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Charly Cares team 6
Charly Cares Amsterdam, NL

Charly Cares

Childcare that adapts to your family’s schedule - easily accessible through one platform.

$787,078 INVESTED
135%
$582,210 0
Minimum target amount Days left
€1.200.000 6.00% 4 years
Maximum target amount Interest rate Duration
Product

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One of the greatest puzzles for parents now is: "how do I organise my childcare?"

This is why we founded Charly Cares. Childcare that adapts to your family’s schedule - easily accessible through one platform.


We are childcare providers by creating a tech enabled and human validated platform for child care services at home. We offer our services to families by connecting them to selected and curated caretakers - our Angels. The company operates as a platform that facilitates the matching, booking payment and quality control in order to make things simple and safe.


Founders Charly & Xander started the business in 2016 and we operate over 57 locations in The Netherlands. By now, we have a scalable platform infrastructure with 110.000 users and currently operated by a team of 12 from Amsterdam.


Summary of the issuance

Potential investors should read this summary as an introduction to the information memorandum. Every decision to invest should be based on studying the full information memorandum, including the attachments.


● Issuing entity: Charly Cares BV

● Website issuing entity: www.charlycares.com

● Type of issuance: Convertible bond

● Issuance amount: €500K - €1.2MIO

● Minimal nominal value per participation: €200

● Issue price: €200

● Conversion option: Under certain circumstances the bond can convert to certificates of shares of issuing entity

● Conversion discount when investing < €50.000:

○ 3 to 12 months after issuance of the convertible bond: 10%

○ 12 to 24 months after issuance of the convertible bond: 15%

○ >24 months after issuance of the convertible bond: 30%

● Conversion discount when investing > €50.000:

○ 3 to 12 months after issuance of the convertible bond: 14%

○ 12 to 24 months after issuance of the convertible bond: 19%

○ >24 months after issuance of the convertible bond: 32,5%

● Use of funds: Marketing, Sales, Development, Internationalization

● Risk profile: high (Risk profile High because the issuing entity exists longer than 3 years, click here for more information on Symbid risk profiles)

● Interest: 6% (single)

● Collateral: None

● Repayment: After 4 years, but issuing entity has option for extension of another 2 years

● Early repayment option: No

● Symbid costs issuing entity: maximum 6% success fee (Excl. VAT)

● Symbid costs investor: 1% administration fee (Excl. VAT)

● Target group issuance: Retail investors

● Expected return: Not fixed, depends on performance issuing entity


Unique Selling Points

Problem

One of the greatest puzzles for parents now is: how do I organise my childcare? It’s often a colourful cocktail of ‘Mama’, ‘Papa’, relatives, daycare, perhaps an au pair, sometimes even a neighbour who helps with a pickup moment, and so on.

Where to instantly find the right match for all your childcare needs? In a functional and emotional way? That’s where Charly Cares comes in!


Our Solution

We’re reinventing childcare by creating a tech enabled and human validated platform of childcare services. We offer high quality childcare that adapts to your family’s schedule – easily accessible through one platform.


How we create value

Customers will experience high quality child care through our top rated Angel base, innovative platform and high level quality assurance and booking support. A strong selection and curating of the users on our platform generates trust with parents, and a sense of exclusivity and community, among caretakers.

The liability insurance ensures Angels are covered while working on the platform, engendering platform loyalty. We offer core partnerships to destress parents and increase the platform value of Angels. Think about partnerships like HelloFresh, Gorillas, Mamadeli, Helpling and Swapfiets. Our partners provide workshops like First Aid to Angels to engender their loyalty as well as parent trust. It is more than caring for the community, we’ve made it our core business strategy.




Our pricing

We offer the full spectrum of the following childcare services to our parents offering them three subscription models.

  1. Flexible and ad-hoc babysitting services

  2. Daycare and after school services

  3. Additional services e.g. homeschooling

  4. Last minute 3 hours in advance

BASIC

€2,- membership per month

€ 7,50,- fee per booking


FLEXIBLE

€6,- membership per month

€ 3,- fee per booking


PREMIUM

€25,- membership per month

No booking fee


The hourly rate is dependent on that said by the Angel.


Executive summary


Required investment and purpose

The time to move forward into the next stage of growth is upon us. Charly Cares is planning their next step to become market leader in The Netherlands within 12-18 months. We hit > 45.000 subscribers and >35.000 active Angels across 100 cities in NL.


Next to that, we’re preparing our team for the big step towards EU city roll-outs. An investment of EUR 1,2 million is estimated, to reach the following milestones:

  • Continue the proven growth in our existing business to the consumer market in NL.

