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Farmstand

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We’re a plant-powered cloud caterer reinventing the way people eat in canteens and outdoor markets.

110%
 - 
Funded 6 Aug 2020
£750,000 target
£837,920 from 375 investors
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Business overview

Location London, United Kingdom
Social media
Website www.farmstand.co.uk/
Sectors Food & Beverage Digital Mixed B2B/B2C
Company number 09899173
Incorporation date 2 Dec 2015
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Investment summary

Type Convertible
Discount 25%
Tax relief

EIS

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Business highlights

  • £1.2M seed investment from London-based VC, Kindred Capital
  • Disrupting the $200BN catering market which is to double by 2032
  • Distribution via canteens and outdoor markets, not restaurants
  • Conscience capital business helping to grow the pie for everyone
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Key features

  • Secondary Market
  • Seedrs nominee min. £10.00 +
  • Idea
  • Key Information
  • Team
  • Updates
  • Investors 375
  • Discussion
  • Documents

Learn more about convertible campaigns.

Idea

Introduction

Farmstand is a plant-powered cloud caterer.

Our mission is to feed the world plants.

We’re reinventing the way people eat in the canteen and outdoor markets.

How does Farmstand work?
- First, we cook our plant-powered food in our central kitchen. We only need one per city.
- Second, we deliver it to canteens and outdoor markets.
- Third, the canteens & markets then sell it to customers via Farmstand-branded concessions staffed by their teams.
- Fourth, customers can also pre-order, pay, and pick-up via the Farmstand app.

No rent. No build costs. Capital efficient. Technology-enabled. Globally scalable.

Why did I start Farmstand?

In 2006, our Founder, Steven Novick, was diagnosed with cancer.
Changing to a plant-based diet was vital to improving his health.

1. Self-made.
Grew up in a working-class family in Milwaukee, Wisconsin, USA.
Double-majored in Economics & History and graduated with honours in both.

2. Disciplined.
1 of 500 people to climb the 7 Summits including Mount Everest.
Cancer survivor. Ironman triathlete. Marathoner (PB 3:06).

3. Experienced.
3x startup Business Development Head:
1 IPO filed (then acquired); 1 acquired; 1 private equity fund.

Our menu.

We offer something for everyone.

Our all-day offering is flexitarian and 100% customisable.
An international menu without the carbon footprint.
80% veggie, 65% vegan, 5% sustainable fish, 15% meat.

Our goal is to have everyone on the planet eat One plant-based Meal a Day. We call it, OMD.

Intended impact

Leading a Conscience Capitalism movement

We care deeply about our planet and people especially those who are struggling. So we price our food affordably so we can distribute it widely. You can get Lunch or Dinner for £5. And Breakfast for £2.

We only use ethical suppliers.
We’ve never had any landfill waste.
Our entire team are owners. And all are paid at least the London Living Wage.
Half of our Board of Directors are also women.
We believe in Conscience Capitalism.
Help us grow the pie for everyone.

What’s the market we’re addressing?

We’re disrupting the $200BN catering market which will be doubling by 2032.


What’s our business model?

Farmstand is a B2B to C (Business to Business to Consumer) business model which is proven and globally scalable.

First, we cook our food in our central kitchen in London. We only need 1 per city.

Second, we then deliver it to canteens and outdoor markets.

Third, the canteens & markets then sell it to customers via Farmstand-branded concessions staffed by their teams.

Fourth, customers can also pre-order, pay, and pick-up via the Farmstand app.

No rent. No build costs. Capital efficient. Technology-enabled. Globally scalable.

Substantial accomplishments to date

2015
- Steven tested the idea for Farmstand by hosting a pop-up at his house with 97% giving him the thumbs up to launch the business

2016
- Built a Central Kitchen in Deptford to develop recipes and cook our food. We only need 1 per city.
- Opened a Farmstand restaurant “showroom” in Covent Garden to market to caterers and outdoor markets. The restaurant was profitable and returned all invested capital. In the current climate, we decided to cut all brick-and-mortar aspects of our business and focus solely on our cloud catering.
- Profiled in Vogue and British Airways magazine

2017
- Agreed 1st catering partnership with US-based Aramark.
- Opened 1st Farmstand-branded concession in London at largest US bank
- Raised £200K in venture debt from Quadia, a social impact fund based in Geneva
- Profiled in The Guardian and The Telegraph

2018
- Agreed 2nd catering partnership with UK-based Compass Group.
- Opened 2nd concession at top-4 accounting firm. Launched a plant-based only offering (just vegan/veggie) now called Plantstand.
- Agreed 3rd catering partnership with Copenhagen-based ISS.
- Opened 3rd concession in one of the UK's largest banks
- Raised £2M Seed venture capital round led by London-based VC Kindred Capital.
- Established public company-calibre Board of Directors including head of strategy at Pret and ex-CTO of graze.com
- Named top-2 most sustainable food-service business in Europe 2 years in a row!

