Seedrs • KLEKT
Crowdfunding av aktier
KLEKT
Street Culture Resale: The Next Multi-Billion Frontier.
Key project data
Target amount
1,8 MEUR
Eigen vermogen
3.41%
Valuations
172,4 MEUR
Would AI invest?
56/100
1
100
AI-genererad översikt
AI project overview
Condensed summary based on project data
<p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>KLEKT — Crowdfunding Investor Memo</strong></span></span></p> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><em>Authenticated marketplace for pre-owned (“pre-loved”) sneakers and streetwear.</em></span></span></p> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>Sector: </strong>Online resale marketplace · <strong>Stage: </strong>Seed / post-acquisition relaunch · <strong>HQ: </strong>Belfast, United Kingdom · <strong>Raise: </strong>£1.8M target (Republic Europe, equity)</span></span></p> <table cellspacing="0" class="Table" style="border-collapse:collapse; border:none; width:6.5in"> <tbody> <tr> <td style="background-color:#faece7; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:200px"> <p> </p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:424px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>Why this score:</strong></span></span></p> <p> </p> </td> </tr> <tr> <td style="background-color:#faece7; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p style="text-align:center"><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">AI SCORE</span></strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:424px"> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Experienced repeat-founder CEO (prior exits Trov, ServiceCloud) and an institutional board (Barclays, Climate-KIC, Techstart) — a genuine strength.</span></span></li> </ul> </td> </tr> <tr> <td style="background-color:#faece7; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p style="text-align:center"><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="font-size:26.0pt"><span style="color:black">56 / 100</span></span></strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:424px"> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Weak trailing financials: audited turnover under £0.35M and negative EBITDA every year 2023–2025, against a plan for ~50× GMV growth by 2028.</span></span></li> </ul> </td> </tr> <tr> <td style="background-color:#faece7; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p style="text-align:center"><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="font-family:"Segoe UI Emoji",sans-serif"><span style="color:black">⚠️</span></span><span style="color:black"> Caution</span></strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:424px"> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Sector timing is against the company: independent sources show a sneaker-resale slowdown and margin compression in 2024–2025.</span></span></li> </ul> </td> </tr> <tr> <td style="background-color:#faece7; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p> </p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:424px"> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">The raise is 94.77% funded by management and existing shareholders — the genuine “crowd” portion is small and the price is largely insider-set.</span></span></li> </ul> </td> </tr> <tr> <td style="background-color:#faece7; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p> </p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:424px"> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Deck labels the raise a “convertible loan note” while the actual instrument is equity (Seed Preferred shares) — a material framing discrepancy.</span></span></li> </ul> </td> </tr> </tbody> </table> <p> </p> <table cellspacing="0" class="Table" style="border-collapse:collapse; border:none; width:6.5in"> <tbody> <tr> <td style="background-color:#e6f1fb; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:624px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><span style="color:black">ℹ️ <strong>This is not investment advice. </strong>The purpose of this overview is to help potential investors preselect crowdfunding projects quickly. Before investing, the final selected project should be reviewed in detail based on the information provided by the company on the respective crowdfunding platform, and you may want to seek independent professional advice.</span></span></span></p> </td> </tr> </tbody> </table> <h1><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">🎯 Key goal</span></span></h1> <table cellspacing="0" class="Table" style="border-collapse:collapse; border:none; width:6.5in"> <thead> <tr> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:120px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Target return</span></strong></span></span></p> </td> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:120px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Time horizon</span></strong></span></span></p> </td> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:213px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Target basis</span></strong></span></span></p> </td> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:171px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">AI view on reaching this goal</span></strong></span></span></p> </td> </tr> </thead> <tbody> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:120px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">🎯 ~10× (platform default)</span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:120px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">⏱ 5–7 yrs</span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:213px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>Default</strong> — the company did not state a numeric return target or exit horizon, so the platform default applies.</span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:171px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Plausible only on flawless execution: a ~50× GMV jump to £128M by 2028 and a swing to positive EBITDA would be required, against negative-EBITDA trailing financials and a cooling sector.