GREWP

We understand what your team needs, provide the appropriate measures and make the effect of the teambuilding plannable and measurable - of course completely digital and automated. We cover the process end-to-end, creating massive time and cost savings. We have already implemented nearly 200 teambuildings for more than 4,500 employees of customers such as Telekom, Google and VW - and the trend is rising. Let us GROW TOGETHER!

We went live with our Minimal Viable Product - the marketplace with slimmed-down functionalities - in 2020. In the past few months, we have successfully brokered teambuildings for 200 teams with over 5,000 employees. In addition to SMEs, our client base primarily includes large companies. Teams from almost half of the DAX-30 companies have already enquired with us and we were able to win six of these companies as clients (including Allianz, Deutsche Telekom and Volkswagen). In 2020, we were already able to generate a five-figure internal turnover.

We are currently in the process of founding our limited liability company (GmbH) and registering GREWP as a brand. After raising external capital, we founders would like to run GREWP full-time, hire more employees and expand our marketing activities.

The market for our solution is every employee in Europe with a certain level of education. Per employee, we calculate an average budget for teambuilding of EUR 59 per year. This amount is based on the tax allowance for employee parties and incentives. This results in a market potential of EUR 4.7 billion per year across Europe. We also assume that the market will grow by about 6.6% annually. For physical team building, we are focusing on developing the German market first, followed by Austria and Switzerland, and then the Netherlands and Denmark. The DACH region is in the foreground due to its linguistic and socio-cultural proximity to our business location. The Netherlands and Denmark are strategically relevant for us, as these are the countries in Europe where there is most demand for teambuilding. We already offer virtual teambuilding throughout Europe. Because of the independence of location with virtual implementation, far fewer providers are needed to supply companies across Europe. With our dashboard, we also have the opportunity to create a new market - a market for teambuilding as a strategically used HR measure.

Our users lack two things: Time and HR know-how. Planning, organising, coordinating and implementing team building events takes a lot of time for the organiser. Ideas have to be developed, providers identified, offers coordinated within the team, budgets approved, invitations sent out - all this on top of "business as usual". Furthermore, our users often lack the competence to strategically select teambuildings and to evaluate the added value.

Trends such as New Work, the cultural change in the world of work and, most recently, the decentralisation of teams through COVID-19 increase the need for meaningful teambuilding measures even more. And the advancing digitalisation and demand for platform solutions in b2b requires a user-friendly and automated solution for this.

1) Maximising the added value of team building
In order for teambuilding to fulfil its desired added value, the individual situation of the team must be considered, the goals of the teambuilding must be defined and appropriate measures must be found. GREWP covers all three areas: 1. through the Needs-Algorithm, which, based on research and practical experience, assigns which measure is suitable for which team situation 2. through the AI-based search mask, which combines the situation with the objective and thus suggests the most suitable measures to the searcher and 3. through our curated and quality-assured portfolio of teambuilding measures.

2) Quantify the effect of team building.
With our planned dashboard, we would like to offer teams the opportunity to evaluate their team situation in real time, to have the right measures proposed to them and to simulate the added value of these measures. After the measures have been taken, an evaluation takes place that shows how far the goals have really been achieved. This data feeds the AI, which can thus make better and better forecasts in advance. In this way, companies can strategically control the use of team building.

3) 80% reduction in planning effort
We understand our clients' planning processes and gradually cover the entire process digitally and automate it as far as possible. From the generation of ideas, voting in the team to the approval process and invoicing - the result is not only an immense increase in quality, but also a reduction in time spent on the client's side of up to 80%.

We have defined our main competitors as "team building providers". If we define the industry more broadly, we could include all providers of HR measures as well as restaurants, bars and offsite locations.

We see three groups of companies in particular in the teambuilding offer: Teambuilding platforms, event agencies and event providers. In the case of teambuilding platforms, a further distinction must be made between intermediary platforms and platforms with their own offers. The latter is currently the rule.

