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Security Type
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Crowd Note
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Categories
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Food & Bev
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Min Investment
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$100
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Location
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East Providence, RI
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Offering Date
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August 02, 2018
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Expected Close Date
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October 01, 2018
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Target Raise
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$50.00K
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Deal Notes
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- Security Type: Crowd Note
- Round Size: Min: $50,000 Max: $300,000
- Valuation Cap: $2.5 million
- Discount: 20%
- Conversion Provisions: In connection with equity financing of at least $1,000,000, the Company has the option to convert the Crowd Note into shares of non-voting preferred stock (Conversion Shares) at a price based on the lower of (A) a 20% discount to the price paid per share for Preferred Stock by investors in the Qualified Equity Financing or (B) the price paid per share paid on a $2.5 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.
Company Description
Founded in 2016, Feast & Fettle is a subscription-based, premium food delivery service. Seasonally inspired meals are prepared and cooked by chefs and delivered fresh, directly to members’ doors. Each week, members go online and select meals from a rotating menu of entrées and sides, catered to the dietary requirements and preferences of their households. Members simply reheat their meals before eating - no cooking or prep is required. Feast & Fettle was founded on the appreciation for how difficult it can be for working professionals and families to prepare healthy, wholesome dinners every night. Since launching, Feast & Fettle has realized notable growth in monthly revenue. The company plans on expanding operations, having just signed a lease on a new commercial kitchen facility. Feast & Fettle currently delivers meals to members in Rhode Island and plans to expand into Massachusetts in Q3-2018 and Connecticut in 2019.
Key Deal Facts
2017 revenue was $231,000, a 144% increase from 2016
Generated more than $107,000 in revenue during Q2 of 2018, a 95% year-over-year increase
2018 Editor’s Pick for Home-Delivered Meals in Best of Rhode Island magazine
Customer retention rate of 40%, almost double some industry competitors
Use of Proceeds
- 40% Kitchen build out
- 25% Kitchen equipment
- 15% Future wages
- 8% General marketing
- 6% General working capital
- 6% Intermediary fees
Management Team / Advisory Board Bios
Carlos Ventura
Chief Executive Officer
Carlos joined Feast & Fettle as CEO in February 2018. Prior to joining Feast & Fettle, he worked for Deliveroo—one of the largest start-ups in the United Kingdomxxvi — on Strategy and Corporate Development. Before Deliveroo, Carlos worked in banking at Goldman Sachs and Citi, and in consulting at CAPCO. He has a bachelor’s degree in Business Administration and Finance from the Isenberg School of Management at UMass Amherst.
Margaret Mulvena
Founder and Executive Chef
Maggie founded Feast & Fettle in 2016 and has served as the Executive Chef ever since. Prior to starting Feast & Fettle, she worked as a private chef for several families in Rhode Island. As she began cooking for more families, she decided to take the entrepreneurial leap and serve a larger customer market. Maggie graduated from Johnson & Wales University with a Bachelor of Science in Culinary Nutrition.
Nicole Oliveira
General Manager
Nicole has been with Feast & Fettle since it was founded in 2016. Over that period of time, she has worked in many roles including Community Manager, Bookkeeper, Customer Service Specialist, Chef Aid, and currently as the General Manager. Prior to joining Feast & Fettle, Nicole worked for several international hotel and cruise line companies in the Hospitality and Food & Beverage industries.
Deal Notes
- Security Type: Crowd Note
- Round Size: Min: $50,000 Max: $300,000
- Valuation Cap: $2.5 million
- Discount: 20%
- Conversion Provisions: In connection with equity financing of at least $1,000,000, the Company has the option to convert the Crowd Note into shares of non-voting preferred stock (Conversion Shares) at a price based on the lower of (A) a 20% discount to the price paid per share for Preferred Stock by investors in the Qualified Equity Financing or (B) the price paid per share paid on a $2.5 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.
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The overall viability and scalability of the business concept as well as the ability to drive the concept to profitability over time.
Business Idea
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The progress made thus far in demonstrating that the business has viability, a customer base or other business traction.
Business Traction
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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
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The value of the company compared to similar companies raising money from investors.
Valuation
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.