</span></span></p> </td> </tr> </tbody> </table> <p> </p> <table cellspacing="0" class="Table" style="border-collapse:collapse; border:none; width:6.5in"> <tbody> <tr> <td style="background-color:#fbf1dc; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:624px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><span style="color:black">⚠️ <strong>Why aim for ~10x? </strong>Startup investing is high risk. Most early-stage companies fail or return little. A small number of winners must compensate for the losers, so each individual investment is typically targeted at roughly 10x over 5–7 years. A lower target across a portfolio of risky bets usually does not produce a positive overall return. This is why the platform applies a 10x / 5–7 year target when the company does not specify its own.</span></span></span></p> </td> </tr> </tbody> </table> <h2><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">📈 Path to target return</span></span></h2> <table cellspacing="0" class="Table" style="border-collapse:collapse; border:none; width:6.5in"> <tbody> <tr> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:200px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Sector heuristic</span></strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:424px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">For an early-stage consumer marketplace, a ~10× return typically requires reaching tens of millions in GMV with a healthy take rate, then a trade sale or IPO at a multiple of revenue. The company’s own plan targets £128M GMV and ~£25.8M revenue by 2028.</span></span></p> </td> </tr> <tr> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Current key metric</span></strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:424px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">$100M+ lifetime GMV (legacy, last decade) and FY2025 audited turnover of ~£309,826; projected GMV £9.81M for 2026.</span></span></p> </td> </tr> <tr> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Required scale at exit</span></strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:424px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">To support a ~10× on a £51M pre-money, an exit valuation in the high hundreds of millions would be needed — implying KLEKT captures a meaningful slice of the authenticated street-culture resale market and reaches sustained profitability.</span></span></p> </td> </tr> <tr> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Implied IRR</span></strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:424px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">A ~10× over 5–7 years implies roughly a 39–58% annual return — achievable in principle for a breakout marketplace, but demanding given the trailing financials and sector slowdown noted in the dossier.</span></span></p> </td> </tr> </tbody> </table> <h1><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">🏢 Company description</span></span></h1> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">KLEKT is an online marketplace for buying and selling authenticated pre-owned sneakers and streetwear. The brand was founded in 2013 in Cologne by Heiko Lanzke and Marius Obiegala and is described as “Europe’s original” authenticated sneaker marketplace. In November 2025 it was acquired by Reform Clothing Limited (trading as “Responsible”), a Belfast-based re-commerce company led by repeat founder Mark Dowds; Reform Clothing is the legal entity raising on Republic Europe and the issuer of the shares. The company reports $100M+ in lifetime GMV (gross merchandise value — the total value of goods sold through the platform) over the last decade and roughly 2 million lifetime users, alongside a deck “traction” figure of 400k user accounts and 720k listings. The business model is a transaction-fee marketplace (stated commissions of 10–25%) plus authentication and service fees, with AI listing and pricing tools and a gamified “trading platform” described as coming soon. The company reports the round will fund four priorities: a community/content push with curator-investor Sean Wotherspoon, a UK relaunch via Northern Ireland to avoid duties, expansion into apparel and accessories, and automated listing/pricing. Trailing financials are thin: audited turnover has stayed below £0.35M with materially negative EBITDA each year from 2023 to 2025.</span></span></p> <h1><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">💶 Valuation</span></span></h1> <table cellspacing="0" class="Table" style="border-collapse:collapse; border:none; width:6.5in"> <tbody> <tr> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:200px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Pre-money valuation</span></strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:424px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">£51M (company-stated on the campaign listing).</span></span></p> </td> </tr> <tr> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Equity offered</span></strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:424px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">3.41% (maximum additional equity issued).</span></span></p> </td> </tr> <tr> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Instrument</span></strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:424px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Equity — newly issued Seed Preferred shares at £17.24 per share (104,409 shares).</span></span></p> </td> </tr> <tr> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">How the valuation was set</span></strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:424px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Methodology not disclosed. Republic Europe states the pre-money valuation is set by the business and is not independently reviewed or established by the platform.</span></span></p> </td> </tr> <tr> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">External benchmarks</span></strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:424px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Peak-cycle comparables (context only): StockX ~$3.8B on ~$1.8B GMV (2021); GOAT ~$3.7B on ~$2B GMV (2021) — both set at the 2021 peak before sector price compression. A prior priced round in this same entity (Jan 2022) raised £4.86M led by Barclays Sustainable Impact Capital and Techstart.