We have analysed the revenues of the ten largest B2B companies in the market, which range from about 1 to almost 5 million euros annually. Examples are teambuilding platforms such as BITOU GmbH, Teamgeist AG and Eventinc GmbH. The market leader by far is Hirschfeld GmbH, with a maximum turnover of EUR 4.8 million in 2019. We have been told by our event providers of annual turnovers of up to EUR 600 thousand.
Two companies with B2B offerings but a B2C focus are also interesting for us: Jochen Schweizer GmbH/mydays GmbH (now merged) and Realtainment GmbH (previously ARtNight GmbH). Jochen Schweizer and mydays each generated revenues of EUR 20 million to EUR 44 million annually in 2017 to 2019. Both companies have posted significant losses on several occasions, which is attributed, among other things, to the lack of digitalisation and the operation of branches in various cities. Realtainment is a provider of four formats: ArtNight, BakeNight, ShakeNight and PlantNight and already a provider at GREWP. Realtainment is a venture capital-funded startup that, according to a public statement from an investor, generated EUR 1 million in monthly revenue in 2019 - forecast to rise. Realtainment's focus is currently B2C, but they plan to invest more in the B2B market.

The industry can be divided into two orientations: On the one hand, there are the companies that have been on the market for decades and advertise their experience (e.g. Hirschfeld and Teamgeist) and on the other hand, there are the start-ups that present themselves as young and hip (e.g. Realtainment and vinogether). Due to the many individual providers, there are very many companies in the industry - but so far none that dominate the market. The sales of existing platforms are falling behind the sales of strong individual providers.

What sets us apart from the competition

Current:
1) That we come from the HR side and not from the event side - this is unique in the market.
2) Our Needs Algorithm - we have combined research and practical experience to create an algorithm that matches activities to the needs of a team.

Future:
3) The Team Dashboard
4) Differentiation through technologisation: particularly through the use of AI across the end-to-end process.

We generate our revenue in the form of a commission that accrues to our providers when a company successfully arranges the booking of a teambuilding event. The commission amount is contractually agreed with the providers and is between 10% and 15% of the total net price. In the case of CSR team building, we also offer special conditions of 5%. On average, the commission is 13% of the total net value of the booking. The net price for formats that individual providers also offer themselves must correspond to the price offered by the provider itself. For exclusive formats that are only offered on our platform, a net price is defined with the provider. We also plan to monetise our dashboard as a subscription model directly with the end customer.

GREWP's business model is a provision-based b2b platform solution.

The capital requirement of EUR 200 thousand is mainly needed for the further development of the marketplace. 33 % of the capital is invested in marketplace development via external service providers. 42% will be spend on the development of our team. For outreach as a basis for our planned business growth, we would like to invest 25 % of the capital in marketing. All other operational costs will be covered by our sales.

We are looking to achieve a pre-money valuation of 3.5 million and thus give up a maximum of 6% of the shares as part of our pre-seed round, which is designed for a runway period of 6-9 months.

- Competition from strong individual providers
The sector dominance of strong individual providers such as Vinogether, ArtNight and okäse could increase in the future. The trend towards the platform economy has the counter-trend of wanting to buy directly from the supplier and producer. We want to avoid this risk by implementing a close-meshed monitoring for new providers and by acquiring relevant offers directly for our platform. We consider fair conditions for suppliers and a cooperation that benefits both sides to be a critical success factor.

- Competition from another platform
The risk exists that a new platform enters the industry or an existing one adapts its business model and copies ours. We can only avoid this risk by growing rapidly and differentiating ourselves through technology and expertise. As a next step, we plan to register our brand in the trademark register. In addition, we will explore the possibilities of whether it would make sense in the future to patent certain solutions such as our Needs Principle or the Team Dashboard.

- Customers book directly with the individual provider
Another risk is that potential customers search via our marketplace but then make the booking directly with the provider. If the first booking is made through us, there is also the risk that the repeated booking will be made directly with the provider. In our estimation, we will always lose a certain percentage of customers due to this effect, but through targeted measures we try to build up natural barriers. First of all, we do not mention the providers by name on our marketplace. In addition, our providers commit themselves via the framework agreement with us to report bookings that take place within the six months after the contact is made by us to us and to invoice them through us. Ultimately, however, we see the biggest barrier in our usability. This must be so high that customers generally prefer to book through us and not through the provider. A prime example from another industry is booking.com for booking hotels and accommodation.

We are part of the current batch of "Boozt your Business" in Frankfurt, Germany
https://www.zuehlke.com/de/boozt-your-business

1) Place 1 at PitchBattle as part of the Startup Safari FrankfurtRheinMain Germany
2) Top 10 at HenkeldxVentures Germany
3) Top 20 at start2grow Germany