Crowdfunding Me.reka | Invest in the 21st-century education movement
Sowing seeds that will nurture the talent of our future
pledged of MYR 1,500,000 goal
days to go live
Me.reka Makerspace is legally registered as Mereka Innovative Education Sdn. Bhd. Mereka Innovative Education Sdn. Bhd is a wholly-owned subsidiary of Biji-biji Initiative. Me.reka is a spin off of the Education division of Biji-biji Initiative. Previously, while only having 5 team members focusing on education, our education division (now Me.reka) proved to be the most profitable and fastest growing division. Hence, we decided to register it as a whole new company and develop the plans further.
The modular center partners will be other makerspaces, universities, technical colleges, corporates looking to re-train their staffs with the latest skills, etc. So far, we have received inquiries from Taylor’s to set a makerspace there, UPM to provide learning content, and is signing a MOU with POLISAS. The program partner for Sabah would be UNICEF and the local council.
We are an impact-driven business. While we are a profitable business, Me.reka Makerspace also focuses on the impacts it generates besides the financial returns. Venture capitalists on the other hand seek for financial returns only. Hence, they may not have an appetite for impact-business such as ours.
The pipeline revenue is coming from selling education content and programs to universities, corporates, government agencies and international development agencies. Our historical strength comes from securing B2B businesses.
Help us spread the word! The more investors we get on board, the faster we will be able to close our fundraising rounds. Share this link:https://www.mereka.my/pitchin/ with your friends and family that would be keen to invest in an education movement. Or, invite them to one of Investor Sharing Sessions. Find the dates here: https://www.facebook.com/pg/merekamakerspace/events
To be successful, makerspaces need tools and machinery, and makers. Me.reka Makerspace has both. We have invested in industry-level tools and machinery and have partnerships with industry partners, which allow us to have access to state-of-art-tools all the time. We ourselves are makers, equipped with all necessary skills and talents to run a makerspace. However, we acknowledge that, a makerspace is a brick-and-mortar facility with limited growth. Hence, we are venturing into being a content generator and provider as part of our second-phase growth plan. We use Makerspace pedagogy (hands-on approach, creativity, project based learning etc), but run a full fledged education centre that focuses on vocational content.
We are looking for any amount between RM 1,700 to RM 500,000. At the moment, we are looking for more ‘Anchors’ to get on board – Angel investors that will invest RM100k or more.
Our historical strength and best expertise lie in developing and securing Educational Programming & Content revenue through B2B clientele. Revenue streams 2, 3 and 4 are secondary revenue streams, that will (1) support the Programs and Contents we develop; (2) help increase reach to individual customers; and (3) play a paramount role in building a strong recognisable public brand. See the table below.
|#||Revenue Stream||Segment||Revenue for
Y1 – Y2
Y3 – Y5
|1.||Education Programmes &
|2.||Memberships, Classes & Workshops||B2C||20%-25%||10%-15%|
|4.||Space Rental, Cafe & Retail (maker products)||B2C
Me.reka Makerspace is a new company, incorporated in July 2017. Hence, we only have one financial audit for the period from July 2017 till Dec 2017. Please email us at firstname.lastname@example.org if you would like to see the audited accounts
Not yet, we are in the midst of applying for angel tax incentive schemes. However, this is more applicable to tech-based companies. We are a merge between tech and education. So, we gotta try our luck!
Equity Crowdfunding is a viable investment tool. It gives you the opportunity to access early stage investments in Malaysian companies which, prior to the introduction of equity crowdfunding legislations, were only accessible to venture capital companies and sophisticated investors. Like all investments, this new marketplace has risks you should be aware of. Please take the time to thoroughly understand the characteristics of equity crowdfunding. For more information, please refer to https://equity.pitchin.my/risk-warning
Yes, we accept investment from all nationalities.
Yes, you may.
Early adopters are those that invest in Me.reka Makerspace before we go Live on PitchIn
website. As a token of appreciation, we will provide a Kamperfuli Pouch, designed and made
by Biji-biji Initiative to all early adopters.
You can expect to receive your investment back with 15% premium, within 12 months of your request to sell your shares back to us. You can request to sell the shares back to us 2 years from the date which we received the investment money from the Trust Account set by PitchIn.
Part of doing an ECF, is to get as many people on-board and vested into the business. We will ensure our shareholders receive Quarterly Updates on our progress, and share any key business developments and key new leads with everyone. This will give our investors a chance to also lend in their expertise and share their networks where applicable. Please refer to the document Investor Business Roles Guide, for a general idea of the different roles we see our investors playing.
In the first few years, we expect a profit margin of 10-20%, and higher in the subsequent years (after the 5-6th year) once the business stabilises/ Industry players make between 30% – 60% on education programs, trainings, based on the types of trainings they do.
However, in the first few years (up till 3rd year), all the profits will be channelled back into the business. From the 3rd year onwards, we will announce a dividend policy, based on the profits projections for the coming years.
Subquestion: But how much would I receive as dividend after the 3rd year?
We have not determined on the dividend policy for 3rd year onwards at this moment. The policy will largely depend on the retained profits of the year**. Ideally, as according to our projections, we are looking at the payout rate about the same as our buy-back offer which is about 5% p.a. of share values.
