By Rob Murray-Brown MBA
Thursday 14th May 2020
Delighted to bring you a good news story - dressed in a neatly ironed shirt and carrying an excellent cricket bat.
The Funky Appliance Co aka the makers of The Funky Iron, spoke with us and gave some detail on their progress after using Seedrs four times to raise a total of £750k since 2017.
The company is design driven and you might think niche. We certainly didnt see this as an obvious investment opportunity. But you do get a good feel talking to Joe Sillett, the co Founder. Driven and focused. Exactly what you need to make a start up work. But as everyone knows, it takes more than that.
The company is currently raising £1m at a pm value of £4m - up from £2.75m a year ago on Seedrs. This new raise will help with production of two new products - a toaster and a kettle. Both with the same Alessi style overlay as the iron.
They have taken on RKW as their distributor and are looking to enter the US market later in the year. All of this very positive.
Sales to date have not been out of the ordinary but the company stopped trading in October last year so growth analysis is not possible yet.
Plenty to think about - the GPM will be cut by the distribution agreement, Covid will change the market but that maybe a positive thing. Production in China may be effected.
Sillett co founded Woodworm Cricket Bats in 2001 aged 29. By 2005 they had 10% of the UK market. Having owned one, I can confirm that no other bat would have hit that first ball of the match for six and out of the ground. New ball please. Unfortunately he got involved with a Hedge Fund who royally screwed over the business and left it sold in a pre pack for £250k. But lessons were learnt. Having done it once before, must give investors confidence he can run a second one.