2019
- Agreed 4th catering partnership with top-10 UK co-working space provider, LABS (10 offices).
- Agreed another catering partnership with a plan to roll-out 50 Farmstand-branded concessions in the UK
- Opened 9th Farmstand concession
- Profiled in The New York Times

2020
- Agreed 5th catering partnership with top-10 UK street food market
- Opened 11th and 12th Farmstand concessions

Monetisation strategy

Farmstand generates revenue and a gross margin on all our food.
We also receive franchise fees for our brand and licensing fees for our app.
We are paid by the canteen, outdoor market or the customer directly via the Farmstand app.

Use of proceeds

Our plan is to be in 1000+ canteens and outdoor markets in 10 cities in 10 years.
Your investment will focus only on our UK expansion.
We’re also hiring a data scientist, a head of technology and a head of marketing.

By September, Farmstand will be launching an even more robust app.
Enabling you, your friends and colleagues to order multiple brands and add them to just 1 shopping cart.
Not several shopping carts like you have to do on Deliveroo or UberEats.
To our knowledge, no other company in the world is doing this right now. Farmstand will be the first.

Come join us on our mission to feed the world plants.

Become part of our Conscience Capitalism movement and help us grow the pie for everyone.

Key Information

Convertible key terms

This investment round is being raised by way of a convertible equity investment instrument, in this case a "deferred subscription agreement".

The key terms that apply to the Farmstand deferred subscription agreement are set out in the Key Terms Document attached to this campaign. In Summary:

Conversion of the deferred subscription agreement will take place:

• On a Qualifying Equity Fundraise of £3,000,000 or more, at the lower of (i) a 25% discount to the share price paid by investors in the Qualifying Equity Fundraise, or (ii) a price per share of £0.6045 based on a valuation cap of £12,675,000 (the discount does not apply to this valuation cap).

• If no Qualifying Equity Fundraise has occurred, on the “Longstop Date”, (6 months from the date of the deferred subscription agreement is signed), or a winding up event, conversion will happen at a share price of £0.5327 (this was the share price of the company's last funding round and equates to a current company valuation of £9,500,000) or, if lower, the price of any shares issued after the date of the deferred subscription agreement.

• If a change of control or IPO occurs prior to the above events, conversion will automatically trigger at a price per share which is the lower of (i) the lowest price per share issued or sold as apart of an IPO or change of control, discounted by 25%, or (ii) a price per share of £0.6045 based on a valuation cap of £12,675,000 (the discount does not apply to this valuation cap).

Outstanding debt

Please note, the company has the following outstanding loans:

1. £525,000 director loan, no interest. There is no written agreement for this loan and no set repayment date.

2. Three loans from a social impact fund, with an outstanding aggregate balance of £214,572 plus £45,428 in interest. The repayment for this loan was delayed due to COVID, and the date for repayments to restart has not yet been decided. It is expected to be early 2021.

None of the funds raised from this investment round will be used to repay these loans.

Lead investment

Please note, £465,000 of the raised funds reflected in the campaign was received by the company in January 2020, and £140,000 in February 2020. Both investments are a part of the same round and are on the same terms.

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Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited ("Seedrs"), which is authorised and regulated by the Financial Conduct Authority. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Seedrs platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Seedrs platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

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Seedrs Limited is authorised and regulated by the Financial Conduct Authority (No. 550317).

© Seedrs Limited 2021. All rights reserved. Seedrs is a registered European Community trademark (No. 008771537) and registered United States service mark (No. 85423072) of Seedrs Limited, a limited company registered in England and Wales (No. 06848016), with registered office at Churchill House, 142-146 Old Street, London EC1V 9BW, United Kingdom, VAT No. GB 208 3065 32. Seedrs.com is a website owned and operated by Seedrs Limited.

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This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.
This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.
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Pitch type

There are 4 types of investment pitch available on Seedrs.

  • Equity
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  • Fund
  • Secondary

Investing in a convertible campaign allows you to invest today, with your investment converting into equity in the future, at a discount compared to other investors.

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Seedrs nominee

This shareholding type is available with this raise.

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Secondary market

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Direct investment

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.