An end to end t-shirt design, manufacture and sales platform for artists/influencers/groups.
An end to end t-shirt design, manufacture and sales platform for artists/influencers/groups. Unlike ordering t-shirts (and other products) the traditional way, there are no up-front costs, no risk of dead stock and we take care of all the printing, fulfilment and customer service. Users upload a design, set a price and create a bespoke web-store in minutes. We print & ship direct to buyers only once the campaign has ended – the production costs and the sellers profits come out of the sales proceeds. The platform is intrinsically viral, requires low working capital and benefits from user generated marketing – they are incentivised to share as they take a share of the profits.
PRODUCTS & SERVICES
PressUp empowers millions of music artists, creatives, charities and groups to design and sell t-shirts (and other products) and make money/raise funds for free, with no risk or hassle.
The platform is intrinsically viral and requires low working capital. PressUp benefits from user generated marketing – it’s in the sellers interests to participate in the marketing process as they take a share of the profits.
Since launching the minimum viable product (MVP) in June, PressUp has generated £17,000 revenue and has shipped to 31 countries with zero marketing spend. We have had initial talks with Songkick/Crowdsurge to build partnerships into ticketing platforms.
Influencers with a fan base or community want to sell merchandise for a number of reasons. Rational drivers – to make money and raise brand awareness. Emotional drivers – for personal prestige, creativity and popularity.
Selling merchandise the traditional way requires significant time and risk:
– High upfront costs and risk of excess stock
– Fulfilment hassle: packing, postage, service & returns
– Web-store management is expensive & time consuming
PressUp provides meaningful financial and time savings and empowers influencers to make money easily, connect with their community and fans, save time & hassle and launch without risk – no up-front costs or excess stock.
PressUp makes minimum 31% gross margin on every item sold via the platform. To date, the average campaign value is £480 and 71% of campaigns are successful, selling 5 items or more items. Because sellers using the platform have a avid/hardcore fan base and the limited edition run creates a sense of urgency the visitor to sale conversion rate is high at 8.9%.
Our in-house CRM system offers seller suggestions on how best to ramp campaign sales, resulting in increased conversion rates and a high seller LTV to PressUp. We’ve already seen high seller retention, with 28% of campaigners returning to launch subsequent campaigns.
This market has seen acquisitions in 2015, with Teespring acquiring UK-based Fabrily for an undisclosed amount. Our route to exit is through acquisition in the next 3-5 years. PressUp is the only brand in the market to focus on influencers with an existing fan base or community and therefore holds a unique and attractive position.
Based on 5x multiple of year 5 EBIT, the 10% equity offering would potentailly yield a 10.7x return on investment. This accounts for dilution from a subsequent Series A round at an additional issue of 10% equity. We believe that this valuation is conservative based on the market leaders’ 8.83x valuation multiple on their most recent round of financing.