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Heupco 1A
Fundraising Objective
This initial funding round aims to scale the concept to full operational capacity by opening two new locations. This expansion will significantly increase customer capacity, accelerate revenue growth, and strengthen the concept’s foothold in the market.
The funds raised will be primarily allocated to the acquisition and fit-out of these new locations, as well as to financing the working capital required for their ramp-up.
Financing Structure & Repayment Plan
Given the current equity and the difficulty of establishing a fully representative pre-money valuation at this stage, the decision was made to prioritize a non-dilutive financing structure. The objective is to allow the founders to retain 100% of the equity following the transaction.
Repayment is based on a clear strategy: leveraging the consolidated performance of existing entities and new units to enable bank refinancing. This trajectory is made possible by the gradual increase in operating cash flow and a controlled current ratio, ensuring repayment capacity.
Financial Assumptions
The projections were built based on historical performance, intentionally incorporating a conservative scenario. Revenue growth is based on a gradual increase in the number of premium care services as well as activity related to hair prostheses, while remaining within conservative assumptions.
This approach aims to strengthen the credibility of the financial plan and avoid any overestimation of short-term potential.
Revenue Model
The business model is based on a combination of complementary activities at different value levels. Premium hair styling and care services form the recurring foundation, while higher-value-added services, particularly hair prosthetics, support growth and improve margins.
The ramp-up of the new units follows a gradual approach, with occupancy rates increasing over time and revenue growth aligned with observed performance. This structure ensures both recurring revenue and upward market positioning.
Profitability Trajectory
The financial plan anticipates an initial investment phase linked to the opening of new units, followed by a gradual improvement in profitability. As the units reach full capacity, revenue increases, fixed costs are better absorbed, and profitability improves structurally.
The objective is to build a stable, profitable model capable of generating recurring cash flow.
Cash Generation & Repayment Capacity
The combination of the ramp-up of new units, the optimization of existing entities’ performance, and the standardization of operations enables the gradual achievement of positive cash flow generation.
This cash flow is the central driver of the model: it enables both supporting growth and ensuring the repayment of financing through bank refinancing, over a timeframe consistent with the maturity of the business.
Overall Assessment
Overall, the financial plan is based on a controlled growth strategy, supported by conservative assumptions and a clear cash generation framework. This structure helps limit operational risk, strengthen the project’s credibility, and secure returns for investors.
Exit plans
Scenario 1: Repayment through operational performance (priority scenario)
The company aims to reach a level of profitability and cash generation sufficient to enable full repayment of the convertible loan within a 24-month horizon.
This scenario is based on:
- Rapid improvement of unit economics per location
- Standardization of operations
- Controlled expansion, notably through franchising, prioritizing profitability over uncontrolled growth
In this configuration, the company evolves toward a profitable multi-site model generating cash, where each new opening contributes positively to overall treasury.
Scenario 2: Conversion into equity
In parallel, the company structures its growth to enable a Series B fundraising within an 18–24 month horizon, triggering conversion of the convertible instrument, typically at a discount.
This scenario would be supported by:
- Strong revenue growth
- Successful replication of the concept across multiple cities
- Emergence of a distinctive and identifiable lifestyle brand
In this case, investors benefit from the company’s revaluation and scalability potential.
Long-term exit (post-conversion)
In the event of conversion, the most likely exit scenario would be a strategic sale to an actor in the hospitality, lifestyle, or experiential retail sectors within a 5–7 year horizon.
The company’s hybrid positioning makes it particularly attractive for:
- Hospitality or restaurant groups seeking differentiated concepts
- Grooming or lifestyle brands expanding into experiential formats
- Private equity funds pursuing consolidation strategies
KPI Roadmap
KPI 1: Cash generation
- Initial: Business roughly breaks even
- 12–18 months: €5k–15k/month per profitable location
- 24 months: €20k–50k/month at group level → loan repayment or refinancing
KPI 2: Profitability per location
- Initial: 1 site near or at breakeven
- Intermediate: 3–5 sites with positive EBITDA
- 24 months: Standardized EBITDA per site, expansion partly self-financed
KPI 3: Revenue per location
- Initial: < €200k per site
- Intermediate: €400k–800k
- 24 months: €500k–1M per site
Scorecard
The Scorecard is a tool designed to help investors make more informed decisions when considering investments in start-up companies. It provides an overview of a company's current situation. Developed by Spreds, it offers an objective score based on a defined set of key factors, often identified by academic research as indicators of a start-up's potential for success. The documents provided by the project owner were received by Spreds and made available to (potential) investors. The content of these documents was not analyzed by Spreds nor Spreds Finance.
Raise summary
| Duration | 24 months |
| Interest rate | 6% |
| Reimbursement frequency | Quarterly |
| Reimbursement type | Bullet |
| Crowd investments | €0 |
| Committed by others | €0 |
| Amount raised | €0 |
| Minimum round | €25,000 |
| Maximum round | €400,000 |