</span></span></p> </td> </tr> <tr> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Notable terms</span></strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:424px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">£51M pre-money against ~£0.31M FY2025 turnover is a very high multiple on current revenue; the valuation is forward-looking against the £128M-GMV-by-2028 plan, not trailing financials. An existing $1.23M convertible note overhang converts at a 15–30% discount on a future qualifying round.</span></span></p> </td> </tr> </tbody> </table> <h1><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">📜 Instrument & investor terms</span></span></h1> <h3><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">What you own</span></span></h3> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">You are buying newly issued equity — specifically Seed Preferred shares — in Reform Clothing Limited. Note that the investor deck’s “Ask” slide describes the raise as a “convertible loan note,” but the actual instrument for this Republic round, per the Key Investment Information Sheet, is equity; you should rely on the equity terms. Seed Preferred is a voting class (one vote per share), but you do not hold the shares directly: legal title is held on your behalf by Seedrs Nominees Limited, and your rights are administered by the platform. In practice this means you have negligible individual voting power — the nominee votes on a pooled basis — and exit decisions will be driven by the larger shareholders (founders hold 33% fully diluted; Barclays Sustainable Impact Capital is the single largest holder), not by individual crowdfund investors.</span></span></p> <h3><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Dilution and future rounds</span></span></h3> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">The company signals it intends to raise more capital: the existing convertible note auto-converts on a “qualifying” institutional-led round of £3M or more, and the platform explicitly flags future fundraising as a dilution risk. Seed Preferred shares do carry broad-based weighted-average anti-dilution protection — but only if new shares are issued below a “Starting Price” of £9.22. Because this round is priced at £17.24, a normal up-round would not trigger that protection, so for practical purposes new investors should expect ordinary dilution in future rounds.</span></span></p> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Worked example (standard cap-table mechanics, not advice): if you invest £1,000 today at the £52.8M post-money valuation (£51M pre-money plus the £1.8M raised), you own roughly 0.0019% of the company. If the company then raises £5M at a £100M pre-money valuation (a successful up-round), your stake is diluted to approximately 0.0018%. If instead the next round is a down-round at £30M pre-money, your stake is diluted to approximately 0.0016% and the implied value of your £1,000 falls to roughly £490 — a fall of about 51%. These figures are illustrative; the precise numbers depend on round sizes the company has not finalised.</span></span></p> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">No expansion of the employee option pool (ESOP) before the next round is disclosed in the materials — the existing pool is 6% of share capital. Pre-emption rights (your right to invest more in a future round to defend your percentage) are not explicitly disclosed for this round, so you should not assume you can top up to avoid dilution.</span></span></p> <h3><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Exit and liquidation mechanics</span></span></h3> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">In a sale or wind-down, all creditors (secured, unsecured, employees, tax) are paid first. Then the Seed Preferred and Seed Preferred B shareholders — the class you would hold — receive the higher of (i) their original investment or (ii) their pro-rata share as if converted to ordinary shares. Only after that does any balance go to the A, B and C Ordinary shareholders. The preference is 1× non-participating, meaning your class gets its money back first but does not also “double dip” on a strong exit; you take the higher of money-back or your pro-rata share, not both.</span></span></p> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Drag-along: if more than 60% of shareholders vote to sell, the rest — including you — can be forced to sell on the same terms. Tag-along: if a controlling shareholder sells, you have the right to join that sale on the same terms, which protects you from being left behind in a deal done only for insiders.</span></span></p> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">There is no fixed lock-up period stated, but the investment should be treated as illiquid: there is no guaranteed secondary market, and even if one exists a sale at an acceptable price is not assured. Realistically, expect your capital to be committed for multiple years — typically 5–7 for early-stage equity — with any return depending on an uncertain trade sale or IPO.</span></span></p> <h3><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Key risks specific to this instrument</span></span></h3> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Nominee structure — you hold via Seedrs Nominees, not on the company’s share register directly, so your voting and rights are exercised through the nominee on a pooled basis, not individually.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Convertible-note overhang — an existing $1.23M of notes (10% interest compounded daily, +2% on default) converts at a 15–30% discount on a future qualifying round, issuing extra shares that dilute this round’s investors.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Anti-dilution that doesn’t protect you in practice — the weighted-average protection only engages below a £9.22 Starting Price, while you are buying at £17.24, so it offers little real protection in a normal down-round to, say, £12–£15.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Drag-along at 60% — a 60% shareholder majority can force you to sell on the same terms without your consent.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Instrument framing discrepancy — the deck calls the raise a “convertible loan note” while the binding documents describe equity; relying on the deck rather than the KIIS could mislead you about what you actually own.