Peach

Peach

Luxury, sustainable bath tissue sold on a subscription basis directly to consumers.

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Security Type
Preferred Stock
Categories
Other
Min Investment
$1,000
Location
New York, NY
Offering Date
November 05, 2019
Expected Close Date
February 03, 2020
Target Raise
$350.00K-$3.00M
Deal Notes

Round type: Seed Round size: US $3,000,000 Minimum investment: US $1,000 Target Minimum: US $350,000 Security Type: Preferred Equity Share price: US $0.6284 Pre-money valuation: US $7,000,000 Option pool: 7.0% Is participating?: False Liquidation preference: 1.0x Closing conditions: While Peach Goods has set an overall target minimum of US $350,000 for the round, Peach Goods must raise at least US $25,000 of that amount through the Regulation CF portion of their raise before being able to conduct a close on any investments below $20,000. For further information please refer to Peach Goods's Form C. Regulation CF cap: While Peach Goods is offering up to US $3,000,000 worth of securities in its Seed, only up to US $1,070,000 of that amount may be raised through Regulation CF. Transfer restrictions: Securities issued through Regulation CF have a one year restriction on transfer from the date of purchase (except to certain qualified parties as specified under Section 4(a)(6) of the Securities Act of 1933), after which they become freely transferable. While securities issued through Regulation D are similarly considered "restricted securities" and investors must hold their securities indefinitely unless they are registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification requirements is available. Raised to date: US $71,000 US $0 (under Reg CF only)

Valuation
$7,000,000

Company Description

Luxury, sustainable bath tissue sold on a subscription basis directly to consumers.Toilet paper is boring. Most people don't have a strong brand preference (if you do, kudos!) and have no idea how much a roll actually costs (double kudos if applicable). The major toilet paper brands are forgettable, lowest-common-denominator products. They're designed to be as cheap as possible and few brands strongly resonate with consumers.Peach is a luxury, sustainable bath tissue brand that resonates with consumers. The product is delivered directly to consumers' homes on a monthly basis. The result is that Peach has a predictable, recurring revenue stream along with direct feedback and relationships which lead to better product quality and customer satisfaction.The company's initial traction is strong:$21k Revenue in September28% month-over-month revenue growth 65% of customers who try the product make it their household brand Peach bath tissue is only sold on a subscription basis, which means gross revenue is likely lower than it would have been if purchases of individual units were allowed. However, Peach favors the subscription model because  it leads to higher customer lifetime value.Peach intends to rapidly grow the direct-to-consumer subscription sales channel in addition to exploring wholesale relationships. The company also believes there is  a large opportunity to grow wholesale sales, as it has received inbound interest from boutique hotels and gyms, and is currently stocked in Globar (NYC), MNTSTUDIO (SF), and P.Volve (NYC), among others. There are a number of complementary product categories that Peach will explore including wet wipes, candles, and other high-end bathroom products. 

Perks

For those who invest in the first 2 weeks of the campaign: Receive a free 6 month subscription to Peach, valued at $144 (8 rolls per month)
For those who invest $1,000: Quarterly investor update emails
For those who invest $5,000: Quarterly investor update emails plus a free 6 month subscription to Peach, valued at $204 (16 rolls per month)
For those who invest $10,000: Quarterly investor update emails plus a free 12 month subscription to Peach, valued at $408 (16 rolls per month)
For those who invest $50,000: Quarterly investor update emails, a lifetime free subscription to Peach (16 rolls per month for life), quarterly one-on-one video chat session with CEO, invitation to reception at NYC office
For those who invest $100,000: All the above plus participation in quarterly investor update call, invitation to tour manufacturing facility to see the product being made
For those who invest $250,000: All the above plus board observer seat, and invitation to annual leadership dinner in NYC

Key Deal Facts

$21k+ in Gross Volume in September, grew 28% from August (product launched in July, 2019; unaudited)
Founder Aaron Doades sold his previous startup, RealTargeting, to DoubleVerify, a technology leader in providing transparency and accountability in digital advertising
Media mentions include: Fast Company, Architectural Digest, and Apartment Therapy
Formed partnership with Safe Horizon, a leading victim assistance organization providing assistance, advocacy, and support to victims who have experienced domestic violence, child abuse, sexual assault, stalking, human trafficking, youth homelessness, and other crimes
The tissue and hygiene market in the U.S. is worth $31B

Use of Proceeds

Customer Growth & Retention, Product Inventory, General & Administrative

Management Team / Advisory Board Bios

Aaron Doades
CEO
Aaron is an entrepreneur with multiple prior exits and deep experience in consumer product marketing and advertising technology. Aaron has spent the last 2 years engrossed in the bath tissue market and has spent time in factories across the world learning about, and testing, different tissue manufacturing technologies and techniques.

Corie McCabe
Director of Brand Strategy, PR, and Social

Deal Notes

Round type: Seed Round size: US $3,000,000 Minimum investment: US $1,000 Target Minimum: US $350,000 Security Type: Preferred Equity Share price: US $0.6284 Pre-money valuation: US $7,000,000 Option pool: 7.0% Is participating?: False Liquidation preference: 1.0x Closing conditions: While Peach Goods has set an overall target minimum of US $350,000 for the round, Peach Goods must raise at least US $25,000 of that amount through the Regulation CF portion of their raise before being able to conduct a close on any investments below $20,000. For further information please refer to Peach Goods's Form C. Regulation CF cap: While Peach Goods is offering up to US $3,000,000 worth of securities in its Seed, only up to US $1,070,000 of that amount may be raised through Regulation CF. Transfer restrictions: Securities issued through Regulation CF have a one year restriction on transfer from the date of purchase (except to certain qualified parties as specified under Section 4(a)(6) of the Securities Act of 1933), after which they become freely transferable. While securities issued through Regulation D are similarly considered "restricted securities" and investors must hold their securities indefinitely unless they are registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification requirements is available. Raised to date: US $71,000 US $0 (under Reg CF only)

Amount Raised : $74,002
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Security Description

Preferred securities are a type of investment that generally offers some sort of preferred treatment through a dividend or preferred treatment in a liquidation.

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