This year’s revenue is estimated at 800.000€. The sales margins in the business are high and Q3/2017 was already at the break-even point. We expect to reach the break-even point on an annual basis in 2018.
The target is to grow the turnover of the company to approx. 40M€, at minimum, by 2022, generating an 8M€ EBIT. We believe an IPO or trade sale exit would take place on a valuation in excess of 10x EBIT. Provided we reach our target, the return on investment should be greater than 20 times the invested money accounting for some possible future dilution.
The investor will be party to the minority shareholders agreement. The agreement defines mainly a) the drag-along and tag-along i.e. the right and obligation to sell shares with the same terms as other shareholders in case of a trade sell and b) the minority shareholders´ right to participate in the general meetings only through one shared representative. Please remember to read through the minority shareholders agreement prior to making your investment. You'll find the agreement in the documents section.
As a bonus we will offer our investors a 40% discount on our webshop valid until end of January.
The problem this product solves
Exercise causes inflammation and accumulates metabolic waste in your system.
Sitting or standing for extended periods of time may cause swelling, tingling and pain.
How the product solves it
ZeroPoint’s compression products boost circulation by improving venous valve function and the mechanical pressure created on the deep lymphatic system aids in the removal of metabolic waste. The effect is more oxygen for tired muscles, speedier recovery as well as reduced swelling, tingling and pain.
ZeroPoint’s products are based on extensive research with universities, sports labs and on athletes to optimize our products´ performance.
ZeroPoint uses sophisticated, medical-grade, graduated compression in all socks and sleeves. Our technique creates the strongest compression around the ankle/wrist, gradually decreasing towards the top of the shin/arm to efficiently transport blood back to your heart and speed up lactic acid removal.
We offer very specific dimensions for sizing to ensure a precision fit and the elasticity and compression levels are always designed for a specific use.
We maintain the highest quality standards and use renewable Econyl in our clothes.
Product use cases
• carries more oxygen to muscles
• removes metabolic waste
• supports muscle
• prevents swelling
• improves sense of movement & kinesthesia
• improves the metabolism and helps your system regain its balance faster after exercise
• muscle cramps
• shin splints
• achilles tendon inflammation
• ankle problems
WORK & TRAVEL
Long periods of sitting/standing at work, driving or flying may cause your feet to swell and your arms to tingle-ZeroPoint products are the answer.
Problems associated with poor circulation–Diabetes, lymphatic problems, varicose veins, recovery after surgery-ZeroPoint products are the answer.
Johan Ohlsson Group CEO
Johan has 20 years of experience in the fashion and sports industry. He has worked with brands like J.Lindeberg, Mexx, Björn Borg, Carrera and Smith. For the past 15 years, he has worked in the global sport market for Carrera and Smith under the company Safilo, most recently as responsible ... See more
Johan has 20 years of experience in the fashion and sports industry. He has worked with brands like J.Lindeberg, Mexx, Björn Borg, Carrera and Smith. For the past 15 years, he has worked in the global sport market for Carrera and Smith under the company Safilo, most recently as responsible for Northern Europe. See less
Magnus Olofsson Head of Design
Magnus is one of the most experienced designers in Sweden. He has been involved in the development of the fashion and sports industry for more than 35 years. He has worked for H&M, Stadium, Intersport, Volvo, Swedish Fashion Council, Puma, GANT and UEFA. Everyone in Sweden has owned or owns ... See more
Magnus is one of the most experienced designers in Sweden. He has been involved in the development of the fashion and sports industry for more than 35 years. He has worked for H&M, Stadium, Intersport, Volvo, Swedish Fashion Council, Puma, GANT and UEFA. Everyone in Sweden has owned or owns something he has created. See less
Jaakko Hintikka CFO & COO
Jaakko has a strong background in the sports industry with distribution business working with brands like Carrera, Yonex, Unihoc and ZeroPoint. Jaakko has also been a long-time captain of the Finnish floorball national team.
David Currier CEO, US Operations
David is an accomplished sports industry sales & marketing veteran. Lately he has held the positions of General Manager of Smiths Optics and Global VP Sales & Marketing for Bollé. David is an Alpine Olympian and US Nat’l Skiing Champion and has also served as President of the World Professional ... See more
David is an accomplished sports industry sales & marketing veteran. Lately he has held the positions of General Manager of Smiths Optics and Global VP Sales & Marketing for Bollé. David is an Alpine Olympian and US Nat’l Skiing Champion and has also served as President of the World Professional Ski Racer’s Association. See less
The total compression industry is valued at anywhere between 2 and 5 Billion EUR in 2017. The compression market is projected to grow rapidly in the years to come. The key drivers for market growth are; increasing use of (functional) sportswear, rising cases of venous disease, a growing elderly population and diabetes.
