Our Campaign of the Week this time round is a Seedrs-listed self-storage alternative. Here’s the basic concept. You need to pack up a load of old things and stow them away. Many choose to shift clutter into lofts, basements, sheds or spare rooms. By using WeStore – homeowners get delivered the boxes, they pack up their things, and WeStore then collects and stores those boxes for as long as is required. And the whole thing is managed online.
The young business has already raised money from some prestigious investors, including VC firm Playfair Capital, some leading UK technology Angels, and global logistics provider SEKO. The SEKO engagement places WeStore in a particularly advantageous position. SEKO is the fastest growing private logistics company in the UK – with 120 facilities in 40 countries across all continents and over 3 million square feet of dedicated logistics centres.
Whilst the story is a strong one – the financial documentation is somewhat lacking for this particular pitch, and so we’re unable to make our usual, considered attempt at analyzing the campaign as an investment opportunity.
The “tech-take” by Oli Batchelor
As we go through life we accumulate 'stuff'. And if you're the least bit sentimental this stuff really starts to pile up. But what is one to do? It would be heartless throw out all those birthday cards that loved ones took the time to send or that vinyl collection that you spent years collecting before Spotify turned up. Sure there are self-storage units but they’re out in the middle of nowhere and that’s a bit too much like hard work when there’s a wheelie bin just outside. That’s where WeStore comes in.
Imagine if storing your stuff was as easy as backing up all the digital gubbins you’ve got spread across the ‘cloud’. Just a couple of clicks and you’ve freed up some space. The way WeStore works is simple enough. Go online, book a collection, stuff goes to storage, go back online, browse your stuff, get delivery of anything you need back. Now there is always going to be security issues when things go digital but it is probably no more risky than traditional storage units. Remember the first few times you went online shopping? It’s only natural to have doubts when trusting new technology but look at where that market is now.
So if this really going to be the storage solution of choice in the future what will it take for WeStore to come out on top? It all comes down to service; both online and offline. They’ve teamed up with SEKO who are experienced in traditional storage solutions but then their competitors, outfits like Lovespace and Student Storage Box, have similar relationships. So it’s going to come down to interface. Ultimately these products are experienced in an online environment and that’s where the winner will be superior. It’s a tough call as they all provide very similar functionality. Ultimately, there’s plenty of room in the space-saving market and WeStore might just be able to fill it.
Investment sought: £400,000
Amount already funded: £42,400
Valuation (pre-money): £2,250,000
Equity offered: 15.09%
Tax relief: EIS
Days left: 38