High-end Dutch watch brand

This involves a €1,650,000 capital round for a 20.14% stake in a Dutch luxury watch brand, based on an enterprise value of €6.54 million.

According to the business plan, EBITDA is projected to grow to €8.1 million by 2030. The underlying assumptions and a valuation rationale are available upon signing a non-disclosure agreement. No rights can be derived from these projections; an investment in a start-up entails significant risks.

Partnerships
Three partnerships were recently signed:

• an official partnership with an international sports organization, featuring a licensed co-branded collection;
• A partnership with an exclusive automaker, in which a watch from the brand is included in every car;
• An official partnership with an international awards ceremony, featuring a special edition.

Revenue and profit from these partnerships have not yet been included in the forecast.

Seed Investor Exits
The seed investor is exiting this round, as agreed upon when they initially invested. Their 20% stake will be transferred to the holding company at a predetermined valuation.

Traction
The world premiere took place at an international luxury goods trade show, and the first watches have been sold. In the Middle East, the first authorized retailer has been appointed, who is co-financing the launch in that region. Negotiations are underway with several other markets, and discussions have been held with international retail groups.

The Company
The founding family has a long tradition of artisanal metalwork and sound, and has brought that craftsmanship to the wrist. The first movement was developed in collaboration with an independent Swiss workshop; it is owned by the company and features its own complication.

The collection consists of a limited, numbered series in the highest price segment. A Dutch holding company owns the brand and the intellectual property; the operating company and the workshop are located abroad.

Key figures in line with plan

• Revenue of €5.2 million in 2027, the first year of delivery, rising to €28.3 million in 2030.
• EBITDA of €1.2 million, rising to €8.1 million, with a gross margin of 60 to 65 percent.
• According to the projections, the company will be EBITDA-positive in every delivery year, even if revenue is 30 percent below target.