Elkstone Venture – Monthly Update March 2018
Deal updates from the Elkstone Venture Club and launch of the latest club deal.
Declan Magee leads Venture at Elkstone.
March saw the launch of our latest Club Deal.
tausendkind is a Berlin based leading pure-play online retailer primarily aimed at the baby and children’s fashion market. Online continues to make strong inroads to traditional high street retailers whose digital offerings have been slow to evolve. With over 700,000 registered customers and a choice of over 55,000 items across 600 brands, tausendkind has established itself as the go-to destination for fashion conscious online buyers in the German speaking region. Management is now focussed on scaling the business to profitability over the coming 2-3 years with a forecast doubling of revenues over that period. The recent fund raise is a significant enabler of the expected growth along with various margin enhancing initiatives by management. At that stage, we expect that there will be a number of interested parties prepared to acquire tausendkind.
Some Club Deal Updates
As many of you may have seen in the media recently, Elkstone has been leading a funding round for Flipdish that is near completion. The funding is primarily to finance the international roll-out of the platform into new geographies. Flipdish has hired its’ first Continental European salesperson in Spain with good initial traction. Smaller restaurants and local convenience stores critically need their own technology & marketing solutions to win back & retain their own customers, analyse data and self-help themselves to improve tight margins. Flipdish is the answer. Metrics are very strong with 16% MOM revenue growth, super traction with no customer churn, great customers, etc. This is a space right across Europe which offers enormous opportunity. We are delighted to be able to lead and support this international opportunity along with Growing Capital and Enterprise Ireland. In case you missed it, here is a link to some recent media coverage for Flipdish that appeared in the Sunday Business Post on 18/03/2018.
2017 proved to be a record-breaking year for the ETF industry in Europe with Assets Under Management (AUM) growing by more than 40% to almost $800bn. The strong underlying growth of the market and the increasing desire of a wide variety of asset managers to the enter the European ETF space bodes well for HANETFs’ prospects which will provide a white-label solution to these managers. Having recently closed its’ Founders & Seed round, the company has continued to make progress by putting in place senior staff in Marketing, Legal, Product Management, Operations , Capital Markets and Sales. Total full time staff will expand to nine by the end of the month. The key focus for management post-funding has been on client acquisition both directly and through a wide range of fund and Exchange Traded Fund (ETF) conferences. The company expect to be in a position of launching its first funds by summer.
Ryanair’s event ticketing platform, powered by Coras, is now live on the Ryanair website. Through Coras, Ryanair can now directly offer its’ customers the best West End inventory available with over 7m tickets to all the biggest musicals, gigs and plays. Ultimately Coras is looking to expand to other genres and geographies to order to offer it’s own clients with an even wider choice.
Some highlights from our wider portfolio
Frontier Car Group
Frontier Car Group, a Berlin based company that develops, launches and operate used-automotive marketplaces within emerging markets recently completed a US$22m funding with over $75m raised to date with a number of well know names on the captable including TPG Growth and Balderton Capital. The company has operations in Nigeria, Mexico, Chile, Turkey, Pakistan and Indonesia. Founded in 2016, the company has scaled quickly to introduce technological solutions and access to capital to emerging markets that have large, young populations that are adopting new technologies and upgrading their cars.
reBuy, a leading German based recommerce company selling used consumer electronics and media items, announced a €21m funding. Sales at reBuy for 2017 were about €109m with the company posting a positive operating result. Recommerce continues to expand rapidly with electronics goods forming the main offering. The company has over five million customers and approximately 500 employees.
HealthBeacon, a Dublin based Digital Therapeutics company that develops smart tools for managing medication has just been announced as the winner of the Johnson & Johnson Innovation, JLABS and Janssen Supply Chain Group, LLC (JSC) Patient Adherence QuickFire Challenge. This challenge was designed to identify companies that are creating innovative solutions for patients, that are easy to use and may be integrated into a patient’s typical daily healthcare routine. HealthBeacon was voted as the overall winner of the challenge and as such will receive a $75,000 award. The company was identified as the winner for displaying excellence across a number of categories including high impact on healthcare outcomes & adherence, user friendliness & ease of implementation and commercial scalability.