Recommendations:

• Investor Appeal and Clarity:

  • Our view is that the document requires a concise summary of funding requirements and their expected outcomes. Explicitly state the total funding needed and how it will be allocated (e.g., product development, marketing, and operations).

  • Tie each funding request directly to milestones or investor ROI. For example, "£X investment in marketing will drive user growth to Y within Z months, increasing revenue by £A."

  • Such information MUST be supported by a comprehensive P&L and CashFlow forecast highlighting a 3-5 year trading period.

• Market and Risk Justifications:

  • While the comparable companies are inspiring, the niche focus on football fans lacks sufficient market validation. Provide additional data to demonstrate the unmet need in the football fan engagement market.

  • Address potential risks, such as user acquisition challenges or competition from established platforms, and explain mitigation strategies.

• Pre-Seed Investment Plan:

  • This section lists objectives (e.g., hiring developers, and conducting market research), but it doesn't quantify the required funding against specific actions. Create a direct link between requested funding and projected outcomes.

  • Include a timeline to show when key milestones, like MVP launch or market penetration, will be achieved.

• EBITDA Projections:

  • Negative EBITDA in Year 1 is standard for startups, but explaining how this will transition into profitability through detailed marketing & sales strategies will reassure investors.

  • Provide a clearer rationale for the aggressive EBITDA margins (56% in Year 2, 75% in Year 3), as they appear optimistic compared to typical market benchmarks.

• Valuation:

  • The valuation methodology is presented but not contextualised for investors unfamiliar with such models. Explain the choice of revenue multiples and how they compare to industry standards.

  • Clarify the implications of this valuation for equity stakes offered to investors during funding rounds.

• Sustainability and Scalability:

  • Highlight how the platform will sustain growth beyond Year 3. For example, describe plans for geographic expansion or additional features.

• Freemium to Paid Analysis

• Atmosphere90 projects a conversion rate of 20% from freemium users to paid subscribers, a figure that stands out compared to typical benchmarks in digital subscription-based platforms. Below is analysis of how this conversion rate compares to industry standards and what factors may support or challenge achieving these projections:

• Industry Benchmarks

• General Freemium Platforms:

  • Platforms like Spotify and Dropbox typically see conversion rates between 2% and 5%.

  • High-performing niche platforms with passionate user bases, such as Strava or Peloton, report higher rates, often between 10% and 15%.

• Sports and Entertainment Platforms:

  • Sports-focused platforms like DraftKings or similar fan-engagement tools often achieve conversion rates closer to 5% to 10%, depending on the level of user engagement and monetisation strategy.

  • Dating apps, such as Tinder, use gamification and premium feature scarcity to drive conversion rates up to 12% to 15% for their most engaged user segments.