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TONE P2P B.V. team 8
TONE P2P B.V. ,

The New Kijkshop, The New Retail

It's Time to Empower the Community, Invest in the Greatest People2People Platform and be Part of Our Movement!

$893.509 INVESTED
76%
$ 1,17 MLN 13
Required Days left
6,00%
Interest rate
The concept

www.kijkshop.nl/crowdfunding for additional information.


TONE changes retailers like Kijkshop to a People2People commerce platform. TONE enables consumers to advise other consumers via live video interaction and rewards them with a commission. Starting with Kijkshop as founding father and launching customer, we aim to revitalize the retail market within Europe and beyond. We will start our rollout within Kijkshop before the end of this summer.


People need trustworthy and honest advice and retailers are no longer the ONES to give it to them. Distracted by a million reviews and often misguided by a dozen fancy Youtube promotions, the customer finds himself in a dark forest with an overload of information - not knowing who’s wrong and who’s right.


But, there is one source of information that they do trust - ONE to ONE advice from an expert user. And there lies our purpose; Connecting People2People via a commerce platform 
to help them make the most suitable purchase for their true needs.


With over 1 million people visiting the stores every month, the aim for TONE and Kijkshop is to have 100,000 advising consumers before the end of 2017. These advising consumers are rewarded with a commission after a transaction takes place. Thanks to TONE, by the end of the year, Kijkshop will have the largest network of advisors and the best sales force in The Netherlands.



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Unique Selling Points

  • Strong investment group backing TONE
  • Access to 1+ million customers visiting Kijkshop
  • Rocket launch due to an extensive amount of users
  • A boost in the media due to the brand awareness of Kijkshop
  • A proof of concept for (inter)national expansion
  • Positioning retailers at a service & advice level no other competitor can match
  • Highly scalable to international markets
  • Highly experienced leadership team with more than 20 years of experience

Revenue model

We charge a commission on each transaction within the platform. The commission price is dependent on the retailer.


WHY CROWDFUNDING

TONE enables Kijkshop to turn into a People2People commerce platform. Kijkshop as founding father and launching customer will execute the platform with or without raising our goal of 1 million euros. As we strive to be an innovative brand, crowdfunding suits us. And as a People2People platform we aim for as many ambassadors - the crowd - as possible to support us.


WHY KIJKSHOP AS LAUNCHING CUSTOMER

Kijkshop believes that retail as we know it is "end of life". So we reinvented ourself. We did this by founding TONE. Using TONE and becoming a modern People2People platform requires a brand new positioning and market approach in the Dutch market. The new and improved Kijkshop with its new image and enriched assortment is a perfect match with TONE. And we believe that a proof of concept with a customer like Kijkshop will ensure that other retailers will follow shortly after.

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Achieved so far

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Required investment and purpose

Our crowdfunding goal is 1 million euros. And it will be invested as follows:    

  • 500,000 - Platform development 
  • 300,000 - Unified platform integration 
  • 200,000 - IT & infrastructure 

If we raise more than 1 million euros, our intention is as follows: 

  • If we raise 1,250,000 euros we will invest in extra features and functionalities of the platform 
  • If we raise 1,500,000 euros we will invest in accelerating the internationalization of TONE 
  • If we raise 2 million euros we will invest in a sale-and-lease-back construction, which means to buy all the hardware needed instore and at the headquarter of Kijkshop who will then lease it back for a commission per transaction.

FOR THE INVESTOR

You are investing in TONE, via a convertible loan with 6% interest per annum (accrued). Combined with the option to convert into shares against a 20% discount. The cap is set on 20% shares in TONE and a maximum valuation of 22 million euros.


TONE P2P B.V. is a different and independent entity from Kijkshop. Investors can profit from the upside of TONE, but will never be involved with any downsides of Kijkshop other than declining sales: thus declining commission per sales.  