</span></span></li> </ul> <h3><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Items not disclosed</span></span></h3> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Pre-emption rights for crowdfund investors in future rounds — not explicitly disclosed.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Founder vesting schedule — not disclosed.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Holder-by-holder cap table percentages — only headline figures (founders 33%, ESOP 6%, Barclays largest) were provided; the full breakdown is a downloadable file not reviewed in the dossier.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Information rights — the frequency and type of reporting you would receive is not specifically enumerated.</span></span></li> </ul> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><em>Where a term is not disclosed, you cannot assess it before investing — treat each as an open question to raise with the company on the platform.</em></span></span></p> <h1><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">📊 Score breakdown</span></span></h1> <table cellspacing="0" class="Table" style="border-collapse:collapse; border:none; width:6.5in"> <thead> <tr> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:200px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Category</span></strong></span></span></p> </td> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:73px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Score</span></strong></span></span></p> </td> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:73px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Weight</span></strong></span></span></p> </td> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:277px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Verdict & key reason</span></strong></span></span></p> </td> </tr> </thead> <tbody> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Team & governance</span></span></p> </td> <td style="background-color:#faeeda; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:73px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><span style="color:black">74</span></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:73px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">22%</span></span></p> </td> <td style="background-color:#faeeda; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:277px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Moderate-strong</span></strong><span style="color:black"> — repeat-founder CEO with prior exits and an institutional board, offset by governance complexity (5 share classes, nominee).</span></span></span></p> </td> </tr> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Market & timing</span></span></p> </td> <td style="background-color:#faece7; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:73px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><span style="color:black">55</span></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:73px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">15%</span></span></p> </td> <td style="background-color:#faece7; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:277px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Caution</span></strong><span style="color:black"> — large long-run secondhand-fashion TAM, but the sneaker-resale segment is in a 2024–2025 slowdown and sizing figures vary widely.</span></span></span></p> </td> </tr> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Traction & operations</span></span></p> </td> <td style="background-color:#faece7; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:73px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><span style="color:black">52</span></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:73px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">18%</span></span></p> </td> <td style="background-color:#faece7; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:277px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Caution</span></strong><span style="color:black"> — real brand and $100M+ lifetime GMV, but thin recent revenue, fulfilment complaints, and an unreconciled 2M-vs-400k user-count gap.</span></span></span></p> </td> </tr> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Unit economics & financials</span></span></p> </td> <td style="background-color:#fcebeb; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:73px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><span style="color:black">38</span></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:73px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">17%</span></span></p> </td> <td style="background-color:#fcebeb; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:277px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Weak</span></strong><span style="color:black"> — negative EBITDA 2023–2025 on sub-£0.35M turnover, a ~50× GMV plan to substantiate, and going-concern language.</span></span></span></p> </td> </tr> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Instrument & investor terms</span></span></p> </td> <td style="background-color:#faece7; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:73px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><span style="color:black">58</span></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:73px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">14%</span></span></p> </td> <td style="background-color:#faece7; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:277px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Caution</span></strong><span style="color:black"> — 1× non-participating preference and tag-along are investor-friendly, but nominee holding, note overhang and above-price anti-dilution weigh against.</span></span></span></p> </td> </tr> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:200px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Competitive position & network effects</span></span></p> </td> <td style="background-color:#faece7; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:73px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><span style="color:black">56</span></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:73px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">14%</span></span></p> </td> <td style="background-color:#faece7; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:277px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">Caution</span></strong><span style="color:black"> — differentiated “pre-loved street culture” positioning and community/heritage, but far smaller and less capitalised than StockX/GOAT.