  • Build on initial traction in the NL business to business market with a differentiated product proposition.

  • Launching additional high-value services on the platform for our existing and new families.

For the investor

The return will be a single interest of 6,5 or 6% on the convertible bond. Next to that in case of conversion to certificates of shares there may be dividends and/or increase in value in case of selling these certificates of shares.


Charly Cares has large ambitions with an enormous market to serve, still on a shorter term, there are several exit scenarios for future shareholders.

  • Exit through new investment: Depending on the rate of our growth, in 2022-2023 we foresee another large scale-up phase where we expand our growth. A series B or C investment will be required where it is very likely that we can offer our early-stage shareholders to sell their shares to the new investor.

  • Exit through strategic partnership

  • Selling shares to Charly Cares: Charly Cares will make healthy profits end of 2023 and it might be beneficial for Charly Cares to purchase shares from early-stage shareholders back into the company which can be used for staff option pools or to maintain a large controlling stake when new larger investors join in a series A round.

Ticketsize > €50.000,-

For the investors with a ticket size of > €50.000,- we offer the following exclusive terms:


Conversion Discount

Conversion within 1 year 14%

Conversion after 1 year, within 2 years 19%

Conversion after 2 years 32,5%


Interest rate

Annual interest 6%

Early birds who invest before the 5th day of the public campaign will get a 0,5% extra interest

Extra

> €50.000,- seat at the advisory board
Premium membership & business account

Ticketsize < €50.000,-

For the investors with a ticket size of < €50.000,- we offer the following exclusive terms:


Conversion Discount

Conversion within 1 year 10%

Conversion after 1 year, within 2 years 15%

Conversion after 2 years 30%


Interest rate

Annual interest 6%

Early birds who invest before the 5th day of the public campaign will get a 0,5% extra interest

Extra

Ticketsize €10.000 - €50.000: premium membership & business account

Ticketsize > €1.000 - €10.000: flexible membership


Risk Factors

General risks associated with SME investing.

  • Risk of competition in markets where the issuing entity is active.
  • Negative impact through changes in rules and regulations by political decisions.
  • Changes in macroeconomic conditions.
  • Performance of issuing entity is dependent upon functioning of board members.
  • There is a risk the issuing entity may go bankrupt.
  • Tax risks through changes in regulations, new regulations or political decisions.


Company Specific risks

COVID

Till the end of 2020, the effects of COVID were clear visible for Charly Cares. Mainly due to the uncertainties, lack of vaccines and the heavy lockdowns. The impact on society is huge. With the introduction of our B2B services, the decline of B2C services is absorbed by B2B. Employers pay (partly) the babysitting services for their employees.


Shortage of Labour

We face tight labour market conditions in some sectors, and daycare / education is definitely one of them. There are many vacancies in these sectors, and there’s frequent media about children sent home because there’s no backup. On the one hand this is raising demand for our services, but at the same time we also face a tight labour market. Our goal is to become the most attractive employer to get supply.


Regulations

The registered daycare, including childminders and au-pairs who work in a home environment, is regulated by law to control for quality. If a family wants to work with a childminder, there’s an objective inspection of the house needed and the childminder needs to have a certificate of good behavior. Charly Cares operates in the informal childcare market, where this regulation is not in place right but trust is an important factor that plays a role, so regulation might come in place at some point. It is unlikely that the informal childcare market will be regulated, because the government recognizes that there is a change that the shadow babysitting market will increase as a result. Platform such as Charly Cares provide transparency and grip on the informal market (formerly shadow). The government also recognizes that in the future a VOG in its current form does not work for the informal market.


Gig economy

The labour position of gig workers - platform workers who offer services - is under discussion because their rights are not well balanced leading to an insecure position. More and more gig-workers make their complete income working for one platform, and this comes with a risk in favor of the platform. There’s a trend of gig-workers getting more rights and there are already cases where the platform is obliged to treat them as employees. There is a risk that new laws and regulations will be introduced for Gig workers in the future. Current rulings in the UBER and Helpling cases have as yet little effect on Charly Cares' business model.


Product specific risk factors

Product specific risks associated with investing through convertible bonds.

