likely to take considerably longer than the three-year minimum EIS holding period; equally, an exit within three years could impact tax relief. The value of tax benefits depends on circumstances and tax rules can change. 

Before you invest, please carefully read the PPM which contains further details on the considerable risks – including, but not limited to, operating, technology, competition, market acceptance, product, employee, IP, data security, litigation and financial – alongside the Wealth Club Risks and Commitments.

Structure and fees

Investors will pay no direct initial or ongoing charges to invest. Fundraising costs are being met by the Company. Please refer to the Schedule of Charges for more details. 

The investment will be held via a nominee structure through Aldbridge Nominees (Woodside).

Register your interest – no obligation

Wealth Club aims to make it easier for experienced investors to find information on – and apply for – investments. You should base your investment decision on the offer documents and ensure you have read and fully understand them before investing. The information on this webpage is a marketing communication. It is not advice or a personal or research recommendation to buy any of the investments mentioned, nor does it include any opinion as to the present or future value or price of these investments. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination. 

The details

Type
Single company
Sector
Technology
Target return
Funds raised / sought
£3.0 million sought
Minimum investment
£10,125
Deadline
8 July for first allotment
Last updated: 28 June 2022

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