</span></span></span></p> </td> </tr> </tbody> </table> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>Why these weights? </strong>This is a seed-stage marketplace, so the standard seed weighting (team-heavy) is adjusted for network effects by carving out a dedicated competitive-position category. Team & governance carries the most weight (22%) because at this stage execution depends heavily on the team, and here the CEO has prior exits and an institutional board. Traction (18%) and unit economics/financials (17%) are weighted highly because the gap between a strong legacy brand and weak trailing financials is the central question in this deal. Instrument & investor terms (14%) and competitive position (14%) round out the marketplace-specific picture. All six categories were evaluable (none marked insufficient in the dossier), so no weight redistribution was needed and the weights sum to exactly 100.</span></span><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">🔍 Detailed review</span></span></p> <h3><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Team & governance</span></span></h3> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">The company reports a repeat-founder CEO, Mark Dowds, with prior exits (Trov to Travelers, ServiceCloud to Salesforce) and a chairmanship of Techstart Ventures, supported by a Chartered-Accountant CFO and an institutional board including Barclays Sustainable Impact Capital, Climate-KIC and Techstart. Sean Wotherspoon, a well-known sneaker curator, has joined as Chief Community Curator and investor. Against this, the governance set-up is unusually complex for a crowdfund investor — five share classes, a convertible-note overhang and a nominee structure — and several growth levers depend on a single celebrity relationship.</span></span></p> <table cellspacing="0" class="Table" style="border-collapse:collapse; border:none; width:6.5in"> <thead> <tr> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:312px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">✅ Strengths</span></strong></span></span></p> </td> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:312px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">⚠️ Gaps</span></strong></span></span></p> </td> </tr> </thead> <tbody> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:312px"> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Repeat-founder CEO with two prior trade-sale exits (per the deck).</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Institutional board and backers (Barclays, Climate-KIC, Techstart) corroborated by 2022 funding coverage.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Recognised industry figure (Sean Wotherspoon) attached as curator-investor.</span></span></li> </ul> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:312px"> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Five share classes plus a nominee structure make ownership hard for a non-professional to track.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Growth narrative leans on one celebrity relationship.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Founder vesting schedule not disclosed, so retention incentives can’t be assessed.</span></span></li> </ul> </td> </tr> </tbody> </table> <h3><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Market & timing</span></span></h3> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">The company sizes its opportunity at a $350–390B global secondhand-fashion TAM and a $50–100B online sneaker/streetwear resale SAM, with a $1–3B obtainable GMV. Independent sources confirm the long-run secondhand-fashion market is growing, but they also show the sneaker-resale segment specifically entered a slowdown and margin compression in 2024–2025 (“hype fatigue”), and third-party market-size estimates vary widely. Timing is therefore mixed: structural circular-fashion tailwinds, but a cooling core category.</span></span></p> <table cellspacing="0" class="Table" style="border-collapse:collapse; border:none; width:6.5in"> <thead> <tr> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:312px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">✅ Advantages</span></strong></span></span></p> </td> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:312px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">⚠️ Risks</span></strong></span></span></p> </td> </tr> </thead> <tbody> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:312px"> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Large, growing long-run secondhand-fashion market (independently supported).</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Circular/sustainability positioning aligns with impact-focused backers.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Pan-European brand recognition in the niche.</span></span></li> </ul> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:312px"> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Core sneaker-resale segment in a 2024–2025 slowdown per independent sources.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Market-size figures vary widely and are partly company-asserted.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Near-term tailwinds weaker than the deck implies.</span></span></li> </ul> </td> </tr> </tbody> </table> <h3><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Traction & operations</span></span></h3> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">The company reports $100M+ lifetime GMV over the past decade, ~2M lifetime users (with a deck figure of 400k user accounts), 720k listings, a £386 average listing value and three authentication centres. Public reviews (~15,600 on Trustpilot) describe a generally legitimate marketplace but with recurring complaints about fulfilment delays and a manual “seller-accept” step. The 2M-versus-400k user figures are presented without reconciliation, which the dossier flags.