Growthdeck: The City Cycle Hub



The City Cycle Hub   |  Transport
Target £810,000
Type Equity
Status Open


The Opportunity

The City Cycle Hub Limited (“City Cycle”) has been established to provide the rapidly growing number of active commuters with a secure location to store their bikes, together with shower, changing and other related services required by these commuters but currently subject to considerable undersupply. City Cycle is seeking £810,000 of new investment to establish and open the first City Cycle Hub in St. Botolph Street, Aldgate, in London.


Management are targeting an exit valuation of £17m in 2022. This is dependent on their meeting combined earnings projections and assumed exit multiples. If this exit is achieved it could deliver investors a 6.6x money return - increasing to 9.4x for those who qualify for EIS income tax relief. Such returns are also dependent on management’s working assumption that a second equity funding round of £750,000 in 2019 can be raised for no more than a 12.5% holding.

 

The Company has applied to HMRC for Advance Assurance that the equity investment units will qualify for the tax reliefs available under the Enterprise Investment Scheme (EIS) – which include 30% initial income tax relief and tax-free capital gains on exit, so long as the shares are held for at least three years.


Tax reliefs are not guaranteed. They depend on the venture maintaining its qualifying status and may be withdrawn at any time by HM Revenue & Customs. In addition, the tax treatment of EIS and SEIS schemes depends on the individual circumstances of each investor and may be subject to change in the future.




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Investment details

Fundraise target£810,000

Fundraise maximum£810,000

Equity stake31.25%

Exit Money Multiple5.4

Exit EBITDA Multiple10

Exit IRR55.7%


Company details

Name:The City Cycle Hub Ltd

Website:www.thecitycyclehub.com

Address: 3 Park Way
West Moseley
KT8 1PE

Company no: 10343764

Incorporated: 24/08/16

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Please note

We want our investors to be fully aware of the downsides of equity investing as well as the potential benefits. It's therefore important to realise that investing in small companies always carries risks, including the loss of capital, illiquidity (the inability to sell assets quickly or without substantial loss in value), lack of dividends and share dilution. Equity investments should still be made as part of a diversified portfolio. Read our full Risk Warning