Seedrs Highlights: USIO and NextUp


(Dan) #1

USIO - An AI driven energy company offering savings to customers by tailoring their energy purchasing to the consumers habits, leveraging new regulations that allow for buying half-hour chunks. Over £4.5M annualised turn-over, solid reviews on TrustPilot from their existing customer-base. Pitch-deck claims break-even within 12 months.

They’re asking for £400,003, in return for 8.18%. Seems like a very reasonable valuation for what they offer - but curious to hear input from others who might have more sector specific knowledge, which might lead to me increasing my stake.

Next up is… NextUp

This one I simply do not get, but having seen the spirited debate here relating to Netflix, perhaps someone can point out an angle I’m missing.

On the surface, it just baffles me that this campaign has any legs at all. For anyone with an interest in the world of stand-up, you should know that “the Netflix of stand-up” is a ridiculous statement. Netflix is the Netflix of standup. It has a huge library of comedy specials, and has become the go-to place for virtually every comedian with a significant following.

Am I missing something? Is it just a case that the marketshare of Netflix isn’t so huge that there isn’t space for a speciality streaming platform with a narrower - but cheaper - offering?


(Vladislav Kozub) #2

Interesting picks you have there. Usi seems a bit odd as the ownership is too much concentrated with the CEO and yet most of the other members have 0.00%. Is that because they work for a base rate rather than a stake in the startup? But the price in comparison to the revenue is very-very tempting :thinking:

NextUp, on the other hand, seems less appealing. Having 1700 customers at £3.50 only brings £70k annual revenue, less all other associated costs. And that given they started in 2012 and launched the product 20 months ago (read: they had plenty of time to gain more customer).

@dan, if you do not mind me asking, do you use these two services yourself? If yes, how are they? I tried Usi but they said they cannot give me a quote at this time. Seems like I already got a nice deal :sweat_smile:

Also curious if you considered investing in them yourself. Thanks for an insightful post which I finally got some time to look at! :slightly_smiling_face:


(Alex Sherwood) #3

NextUp is interesting, I don’t know much about streaming or comedy but you can sort of see how this could work.

As you mentioned, Netflix has a great catalogue of content already. But it doesn’t make sense for them to go deep in every genre because most of the content is only going to appeal to a niche audience & they’re all about growing their subscriber numbers. So presumably there’s an opportunity for NextUp to buy the remaining content, which would be relatively cheap since it doesn’t have mass market appeal.

Hopefully that means that they can build a decent catalogue of films, corner this market & then I assume that once their growth tops out (if they ever even reach profitability), they’ll be bought by one of the larger streaming services.

If that’s right then I wouldn’t have thought that this will make a good investment, if all you’re looking for is a return. But I’m sure that plenty of their audience will invest anyway as a sort of passion project.


(Viktor) #4

I love that Seedrs makes companies disclose this information. As an investor, I want to know how the team is incentivised. I’m surprised that I’m not seeing more comments about this in the Seedrs discussion board.

@adam recently shared how we think about equity for team members in this article :point_down:


(Dan) #5

I don’t use either at the moment. I’m currently a bit of a nomad, so no need for an energy supplier, and NextUp is still a confusing proposition for me - as a Netflix subscriber who is very happy with their library.

Typically I only invest in companies that I use, or intend to use when they are available (e.g. Freetrade) so the investment in USIO is an exception. I may end up using it eventually, but for now this is an excuse for a small diversification.

Great point about the equity sharing, I might poke them about that in the investor questions and see what they have to say.


(Dan) #6

This is what I struggle with.

Netflix dropped $50M on the Dave Chapelle specials, even more on Seinfeld’s special and comedy series, not to mention Burr, Rock, Tucker, D’Elia, Burnham, Segura… Admittedly a very American selection of comics, but they do have all of the current greats - with a few Brits like Acaster sprinkled in. In terms of mainstream comics, they have it locked down - and have priced everyone else out of the market.

If I’m a comedy fan, for sure I’m going to have a Netflix subscription. How much of a die-hard fan of the genre do I have to be to want a NextUp subscription too?


(Jim) #7

Usio Energy have now ceased trading:

https://www.energylivenews.com/2018/10/15/small-supplier-usio-energy-ceases-trading/


#8

I can not access the USIO campaign page, possibly because I did not invest in the campaign.

Anyway did USIO get all their funding? Does anyone know what the official reason for shutting down is?

Looks like they didn’t get the funding because there was a threat of a damaging claim that USIO said was without merit but it meant they could not accept the the funding until it was resolved - Source