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Beyond Sports 1A

€72,500
total amount raised in round
200%
Financed 200%
  • Eligible for a tax reduction

Economic model


Choosing freemium for monetization allows the company to create a lean and focused revenue model: Digital marketing acquires new users; subscriptions cost €2 a month, and all payments are handled by Google and Apple’s payment infrastructure. This approach makes the company less complicated to manage, as it reduces the amount of variables considerably.

The power of an exclusive tech licence agreement


Beyond Sports licence agreement with leading AR company Tropos AR gives them an unbeatable competitive advantage that has a massive impact on the company's financials, the overall risk, and the road to profitability. Tropos AR's market-leading Tropos AR SDK™ technology removes over 85% of all AR-related development costs. Tropos AR's offshore subsidiary is an average of 40% cheaper than Western EU development teams, and their development team is at Beyond Sports' disposal at reduced rate. That combined effort (Tropos AR SDK + reduced development labor costs) means that any competitor building a similar product to Beyond the Mat would have to spend almost 10x the resources to create a competing product.

Expected revenue/expenses & costs


By being able to start development based on advanced AR systems, Beyond Sports plans to launch a first version of the app before the end of the year. Continuous development will allow the company to refine and expand as time goes on. At first, at a small scale in a smaller segment of the market. And once net-positive digital marketing has been achieved, 30% of the revenue will be reinvested into continuous user acquisition.


Share value and dividends


Beyond Sports' goal is to convert 3% of the total attainable market (or 6% of the serviceable attainable market) to paying subscribers. Using the revenue multiple method, the starting share value would be up 270% after a period of 5 years. 

As with all successful sports platforms on mobile devices, many aspects of the company will be automated. That leads to a stable, balanced revenue generation, which will allow the company to set up a shareholder dividend plan with the following requirements:

  • +€100k cash reserves
  • +20% year-on-year subscriber growth.

At the end of any fiscal year that meets these requirements, Beyond Sports will pay out 25% of that year's profit to all shareholders pro rata. 

Cash balance plan


Due to the benefit of having access to ready-to-go technology and cost-efficient development resources, Beyond Sports estimates it can reach profitability with just one funding round. As a new start-up, the company is eligible for a maximum of €500.000 in tax shelter funding over a maximum of four years. After 12 months, the company will evaluate if additional funding will be required. 


 
The current Beyond The Mat financial prospects are calculated purely on subscriptions through the Freemium model. Yet, the company has serveral other ways to monetize. These can be divided into two segments:

1. Other in-app revenue streams 


  • Targeted advertising at non-paying users.
  • Collaborations with BJJ brands (visible in the AR/3D lessons)
  • Brand integration in gamification rewards
  • Unique one-time payment extra’s.

2. Re-use Beyond The Mat technology for other sports

Just as DuoLingo teaches many languages, it is the goal of Beyond Sports to deploy its platform in other sports. This could be done within the same app or by duplicating the app. 

  • Judo: 22 million active practitioners
  • Sambo: 4.5 million active practitioners
  • Olympic Wrestling: 12 million active users

TAX SHELTER 45%

Investments in this company benefit from a 45% personal income tax reduction. Read more…
A remaining amount of €118,000 is available for the Tax Shelter benefit.

Raise summary

Crowd investments €50,000
Committed by others €22,500
Amount raised €72,500
Minimum round €57,500
Maximum round €200,500
Shares in the company (total round) 11.791%
Pre-money valuation €1,500,000
Post-money valuation min. €1,557,500
Post-money valuation max. €1,700,500