  • The lender agrees that its claims against the borrower under the convertible bond agreement used on the Symbid platform rank below all other, non-subordinated, claims against the Lender as referred to in Section 3:277.2 Dutch Civil Code (‘BW’).
  • Borrower issues a (subordinated) convertible bond, which the lender can convert at a later stage to depository receipts to become a shareholder of the company. Lender expects an (exponential) growth of value of the company with the possibility to sell the depository receipts with a capital gain. However, in most situations, such capital gains do take more than an additional five years after conversion to be realized. In exchange for the possibility of a high return in case of a scenario of exponential growth of the value of the company, there is a risk the investment will be lost in case the company is not doing well.
  • Order of payment: Payment of returns will happen after payments to creditors and redemptions have been done. There is a risk that the issuing entity has inadequate liquid assets to pay the returns. This means that (a part of) your return can't be paid, if this occurs. In case of a bankruptcy, the following payments have priority over the payments of the returns of this convertible bond: Outstanding creditors and existing loans. This means that in case of a bankruptcy the return on the convertible bond cannot be paid.
  • There is no formal secondary market for the convertible bonds, hence options for trading these convertible bonds are limited. It may be that there is no buyer in case you wish to sell your convertible bond(s). This means there is a risk you can't get your money on the desired moment and have to hold on to your investment or sell the convertible bond for a lower price.
  • A conversion discount will not be applicable for lender in all conversion scenario's, this might have a negative impact on the financial return.

See our general risk page for further explanation of the risks mentioned above and an insight into Symbid's default reporting before investing.

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Bart Verbeet
Head of Growth

Bart is the platform expert and data wizard of the company. With a strong background in the platform industry, product (marketing) management and business strategy he is focussing on the growth of our platform. He is responsible for value proposition development and makes sure all our marketing and product development efforts result in growth on the long term.

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Bert van Hoekelen
The tech boss

As Head of Tech he is responsible for the technical foundation and sustainability of our platform. He is known for his huge bag of experience - he started coding at the age of 8, and worked for Mollie and OneFit before joining Charly Cares.

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Rachelle Smeets
Head of People & Operations

She is the guardian of the “Human Touch” in everything we do or interact with. She has team customer care and team angel recruitment under her wings. Besides that, she works daily on our core value: the trustworthiness and quality of our services.

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Charly van der Straten
Co-founder of Charly Cares

Charly is one of the two co-founders of Charly Cares - our “mother of Angels”, optimist and visionair of the brand. She has gained experience during her time as founder of “Pas op Studenten Oppas”, her study Marketing & Communications and career as financial headhunter. Within Charly Cares she focuses on the brand-strategy, investments and business strategy of the company.

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Xander Koenen
Co-founder of Charly Cares

Xander is one of the two co-founders - the problem solver of our team. He is known for his hard-core entrepeneur skills, innovative ideas and “do not take no for an answer” mentality. Xander focuses on finance, investments and business strategy. Next to that, he guards the ux design of our platform.

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The provider is different from the issuer of the convertible bonds. The issuer of the convertible bonds, Charly Cares BV, is a Besloten Vennootschap (BV) incorporated on and located in Amsterdam. Chamber of Commerce: 64647854. The address of Charly Cares BV is Vijzelstraat 68.


The company website: www.charlycares.com


Contact person: Charly van der Straten, charly@charlycares.com, 0646811931


The issuing entity is managed by Charlotte van der Straten via Charlotte van der Straten Holding BV and Xander Koenen via Bluebelle Holding BV


Charly Cares BV is owned by


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The product


Human validated talent poule

Trustworthiness and quality is of paramount importance with Charly Cares. Which is why all our Angels are personally screened at one of our screening locations. During the face-to-face interview at our screening hub, subjects such as (study)background and babysitting experience and motivation will be discussed. It is therefore an absolute must that the Angel has previous childcare experience, so we can contact their references immediately.


All backgrounds and motivations are welcome with Charly Cares; however, we are strict in our first selection. We value integrity and trustworthiness in our babysitters. We also expect the future Angel to be proactive, social and representative.References will be discussed and checked during the interview, but we also always ask the Angel to deliver at least one reference to add on the platform. The reference will then rate the Angel and write a review. We will check the reference(s) before the Angel will be accepted on the platform.


Continuous review system

In addition to the personal screening, every Angel is assessed after every service. The Angel receives a rating from the parent based on 5 stars, often supplemented with a written review. These ratings and reviews are visible for every parent and the Angel in particular. Charly Cares monitors these reviews and will intervene when it is necessary. By doing this, we keep continuous control of our Babysitting Network and offer transparency to parents and Angels.


Insurance

Unfortunately, accidents happen. That is why Charly Cares is working together with ''Alicia Insurance'' to make sure our parents are insured in case of possible damage caused during a babysitting service. Think of, for example, material damage such as knocking over a vase while cleaning up or other damage to your possessions caused by the babysitter. Also think of personal injury due to negligence of the Angel during the babysitting service.

To better protect our members from the consequences of possible damage, you can appeal to the Babysitter Insurance. You will not only be insured for material damage and personal injury, but also for the damage that can ensue because of these. Think of, amongst other things, consequential damage and possibly grief money.

