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Lottery Operator Investment Opportunity in Frankfurt, Germany

Licensed lottery in Germany that raffles of dream prizes seeks investment.
This Business is on a Premium Plan
Established 1-5 year(s)
Employees 2 - 5
Legal Entity Limited Liability Company (LLC)
Reported Sales USD 210 thousand
Run Rate Sales USD 640 thousand
EBITDA Margin 30 %
Industries Lottery Operators
Locations  Frankfurt
Local Time 8:23 AM Europe / Berlin
Listed By Business Owner / Director
Status Active
Overall Rating
Partial Stake Sale
USD 2.7 million for 25.0% stake (Native Currency: EUR 2,500,000)
Reason: We aim for a €2.5 million capital round to expand, focus on marketing, partner with Miles&More, Luft... View More
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Business Overview

Number of Clients: Over 10,000 clients have been attracted since the lottery's launch, showcasing the ability to quickly capture interest and market share in the philanthropic raffles and sweepstakes sector.

Revenue and Marketing: With a marketing budget of only €100,000, the lottery generated revenue of €250,000 in the first six months. This highlights efficient resource use and effective marketing strategies, resulting in a Customer Acquisition Cost (CAC) of €12.50.

Team Experience: The team behind the lottery has a decade of experience in the music industry, offering unparalleled access to international stars. This expertise is complemented by another decade of experience in advertising across Germany and Europe, laying a solid foundation for creating compelling marketing campaigns.

Partnerships: Strategic partnerships have been established with esteemed entities such as Miles&More, Lufthansa, Chronext, and Audi, enhancing the lottery's offerings and broadening its appeal. These relationships not only bolster credibility but also extend reach and the potential for more exciting collaborations.

Since it is online operated, we do not require many employees.

Products & Services Overview

Our main offerings revolve around exclusive raffles and sweepstakes, giving our customers chances to win once-in-a-lifetime experiences and luxury items. This ranges from dream vacations and luxury cars to meet-and-greets with celebrities. Our services are utilized by a wide demographic but especially appeal to individuals looking for unique experiences, philanthropists who appreciate that their participation supports charitable causes, and fans of celebrities and luxury brands.

Assets Overview

Government License: The official license obtained from the German government, permitting the model to legally operate its raffle-based fundraising model. This license is a critical intangible asset, as it not only legitimizes our operations within a regulatory framework but also distinguishes us from competitors who may not have such accreditation. This regulatory approval enhances our credibility and trustworthiness among partners, participants, and potential investors, thereby contributing significantly to our business's overall value.

Brand Value: The brand, recognized for its innovative approach to philanthropy and luxury raffles, contributes significantly to the company's market presence and customer trust.

Website and Digital Platforms: The proprietary technology platform that powers them. de, including the website's design, user interface, and backend systems.

Partnership Agreements: Contracts with Miles&More, Lufthansa, Chronext, Audi, and other partners that provide exclusive offerings and prizes for our raffles.

Client Database: Our valuable database of 10,000+ clients, including their preferences, transaction history, and engagement with our campaigns.

Facilities Overview

We are working decentralized and do not have a lot of costs for rent etc.

Capitalization Overview

Founder Investment: The founders have personally invested €100,000, underscoring our commitment and belief in the company's mission and potential for success.

Convertible Loan: Investors have contributed €550,000 in the form of a convertible loan. This financial instrument is slated to convert into equity upon the entry of a new investor, aligning with our strategic financial planning and growth aspirations.

Current Funding Stage: Including the founders' investment and the convertible loan, they have raised a total of €650,000 to date. This funding has been instrumental in our launch, marketing efforts, and operational scaling within our first year of business.

Ownership and Investment Structure: The detailed investment from the founders and the convertible loan setup provides a flexible financial foundation, allowing us to optimize our capital structure in anticipation of future investment rounds.

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Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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