albumcards® make it possible to gift digital entertainment in a tangible way by combining greetings cards with digital entertainment – a 2 in 1 gift solution that they are yet to find anywhere else. They have already begun retailing via their online store and have secured licence agreements with Warner Brothers, Universal and Sony Music and operate within a market worth well over $124 billion.
albumcards® combines greetings cards with digital entertainment – a 2 in 1 gift solution.
We have developed an online platform that enables consumers to purchase digital entertainment online or in retail stores. Recipients redeem this content on our platform using a unique PIN code issued with every card. The albumcards® platform integrates with all major electronic payment processing and EPOS systems, enabling distribution in all major retail outlets in Europe and North America.
This technology enables major retailers to sell pre-paid digital entertainment and consumers to redeem this content on our platform. PIN codes issued by albumcards® can only be activated when purchased through retail EPOS systems. The company collects an activation fee, every time a card is purchased. We are already in discussions with major global corporations and retail groups, to provide an activation and redemption platform for digital gift ranges.
In addition to our retail activated format, we have also launched a pilot online store in the UK market. Consumers can select an album of their choice, add a personal message and send their gift – all from the convenience of their PC or mobile device. With further enhancements to the platform, the company is planning to rollout our online format in other key global markets.
Please visit our online store: albumcards.com
Our platform has been constructed to provide an integrated solution for the distribution, delivery and monetisation of digital entertainment. Aside from a monetary gift option (gift cards), we know that digital gifting options currently available take the format of an email. Our platform and product formats enable consumers to select, personalise and gift the title of their choice. This simple, yet effective distinction opens up the huge potential of three established global markets: recorded music, greetings cards and gift cards.
Combined CD and digital album sales UK & US
2014 UK sales: 86.9 million units (source: BPI)
2014 US sales: 257 million units (source: Neilsen)
We know that greetings cards is a massive consumer market and a 52 weeks a year trading opportunity. Here in the UK, consumers buy, sign and send over 2 million greetings cards, every day. In the US market, consumers annually purchase over 6.5 billion greetings cards.
Please visit US and UK Greetings Card Associations website for more facts & figures:
US greetings card market click here
UK greetings card market click here
We know that gift cards is one of the fastest growing categories in retail. Both Apple and Google gift cards are now sold in over 300,000 retail outlets worldwide, generating siginifcant contributions towards corporate revenues.
2014 US Gift Card Market Size = $124 billion (source CEB )
2014 UK Gift Card Market Size = £5 billion (source UKGCVA )
albumcards® has been created and developed by a combination of entrepreneurial talents with international experience and expertise in product marketing, website & applications design, construction & programming for e-commerce business, online communications and platform hosting.
Commercial & Licensing Team
Garry Campbell CEO
Garry is the inventor and driving force behind albumcards®. Based on years of experience, Garry fully understands the potential of a good idea aligned to a sound commercial strategy, then how to maximise commercial opportunity on a global-scale.
Mandy Noss Partnership Director
Cultivating effective working relationships with our licensing partners is essential to the long term development of the business. Mandy is albumcards® key contact with commercial and licensing teams at the record labels.
Digital Design & Development
RetroFuzz Limited Jonathan McNamara, Matt Kendall & Mark Janson
RFZ are an award winning online platform and digital applications design agency, specialising in music and fashion. Current clients include companies like; Universal Music Group, Sony Music Entertainment, Warner Music Group, Spotify, Red Bull, Wrangler and Adidas. Major music artist websites include; U2, Arctic Monkeys & Noel Gallagher.
Vnetrix Rob Norman
Rob has 25 years’ experience in IT working for large corporations through to small start-up businesses. In 2002 Rob co-founded Vnetrix, one of the first Managed Service Providers in the UK. Vnetrix has a first-class reputation for I.T. service and flexibility in delivering what the client needs.
SALES: Key sales drivers
Direct consumer sales via our online store
Activation fees payable by 3rd parties utilising our platform to sell/deliver digital content
USE OF FUNDS: Outline how you plan to use the funds you raise on Crowdcube?
Further platform development, enabling the business to extend the range of digital content available
Phase one marketing and advertising campaigns to support online store
EXPENSES AND PROFITABILITY: Please comment on your expense levels, gross and EBITDA margins
Using the founders own companies as a development resource, the business is able to secure products and services thereby reducing costs
EXISTING DEBT OR EQUITY INVESTMENTS: Please outline the background to any existing debt or equity finance on the company balance sheet
The business has received 2 loans of £30k each, which are to be converetd into shares
CASH: Cash burn rate, Operational cashflow, when will you need to raise the next round?
Target amount raised through Crowdcube, will finance planned development and operations.
If required the business will utilise ‘invoice financing’, on a short-term basis, to support cash flow
The Exit Strategy
We believe the business will be an acquisition target for a larger entity with interests in greetings cards, gift cards or digital entertainment distribution, within the next 2-3 years. This opportunity may even arise from within the network of partner companies we will provide activation and redemption services for.
In the event the business decides to go-it-alone and scale-up by securing growth investment, we would plan to offer existing shareholders an attractive buy-back option on their shareholding.
There have been a number of high-profile companies in this sector, attracting significant valuations on purchase or IPO. A comparative business to our online store format would be Moonpig (online personalised greetings cards and gifts), which was acquired by Photobox for £120 million – see FT article. More recently, entertainment orientated business like London based Shazam, have attracted major second and third round investment providing impressive returns for early stage investors – see Telegraph article. Beatsmusic recent acquisition by Apple and Spotify’s current valuation of $8.4 billion (see WSJ article) point to an investment appetite for businesses with a highly scalable product format, aligned to the monetisation and delivery of digital entertainment.
Invest £500 and get
Crowdcube investors have the opportunity to become members of the albumcards® Band qualifying for a range of benefits. Every investor in albumcards® will have an albumcards.com account setup and a selection of complimentary albums will be placed in your account. albumcards® downloads are only available in MP3 320 Kbps format – delivering high-quality audio for a superior listening experience.
Invest £1,000 and get
Qualify for our album of the month program. Every month, a complimentary album will be allocated to your account, from our pick of featured albums and new releases.
Invest £5,000 and get
In addition to our album of the month program, you can select and send 2 free albumcards® per month to friends and family, from our online store.
Invest £10,000 and get
In addition to our album of the month program, you can send 5 free albumcards® per month from our online store to friends and family. A complimentary copy of each album sent will be allocated to your account.
Tax relief is available to individuals only, who subscribe for shares in an Enterprise Investment Scheme (EIS). Relief is at 30 per cent of the cost of the shares, to be set against the individual’s Income Tax liability for the tax year in which the investment was made.
If you sell, give away, exchange or otherwise dispose of shares, tax reliefs can reduce your Capital Gains Tax bill. Your shares must meet certain conditions to qualify for these reliefs.
The availability of any tax relief, including EIS and SEIS, depends on the individual circumstances of each investors, and may be subject to change in the future. If you are in any doubt about the availability of any tax reliefs, or the tax treatment of your investment, you should obtain independent tax advice before proceeding with your investment.
Investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Crowdcube is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. You will only be able to invest via Crowdcube once you are registered as sufficiently sophisticated.
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