Target group

We focus on two consumer segments; families and Angels. Our Angel base has the largest share of students in the age between 18-25 years. On the other hand we have a group of teenagers (>16 years), and a group of ‘older’ Angels starting at age 26 all the way up to 65. Working as an Angel with Charly Cares fulfills an emotional need of having a meaningful job, with caring/nurturing as the main responsibility. On the other hand it fulfills a functional need of making money, with the benefit of being flexible and in control; when, where and with whom to work is up to the Angel. Depending on the needs, some Angels only work ad-hoc or occasionally where others are looking for a structural job with set days/hours.


Our family base is built around the need for reliable childcare. This often starts with a functional need, or when childcare is needed. The need can be for full weekdays or parts of the day, for almost every week of the year. This is what we call a structural need. There is also an occasional need, sometimes last minute and/or urgent. Think about a planned concert visit or last minute plans for dining out. But also think of kids who can’t go to school or kindergarten because a teacher is sick.


Needs in between are temporary needs. For example to cover a school summer holiday, or while waiting for an open spot at the daycare. Other needs are more emotional, think for example about trust but also having the kids in their own environment at home.


Our third group of users are companies who offer Charly Cares to their employees, to support them with childcare at home. This is a very diverse group, ranging from big consulting firms like Deloitte and McKinsey but also smaller companies like marketing agencies.



Revenue model

We have 3 revenue streams; memberships, booking fees and company fees. Our total B2C revenue depends on how many families have how many bookings, these are the units we steer on (apart from the pricing components). Our B2B(2C) revenue is similar but with an account fee for the company instead of a membership for families. The B2B revenue grows with more companies, more employees doing more bookings.



Growth Strategy



Business case 01-02| City Launch

To prevent having to reinvent the wheel with each new city launch, a solid, automated plan should be prepared. A roll-out plan that serves as a basic guide that can be used to get started. Our own experience and best practices from, among others, Uber and AirBnB show that it is an illusion to think that the launch of a city can be poured into 1 a4-sized business plan and can then be successfully copied to every other city.


As the company grows, a culture should emerge where each city launch provides new data and insights, and where the roll-out plan - which mainly consists of checklists - is constantly further refined. Ideas that do not work on a small scale could be great ideas on a large scale or in other types of cities. Finally, it is good to realise that with a "human-powered service," there will always be certain parts that are difficult to scale or automate. In that case, the following rule applies: First do it really well, then do it fast.


City Launch Team

When expanding to new cities, a combination of a City Launch Team HQ & local will be created. You will need special knowledge and expertise to be a part of this team, preferably an Uber Country Manager or a profile that includes specific experience with city launches of human-based platforms.


Local

City Launcher

Expert in operations & launching in a city, for example an ex-Uber Country Manager. Operates from the HQ and flies in when the service is launched in a new city. Does the first and most important key hire in the new city, namely the local city operation manager.


Local City Operations Manager

Expert in recruitment, the babysitting market, and a believer in Charly Cares. Is a key player to secure a successful city launch. Sets up the supply side, has experience in recruitment, and knows the local babysitting market like the back of their hand.


City Launch Team Amsterdam HQ

  • Product Team

  • Marketing

  • Branding & PR

  • Data & analysis

Challenges

Once we have completed the first phase, during which the most important decision of whether or not to launch in a city and the first obstacles should have been tackled (capital, key hire, etc), the next challenges will need to be addressed. The question becomes how we can expand our concept to different countries, and at the same time keep the quality of our service high in every city.


Balancing Supply & Demand:

Vision | We have two customer groups, our angels and parents. One cannot exist without the other. We continuously invest in both of these groups by listening to what they have to say and thinking of ways to support them in every way possible.


Especially when launching in a city, it is challenging to quickly achieve the optimal balance between these two customer groups. As the demand is easier to capture, we have a supply first strategy; we need a certain amount of Angels to provide value to parents. We strive for a minimum number of angels per search; This is the lowest level where supply and demand meet; during the search. This level determines how much converts into a booking; there needs to be relevant supply to get to a match. In addition, we also consider the number of families we expect to become active in the market, based on other, comparable cities.


Quality Control

Vision | Continuously monitoring our processes, regardless of the city in which we launch our babysitting service.

The operations team plays an essential role here, particularly customer service. This team will continue to operate from HQ and will be responsible for the continuous pursuit and maintenance of the high quality of our babysitting service. Think of functions such as customer service, but also processes such as angel review checks and booking support.


Marketing and proposition

What are the local marketing channels that can be utilised for a launch in each city, how can we reach both our target groups, and what will be the associated costs? In addition, we will conduct the online marketing from HQ and will look for other forms of marketing or branding locally. Find an example of a marketing plan for a city roll out below.


