CellarStash.

CellarStash.

Direct-to-consumer online wine marketing company

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Security Type
Crowd Note
Categories
Other
Min Investment
$1,000
Location
Eagle, ID
Offering Date
April 10, 2020
Expected Close Date
June 05, 2020
Target Raise
$300.00K-$600.00K
Deal Notes

Round type: Seed Round size: US $600,000 Minimum investment: US $1,000 Target Minimum: US $300,000 Raised to date: US $65,600 US $65,600 (under Reg CF only) Security Type: Crowd Note Conversion discount: 20.0% Interest rate: 5.0% Note term: 24 months

Company Description

Direct-to-consumer online wine marketing companyThe CellarStash model aims to provide access to $100m of wine, but without the costs associated with inventory ownership.Problem: Direct-to-consumer wine marketing has been hampered by two problems: a) the necessity to own and manage expensive inventory, and b) the fact that wine marketers and wineries often have conflicting goals. Solution: The CellarStash model solves both. First, the wines made available on the CellarStash site remain in the control of the winery until they are sold, which means that CellarStash can quickly develop a broad wine selection without a significant capital requirement. Second, the winery partnership protects winery pricing strategies and product availability concerns. The end result is that CellarStash and winery interests are aligned, and we believe this will help the CellarStash marketplace grow quickly and profitably.The CellarStash model means that the consumer is the big winner. Because CellarStash is unencumbered by traditional restraints, the selection of wines will be able to quickly expand to include a broad range of wineries -- ranging from household names to those that have never previously been sold outside their own premises. Pricing will be competitive and the enthusiast has the opportunity to take advantage of quantity discounts by building their own case from wines across the marketplace or by ordering one of the CellarStash curated cases.CellarStash is devoting significant resources to building a large base of wine enthusiasts, forecasting over 500k users by the end of 2020. We believe that the access subscribers will have to a broad selection of wines at competitive prices, with spectacular customer service, will lead our customers to rely on CellarStash and ensure the long term success of the concept.

Perks

5% of amount invested to spend on wine at CellarStash
10% of amount invested to spend on wine at CellarStash
10% of amount invested to spend on wine at CellarStash +6 bottles Champagne
15% of amount invested to spend on wine at CellarStash + 12 bottles Champagne
20% of amount invested to spend on wine at CellarStash 
12 bottles Champagne
Dinner for two with the CellarStash Team at one of the Napa CellarStash Wineries including transportation/hotel
 25% of amount invested to spend on wine at CellarStash
12 bottles Champagne
Dinner for two with the CellarStash Team at one of Napa CellarStash Wineries including transportation/hotel  

Key Deal Facts

Memorandum of Understanding in place with Vingo, a direct-to consumer wine fulfillment company
Strategic marketing agreement developed for participating wineries that outlines inventory allocation and price structure
Management team is made up of seasoned executives that have worked together to develop successful direct-to-consumer wine companies for over 10 years
As a spin-off of Splash Wines, CellarStash has a marketing agreement in place with Splash to market to its community of 150k+ subscribers
The direct-to-consumer wine market in the USA exceeded $3 billion in revenue in 2019, growing at an average pace of 11% year-over-year for the past 9 years

Use of Proceeds

Subscriber Marketing: 67%

Operating Expenses: 20%

Winery Development: 8%

Website Upgrades: 5%

Management Team / Advisory Board Bios

Rob Imeson
Director/CEO
- BS from Oregon St. University- Built multiple successful wine businesses- In the industry for 40+ years

Bruce Cunningham
Director/President
- University of Adelaide – International Wine Marketing- Founder of AWDirect, Inc.

Jessica Dyer
Chief Financial Officer & Secretary
- BA from Washington St. University- Expertise in importing & logistics- 20+ years in the industry

Garrett Imeson
Chief Marketing Officer
- BA from University of Washington- Spent career marketing wine online

Parker Imeson
Chief Operations Officer
- BA from University of Arizona- Inventory specialist, staff management

Deal Notes

Round type: Seed Round size: US $600,000 Minimum investment: US $1,000 Target Minimum: US $300,000 Raised to date: US $65,600 US $65,600 (under Reg CF only) Security Type: Crowd Note Conversion discount: 20.0% Interest rate: 5.0% Note term: 24 months

Amount Raised : $390,902
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Security Description

A Crowd Note modifies the typical convertible note so that the crowd does not automatically convert to equity shareholders on the next financing and remain off the issuer’s capitalization table, but the crowd will still participate in any exit as if they had converted to equity. If there is no future financing, the holders of the Crowd Note still have upside, but could miss out significantly.

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