Long term investors may enjoy a global scaling of the business when it launches in new markets. This is planned to be initiated during 2018 and rolled-out in the following years. Opportunity to exit when expansion capital is required and LPCA Fund I (see appendix) decides to sell parts or all of its shares to a growth capital oriented financial investor, which is foreseen to happen within the next five years.


This crowdfunding round is part of a larger capital raising effort for TONE P2P B.V.. Interest has already been shown by new investors to invest significantly.

Update_thumb_bjornserving
Björn Serving
Director of People

- 25+ years operational excellence & leadership
- Capturing problems and turning these into solutions
- Execution power to make it happen
- Persistent, social, energetic, high morals, integer

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Steven Bakker
Entreprenerd

- 20+ years serial entrepreneur & leadership
- Started and successfully closed multiple M&A projects
- Advisory board member of ANWB and others
- Public inspirational speaker
- Business innovation
- Unified commerce & software development
- Innovative, practical, guts and warm

Update_thumb_lennardderonde
Lennard de Ronde
Piggy Bank

- 20+ years experience in finance & control within retail
- Finance & business controlling retail, logistics & wholesale
- Operational, analytic, self spot, open

Update_thumb_bensteenstra
Ben Steenstra
Creative Missionary

- 20+ years serial entrepreneur within the area of marketing & communication
- Strategic sparring partner for company owners and board members
- Author & public inspirational speaker
- Strategy & execution culture & transformation processes
- Hands on, driven, passionate, persistent

Legal structure

TONE P2P B.V. is owned for 100% by LPCA FUND 1 AB. The legal structure as proposed below is work in progress and will be finished soon after the closing date of the crowdfunding campaign.

Human development

Our company and technology is fully scalable and ready to be implemented at any retailer. For the implementation we use third parties, which means that for now we don’t have to scale up our current team.

The product

TONE is a People2People platform for retailers. Retailers can brand the platform to their own wishes and set up an App and online social commerce environment enabling consumers to advise other consumers (multi lingual) via live interactive video on a commission basis.


The platform enables every supplier to electronically connect with their product database and maintain products, pricing and promotions.


After installing the Kijkshop App, consumers can decide to become an advisor and determine when they are available for advice. While being home or in the shop, the platform shows all available advisors within a specific product group that can be instantly called with video. After a sale is closed, the consumer advisor receives - in the case of launching customer Kijkshop - 5% commission in cash for each transaction. To be paid out or to spend at the retailer.


The quality of the advisors is shown based on reviews. After every advice a review is requested.


Also have a look at www.kijkshop.nl/crowdfunding or www.kijkshop.nl/tone for full functionality of the new platform and the repositioning of Kijkshop.

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Unique Selling Points

  • Strong investment group backing TONE 
  • Access to 1+ million customers visiting Kijkshop
  • Rocket launch due to an extensive amount of users
  • A boost in the media due to the brand awareness of Kijkshop
  • A proof of concept for (inter)national expansion
  • Positioning retailers at a service & advice level no other competitor can match
  • Highly scalable to international markets 
  • Highly experienced leadership team with more than 20 years of experience 

Revenue model

We charge a commission on each transaction within the platform. The commission price is dependent on the retailer.

Scalability

The platform is fully scalable to any other retailer within Europe and overseas. Implementation partners are available anywhere, offering a lead time to market between 3 to 5 months. Including shifting the retail organization to operate as a platform, optimizing their infrastructure and connecting their suppliers.  


Current status

The TONE development is at 70% and on schedule to be launched within Kijkshop before the end of this summer.

Target group

We target all retail segments within Europe and beyond that offer an advice worthy assortment:

  • IT & Telecom retailers

  • Department stores

  • Construction centres

  • Home(decoration), furniture and design centres

Market size

The current market of large retailers exceeds over 6,000 retail enterprises in need of change of their business model in order to survive the turbulent market. Our goal is to service at least 5 to 7 of them in the next 2 years.