We are currently working with three propositions: 1) the ad-hoc/flexible & temporary babysitter 2) the structural babysitter and 3) the B2B proposition. At the moment, it seems that the structural proposition works better when the ad-hoc/flexible proposition already has a solid foundation in a city because there’s more volume in this proposition (more angels, more parents, more transactions) and a perfect fit with a platform model We could therefore choose to strategically launch these propositions one by one in each city. We have also noticed, after several months of testing the B2B proposition, that some cities are better suited to this proposition than others.



Business Case 03 B2C | Introduce new services

Charly Cares believes a great opportunity lies in adding new services to the platform for our existing users, such as tutoring, special needs babysitting and childminders. To give an impression of the possibilities, we have outlined three propositions in these notes. For all these propositions, certain technical adjustments will need to be made to the platform, in order to be able to offer the following additional services:

  1. Charly Cares Additional Services

  2. Charly Cares Special Care

  3. Charly Cares Childminders

1. Charly Cares Additional Services

Qualitative research among our users has shown an increasing need among parents for help in and around the household. For example, we see that, especially with regards to fixed babysitting services, an increasing number of tasks is assigned to the Angel. Think of light household chores while the baby is asleep, such as doing laundry or tidying up the nursery. But care tasks such as tutoring and even homeschooling are also increasingly sought out. A great example are Angels who are enrolled in a creative study program, such as the conservatory. They can give the kids music lessons during the babysitting service.


Our core Angel base consists of babysitters and caretakers between the ages of 16 and 35, from different fields of study, with different types of experience, skills, and backgrounds. By improving the visibility of these skills, we can improve our matchmaking using the filters based on the needs of parents.


2. Charly Cares Special Care

For parents who need more help than a Babysitting Angel alone can offer, for example in taking care of children with autism, behavioural problems, physical or mental disabilities, or developmental delay.


Currently, approximately > 150.000 families in the Netherlands have little to no access to this type of flexible care at home. Qualitative research has shown that the pressure on these families to find extra help is great, and that parents crave help with care at flexible times. Parents have difficulty finding this flexible care for the following reasons:

  • Regular care simply does not offer this form of flexible babysitting to families with special needs

  • Parents find it difficult to gather a network of babysitters who possess the extra skills needed for children with special needs

For Charly Cares, this is easy to arrange by screening these Angels separately, adding extra skills to the babysitter profiles, and adding extra search filters for the families. The platform already offers Angels who have the right set of skills, due to study programs such as teacher training (“pabo”) or sph. Municipalities are also making funds available in order to make this possible. Think of PGD for families who can afford a babysitter.


3. Charly Cares Childminders

The childminder industry remains an interesting market for Charly Cares to explore. There continues to be a great need for small-scale, professional childcare in a homely atmosphere. Childminder care is more attractive to many parents than a daycare centre or after-school care due to the increased individual and personal attention available to the child. In addition, a childminder is often cheaper and more flexible. Charly Cares' concept is already designed to be able to process these types of services. The platform in particular, combined with operations and customer service, can offer a complete solution in this particular market.


With this proposition, we can offer our current parents an expansion of our services, but also appeal to a new target group. With childminder care, Charly Cares can appeal to a different target group altogether, namely families with a smaller disposable income who consciously opt for childcare on a smaller scale, at home, and with a more flexible nature.


This type of registered childcare knows many challenges that we will need to consider carefully, such as legislation and regulations, the administrative burden, and the lower quality of childcare. This can entail an increase in risk for the company.


04 Business Case B2B | Charly Cares Business

For years, companies and the government have been working to promote the participation of women in higher organisational layers. Think of "women at top," "lowering of part-time work 1st child" etc. In addition, the labour market is becoming more flexible, and an increasing number of people works online from home. As an employer, it has become increasingly challenging to keep staff productive.


In 2020, Charly Cares answered the question that arose due to Corona by offering the business babysitter. This particular concept did not come out of the blue, because there had already been many discussions throughout the years with various companies. The challenge at the time was that many companies did not see the pain and mostly saw it as a matter to be addressed by employees themselves. This view was further reinforced by cold feet and the fear that offering support would be expensive. Some simple calculations show, however, that you can easily reduce childcare stress by (partly) reimbursing the associated costs, and that the costs of a babysitter are disproportionate to the (loss of) productivity.


