NEWSROOM

CEO letter 2 July 2021

VD-brev 2 Juli 2021

Honorable shareholders

It is a privilege to be updated on what is happening in Increasor here before the summer is in full bloom and the heat in the office takes over the focus. Our employees have started to switch holidays between each other and according to the schedule, we are fully staffed again in August.

Our business plan and the role we have to play is becoming clearer with each passing week, it is an incredible feeling that the organization is moving in the same direction while continuously receiving the market’s positive reactions and constructive feedback.

Increasor – a place for startups/growth companies

The answer has crystallized. We are an incubator that is not like any other incubator, we are much more complete than the other alternatives out there, we are a company’s best friend.

Many incubators can offer somewhere to sit and an advisory board. We do that too, but we can also back it up with capital, development resources, legal advice/company services, recruitment, and an outstanding marketing department. In addition, we are supplementing with accounting services and more skills that are directly necessary for a business, but for a newly started business a major obstacle to get over.

The good thing about all this is that the ecosystem we are building up to the fullest is also our future large cash flow and stable source of revenue. Increasor is an integrated business partner that gathers expertise in the same group to help start-ups or growth companies take the next step.

How?

It is natural that we refine our ownership share and in this way make money on a future exit, but we have thought much further than that. Through our ecosystem, we can charge all our partners for the services that are included, because we also assist with raising capital, and we also ensure that our portfolio companies are properly financed and can do the right thing.

It is a pure win-win to become part of Increasor and the risk of running a start-up decreases significantly with us.

Annual General Meeting 2021

Figures need to be reported and it has never been claimed that 2020 was a year full of success more than that Increasor got air under its wings to solve a problem among entrepreneurs, during a pandemic. As we are clear with and appear in the memorandum, our growth strategy is to grow precisely through acquisitions. We gather stable units in the group which are partly a tool for the customer but which also work as their own unit with their own customers.

Last year, the group was put together, in the middle of a burning pandemic and several companies in the group suffered badly from what was going on. Our organization and set-up was a handful of people in Sweden with good contacts abroad, compared to what we have put together today, it is a completely different division.

There is a lot to work on with the accounting firm we work with, it also made the collaboration with our auditor work, but there is great development potential. The problem areas have been identified and the solution is to recruit an internal accounting economist as soon as possible and or acquire our own accounting firm that will move into our premises.

If you as a shareholder have an idea or a spread on the above, contact us, we want nothing better than to collaborate and use the eminent network that is around us.

Potential business in the near future

As we have actively ventured out and scouted businesses that we want to acquire to complement our service offering, our ecosystem, very interesting proposals come in continuously to the company.

Unfortunately, everything is still confidential, but the industries with which we are far advanced in negotiations include accounting firms as previously mentioned, and a few PR firms that see it as the next step in their development to merge their operations with Increasor. We have hired an expert from this spring’s acquisition processes who assists with parts such as reviews and Due Diligence. The lesson is mainly that it does not matter how big or small the acquisition is, the job must still be done.

As soon as we have a Letter of Intent or in Swedish, a letter of intent, on the table, we will immediately report it to your shareholders.

The listing process

As you are aware, the listing process is delayed. The big reason is that the listing climate went from calm to hysterical. As an example, last week 15 companies were listed in the Nordic region against the normal maximum of 2-3 companies. The enormous pressure is evident in all parts of the market as mentors, marketplaces, and stockbrokers have high pressure with companies to move their share registers.

One of the problems with this print is that several of the later listings have failed quite badly and fallen. The reason is hardly that the companies are incorrectly valued, but rather that they have not received the attention on the listing that they deserved. For me and the board, it will of course be a strategic issue to handle as well, of course, we want to be listed as soon as possible, but not at any price. It would rather take a few extra months and become a really good price increase for the company and your shareholders than to force and get a bad outcome.

So far, nothing on our part has been negatively affected by the listing, and nothing is falling or falling due to the high pressure, the acquisitions are coming and can be made anyway.

Increasor uses the time to prepare the company for a stock exchange listing in all aspects, the goal is that when it is our turn, it should rather be a matter of form and not have to be supplemented with major things. The unit that works with corporate law is currently in this with a listing together with mentors, so we are preparing the documentation that is requested.

Financing of acquisitions

During the spring, we carried out an ownership distribution issue in which several of you participated. The issue decision was for a maximum of SEK 24 million. As we had a number of acquisitions in progress, we left the room to include these in the ongoing issue, which had then been filled. Now, none of these acquisitions were made due to discoveries in the review process on the selling party.

We have come a long way with an acquisition that will probably require some liquidity but where the majority of the purchase price will amount to shares. For this reason, it is, therefore, possible for you who did not get the entire item allocated or want to invest more, to invest. For those of you who arrived late on the ball or missed the opportunity, the door is open again.

The conditions are identical to the campaign that took place during the spring. You existing shareholders are also selected and you can read all about the campaign that is running June 21 – July 12 at this link. https://increasor.com/utvald/

 

First six months

The visions were much bigger and the whole organization has done its utmost to push every possible limit. It is one of our strengths in Increasor with me as a young CEO, surrounded by experienced expertise and thus we find a balance in the company. In the month of June and already the beginning of July, only 2 days old, we have built up a strong momentum. Sales have started in all channels, but with a slightly longer starting distance than expected. What has primarily been the problem is to get employees in Sweden and above all product experts or clarify, salespeople. The focus has been on getting +30 in age and with the skills required to sell our types of products and services are limited. Of course not impossible.

What must not be forgotten is the strength of Finanstid.se, which is growing avalanche-like and is now up to over 100,000 page views a day.

In the Tech industry, cash flow is important, but something that is even more important is the user database and traffic. The Snapchat app that several of you know was valued at $ 27B despite a loss of – $ 2.2B, when they were listed on the Nasdaq NYSE 2017. Now Increasor and Snapchat are far apart as businesses, but we are working to find the next Snapchat and make sure that you are on that journey. Prior to listing, Google offered Snapchat a $ 30B bid. It’s all about the user database and it is the one that is growing avalanche-like with us.

Concluding remarks

During the summer, we take the opportunity to maintain and rebuild the Group’s websites to deliver a clear message. There are at least 500 startups each year who apply to different business angels or networks, our goal is to get all applications and select the right project to work with. Already this week, we have concretized with 3 sharp companies that have resources and stock in place, what is needed are the services we offer in Increasor. There is clear Proof of Concepts that what we are doing is right and the harvest season has just begun. The acquisitions we are currently discussing also secure the sales target for 2021.

Overall, it is very positive what is happening and it is easy to forget what journey Increasor has made in such a short time. It is important to identify all boundaries and then touch them. I like parables and also Formula 1 – where even the world champion takes in a little too much, spins around with the car but then out on the track again delivers the fastest time lap after that.

With that, I and the whole team at Increasor wish you as a curious or shareholder a really nice summer! Follow us on social media and monitor the mailbox, keep in touch with rice, praise, and exciting ideas. Many of you have already connected on LinkedIn and I think of course it is incredibly fun that has given many business opportunities and meetings.

Pleasant summer!

Andreas Trouin