ROXOFF OFFERS X8 RETURN ON INVESTMENT
IN THREE YEARS
ROXOFF offers investors the opportunity to get in early to this new market. The business is forecasting x8 return on investment in three years based on raising €550,000 now (May 2024) to build a business which is forecast to generate revenues of €5.9m from 183,000 fee paying monthly subscribers at €4.50 per month, generating sales of €5.9m and an EBITDA of €4.2m. Spotify has 165m fee paying monthly subscribers at €12.99 / $9.99 (ROXOFF only needs 0.11% of Spotify users to sign up to the service to hit these forecasts). NOTE ROXOFF is the brand name of FT Music Publishing S.L a business registered and headquartered in Barcelona, Spain.
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VIEW & DOWNLOAD THE FULL INVESTOR DECK
ROXOFF is looking to raise €550,000 at a pre-money valuation of €5.150,000 by the end of June which will enable the business to build phase one of the state of the art music streaming platform by November 2024 and launch the new service in January 2025.
VIEW & DOWNLOAD THE TECH ROADMAP
The ROXOFF music streaming platform will be built by an external agency called Cogniteq who are based in Poland. These guys won a three way competitive pitch for the business and together with the ROXOFF management team have spent three months scoping the product roadmap and product vision. Click below to see the plan of attack for this project.
VIEW & DOWNLOAD THE FORECASTS
ROXOFF requires €550k of funding to start product development in May 2024 and also includes enough money to cash flow the business up until May 2025, which includes executing a significant global launch marketing campaign online kicking off when the product is ready for launch to the market in January 2025. Users will either pay €0.99 per session (with a session lasting 24 hours on a count down from start time) or a monthly subscription of €4.50. The forecasts assume a churn rate of 5%. with a cost per acquisition of €3.20 per user (which is for paid advertising on social media). The business is expected to start to generate profits and cash from August 2025. By the end of April 2027 (three years) the business aims to have signed up 510,000 users, of which 183,000 users are paying monthly subscriptions which will generate revenues of c€5.9m with EBITDA of €4.2m. With this level of profits / market penetration and based on metrics applied to similar businesses, this would suggest a valuation at this point of c€42m. The business is focused on a trade sale / exit event within three years offering early stage investors a x8 ROI.
THE MANAGEMENT TEAM
Andrew Grant
Founder & Chairman
Previously CEO of one of the UK's leading digital agencies developing platforms and applications for Royal Bank of Scotland (RBS) & NatWest Bank, Barclays Bank, Jaguar, Pepsi and Subway as well as building software for the UK Government and the UK's National Health Service (NHS). Andrew is an entrepreneur with a proven track record of building successful businesses. He is also the founder of over 5 high growth tech start-ups and an exciting new YouTube channel about entrepreneurship.
Rafael Balaguer
CEO
Rafael is a media director and strategist with over 10 years of experience working with brands like Visa, Virgin America, and Charles Schwab. He now owns and runs his own agency called LIMLAUNCH Media Buying & Strategy, a digital media buying agency that focuses on launching and scaling small to medium-sized businesses using paid social media campaigns.
Bru Marse Ortigosa
Director of Music
Over 20 years working in the music industry, which included 5 years Head of A&R at legendary hit factory Blanco y Negro record label (now part of Sony) and one of the founders of Matinee Group (Circuit Festival and Matinee recod label). Bru now owns Musica Divina. Producing music for business. Musica Divina clients include Victoria's Secret, Armani and Vueling Airlines. Musica Divina Live is a subscription based music streaming service.
Stefan Gerstmeier
CTO
CTO with 25 years of experienced in the information technology and services industry across Asia, the US, Latin America and Europe. Skilled in Business Process Reengineering, Technology, Product and Partner Management as well as International Business. Successful track record in building up Teams, Processes and Organizations. Currently CTO of Neofonie, Berlin based software engineering firm where he is in charge of 250 engineers building tech for Deutsche Bank and Lufthansa.
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