Lustro Comments

Discuss this Deal with other Investors

Square Baby

Allergen Introduction + 100% Daily Nutrition Baby Food Subscription.

Claim My Business
Security Type
Common Stock
Other, Technology, Retail, Consumer Goods & Products, Food & Beverage
Min Investment
Bend, OR
Expected Close Date
April 29, 2024
Target Raise
Security Price
Number of Employees
Short Term Debt
Cost of Goods
Long Term Debt
Net Income

Company Description

Square Foods is an organic fresh baby food company utilizing the direct-to-consumer subscription model with direct shipping to customers' doorsteps. Following leading research, the meals are based on nutrition science and offer 100% daily nutrition and an allergen introduction menu. Originally, the Company was named, Lil’ Squares, LLC. In January 2018, the Company changed its name to Square Foods, LLC dba Square Baby and officially began operations.

Square Baby is a good product. It is a Science-Based Brand following AAP Recommendations (Allergen Introduction + Balanced, 100% Nutrition). It aims to disrupt the sugar-heavy baby food industry. Furthermore, the company also uses 100% recyclable and compostable packaging. The company has products in different flavors. The potential pipeline includes square bites, square smoothies, and square meals.

Today, organic and fresh options are leading the growth of the $150B (estimated by 2032) baby food market. The competitors include Happy Baby, Once Upon A Farm, Serenity Kids, Yumi, Cerebelly, and Little Spoon. The company has differentiated itself in a fragmented market by providing a very low sugar (1g against 10g) option and has focused on using organic and fresh raw materials while helping prevent food allergies in infants. The products are highly nutritious, packaging protein sourced from yogurt, plants, and animals. 

The products are approved by the FDA, USDA, and other appropriate associations. They have been tested by a third party for heavy metals. It has a Clean Label certification. The company has proven relationships with its suppliers, organic farms, co-manufacturers, logistics, and fulfillment partners. It has a 75% Product Margin (50% including shipping) with national DTC distribution.

The business has proven traction with a 5:1 LTV to CAC ratio. It has a subscription model with 79% retention and 59% of customers spend an average of $1,000. LTV per baby is $560 and for those ordering 2+ boxes, LTV is $800. The company stopped production in Q2 2021 since it was handed over to a co-manufacturer. Due to COVID, the production could not be resumed till Q1 2023. Therefore, the company had no revenues in 2022. In 2023, over the last 3 months, the revenues have averaged $10,745/month, the cost of goods sold has averaged $5,000/month, and operational expenses have averaged $55,000/month, for an average burn rate of $49,255. The annual sales for 2021 stood at $106,819 and the gross profit was 50%. The company intends to be profitable in 36 months.

Key Deal Facts

Subscription Model with Strong Retention of 79%. Strong LTV:CAC Ratio of 5:1 75% Product Margin (50% including shipping) with National DTC Distribution Proven Concept Serving 100,000+ Meals; Forecasted 12 Month Run Rate $1.1M (not guaranteed) Experienced Female Founders: SBUX 1st Nutritionist; Genetic Counselor + Healthcare Startup Cofounder Science-Based Brand Following AAP Recommendations (Allergen Introduction + Balanced, 100% Nutrition) Tested for Heavy Metals and Winner of Clean Label Project's "Purity Award" Target Takeoff Accelerator Graduates + Option to Launch in Retail + Online Founding Members of Michelle Obama’s PHA "Veggies Early and Often" Campaign

Use of Proceeds

The company plans to use the proceeds for marketing, team growth, inventory and Wefunder platform fees.

Management Team / Advisory Board Bios

The company has a good management team.

Katie Thomson, CEO & Co-Founder
Katie is a Registered Dietitian with a Masters in Nutrition. As the 1st Nutritionist for Starbucks, Katie shaped their first health and wellness strategy, made foundational shifts to the menu, became a spokesperson for the company, and consulted the executive/board team. She is a first-time founder and works full-time with Square Baby.

Kendall Glynn, COO & Co-Founder
Kendall is a Certified Genetic Counselor. She has a Masters in Biophysics & Molecular Genetics. She previously worked in the leadership Team at CPMC. She launched SFPA (SF's 1st private, full-service perinatal center). She also currently serves as Board President of George Mark Children’s House. This is her second startup and she works full-time with Square Baby. 

Valuation Notes

The company has valued itself at $8M pre-money. The company believes that it will need another $5M to reach profitability after raising $1M in this round. The company has restarted its operations but it is yet to prove market traction after restarting. The valuation seems high for the current stage.

Amount Raised : $814,246
Reveal the Score by Voting
Additional ratings from other users are needed to determine a viable CrowdScore for this deal.
The "CrowdScore" for this deal is determined by user ratings and other factors using our proprietary algorithm.
The overall viability and scalability of the business concept as well as the ability to drive the concept to profitability over time.
Business Idea
The progress made thus far in demonstrating that the business has viability, a customer base or other business traction.
Business Traction
The experience of the management team in running, scaling and/or exiting a business that required similar skills to execute the business plan.
Management Team
The value of the company compared to similar companies raising money from investors.

Security Description

Common stock is a security that represents ownership in a corporation.

Research Reports

No reports have been submitted

Become a Reporter