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Fungtn

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Award winning, alcohol free craft beer brewed with adaptogenic mushrooms.

112%
 - 
Funded 28 Mar 2022
£150,005 target
£168,895 from 188 investors
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Business overview

Location Cardiff, United Kingdom
Social media
Website www.fungtn.com
Sectors Food & Beverage Mixed Digital/Non-Digital Mixed B2B/B2C
Company number 12590568
Incorporation date 7 May 2020
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Investment summary

Type Equity
Valuation (pre-money) £1.1M
Equity offered 12.92%
Share price £10.77
Tax relief

EIS

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Business highlights

  • Won 5 industry awards for innovation and taste
  • Launched into Planet Organic & Selfridges
  • 65+ UK and Europe stockists, 1 national wholesaler
  • Export secured for USA / Canada in 2022
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Key features

  • Secondary Market
  • Seedrs nominee min. £10.77 +
  • Idea
  • Key Information
  • Team
  • Updates
  • Investors 188
  • Discussion
  • Documents

Idea

Introduction

We believe Fungtn is the first alcohol free craft beer brewed with adaptogenic mushrooms. A range of award winning beers made to complement daily routine, we brew a traditional craft beer to 0.5% with a functional finish of functional mushrooms.

Super food mushrooms, known as adaptogens, have been used in health & wellness for thousands of years. A natural solution to the stresses of our hectic modern lives, their complex, delicate flavour is designed to blend well into drinks especially into our modern day beer pallet.

We wanted to go past just removing the alcohol for a more mindful beer and create additional positive wellness for conscious consumers. Bringing fungi into the mainstream with a product that delivers on taste.

We have developed a first to the UK market product that sits in between the growing markets of no & low alcohol, fungi, health & wellness and craft beer. A unique opportunity to bring mindful drinking into the mainstream with a better for you product that fits growing consumer demands.

Substantial accomplishments to date

With 49% of British adults no longer drinking and the mindful drinking movement growing momentum in the Western world, we are at point of the beverage industry changing forever.

"Pint of mushroom please! Millennials are turning their backs on traditional beers in favour of savoury low-alcohol drinks such as fungi-flavoured ales" With headlines like this in the Daily Mail we can see the change sweeping into the mainstream .

· Launched on a shoe string, raised £30k and still have SEIS remaining

· Bought on board advisory CFO

· Retailing in Planet Organic / 65 independent stockists UK / EU

· Live on Amazon

· Featured on NBC Access Hollywood as a future food & Drink trend

· Won Bronze in UK IPA; World Beer Awards, Bronze: International beer challenge, Best New Product; natural & Organic awards Europe

· Nationwide press coverage including GQ, The Telegraph, The Times and The Independent.

· Launching into Selfridge's Jan 22

· Secured a national products / grocery wholesaler

· Launching into the US / Canada Q2 22 - import and distribution agreed

"Drinks with adaptogens – such as mushrooms and black garlic – are set to be big this year - Diageo"

Monetisation strategy

Launching mid pandemic, we built social media, organic press and digital exposure securing a strong online community with a 16% repeat customer rate through our ecommerce shop.

We launched into retail through Planet Organic, Selfridges and secured a national wholesaler. Our next focus is to secure premium grocery listings in Wholefoods, Ocado & Waitrose. We have partnered with Jiffy, one of London's leading, on-demand delivery service getting our beers out to hundreds of thousands of Londoners.

We have built strong commercial partnerships with leading no & low venues and retailers such as The Virgin Mary Bar, The Alcohol Free Co. and the Wise Bartender. We plan to increase activity in Q3 2022 by building out a UK trade sales team and wholesaler engagement.

We have operational export channels to Europe and Singapore and plan to export to the US and Canada this year. We are also looking to launch into Australia and New Zealand this year. For 2023, we are planning to develop a 0% range to scale the brand into the Middle East and find export partners in Dubai and Saudi Arabia.

Use of proceeds

We plan to use this first round of seed money raised to scale the brand in the UK and launch export partners in the US and Canada.

We see the non alcoholic and functional drinks markets as future trends with potential for innovation and rapid growth over the next 18 months. Our aim is to scale a brand that is drunk globally but brewed locally following a contract brewing model that will enable us to scale into growing markets. This model will allow us to build a community in new territories and maximising our production in an energy efficient way.

• Establish UK sales / distributor partnerships 15%

• Marketing activities (Digital / PR) – brand development & education 25%

• UK and Europe trade shows and events – brand exposure 15%

• UK market ongoing support for retailers and wholesalers 10%

• Range NPD 5%

• Key team hire # 1 15%

• Develop brand into key territory - North America 10%

Key Information

Tax Relief

The first £120K invested in the round is eligible for SEIS tax relief and will be offered on a first come first serve basis.

Investments over £120K will be eligible for EIS.

Material Debt

The company has the following outstanding loans:

1. £10,000 loan from Iwoca at an interest rate of 5.7% per month. The loan is to be repaid based upon a rolling credit.


2. £25,000 loan from Business Finance at an interest rate of 6% per annum. The loan is to be repaid by 1st September 2025.

The funds raised from this investment round will not be used to repay these loans.

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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.

Seedrs does not make investment recommendations to you. No communications from Seedrs, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Seedrs does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs, you should consult a professional adviser.

Tax Relief (SEIS)

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.

Tax Relief (EIS)

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.

Valuation (pre-money)

Valuation rounded from £1,133,650

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

Pitch type

There are 5 types of investment pitch available on Seedrs.

  • Equity
  • Convertible
  • Fund
  • Cohort
  • Secondary

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

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Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

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Seedrs nominee

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Seedrs nominee.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

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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, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

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Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, 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.

Drawdowns

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