SEIS/EIS investment opportunity in the equity capital of rightcoverage Limited.
https://rightcoverage.co.uk
Summary
rightcoverage is a Yorkshire-based telecoms/proptech company founded by Martyn Gould
and Paul Doyle. Their vision is to provide clear data within a clever, postcode driven graphic
which supports the UK vision of all properties being ‘ultra-connected’ to the internet. The
business offers a SaaS (B2B2C) solution to proptech companies and also generates
significant revenue via a B2C service.
The problem and market
The UK telecommunications market is hugely complex with many brands delivering many
products of variable price and quality. Consumers do not have the skills or time to navigate
and truly understand the complete market and which deals are best (not necessarily
cheapest) for them, especially taking into account the variability of service availability across
different geographic locations.
The telecommunications industry contributes 4-5% of the UK’s GDP and plays a vital role in
the economic and social well-being of the country. With 60M Mobile connections and 25M
homes in the UK, the market size and opportunity are huge.
rightcoverage is achieving solid revenue by giving consumers simple, unbiased information
saving them time and money. Revenue of 94K earned since November 2020 based on
minimal external funding shows the success of this disruptive model.
Product and business model
rightcoverage converts complex data into easily understandable, unbiased and clear
connectivity options across Mobile, Mobile Broadband and Fixed Line Broadband including
Fibre. It is a fully digital, self-service solution which significantly improves consumer
understanding of connectivity levels, costs and suppliers at any UK address.
• For property sales/letting sites: Consumers are provided with tailored connectivity
information for each property they review giving them options to ‘move in
connected’ to fully enjoy their new property. Examples:
o Rummage4property showcases the rightcoverage service within the
rightmove platform.
o propertyheads.com presents rightcoverage results within their branded
content.
• For property data websites: Landlords and developers are able to address
connectivity issues before sites are developed. Example: propertydata.co.uk.
• For Consumers browsing the B2C service: Service quality and service price are
provided allowing budgetary control or the choice to buy the best connectivity for ‘at
home’ workers.
Concept Testing
The 6-month period from November 2020 to May 2021 has been used to create a ‘data
room’ of detailed KPIs and learnings. ROI positive since November 2020, and with low
operational costs, rightcoverage is seeking investment to grow revenue and increase ROI.
NOTE: Operating costs remain low as revenue increases, which in turn increases margin.
Product Development
The rightcoverage UX/UI (user experience / user interface) has been redesigned as a result
of these learnings and the redesign is due to be released in June 2021.
Future plans on our roadmap include:
- Auto subscription and payment collection for new SaaS customers
- Diversification of mobile and fixed-line data sources
- Other utility services
Strengths
- Easy to launch new SaaS customers quickly and with zero disruption to their existing
business operations
- Clear, easy to understand service for Consumers
- The ability to quickly launch other utility services and / or launch a franchise outside
the UK
- Low operational costs / Founder credibility and experience
- Barriers to entry - significant investment required to copy and compete against
- Revenue positive / high margin / operating profit recorded in Year 1
Income profile and financial forecasts
- Average revenue per SaaS API call = 3p (200% margin per call)
- Average revenue per Consumer switch = £37.25
- Positive ROI with a gross margin of 40%
- Cashflow (due to payment latency) is constraining growth: revenue fluctuates
between 10K and 30K/month due to our inability to continually invest in growth

Forward view
- The size of the market opportunity linked to positive ROI shows our target of
100K/month in revenue requires working capital of 400K
- 400K, invested directly into growth, addresses the cashflow issues caused by
payment latency of ~120 days
- This working capital will drive monthly revenue to 100K in November 2021 and
upwards to 200K by the close of Q1, 2022
Team
Paul Doyle: Senior hands-on technologist / developer with extensive experience in systems
integration and architecture, specialising in telecoms.
Martyn Gould: Telco and Software veteran who was employee #4 at Cellnet and has driven
programmes to help Telco players launch more services to give consumers more choice.
Both were Founders of yboo, the technology of which was acquired by Dixons Carphone
(DC:LON) in 2020.
Exit perspective
IPO or private sale (to the likes of GoCompare) in 3 years at valuation of 20M.
Current equity offer
Up to £1m offered under EIS at a £6m pre-money valuation for the company. Use of funds:
Further product development, build the team, boost marketing and brand awareness and
scale operations.
Benefits of investing under the UK Government Enterprise Investment Scheme (EIS)
• 30% income tax relief in respect of the tax year of the EIS investment and/or the
previous tax year.
• Capital gains tax relief: There is no tax on the capital gains generated by the EIS
investment.
• CGT deferral: If the EIS investment is funded by capital gains from another.
investment, the payment of the tax on these capital gains will be deferred until the
equity shares acquired under EIS are sold.
•
Investors must maintain their positions in the equity shares acquired under EIS for a
minimum of 3 years otherwise the above tax benefits can be clawed back.