Response to Sunday Times crowdfunding article

To all JustPark investors,

Thank you again for the support you have shown in JustPark.

While Crowdcube finishes their due diligence and documentation I wanted to respond to an article that appeared in this mornings Sunday Times with the title: “Start-up gives venture capital better deal than crowds”

http://www.thetimes.co.uk/article/1933d490-f815-11e9-ab03-a3e13965f71b (behind a paywall)

I spoke to the journalist, Peter Evans, on Friday and I am disappointed that he still went ahead with the story despite being made aware of the facts as it clearly distorts the efforts we have made to fairly treat our Crowdcube investors who have been so loyal and supportive of our journey.

Let me first state some important facts overlooked by the journalist.

Index Ventures and LocalGlobe, our two institutional investors, have invested a total of £3.15m across multiple different investment rounds and were granted preference shares.

Preference shares are extremely common place for institutional funds as they reward two key factors:

  • Early risk-taking in the form of a large ticket investment
  • Significant support to the company in the form of:
    • regular board meetings
    • utilising their extensive networks
    • helping develop large strategic relationships
    • hiring and attracting the best talent
    • advising and guiding a company during an M&A/IPO process.
    • on-going networking and training for the exec and senior management team

It is hard to place a value on the above, so instead, companies regularly offer downside protection in the form of preference shares rather than a lower share price or other forms of payment.

Additionally, the vast majority of Crowdcube investors will receive EIS tax relief, providing material benefits including immediate tax relief of 30% and further Capital Gains tax relief that is not granted to most institutional funds.

The whole JustPark team (including myself) and our new strategic investor, Itochu, have Ordinary shares and therefore would be paid out at the same time as Crowdcube investors.

In JustPark’s case, like the article only mentions in passing, the company would need to sell for less than £18.7m (a fraction of our current post-money debt-free valuation of £86.5m), for the preference shares to have any impact and less than £3.15m for myself, Itochu, the JustPark team and crowd investors not to receive anything.

A total of £7.34m was displayed on the Crowdcube progress bar with an additional ~£170,000 raised from a few external investors including one of our existing institutional investors. The article, critically, failed to mention that only £50,000, less than 1% of the ~£7.5m raised, was invested for preference shares.

We were asked a question about the impact of preference shares during the campaign and my financial controller, Ben, answered it thoroughly. As many of you have commented, we have been extremely open and transparent throughout the campaign and have been happy to answer all 108 of the discussion posts we received.

In my view, JustPark and all our shareholders are getting great value for money by bringing these institutions into the company.

All investors will shortly receive a “cooling off” email early next week, which will have all of this information and will form part of the formal legal closing process.

As always, I am happy to continue this discussion on the Crowdcube forum where I will do my best to reply in a timely fashion.

I look forward to working together with you all over the coming years.

Best,
Anthony Eskinazi

Founder & CEO, JustPark

10 Years Of JustPark

JustPark Founder and CEO Anthony Eskinazi has a special announcement.

Today is a special day for everyone involved here at JustPark HQ – as well as each and every one of our million-plus drivers and space owners who regularly use the service the world over.

Why? Because on this day, a decade ago, I speculatively clicked ‘send’ on a press release about a whacky new idea which I’d had – unknowingly thereby signalling the birth of our business. I then went to work as usual, thinking nothing else of it.

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The Pursuit of the Perfect Parking Product

Here at JustPark, we’re forever looking for ways to make our website and apps even more fabulous – because we want all you wonderful drivers and space owners to absolutely love using them.

So it’s no surprise that behind the scenes with the product team at JP HQ, things move pretty quickly. They’re a superhuman bunch who live and breathe tech – and work incredibly hard in the name of pain-free parking.

To give you an insight into this world of parking product professionals, we invited JustPark Product Manager Jeyda Heselton to share with us her top tips for a winning website. Take it away, Jeyda!

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JustPark Integrates With Android Pay

android_pay_logo_rgb_fc_dark (1)We’ve got some really exciting news to share with you – an announcement that we hope will be music to the ears of all our Android app users.

Everyone’s favourite little green robot has today unveiled the latest trick up its sleeve – and it’s going to revolutionise online and offline payments for Androiders.

Introducing brand-new, hot off the production line…

Android Pay!

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The New JustPark Android App – With Navigation From WAZE

You may have noticed that a couple of weeks ago we launched our brand spanking new Android app – and, at the risk of sounding a little biased, we think it’s a pretty nifty bit of kit.

New Year, New App
The whole app has been completely redesigned and it’s crammed full of updates, improvements and some very exciting new features too. Check out the handsome devil below:

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The Ultimate Christmas Driving Playlist

As much as the dulcet tones of Chris Rea portray Christmas on the road as a calm and romantic experience, most of us know the harsh truth…

Driving at Christmas is hectic and stressful – and if but one flake of snow should fall in this country so completely incapable of dealing with the weather, you should probably not even venture outside.

Luckily, for those braving it, we’re here to make those hours stuck behind the wheel a little more bearable – with our ultimate Christmas driving playlist. Come rain or snow, from the M1 to the B310, we’ve got your back (and your ears)…

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apple pay

JustPark Integrates With Apple Pay

Do you remember the first sci-fi film you ever saw? We do. The year is 1989. The film is Back To The Future II, our parking startup is just a twinkle in the milk float’s eye, and the film features a fingerprint scanner lock on a door.

It’s now 2015 (the year Marty travelled to in the Delorean. Goosebumps). The future is here, and biometric technology is the reality of the everyday. Apple Pay is the latest fingerprint scanning story to hit the headlines, and we’re thrilled to say that JustPark was one of a select bunch of companies chosen by Apple to showcase its wizardry for the launch of Apple Pay UK, alongside the likes of Pret, Boots and Uber.

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#VOOM! JustPark Wins Virgin Media Business’ Pitch to Rich Competition

Friday 26 June, 2015: the hottest day of the year. It’s 12.55pm, and JustPark has just been named the winner of Richard Branson’s startup competition. A marketing spend of £250,000 is ours to play with, to bring the good news about pain-free parking to drivers far and wide. There are no nails left on any fingers at JPHQ. Our voices are hoarse from bellows of joy and the sweaty palms have turned into sweaty hugs.

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