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11-25-2012, 11:42 AM
Infusion Festivals Ltd
Investment Target: £250,000http://www.crowdcube.com/investment/infusion-festivals-ltd-12095


http://youtu.be/sudjdEIgylM

The core business is to organise and promote an annual music festival in the North East of England by bringing together a unique and varied selection of well known and up and coming music acts; covering Rock, Pop, and Electro (dance). The inaugural 1 day event will take place in September of 2013 to an expectant crowd of almost 14,000 people.
The UK live music market is worth over £1.5 billion annually, growing by a staggering £100m between 2010 and 2011, with festivals accounting for a third of this. Despite having one of the busiest arena’s in the world, the North East of England is behind the rest of the UK according to market data. This is more to do with supply than demand as there is very little other activity. The success of major events in recent years at the Stadium of Light where crowds in excess of 50,000 per day, have shown that there is a massive market for live music in the area, with 80% of attendees living within 1 hour drive of the event.
We have a very strong management team in place, bringing over 40 years experience of UK music festival and events management, covering the key areas of marketing, talent booking, and site set-up.
The initial investment will be used to secure a handful of leading music acts across the core music types. The importance of signing some big names is significant, as this will be the key driver of ticket sales. We will also look to invest in both marketing activities and getting the Infrastructure in place.
The initial show will be used as a foundation for future events, with the site able to hold up to 60,000 people per day, there is significant capacity to grow. We will take a cautious view with regards to the profitability during the first year, and will look to create an iconic event that people will want to go back to year after year. We will expect to make a small profit of just over £16,000 in year 1, followed by a profit of approximately £134,000 in year two, and £178,000 in year three.
By year 3 we expect to be holding a 2 day event, with a total attendance of 31,000 and preparing to open a second UK festival site in year 4. The second site will allow us to do a ‘twinned’ 2 day event, providing significant cost savings as is currently demonstrated by Reading/Leeds, V Festival, and T In the Park. Profits in year 4 will increase marginally to around £181,000; taking into consideration the impact of opening a second festival site. Profits in year 5 are expected to exceed £237,000.





Exit Strategy


There are two possible scenario's for exit;
Full sale to larger competitor; based on the projected profit and other projections during the period covered by this five year plan, we believe that the business will be worth in the region of £5.2 million, offering a potential sale value of over five times initial investment.
Dilution of shares; this would involve seeking another round of funding which would result in a dilution of the original shares; returning the initial investment to while allowing the investor to still retain a stake in the business. This exit strategy could be implemented at any point, subject to shareholder approval.



About John Carr

John owns and runs several online product comparison websites, specialising in key areas of mobile phones, breakdown cover, and broadband provision. He is proficient in most aspects of online marketing including web 2.0, search engine optimisation, affiliate marketing, and social media. John has previously run a series of profitable live sports shows, entertaining crowds of over 1,000 weekly, picking up a diverse skill base which is ideal for many aspects of organising and running a live music event.
Key duties - Managing and updating the website, implementing online ticketing system, emergency planning with local events team, traffic management planning, and overseeing the planning and organisation of the event.