Foreign research has shown that companies are willing to spend € 250 per day on average to be completely unburdened. In the US, UK, and a number of Asian countries, the practice of an employer offering a number of additional benefits to their employees is more embedded. These are originally countries where the government arranges less support for its employees/citizens. The Netherlands is a country where, in principle, many aspects of life are well-organised, and where employers therefore pay more attention to money. But, due to internationalisation, many international customs and regulations are eventually adapted by the Dutch business community. Especially the companies that aim to attract highly qualified (international) personnel are pioneers in this regard. Another influential factor is that it may be more attractive from a fiscal point of view for the employer to pay for babysitting services than for the employee to pay for them out of their net income.


In twelve months more than 60 companies joined our pilot for a total transaction value of €900.000,-. More than 1280 families used the services, and we acquired 580 new monthly paying members. For Charly Cares, the business market consists of an increase in scale, an additional source of income, and a new way of finding customers.



05 Business Case EU |

Charly Cares has the ambition to become European market leader for childcare at home. The question is how we can expand our concept city by city in different countries as quickly as possible, while keeping the quality of our service sky high in every single city. In order to launch abroad, a number of factors that have the potential to influence the success of our concept must be carefully examined for each country, preferably even for each city. Over the years, we have gathered a reasonably good idea of which values and factors are crucial through the data and experiences that we have collected. To reach a decision, an extensive analysis, looking at the following factors, needs to precede each city launch, so that we can not only get a good idea of the size of the market, but also of any other extant opportunities:

  • Local risks (legal & fiscal structure)

  • Work & social behaviour

  • Cities & urbanisation

  • Division of roles within the family

  • Role of the parent/woman

  • Local market dynamics (role of daycare, nanny, babysitter)


This analysis is linked to the data that we have collected over the years by launching in different cities. In addition, qualitative research is necessary to gain further insights into the childcare market. What are the habits and trends when it comes to the girl-next-door, grandpas & grandmas, nannies, and our direct competitors?


European cities analysis

Charly Cares has already assessed which European countries and cities are potentially interesting to launch the Charly Cares babysitting service in. This analysis is limited to the following countries: Germany, Belgium, France, the United Kingdom, Spain, Italy, Austria, Switzerland, Poland, the Czech Republic, Norway, Sweden, Finland, Portugal, and Ireland. The data model uses Eurostat data. The following criteria were used to select cities:

  • The total population of the city is at least 100.000

  • The number of households is at least 50.000

  • The number of households with children is at least 10.000

  • Presence of a college or university

To measure the potential of a particular European city, Amsterdam, currently Charly Cares' most developed city, was used as an indicator. A distinction was also made between the type of booking, namely a fixed or a flexible booking, as the type of booking is often determined by the behaviour of the mothers, the presence of grandparents, and the type of city it concerns. Women who work full-time will sooner look for a fixed babysitter, while women who work part-time are more likely to search for a flexible babysitter. In addition, there are more international families, namely expats who work for multinationals, in metropolitan areas. These families do not usually have grandparents who live around the corner. Lastly, cities are tested for B2B activity, a service that Charly Cares launched recently.


Competition

Since the start of Charly Cares in 2016, we have received interests from countries across Europe, like Germany, Belgium, the UK and also the US. Through the years Charly Cares have kept a close eye on Key players in the childcare market like care.com, urbansitters.com - and dutch players like Sitly and Nanny Nina (Apps and sites). 

Multiple Apps were analysed on topics like costs, reviews and amount of downloads  (data from site, Appstore and Crunchbase). Also, keeping an eye on key players has helped Charly Cares keeping up with App technical innovations in the market, and improving our key concept.

Partnerships

We offer core partnerships to increase platform loyalty and destress parents. A good example is our collaboration with Hellofresh meal boxes. At the moment, the family box is being offered within our fixed babysitting proposition. A next step would be an integration with the Hellofresh system, so that our parents can directly order meal boxes when confirming fixed babysitting services for those specific days. Hellofresh pays a lead fee and makes its network available to increase the brand awareness among our user target group.


Turnover so far


The issuing entity has been active since 26-11-2015. The following financial information is the most recent information available.


P&L

The following information applies to the period of 01-01-2020 till 31-12-2020 and is the most recent available information:

  • Revenues: € 753.036

  • Cost price of sales: -/-€ 33.795

  • Operational costs: -/-€ 978.337

  • Other costs (Interest): -/-€ 62.116

  • Net profit: -/-€ 321.252

The following information applies to the results until 30 September 2021

  • Revenues: €579.753

  • Cost price of sales: -/-€77.328

  • Operational costs: -/-€828.927

  • Other costs (interest): -/-€26.138

  • Net profit: -/-€352.640

Balance sheet

The balance sheet date of this information is 30-09-2021

Total equity is -/-€1.058.687 and consists of:

