K POP Foods

K POP Foods

A vibrant food brand promoting Korean flavors through its food products.

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Security Type
Crowd Note
Categories
Food & Bev
Min Investment
$1,000
Location
Los Angeles, CA
Offering Date
July 17, 2018
Expected Close Date
October 15, 2018
Target Raise
$200.00K-$500.00K
Deal Notes
  • Security Type: Crowd Note
  • Conversion discount: 20.0%
  • Valuation Cap: US $3,000,000
  • Interest rate: 6.0%
  • Note term: 24 months
  • Minimum investment: US $1,000
  • Target Minimum: US $200,000
  • Maximum Raise Amount: US $500,000

Company Description

KPOP Foods is a spirited food brand inviting people to discover and enjoy Korean flavors through its food products. Our mission is to bring people together and uplift spirits by spreading Korean food and flavors in America. Korean food continues to surge in popularity across America, thanks to celebrity chefs embracing and endorsing Korean flavors and the public gaining access to Korean barbecue and rice bowls. In 2016, Korean restaurants represented a $5.0 billion market in the United States. Compared to the more established Chinese and Mexican food markets, Korean food is 7x smaller, demonstrating a significant opportunity for growth. Here at KPOP Foods, we’re focused on fixing a tangible problem and seizing the opportunity by building a Korean food brand that people can resonate with and embrace. By capturing the special flavors of Korean food in user-friendly products, we can access mainstream distribution channels and capitalize on social media and content creation, allowing us to position ourselves at the forefront of the growth of Korean food with the goal of becoming the Korean food brand for America.

Perks

$1,000: 25% discount and $50 annual online store credit for 2 years.
$3,000: 25% discount and $80 annual online store credit for 3 years.
$5,000: 25% discount and $125 annual online store credit for 5 years. Samples to all new products before release.
$10,000: 25% discount and $200 annual online store credit for 10 years. Samples to all new products before release.

Key Deal Facts

Over $80k in revenue since launching last year in September
Raised $37,627 from 1,219 backers on Kickstarter and then raised $150,000 from investors, which includes a co-founder of Sir Kensington’s
Product featured in FabFitFun’s limited-edition, co-branded box with Pinterest called the Pinterest 100.
All products are Amazon’s Choice with average reviews of 4.5 stars from 110+ reviews and 4.5 stars from 10+ reviews for KPOP Sauce and KPOP Sea Snacks, respectively.
A member of UCLA Anderson Venture Accelerator’s first cohort of 11 teams, of which 6 received funding (over $1 million cumulatively) and 1 successfully exited.

Use of Proceeds

  • 33% Ongoing operations
  • 22% Personnel - VP of Marketing & Business Associate
  • 16% Distribution expansion
  • 14% PR Firm
  • 15% Unspecified

Management Team / Advisory Board Bios

Theodore Lee
Co-founder & CEO
Theo was fortunate as a child to live in Buenos Aires and Singapore, where he experienced a variety of cultures and cuisines. While traveling to other countries was great, Theo’s best memories were family reunions in the summer at his grandparent’s house in Atlanta. Theo’s grandma, along with other members of the family, would spend hours cooking large dinner the family that included freshly made ban chans (Korean side dishes), kimchi and tofu stews, and savory grilled meats. When it came time for dinner, everyone would sit, eat, and laugh, and it was these experiences with food, family, and friends, that left an everlasting impression on Theo.While Theo’s love for food grew, after college, he pursued a career in banking, working at US Bank for one year, and then OneWest Bank for three years. During those four years, Theo gained valuable skills and experiences in finance, strategy, and business. But with a passion for entrepreneurship and startups, Theo pursued an MBA to round out his skill sets. As a Manager of Finance for an early stage fintech startup, he was a key contributor in closing the company’s $2 million seed round. However, his passion for food, especially Korean food, continued to grow and after meeting co-founder, Mike Kim, he knew it was time to take a shot at starting KPOP Foods.Theo received a B.A. in Economics from UCLA and his M.B.A. from UCLA Anderson.

Mike Kim
Co-founder & COO
While stationed around the US and abroad, US Army combat veteran Mike Kim introduced many of his soldiers and colleagues to Korean cuisine. The blend of brilliant flavors and the feeling of shared excitement created by these meals caused those familiar and those new to Korean food wanting more. This intersection of food, culture, and people would inspire Mike down the road.Mike served in the US Army for five years in various positions from an Infantry Platoon Leader, Project Manager, to Assistant Operations Officer. He’s worked in multiple cities across the United States, Afghanistan, and South Korea, leading teams as large as 60 people. This experience allowed Mike to hone his skills in leadership, strategy, and operations. Upon transitioning from the military and entering business school, Mike began working as a Strategy and Business Development Associate at Edison Water Resources, an Edison International company where he tackled a wide-array of issues around scalability and growth. In early 2017, Mike and his co-founder, Theo Lee, decided to pursue KPOP Foods full-time during their second and final year at business school.Mike received a B.S. in Engineering Management from the United States Military Academy at West Point and his M.B.A. from UCLA Anderson.

Deal Notes

  • Security Type: Crowd Note
  • Conversion discount: 20.0%
  • Valuation Cap: US $3,000,000
  • Interest rate: 6.0%
  • Note term: 24 months
  • Minimum investment: US $1,000
  • Target Minimum: US $200,000
  • Maximum Raise Amount: US $500,000
Amount Raised : $214,000
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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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