Teamed EIS

Businesses looking to access the best talent or more cost-effective labour are increasingly having to expand their search globally. However, employing cross-border teams can be complex, as most countries have different employment and tax rules.

Teamed Limited (“Teamed” or the “Company”) is an HR platform that enables companies to hire from 150+ countries quickly. With Teamed, there is no need to set up local entities, no large upfront cost and no compliance obligations.

Its AI-enabled Employer of Record (EOR) service covers the full employee journey: from onboarding, to payroll, benefits, tax reporting and filing, as well as offboarding. The fast-growing HR tech company currently has 220+ customers.

The EOR market is growing rapidly – 230% since 2020. To capitalise on this, the Company has efficiently used advertising spend to acquire new customers and grow recurring revenues 1.8x since 2023 to over £3 million.

Historically, Teamed’s return on advertising spend (ROAS) has been strong: on average achieving £2.50 new recurring revenue for each £1.00 spent. Since 2020, customer retention is 99%+ (with only two customers leaving) and account value has grown for more than 70% of customers. The Company has some of the highest trust satisfaction ratings in the industry.

Management sees an opportunity in Europe where it can leverage the rapidly expanding market to increase market share.

The Company has to date received equity investment of £4 million. This includes £2.3 million from Blackfinch Ventures, which continues to be a supportive shareholder, with its most recent investment earlier this year.

Management believes additional funding will help accelerate growth and build a £100 million+ recurring revenue business in the next five years – not guaranteed. To this end, it plans to raise an institution-led £5 million Series A in 2025. It has appointed advisers and is in early-stage diligence with several potential investors.

Now, to maintain growth rates while it negotiates its Series A round, Teamed is seeking to raise approximately £800k under an Advance Subscription Agreement (ASA) at a discount to the Series A. £500k is currently reserved for Wealth Club investors. The ASA should qualify for EIS tax relief in the 2025/26 tax year. 

Management has ambitious plans and forecasts to generate £38 million EBITDA in around 5 years. Predicated on these forecasts, target pre-tax return for this round is approximately 24x net of fees and before EIS tax relief – high risk and not guaranteed.

The minimum investment is £19,920.

The forecasts prepared by the Company are predicated on completing the planned Series A round. If this is delayed or fails to complete, the business has the backing of existing investors and access to venture debt which could still allow the business to continue to grow, albeit more slowly. This would impact returns.

Please carefully read all investment documents prepared by the Company to form your own view.

• £3 million recurring revenue – up 1.8x in 12 months
• 220+ customers serving 500+ employees in 150+ countries
• Only two customers lost since 2020 – 99%+ logo retention rate
• 70%+ of customer accounts show expansion from Month 1
• 101% Net Revenue Retention
• Highest customer satisfaction score in industry
• 23 employees

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 all 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 Information Memorandum which contains further details on the considerable risks – alongside the Wealth Club Risks and Commitments.

Investors will pay no direct initial or ongoing charges to invest. Fundraising costs are being met by the Company. Wealth Club will be entitled to a performance fee on exit. 

Wealth Club investors will invest using a nominee structure. This service is provided by Wealth Club’s subsidiary companies Wealth Club Asset Management Limited (authorised and regulated by the FCA) and Wealth Club Nominees Limited. Wealth Club Nominees Ltd will be completing the share subscription documentation on investors’ behalf.

Please refer to the Schedule of Charges for more details on charges (may vary for different rounds).

All the services Wealth Club and, where applicable, its subsidiaries provide are governed by the Terms and Conditions of the Wealth Club Services.

Terms of the ASA – quick overview

Teamed is seeking to raise up to £800k in this pre-Series A round under an Advance Subscription Agreement (ASA).

Investor funds will convert to shares under the following scenarios:

• Financing Round: At a 20% discount to the prevailing share price of a Financing Round of at least £4 million.
• Long stop date (July 2025): If no Financing Round completes within six months, the ASA will convert at the same price as the 2024 funding round – a £12.6 million fully diluted valuation.

Please refer to the ASA Terms for more details. Please note: this document is for your information only; it will be signed by Wealth Club Nominees on investors' behalf. 

Teamed has delivered consistently strong growth over the last four years in an expanding market, making effective and efficient use of its advertising spend. Management’s plans are focused on continuing to successfully execute the strategy that has led them to this point.

Teamed’s customer satisfaction and retention have been impressive so far. There is currently little indication that this trend might reverse, and if management can execute its plans the returns to investors could be compelling – not guaranteed.

That said, the growth set out in this round is predicated on completing a £5 million Series A round; while conversations with several funds are ongoing, it is still early days and the Company has not yet received a term sheet. The business has access to alternative sources of funding and could follow a lower-growth plan should the Series A be delayed or fail to complete.

We consider this to be a compelling, albeit high-risk, EIS investment opportunity - as usual, you should form your own view.

This financial promotion has been communicated and approved by Wealth Club Ltd on 16 December 2024

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.