** Dividend policy also depends on several other factors including:-
1. Corporate tax by gov’t (in the case of tax rate increment, dividend payout will drop)
2. Growth of the company (we are projecting for online contents to be launched gradually and generating income, dividend payout will increase)
3. Growth of the industry (eg. government incentives and industry competition)
No. Your investment will only be used to fund the growth plans of Me.reka Makerspace. Biji-biji’s growth plans is being funded through other channels.
When we perform our 2nd round Fund-raising, you may choose to exit, by selling your shares – the profits from sales of your shares will go directly to you. Hence, we will be selling more of our shares, possibly another 10-15%, to fund our next part of growth.
You could also sell the shares back to us at 15% premium, in 2 years time, if you would like to sell them before our 2nd round Fund-raising. We can then sell those shares that we buy back in 2 years time, for a higher price in in the future too.
For those that are looking at the long term – yes, when we raise more funds, your existing shares will get diluted. The additional capital injection will mean we all now own a smaller part of Me.reka (lower percentage) but a higher monetary value for that percentage.
For example, at first we owned 100% of Me.reka. Now after this fund raising, we will own 85% of Me.reka, at a 10m valuation. In 3 years time, say we choose to raise funds at a RM20m valuation, and chose to sell another 10% of our shares. We will raise an additional RM2m from the new investors.
Then, our collective shares of 100% of Me.reka (85% owned by Biji-biji, 15% the Initial Investors) will be scaled down to 90%. Meaning Biji-biji will own 76.5% and 13.5% for the First round Investors. The table below helps to illustrate this:
|Investor||Valuation @ RM10m||%||Valuation @ RM20m||%|
|1st Round Investors||RM1.5m||15%||RM2.7m||13.5%|
|2nd Round Investors||RM2m||10%|
This is a scaleable Impact Based business – once that is profitable, serving industry and national needs by providing state-of-the art education, as well as rooted in making this accessible for everyone. Our profits are linked to the scale of our impact. Hence , traditional investors and VC’s prefer the models that maximise profits, we believe an ECF is truly the best way for us to get members of the public on board – those who believe in this, and to have maximum public reach.
Biji-biji and Me.reka has a clear split in manpower, and both teams have their own 2 year strategic roadmap. The Biji-biji team focuses on Sustainability services (Energy playground, Art Installations, etc) and making products like the Fashion dept.
Me.reka is focused on Education. Yes, there will be close sharing of networks and business leads, but both are distinct different businesses, with its own focus. We are also very committed to Me.reka, as we have committed these sales numbers, for us to be able to do our 2nd Fund-Raising round, and make our future plans work.
75% is being used to fund and grow the business further through:
Content Development – manpower required (both internal and external) to develop content into our Me.reka Educational Framework.
Digital Platform – building the online platform – reaching out to a much larger audience, going digital. Developing the initial online content for the launch of the platform.
Marketing & Comms – Both labour and advertising budgets – for our B2B team to reach out to long term clients, develop industry partnerships, attend regional Tech & edu conferences, etc. Budgets for advertising, building the brand and getting the word out there.
25% is being used to enhance the existing centre with more Tools & Equipment (Café, Comms signages, proper retail space, and event furniture). This will in-turn also lead to additional content being developed.
As Me.reka is a new startup, the standard valuation models of IRR and NPV don’t apply, as those models apply to companies that have already come to a stable growth, in a matured market (stable businesses, with not much opportunities to scale). For Me.reka, we would need to apply a 10 -15 year Financial projection.
The start-up valuation model applied to Me.reka is based on a 4x multiplier, as it is defined as a Brick & Mortar business. Whilst we are in the Education & Tech space, and are raising funds to grow our organisation into being a Content Generator and Provider, providing both online and offline content – these revenues are new pipelines for us. Hence, we are not able to recognise them, and use them as part of our valuation.
The valuation right now is the First Years Revenue – RM 2.4m (which we already have secured pipelines for more than half the amount) x 4 times = RM 10m. which includes the existing brand value, educational modules, business experience and networks that we bring into Me.reka, from our 4 years of experience at Biji-biji Initiative.
As we have already invested the initial part to get Me.reka off the ground, investing close to RM1.5m (including actual renovation, tools and labour cost), this current centre (with some small additional investments) will be able to generate revenue for the next 4 years without any major investments. People who invest now are owning a stake of this existing business, and the funds are being used to scale our organisation further, into Phase 2! To infinity and beyond.
This valuation is validated through a benchmarking exercise of other companies out-there, raising funds. As there is no exact competitor for Me.reka – the closest business models PitchIn used were experiential cafes.
A lego café in Citta Mall – 2000-3000sqft – RM6.5m
An Airport games arcade café – 5000-6000sqft – RM15m
Me.reka falls in between that. Personally, we were valuing Me.reka at RM 20m. However, we were advised to start with a lower valuation, giving our initial backers a good potential return in 3+ years time when we go for our second fund-raising.
Me.reka Equity Crowdfunding | Invest in the 21st-century education movement