</span></span></p> <table cellspacing="0" class="Table" style="border-collapse:collapse; border:none; width:6.5in"> <thead> <tr> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:312px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">✅ Strengths</span></strong></span></span></p> </td> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:312px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">⚠️ Gaps</span></strong></span></span></p> </td> </tr> </thead> <tbody> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:312px"> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">$100M+ lifetime GMV and a real, established brand since 2013.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Sizeable social following (~1.05M) and pan-European reach.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Three authentication centres already operating.</span></span></li> </ul> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:312px"> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Recent audited turnover under £0.35M despite the large lifetime GMV.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Unreconciled user-count figures (2M vs 400k).</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Operational complaints on fulfilment and a manual seller-accept step.</span></span></li> </ul> </td> </tr> </tbody> </table> <h3><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Unit economics & financials</span></span></h3> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Audited figures show turnover of £338k (2023), £232k (2024) and £310k (2025) with materially negative EBITDA each year (−£3.07M, −£1.83M, −£2.18M). The forward plan projects GMV rising ~50× to £128M by 2028, revenue to ~£25.8M, and EBITDA turning positive by 2027 — a very large gap from trailing performance. The platform itself flags limited runway and that the raise may be necessary for ongoing existence.</span></span></p> <table cellspacing="0" class="Table" style="border-collapse:collapse; border:none; width:6.5in"> <thead> <tr> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:312px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">✅ Strengths</span></strong></span></span></p> </td> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:312px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">⚠️ Risks</span></strong></span></span></p> </td> </tr> </thead> <tbody> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:312px"> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Marketplace model is high-margin and repeatable if volume scales (stated take rate rising 17%→20%).</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Clear, itemised use of funds tied to four growth priorities.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Backing from institutional investors provides some financial credibility.</span></span></li> </ul> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:312px"> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Negative EBITDA every year 2023–2025 on sub-£0.35M turnover.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">~50× GMV plan to 2028 is unsubstantiated in the materials.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Going-concern / limited-runway language; raise is 94.77% insider-funded.</span></span></li> </ul> </td> </tr> </tbody> </table> <h3><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Instrument & investor terms</span></span></h3> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Investors receive nominee-held Seed Preferred equity with a 1× non-participating liquidation preference, pro-rata voting (exercised via the nominee), tag-along rights and broad-based weighted-average anti-dilution. The protective features are reasonable, but several mechanics work against the crowdfund investor: the anti-dilution “Starting Price” (£9.22) sits well below the £17.24 round price, a $1.23M convertible note converts at a discount on a future round, and a 60% vote can drag minorities into a sale.</span></span></p> <table cellspacing="0" class="Table" style="border-collapse:collapse; border:none; width:6.5in"> <thead> <tr> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:312px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">✅ Edge</span></strong></span></span></p> </td> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:312px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">⚠️ Threats</span></strong></span></span></p> </td> </tr> </thead> <tbody> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:312px"> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">1× non-participating preference returns capital ahead of ordinary classes.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Tag-along rights let investors join an insider sale on equal terms.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Seed Preferred is a voting class (one vote per share).</span></span></li> </ul> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:312px"> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Nominee holding dilutes individual voting influence to near zero.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Anti-dilution only triggers below £9.22 — little real protection at a £17.24 entry.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Convertible-note overhang and 60% drag-along reduce minority control.</span></span></li> </ul> </td> </tr> </tbody> </table> <h3><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Competitive position & network effects</span></span></h3> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">The company positions KLEKT against StockX and GOAT (new/deadstock, “flippers/traders”) and Vinted/eBay (generic mass resale) on an “authenticated, pre-loved street culture” angle, leaning on community, curation and heritage since 2013. The competitive challenge is scale: the dossier notes StockX and GOAT each reached multi-billion-dollar GMV at peak, dwarfing KLEKT, so KLEKT’s edge depends on community network effects rather than capital or volume.</span></span></p> <table cellspacing="0" class="Table" style="border-collapse:collapse; border:none; width:6.5in"> <thead> <tr> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:312px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">✅ Edge</span></strong></span></span></p> </td> <td style="background-color:#f4f2ec; border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:312px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong><span style="color:black">⚠️ Threats</span></strong></span></span></p> </td> </tr> </thead> <tbody> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:312px"> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Differentiated “pre-loved” positioning distinct from deadstock-focused rivals.