Competition

Different competitors approach the market from a different angle. At the moment there is no direct competitor enabling retailers to transform to a platform and make use of consumers advising other consumers based on commission via interactive video connection. Indirect platform based competitors within the same area are:

  • Amazon.com
  • Bol.com
  • Marketplace / E-bay
  • Google shopping
  • Facebook shopping

Current customers

Kijkshop B.V.

Founded in 1973

70 shops at A/B location covering all of The Netherlands

500+ employees

1 million+ store visits per month

98% brand awareness

Assortment: products for personal & home care or decoration

Estimated revenue 2017: 70+ million euros

New customers

We expect to gain 5 to 7 new customers in Europe within the next 2 years .

Sales pitch

Retail as we know it is "end of life". The ones who don’t realise this are dead while you are reading this or soon to be dead. Everybody is trying to find answers to fill the empty stores and compete against the fast growing platforms but most lack the resources or time left to change.

TONE provides them the speed to adapt to the fast changing disruptive market and is affordable for most retailers with national or international coverage.


TONE embraces the latest technology and makes social commerce accessible, not only for Kijkshop but for every (r)etailer out there. We implement the solution where retailers can transform to a commission based People2People platform, involving the consumer in the customer journey.

What has been done before

Next to Kijkshop as our launching customer, negotiations are already ongoing with several other retailers within Germany and Sweden. We target on retail segments that offer an advice worthy assortment like:

  • IT & Telecom retailers
  • Department stores
  • Construction centres
  • Home(decoration), furniture and design centres

Marketing & sales channels

Retailers look at other retailers and with our PR campaign we will raise curiosity for TONE within the market. Being active for over 20 years within retail across Europe, we use our extensive network to contact and pitch to other potential customers.  

Marketing objective

With Kijkshop as our launching customer, the guaranteed rocket launch with over 1 million users within the running business of Kijkshop and the lead time from concept to implementation and launch (only 4 months), will attract the attention of all struggling retailers in The Netherlands and beyond.


It will position TONE as the most innovative platform at the moment, as no other platform was able to have this short lead time to market and being revolutionary at the same time by using the latest technologies within a innovative concept.

Partnerships

KIJKSHOP

Turnover so far

No revenues realized yet in 2017.

Projected turnover

PROJECTED EBITDA

Based on launching customer Kijkshop we estimate an EBITDA of EUR 314.000 in 2017.

  • 2017: EUR 314.000     
  • 2018: EUR 1.340.000
  • 2019: EUR 1.630.000

We hope to beat these targets. However no guarantees can be given whether we can achieve the targets and expected revenues. In the most optimistic case, with expansion to 5 or 7 other retailers within Europe and beyond, we foresee the following EBITDA.

  • 2017: EUR 314.000
  • 2018: EUR 5.500.000
  • 2019: EUR 6.650.000

Assumptions

Our model is licence based with very limited overhead cost. Thus scalable without increasing overhead.  

Consumers are rapidly getting used to video interaction and this trend will continue.

Foreign people like to get advice in their own native language.

Consumers are eager to help other consumers in need of advice.

Kijkshop is the main driver of sales growth in the early stage.
We estimate a conversion of consumer sales advisors to our platform of 10% per month of all current Kijkshopshop visitors. This means 2% of 1 million visitors = 20.000 consumer sales advisors per month for the first 5 months. This means 100.000 sales advisors in 2017.

Invested so far

LPCA Fund 1 AB invested 23 million euro in Kijkshop to make the transformation to a People2people commerce platform possible. From the start of TONE in April 2017, already 500.000 euro has been pre-invested in TONE.

Investment requirement

TONE enables Kijkshop to turn into a People2People commerce platform. And Kijkshop as founding father and launching customer will execute the platform with or without raising our goal of 1 million euro. As we strive to be an innovative brand, crowdfunding suits us. And as a People2People platform we aim for as many ambassadors as possible to support us.

