City Unscripted EIS

Exclusive £1m EIS round before institutional round

Private offer background

City Unscripted is a young, growing company that offers authentic personalised city experiences with a local host – think of it as discovering a new city with a friend who knows it inside out.

In October 2018 City Unscripted raised c. £1.2m under EIS exclusively through Wealth Club (the offer was overfunded). 

City Unscripted is now raising a further £3m. The intention was to raise the full amount from institutional investors. City Unscripted has engaged Spectrum Corporate Finance to lead the round. Indeed they are in discussion with a number of VCTs and private equity houses.

As Wealth Club investors were involved in the last fundraise, they have been invited to participate in a smaller EIS round prior to the institutional round. The £1m City Unscripted EIS private offer is open exclusively to Wealth Club investors. 

Due to the circumstances of the offer, we haven’t reviewed the Information Memorandum, company forecasts or deal details, nor have we produced a research report, as we usually do for single-company deals.

Highlights

  • Growing business offering personalised experiences in 41 cities across the world
  • Hosted more than 13,000 guests since launch in 2016
  • Opportunity to invest in small (£1m) EIS round before institutions potentially invest
  • Minimum investment £10,175
  • High-risk single company private offer with no diversification

We have provided a deal overview based on the Information Memorandum (IM) prepared by City Unscripted and Spectrum Corporate Finance. We are not involved with the discussions with the institutions. 

Important: The information on this website is for experienced investors. It is not advice nor a research or 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, so you could get back less than you invest.

Read important documents and apply

The company

TripConsul Limited, trading as City Unscripted, offers personalised, authentic city tours and experiences in 41 cities across the world. 

Don’t picture a group of tourists dutifully following a professional guide who recites facts about a city’s landmarks. The experiences City Unscripted offers are more akin to exploring a new city with a friend who loves it and knows it inside out. Each experience is unique, crafted around the guests’ individual needs and wants. Instead of impersonal professional guides, City Unscripted has a network of 1,300+ vetted “local hosts”, which City Unscripted carefully matches to its guests.

Private EIS offer

City Unscripted is aiming to raise up to £3 million: an EIS round exclusively available to Wealth Club investors and an institutional round led by Spectrum Corporate Finance (“Spectrum”).

The EIS round aims to raise up to £1 million (363,637 Ordinary A shares at a price of £2.75 per share). This reflects a pre-money valuation of £6.375 million, as provided by the company.

Spectrum aims to raise a further £2 million from institutional investors and is pitching the opportunity to several VCTs and private equity houses. By way of an update, Spectrum has confirmed: "a large proportion of the investors we have approached have expressed interest in the opportunity and c. 80% have received the Information Memorandum.  Following various meetings and conferences calls, around 10 of these remain live but we are not yet at the stage of having draft offers for consideration. Based on the feedback received to date, we are planning to expand our approach to include some additional VC contacts." (8 November 2019)

The intention is to close the two rounds by the end of the year, but there are no guarantees.

City Unscripted EISTarget returns

The target valuation and investor return has been calculated and provided by the Company and Spectrum, although this is not explicitly set out in the IM. The management is targeting returns of 17.5x before tax relief. This is based on forecast EBITDA for year five. The company's financial forecasts are those included in the Information Memorandum prepared by City Unscripted and issued by from Spectrum. These have been updated since those prepared for the previous EIS fundraising round with Wealth Club. Returns are not guaranteed. 

Charges and savings

Investors are investing in the Company directly so will pay no direct initial or ongoing charges. TripConsul Ltd will pay an introducer fee of 6% to Wealth Club.

Risks - important

This is a single company EIS offer with no diversification. It involves investing in an early-stage business which is by nature high risk and prone to failure. This, like all investments available through Wealth Club, is only for experienced investors happy to make their own investment decisions without advice.

If the Company does not secure the institutional funding sought by the Company and its advisers the forecasts in the IM are unlikely to be achieved and the Company’s cash position will be materially lower, putting the business at greater risk.

The Company has missed forecasts previously and the growth set out in the latest IM may not be achieved.

EIS investments are high-risk so should only form part of a balanced portfolio and you should not invest money you cannot afford to lose. They also tend to be illiquid and hard to sell and value. Before you invest, please carefully read the Risks and Commitments and the offer documents to ensure you fully understand the risks.

The value of tax benefits depends on circumstances and tax rules can change.

Register your interest – no obligation

CityUnscripted EIS 1

Wealth Club aims to make it easier for experienced investors to find information on – and apply for – tax-efficient investments. You should base your investment decision on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. 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
Consumer
Target return
17.5x
Funds raised / sought
£1.0 million sought
Minimum investment
£10,175
Deadline
13 Dec 2019 for first allotment
Last updated: 3 October 2019

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