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Established community and heritage brand (since 2013).</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Curator-led community strategy aimed at network effects.</span></span></li> </ul> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:312px"> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Far smaller and less capitalised than StockX and GOAT.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Larger rivals could add a “pre-loved” tier and compete directly.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Network-effect advantage is asserted, not yet demonstrated in recent numbers.</span></span></li> </ul> </td> </tr> </tbody> </table> <h1><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">🚩 Red flags & integrity checks</span></span></h1> <table cellspacing="0" class="Table" style="border-collapse:collapse; border:none; width:6.5in"> <tbody> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:47px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>1</strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:1px solid #cccccc; vertical-align:top; width:577px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>Missing critical data</strong> — No independent third-party valuation; methodology behind the £51M pre-money not provided; full holder-level cap table, pre-emption rights and founder vesting not disclosed.</span></span></p> </td> </tr> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:47px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>2</strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:577px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>Internal inconsistencies</strong> — Deck labels the raise a “convertible loan note” while the KIIS describes equity (Seed Preferred); lifetime users shown as ~2M (listing) vs 400k accounts (deck); headline £2M ask vs £1.8M formal target.</span></span></p> </td> </tr> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:47px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>3</strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:577px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>External discrepancies</strong> — KIIS lists country of incorporation as “GB” while the NI registration number and Belfast office indicate Northern Ireland; the deck’s growth-tailwind framing conflicts with independent reports of a 2024–2025 sneaker-resale slowdown.</span></span></p> </td> </tr> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:47px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>4</strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:577px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>Negative public information</strong> — No registry sanctions or insolvency found; Companies House status active. Public reviews (~15,600 on Trustpilot) are mixed, with recurring fulfilment-delay and manual seller-accept complaints and isolated counterfeit disputes.</span></span></p> </td> </tr> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:47px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>5</strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:577px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>Prior fundraises</strong> — The same entity (Reform Clothing) raised £4.86M / $6.6M in a Jan 2022 priced seed led by Barclays Sustainable Impact Capital and Techstart. The KIIS marks “previous campaigns: N/A,” which is true only for crowdfunding; milestone delivery against the 2022 round is not evidenced in the materials.</span></span></p> </td> </tr> <tr> <td style="border-bottom:1px solid #cccccc; border-left:1px solid #cccccc; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:47px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>6</strong></span></span></p> </td> <td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top; width:577px"> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>Valuation reasonableness</strong> — £51M pre-money against ~£0.31M FY2025 turnover is a very high multiple on current revenue and rests on the forward £128M-GMV-by-2028 plan rather than trailing financials. Peak-cycle comparables (StockX, GOAT) were set before sector price compression, so they flatter rather than support the ask.</span></span></p> </td> </tr> </tbody> </table> <h1><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">📝 Data quality notes</span></span></h1> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>Categories scored N/A: </strong>None — all six categories were evaluable from the dossier.</span></span></p> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>Categories with LIMITED data quality: </strong>Unit economics & financials and Market & timing rest partly on company-asserted forward projections and third-party market-size figures that vary widely; these were scored conservatively.</span></span></p> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><strong>Most material missing items that would change the evaluation if obtained:</strong></span></span></p> <ul> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Substantiation for the ~50× GMV plan and the basis for the £51M pre-money valuation.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Full holder-level cap table and any pre-emption rights for crowdfund investors.</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Founder vesting schedule and detailed information rights (reporting frequency).</span></span></li> <li><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif">Reconciliation of the lifetime-user and GMV figures across the deck and listing.</span></span></li> </ul> <p> </p> <p><span style="font-size:10pt"><span style="font-family:"Times New Roman",serif"><em>Memo generated by AI from public information and platform-disclosed company materials. Investors must perform their own due diligence. Past fundraising or operational performance does not guarantee future results. Crowdfunding investments are illiquid, high-risk, and capital loss is possible.</em></span></span></p>
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GBP 10
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GBP 3392,59M