The largest markets are in US and Europe but the expectation is that the Asian markets will grow even faster. The share of the Sports/leisure segment is a third of the total market and expected to be the fastest growing segment.
There are a handful of top tier compression players in sports/leisure segment such as Cep, Compressport, 2XU and Skins which are relevant competitors. The sport goods giants (Nike, Adidas, Under Armour) are not focused on compression and have clearly lower quality and functionality in compression products.
We have some good competitors but there is clearly room for a new player with the right angle, differentiators and brand image.
Typical retail points of sale carries 2-3 compression brands. The wide prospective consumer base, yearlong season and small store footprint makes compression products a great business opportunity for Retailers and Distributors.
Unique differentiator from competitors
The ZeroPoint brand is based on its strong Nordic heritage and its top tier quality and functionality, based on extensive Research and Development. Nevertheless, ZeroPoint can match or price lower than other top tier players.
We are unique in our sustainability approach - the key “ingredient” in Zeropoint clothing is recyclable ECONYL®; the fabric is regenerated from ocean and landfill waste yet maintains the same purity and characteristics of Nylon. This means cleaner oceans, less emissions and major energy savings.
The newly recruited world-class management team, experienced in establishing global brands, will also be key to Zeropoint’s success.
Company revenue streams
This is a product business and all revenue comes from the sales of products. The majority of revenue comes through retail channels while significant revenue streams are planned through special/B2B channels and our own webshop.
The Nordic retailers are served directly, leveraging the CEO´s network and supported by sales agents. The US retail is managed through 20+ commissioned sales representatives/representative groups; the Zeropoint CEO in the US worked with these agents to make Smith number two in the US market for shades. Outside of the Nordics and the US, we partner with distributors with proven track records.
These include corporates, airlines, and airports and are managed by our own sales force - the deliveries are executed mainly through the company’s webshop.
Some consumer sales occur through our webshop.
2009-2013 Extensive Research and product development
2014 Market Launch in Finland
2016 Market leader in Finland, traction in the Netherlands, Switzerland, USA
2017 Strong focus to establish the brand internationally and restructure operations to meet international standards and customer requirements:
· Recruiting new CEO and Head of Design to lead the internationalization
· Establishing group headquarters in Sweden
· Changing the business model to manufacturing against pre-orders
· Establishing joint venture with top sales & marketing executives in US to drive strong expansion in
Next key objectives
· Growth target >100% vs 2017
· Profitability from negative to neutral (+-0)
· Increase number of markets from 9 to 15
· Increase number of points of sales to 1455 (750 in US and 705 in rest of world)
· Growth target >100% vs 2018
· Profitability >10%
· 100% environmental certification (from current 70%)
· First own concept store opened in Stockholm, franchise model to be expanded
· Increase number of point of sales to 3170 (1600 in US and 1570 in Rest of World)
ZeroPoint has been financed to date by Angel Investors having invested some 1.1M EUR and by 675.000 EUR of grants from TEKES (Finnish Funding Agency for Innovation). In addition, TEKES has granted an R&D loan amounting to 107.200 EUR. Loans from Nordea stand at 220.000 EUR. The combined funding hence stands at 2.12 M EUR.
Use of funds
mainly sales and marketing activities and working capital to scale the company internationally and enable the forecasted growth.
The target is to grow the turnover of the company to approx. 40M€ by 2022 generating a 8M€ EBIT (with ambitions even higher). We believe and IPO or trade sell exit would take place on a valuation in excess of 10x EBIT. Provided we reach our target the return on investment should be greater than 20 times the invested money leaving room for some future dilution, eg one or two additional share issues.
Product: The product has been proven and tested, there is no doubt it wouldn’t be fit for the intended purposes.
Competition:The sports goods giants starting to invest in compression can be a threat but could also open up exit opportunities.
Supply: supply capability risk we have mitigated by having alternative sources wherever possible.
Funding: The target is to become profitable in near future but external funding is still required to fund growth - access to capital is essential for reaching plans.
Key People: Key people leaving - The key people have been incentivized by share ownership in the company.
Privanet Group is a Finnish investment service group specialized in trading unlisted shares and managing companies’ financing needs. Our group includes the parent Company Privanet Group Plc, the fully owned subsidiary company Privanet Capital Markets Ltd, which focuses on capital market transactions, and its subsidiary Privanet Securities Ltd, which operates Finland’s only marketplace for trading securities of unlisted companies. Privanet is working closely with FundedByMe, the international crowdfunding platform. The entire Privanet group employs approximately 40 people. We have branches located in Helsinki, Tampere, Turku, Oulu, Jyväskylä, Vaasa, Forssa, Joensuu, Lahti, Mikkeli, Ylivieska and Kuopio. We provide a large variety of services aimed at bringing together investors and those in need of funding. http://www.privanetgroup.fi/?lang=en