Freeon

SEIS Investment Opportunity

10k 150k investment opportunity
with a planned 20x 5 year return
Plus 50% rebate and no capital gains tax
for UK tax payers

- similar US company achieved $250m valuation

in 3 years
A unique chance to invest in a disruptive mobile platform
Freeon is formed of experienced telecoms executives and entrepreneurs with proven track
records in growing and exiting tech businesses.

Key facts
Company:
Stage:
Investment:
Sector:
Skills sought:
Projected revenues:

Freeon
Pre-launch
150k (SEIS)
Telecoms/digital
Finance
2017: 2m
2018: 8m
2019: 20m
2020: 34m
To invest or for full investors
memorandum please email
david.percival@freeon.co.uk
Freeon Ltd. 1st Floor, 2 Woodberry Grove, London, N12 0DR, david.percival@freeon.co.uk - +44 7714 229 219

The opportunity
The Freeon team has developed a compelling B2B2C SaaS
MVNO (Mobile Virtual Network Operator) proposition
targeted at high volume consumer brands. Freeon
enables them to offer a Freemium mobile service to their
customers generating revenue, advertising
opportunities and valuable customer data. Our initial
target market is the 1m Evening Standard, 4m
Independent, and15m+ Metro International readers
Of 1004 potential customers 48% said they are likely
(25%) or very likely (23%) to take the service
As well as leveraging the above brands and their
distribution channels we will also offer free voice, texts
and data, significant UK and international content (TV,
videos, music and games), and low cost devices (iPhones
& Android)
Freeons revenues and margins will come from:
People going over their free bundle
People choosing a larger bundle
30% of the revenues from the content
3-15% of the price of the phones sold
Commission on mobile broadband, phone loans and
insurance
The investment opportunity
Freeon is seeking SEIS qualifying equity funding of
150,000, with a planned 20x 5 year return and a 50% tax
rebate for UK tax payers. The investment will be used to
create an Evening Standard/Independent branded and
marketed mobile network operator. The funds will be
used, along with funding from the founders, to build the
first version of the platform, the App and initial
community building activity focused in London.
A similar US MVNO FreedomPop achieved a
valuation of $250m+ within 3 years of launch

Management team & shareholders

David Percival, Founder & CEO: recently Global
Innovation & Development Leader and Digital &
Telecoms Partner at PricewaterhouseCoopers
Claria Guo, Marketing Director: Ex Ericsson,
UTStarcom, Huawei

Lorraine Moody, Operations Director: Ex

Satellite Applications Catapult, PwC, PRTM
Rob Charlton, Services Director : Ex Vertu,
Cogiter, Savage Minds, Erlang Solutions, Fig
Labs, Visto, Intuwave, Symbian and Psion
Justin Byam Shaw, Advisory Board: Deputy
Chairman of Evening Standard Ltd, Chairman of
ESI Media, Non-Executive Chairman of Harvest
Media Group Ltd

Andrew Heath, Advisory Board: Serial

entrepreneur and sales & marketing expert
Mal Minhas, Advisory Board : Ex Vertu, Adobe,
Symsource, Apple, Intuwave, Symbian and
Psion
Lars-Olof Sundell, Advisory Board : Head of the
5G Project at Ericsson
Martin Pedersen, Advisory Board : founder of
RequirementOne and Senior Advisor to the
Royal Court of Denmark
Financials
Please see table below for summary P&L
Years
Upside

Subscribers K

In early 2017 we will raise a further 1.6m EIS/preSeries A investment with a planned 15x return to take us
to break even.
After London we plan to expand across the UK in 2018
using the Independent channels.
In 2019 Freeon will start to expand internationally using
the Metro International brand in Germany, and then the
USA

2017 2018

2019

2020

2021

28

125

292

498

771

18

85

203

365

562

Downside
Upside

16
3

69
15

133
30

205
48

283
73

Revenues M

20

34

52

1
-1

6
2.9

13
5

19
9

25
14

-1

-1
0.1

-0.1
0.5

2
1

3
2

4
4

0.1

0.3

0.7

1.7

3.2

0.1
-1.0

0.2
-1.4

0.3
5.2

0.6
11

1.1
22

-0.9

-1.4

1.4

6.1

14.2

-0.9
2.0

-1.3
0.7

0.4

2.5

5.5

1.8

0.9

Downside
Upside

EBITDA M
Downside
Upside

Payments to
Brands M
Downside
Upside

Cumulative
Cashflow M
Downside
Upside

Investments
needed M
Downside
Upside

1.8
12

0.8
35

67

111

169

Valuation M

13

39

73

115

28

42

56

Downside

Freeon Ltd. 1st Floor, 2 Woodberry Grove, London, N12 0DR, david.percival@freeon.co.uk - +44 7714 229 219