  • Issued capital: €154

  • Share premium: €998.674

  • Legal and statutory reserves: -€1.704.875

  • Year result: -€352.640

Total debt* is €1.355.702 and consists of*:

Long term Liabilities €1.023.383:

  • Lease obligation: €3720

  • Convertible loan (crowdfunding): €165.301

  • Convertible loan: €125.000

  • COL (corona Loan): €244.340

  • Delayed Taxs (Corona arrangement): €485.022

Short term Liabilities €332.319*:

  • Trade payables: €55.703

  • Referrals & Discounts: €177.964

  • Net tax payable: €19.131 (June to Sep)

  • Pay-roll tax payable: €19.651 (Aug and Sep)

  • Other payables: €59.870

*In the 'Total debt' side of the balance sheet has been accounted for current COVID arrangements taken by the government. This impacts the deferred tax payments in the 'Net tax payable' and 'Pay-roll tax payable'(payable in 60 months from Oct-22, so per 30-09-21 not resulting in a short term liability position) and the NOW/TVL arrangement under 'Trade receivables'.


Working capital equals: -/-€289.407 and consists of:

  • Trade receivables: €89.402

  • Cash at bank: -/-€46.490

  • Short term Liabilities: €332.319

The following information is about the situation after issuance of the securities offered in this investment round. After the issuance of the convertible bond the working capital will be €210.593 with the minimum target amount of € 500.000, and with a maximum target amount of €1.200.000 this will be €910.593. This contains of:

  • Trade receivables: €89.402

  • Cash at bank: €453.510 or €1.153.510

  • Short term Liabilities: €332.319

The equity/debt ratio is 0/100 (equals 100). After the issuance of convertible bond with the minimum target of €500.000 this ratio equals 0/100. After the issuance of the convertible bond with the maximum amount of €1.200.000 this ratio will be 0/100


Securities

The issuing entity has provided no securities to the investors in the convertible bonds or other loans.


Projected turnover


  • As shown before, the base case ramps up to almost €6 Mio revenue per year in 2025.

  • Our overhead remains almost flat close to €1Mio, as we invested in our team and tech stack in 2021.

  • The majority of our cost is variable (in 2025 >70%), giving us a very healthy contribution margin early in the game.

    • Variable costs are mainly marketing/acquisition (including recruitment) cost and customer support.

  • In 2023 we are profitable, and in 2025 we have an projected EBIT of nearly €3Mio.

Assumptions

Invested so far

So far the informals have invested around 705 thousand euros. 

In addition, we have raised 585 thousand euros in a previous crowdfunding, of which 70% have converted to stocks in the STAK. 

Besides we have a current account credit of EUR 225.000 at ABN AMRO.

Investment requirement

The time to move forward into the next stage of growth is upon us. Charly Cares is planning their next step to become market leader in The Netherlands within 12-18 months. We hit > 45.000 subscribers and >35.000 active Angels across 100 cities in NL.

Next to that, we’re preparing our team for the big step towards EU city roll-outs. An investment of EUR 1,2 million is estimated, to reach the following milestones:

  • Continue the proven growth in our existing business to the consumer market in NL.

  • Build on initial traction in the NL business to business market with a differentiated product proposition.

  • Launching additional high-value services on the platform for our existing and new families.

The gap between the amount of funds needed and retrieved via this crowdfunding will be filled with an innovation loan by ABN AMRO bank (or a regional investment community). With these kinds of innovation loans the European Union guarantees for 80%.


Purpose of investment


Return

The return will be a single interest of 6% on the convertible bond. (6.5% for investors who invest before the 5th day of the public campaign). This amount will not be paid but is accumulated to the initial invested amount and paid out when the loan will be repaid or converted to certificates of shares. Next to that in case of conversion to certificates of shares there may be dividends and/or increase in value in case of selling these certificates of shares.

Charly Cares has large ambitions with an enormous market to serve, still on a shorter term, there are several exit scenarios for future shareholders.

  • Exit through new investment: Depending on the rate of our growth, in 2022-2023 we foresee another large scale-up phase where we expand our growth. A series B or C investment will be required where it is very likely that we can offer our early-stage shareholders to sell their shares to the new investor. 

  • Exit through strategic partnership

  • Selling shares to Charly Cares: Charly Cares will make healthy profits end of 2023 and it might be beneficial for Charly Cares to purchase shares from early-stage shareholders back into the company which can be used for staff option pools or to maintain a large controlling stake when new larger investors join in a series A round.


