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Halo Coffee

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The World’s Best Coffee, In a Way That’s Best For The World Incredible, Sustainable, Biodegradable

116%
 - 
Funded 15 Jan 2021
£300,000 target
£349,260 from 400 investors
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Business overview

Location London, United Kingdom
Social media
Website halo.coffee/
Sectors Food & Beverage Digital Mixed B2B/B2C
Company number 10008523
Incorporation date 16 Feb 2016
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Investment summary

Type Equity
Valuation (pre-money) £9.5M
Equity offered 3.55%
Share price £20
Tax relief

EIS

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Business highlights

  • Sold to 9,000+ customers in 70 countries with 30,000+ followers
  • 45% of sales revenues generated by subscription customers
  • >40% retention rate
  • Profitable marketing margin
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Key features

  • No Secondary Market
  • Seedrs nominee min. £20.00 +
  • Direct investment min. £10,000.00 +
  • Pay by Bank payments not accepted
  • Idea
  • Key Information
  • Team
  • Updates
  • Investors 400
  • Discussion
  • Documents

Idea

Introduction

The market

The coffee capsule market is a growing 60bn pods p.a. industry. New markets are opening up i.e. Asia, where coffee consumption is growing rapidly. Market leader Nespresso sells ~14bn capsules p.a.

Trend and context

Greater eco-consciousness is driving the change in consumer behaviour.

As the first 100% home compostable biodegradable capsule in the market, Halo has positioned itself in a sweet spot, bringing to the market a unique product, filled with speciality grade coffee and unrivalled benefits to the planet. Amongst its merits, Halo is the Official Supplier of the British Olympic Sailing Team.

The plan ahead

Launch Halo Germany with an experienced team, and continue to build brand awareness and develop sales in the UK, expand product portfolio and strengthen the team.

Why invest in Halo?

A unique opportunity to invest in a truly sustainable brand with a positive impact on the planet that has demonstrated its "raison d’être" with its “flower bed compatible” coffee capsule

Substantial accomplishments to date

• Sold to 70 countries worldwide

• >9,000 buying customers

• >30,000 followers

• >40% customer retention rate (Oct '19 - Sep '20)

• 45% of sales revenues generated by subscription customers (Based on unaudited management accounts)

• Profitable Marketing margin (Based on unaudited management accounts)

• 86% YoY revenue growth in the UK

• Signed distributors in New Zealand, Saudi Arabia and Iceland

• Halo Coffee Germany (GmbH) to be launched in 2021

• Official sponsor of the British Olympic Sailing team

• Partnership with The Perfect World Foundation; with Sir David Attenborough

• Winner of Sky: Beyond Plastic category at the tve 2019 Global Sustainability Awards

• Posted on the Houses of Parliament’s twitter account on July 10th, 2019

• Case study on Halo Coffee in PA Consulting’s 2019 report on Innovation for Sustainability

• Selected partner to the 300 Years of Leadership and Innovation campaign with St James' House at the occasion of Queen Elizabeth’s 95th birthday

Monetisation strategy

Main objective is to provide the largest audience possible of coffee loving and eco-conscious coffee drinkers with "The World’s Best Coffee, In a Way That’s Best For The World" across three sales channels: Direct Sales, Distribution and Online Sales.

Online Sales is targeting end consumers and allows customers to place orders and manage their subscriptions on the online store. Halo is continuously on a mission to find new customers across multiple channels. Since launch, 9,000 customers have been acquired.

Direct Sales comprise HoReCa and Offices, with customers such as Booz Allen and NHS. Business customers requires a sales team.

New Zealand, Iceland and Saudi Arabia are covered through distributors, with mutually signed exclusive agreements.

Last, Halo has worked with excellent results to build loyalty with its online customers by launching a variety of blends, an attractive subscription plan and a generous reward program. Hence, customer retention exceeds >40% (Oct '19 - Sep '20).

Use of proceeds

In parallel with the launch of Halo Coffee in Germany, proceeds will be used to continue building brand awareness and driving customer acquisition, further develop sales, expand the product portfolio, develop capsule generation II and strengthen the team.

• Increase offline customer acquisition with print activities: 2-3x p.a.: 48%

• Launch of Halo Coffee GmbH: 18%

• Strengthen the team: 14%

• Develop capsule Gen. II: 10%

• Change on Opex (i.e. travel, etc): 7%

• Selected partner to the 300 Years of Leadership and Innovation campaign with St James' House: 2%

Key Information

Debt

Please note, Halo Coffee has 2 outstanding loans.

1) A Bounce Back loan of £50,000. This loan is for a term of 6 years and accrues interest at 2.5% per year. This loan has no repayments for the first year, and then has 60 monthly payments for the remainder of the term of circa £887.

2) A directors loan of £55,000. There is no interest on this loan, and it is to be repaid when there is sufficient free cash flow to the business.

No proceeds of this investment round will be used to repay debt.

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If you successfully purchase a share lot of this business, you will be granted access.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

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Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.

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 £9,500,000

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.

Learn more about pitch type on Seedrs

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.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This shareholding type is available and the minimum investment required to select it.

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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.

Learn more here

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

This campaign offers the ability to pay for an investment by drawdowns.