PRESSUP

• THE IDEA

  PRODUCTS & SERVICES

  PressUp empowers millions of music artists, creatives, charities and groups to design and sell t-shirts (and other products) and make money/raise funds for free, with no risk or hassle.

  The platform is intrinsically viral and requires low working capital. PressUp benefits from user generated marketing – it’s in the sellers interests to participate in the marketing process as they take a share of the profits.

  Since launching the minimum viable product (MVP) in June, PressUp has generated 17,000 revenue and has shipped to 31 countries with zero marketing spend. We have had initial talks with Songkick/Crowdsurge to build partnerships into ticketing platforms.

  PROBLEM SOLVED

  Influencers with a fan base or community want to sell merchandise for a number of reasons. Rational drivers – to make money and raise brand awareness. Emotional drivers – for personal prestige, creativity and popularity.

  Selling merchandise the traditional way requires significant time and risk:
  – High upfront costs and risk of excess stock
  – Fulfilment hassle: packing, postage, service & returns
  – Web-store management is expensive & time consuming

  PressUp provides meaningful financial and time savings and empowers influencers to make money easily, connect with their community and fans, save time & hassle and launch without risk – no up-front costs or excess stock.

  REVENUE MODEL

  PressUp makes minimum 31% gross margin on every item sold via the platform. To date, the average campaign value is 480 and 71% of campaigns are successful, selling 5 items or more items. Because sellers using the platform have a avid/hardcore fan base and the limited edition run creates a sense of urgency the visitor to sale conversion rate is high at 8.9%.

  Our in-house CRM system offers seller suggestions on how best to ramp campaign sales, resulting in increased conversion rates and a high seller LTV to PressUp. We’ve already seen high seller retention, with 28% of campaigners returning to launch subsequent campaigns.

  EXIT STRATEGY

  This market has seen acquisitions in 2015, with Teespring acquiring UK-based Fabrily for an undisclosed amount. Our route to exit is through acquisition in the next 3-5 years. PressUp is the only brand in the market to focus on influencers with an existing fan base or community and therefore holds a unique and attractive position.

  Based on 5x multiple of year 5 EBIT, the 10% equity offering would potentailly yield a 10.7x return on investment. This accounts for dilution from a subsequent Series A round at an additional issue of 10% equity. We believe that this valuation is conservative based on the market leaders 8.83x valuation multiple on their most recent round of financing.

The post PRESSUP: An end to end t-shirt design, manufacture and sales platform for artists/influencers/groups. appeared first on iCrowdNewswire.

Source: Icrowdnewswire