Conversion

Each investor can convert his/ her full investment to shares or certificates of shares via a STAK (Stichting Administratie Kantoor) of the issuing entity in all situations in which: 

  1. The convertible bond becomes payable. 
  2. The issuing entity issues equity to one or more third parties for a total consideration of at least €500.000. 
  3. A transaction is executed as a result of which one or more third parties will become a shareholder for more than half of the outstanding shares in the issuing entity. 
  4. The initial or extended duration of the agreement will expire within a month.

Conversion discount

As a Borrower you will receive certificates of shares in the issuing entity on the same terms as a follow-up investor, but with a discount. This is to reward investors for the fact that you have invested already at an earlier stage. The discount will be as follows: 


For investors <€50.000 

  • 10% if conversion occurs after 3 months but before 12 months after closing the this convertible bond. 
  • 15% if conversion occurs after 12 months but before 24 months after closing the this convertible bond. 
  • 30% if conversion occurs after 24 months after closing the this convertible bond. 

For investors >€50.000 

  • 14% if conversion occurs after 3 months but before 12 months after closing the this convertible bond. 
  • 19% if conversion occurs after 12 months but before 24 months after closing the this convertible bond. 
  • 32.5% if conversion occurs after 24 months after closing the this convertible bond. 
Only if conversion takes place within 3 months after issuance of the loan no discount will apply. 

The lender will receive single interest for the duration of the convertible bond over the initial loan amount. This amount will not be paid but is accumulated to the initial invested amount and paid out when the loan will be repaid or converted to shares or certificates of shares.

Redemption of the convertible bond can take place at the end of the duration, and only if the issuing entity is capable of doing so. 

The return will not be paid from the investments of other investors. 

Next to the investors there are no other persons who receive income (other than "costs") from this investment.

Risks

No significant changes

Since the most recently published and audited Financial Statements of the issuing entity, no significant negative changes have occurred in the issuing entity’s prospects.


Trends

There is no information about known trends, uncertainties, requirements, obligations or events that can reasonably be assumed to have material consequences for the prospects of the issuing entity, for the current financial year.


No significant alteration in the financial or trading position

Since the most recently published and audited Financial Statements of the issuing entity, there has been no alteration of tenor in the financial or trading position of the issuing entity and the group to which the issuing entity belongs.


Corporate Governance Code

As the Dutch Corporate Governance Code only applies to companies with registered offices in the Netherlands, whose shares or certificates of shares are admitted to the official listing of a government-approved regulated market (securities exchange), the issuing entity (unlisted) does not apply this code.


Potential conflicting interests

There are no (potential) conflicts of interests between the obligations of the executive board members of the issuing entity on the one hand, and their own interests and / or other obligations on the other.


Procedures

There are no government interventions, court cases, or arbitrations, including such procedures that are pending or may be initiated, to the best of knowledge of the issuing entity, over a period of at least the previous 12 months that may have a significant impact, or have recently had, on the financial position or profitability of the issuing entity or the group to which the issuer belongs.


Figures

All figures in this information memorandum are not audited, unless explicitly stated otherwise.


Symbid and the platform

Some Background Information on Symbid

Symbid's operations largely consist of the acceptance and disclosure of orders for retail, wealthy, and professional investors. Through its activities, Symbid supports the interaction between affected investors and progressive start-ups and growing companies in the SME in the Netherlands. This involves the financing of various types of projects that realize a positive impact the society with the help of an affected group of investors or ambassadors. Our platform provides a non-personalized, online recommendation to a broad audience, by allowing organizations to profile their project in a transparent and financially sound manner, and to professionally build and maintain the relationship with its financiers / investors.


Tied agent

Symbid BV is a tied agent of the Limited company (Besloten Vennootschap), Ilfa Tools & Services B.V. as defined in the Dutch Act on Financial Supervision (Wet op het financieel toezicht (Wft)). Ilfa is an investment firm as defined in the Wft and has a license as defined in article 2:96 Wft. As a result hereof Symbid and Ilfa are both under supervision of the AFM.


Other parties involved with issuance

During the issuance, the following legal entities play an important role:

  • Symbid Crowdfunding, a trade name of Symbid BV, a private limited, registered in Rotterdam, office at Schiedamse Vest 154, Rotterdam, and registered in the commercial register of the Chamber of Commerce under number 52466825;
  • Charly Cares BV: a limited liability entity which is the issuing entity;
  • Intersolve EGI B.V: Symbid has a partnership with Intersolve - First European E-money Trust - a Dutch financial institution that specializes in providing services in the field of settlement of payment transactions and electronic money. In order to be able to offer its financial services in accordance with the applicable financial legislation and regulations, Intersolve has a license as Electronic Money Institution and Intersolve is supervised by De Nederlandsche Bank (DNB) plus the Netherlands Authority for the Financial Markets (AFM).