Purpose of investment

Our crowdfunding goal is 1 million euros. And it will be invested as follows:    

  • EUR 500,000 - Platform development 
  • EUR 300,000 - Unified platform integration 
  • EUR 200,000 - IT & infrastructure 

If we raise more than 1 million euros, our intention is as follows: 

  • If we raise 1,250,000 euros we will invest in extra features and functionalities of the platform 
  • If we raise 1,500,000 euros we will invest in accelerating the internationalization of TONE 
  • If we raise 2 million euros we will invest in a sale-and-lease-back construction, which means to buy all the hardware needed instore and at the headquarter of Kijkshop who will then lease it back for a commission per transaction.

FOR THE INVESTOR

You are investing in TONE, via a convertible loan with 6% interest per annum. Combined with the option to convert into shares against a 20% discount. The cap is set on 20% shares in TONE and a maximum valuation of 22 million euros.


TONE P2P B.V. is a different and independent entity from Kijkshop. Investors can profit from the upside of TONE, but will never be involved with any downsides of Kijkshop other than declining sales: thus declining commission per sales.  

Return

The main assets of TONE will be the digitalization of the Kijkshop customer database and technology implementations (App + customized IT platform). App users have a significant value ranging from €17 to €140. We value our user at €22. We will raise funds in this round, based on a pre-money valuation today of 10 million euro and the target of 1 million users (unique buying customers) converted into the database in 2018. This means approximately €11 per user, which is relatively low, due to early stage funding.

€11 per user in customer base gives 100% value growth possible within the first 6 months.


You are investing via a convertible note which annually pays 6% interest until conversion, combined with the option to convert into shares against a 20% discount. The cap is set on 20% shares in TONE and a maximum valuation of 22 million euro.


Long term investors may enjoy a global scaling of the business when it launches in new markets. This is planned to be initiated during 2018 and rolled-out in the following years. Opportunity to exit when expansion capital is required and LPCA Fund I (see appendix) decides to sell parts or all of its shares to a growth capital oriented financial investor, which is foreseen to happen within the next five years.


This crowdfunding round is part of a larger capital raising effort for TONE. Interest has already been shown by new investors to significantly invest.


From the start of TONE in April 2017, already 500,000 euro has been pre-invested in the concept and development.  

Risks

Company specific risks:

Launching customer Kijkshop has one of the most multi cultural audience as a retailer in The Netherlands. While being this is initially and advantage being multilingual, we do not have in- dept numbers of the adaption capability of the current target group. It could take longer before the current target group adapts and before new target groups get attached to the concept, resulting in less revenue and unique buying customers in 2017.

Although Kijkshop is one of the oldest existing brands of The Netherlands, it lowered itself to the bottom of the market in price and brand perception. It can take longer or need more investment in the brand than expected before consumers within higher segments of the market will embrace the new positioning of Kijkshop.


See www.kijkshop.nl/crowd for additional information.


General risks when investing in convertible loans:

  • The Lender agrees that its claims against the Borrower under this convertible loan agreement rank below all other, non-subordinated, claims against the Lender as referred to in Section 3:277.2 Dutch Civil Code (‘BW’).
  • Lender issues a (subordinated) convertible loan to convert at a later stage to depositary receipts to become a shareholder of the company. Lender expects an (exponential) growth of value of the company with the possibility to sell the depositary receipts with a capital gain. However in most situations such capital gains do take more than an additional five years after conversion to be realized. In exchange for the possibility of a high return in case of a scenario of exponential growth of the value of the company, there is a risk the investment will be lost in case the company is not doing well.
  • Please ​read here​ carefully the risks while investing in shares or loans offered by the companies published on Symbid. Here you can also obtain insight in the default report of Symbid before deciding to invest. The main risk of this start-up is a lack of brand awareness. For this we have a marketing strategy in place which can be tweaked along the way. This to ensure that we create enough brand awareness, get enough visitors and receive enough bookings.