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Pale Green Dot

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Pale Green Dot is a leading company providing a closed-loop system to the UK's £60bn hospitality industry

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Funded 14 Jul 2021
£500,007 target
£518,029 from 0 investors
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Business overview

Location London, United Kingdom
Social media
Website www.palegreendot.co.uk
Sectors Food & Beverage Mixed Digital/Non-Digital Mixed B2B/B2C
Company number 12515565
Incorporation date 12 Mar 2020
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Investment summary

Type Equity
Valuation (pre-money) £10M
Equity offered 4.76%
Share price £11.37
Tax relief N/A
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Business highlights

  • 10x Sales Growth in last financial year*.
  • Large UK Contract Caterer, Granger & Co + Caravan onboarded
  • Huge market primed to buy more sustainably-£60 billion food spend
  • Rated Excellent on Trustpilot
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Key features

  • Secondary Market
  • Seedrs nominee min. £11.37 +
  • Idea
  • Key Information
  • Investor Perks
  • Team
  • Updates
  • Investors 0
  • Discussion
  • Documents

Idea

Introduction

Pale Green Dot is on a mission to fix our food system.

To our knowledge, we are the only company to provide a ‘closed-loop food system’ in the UK, targeting the £60bn+ hospitality market.

- We collect food waste from commercial kitchens and turn it into bio-fertiliser and energy
- This goes back into the ground to grow next seasons produce
- We deliver fresh produce to commercial kitchens and homes

With a short transparent supply chain, we can calculate the carbon footprint of produce we sell and provide this information to customers.

WHY?

- 75% of consumers want carbon labeling on menus

- Almost 50% of 18 - 34yr olds have stopped buying food and drink from companies they think are not environmentally responsible.

With carbon footprint data, people are empowered to make informed decisions about what to buy, cook and eat, so that collectively we have the tools to tackle the biggest challenge facing our planet today, the climate crisis.

Substantial accomplishments to date

GROWTH

• Pale Green Dot grew sales 10x* in the last financial year (March 2020-2021) despite incredibly challenging times for startups in hospitality.

• Commercial sales have grown 740% since Jan 2021, and growing at an average of 80% MOM between Dec 2020 and May 2021*.

• We have achieved 600%* Growth in B2B Account spend since the start of 2021.

• We have secured one of the UK’s largest Contract Caterers, with the potential to be worth £5m a year. We are beginning pilots in Q3 to supply their prestigious B&I sites.

• We have onboarded two multi-site independent chains: Granger & Co and Caravan to deliver sustainable produce.

• We introduced a high retention subscription business to the D2C side of the business and recently have seen over 75% of customers on a subscription versus one-off purchases (from Feb to June 2021).

• Metrics in D2C are strong: between Jan and June 2021, LTV has increased by 63% and currently sits at £533.

RESILIENCE

We are a fast-paced nimble business that thrives under challenging circumstances. When Covid struck we pivoted in just seven days into a D2C model and have delivered over 80,000 boxes since March 2020.

CUSTOMER-FIRST

• We are rated Excellent on Trustpilot.

• Almost 40% of D2C acquisition is referral-based, based on our survey in Feb 2021.

• 90% of customers rate our service as being very good or excellent.

We are perfectly placed to harness the bottom-up demand from consumers to change the food system for good through greater traceability and accountability in the food cycle.

*Based on unaudited management accounts

Monetisation strategy

We have been revenue-generating since day one. There are three core revenue streams:

• Production, Sourcing & Delivery of Fresh Produce

• D2C Subscription model & transactional margin for one-off purchases

• Recycling subscription & invoice payments

Commercial partners

By growing produce for our commercial partners ourselves, we are able to minimise costs. Our focus on large corporates allows us economies of scale when buying from partner farms and to better forecast when growing on our own PGD farms to ensure minimal wastage.

Recycling & Waste Services

Effective cross-selling between Produce & Recycling teams ensure an efficient business. Clients are on a monthly subscription of bag purchases or bespoke pricing for larger contracts.

The company runs its recycling business through PGD Recycling Limited, a wholly-owned subsidiary of Pale Green Dot (Holdings) Limited. Our recycling arm conducts its operations both directly and, where appropriate to a client’s needs, indirectly by use of sub-contractors as suppliers.

Third Party Logistics

Our strong logistics fleet has created opportunities for 3rd party deliveries. This reduces cost significantly, improving profitability, driving additional revenue and cash flow without significantly increasing our cost base.

Use of proceeds

The investment will enable us to grow as hospitality opens back up. We are primed to increase market share as chefs choose new suppliers with sustainability in mind.

Funds will be used to grow our production on PGD farms, grow purchasing with partner farms as well investing in people, training, and systems to improve sales, marketing, and operations. We will also be investing in more efficient logistics, expanding to meet demand from a growing customer base. With a strong pipeline, funding will allow us to take advantage of the significant revenue growth opportunities which we now have. We aim for this to take us through to profitability.

The investment will also help accelerate our certification to becoming a high-scoring B-Corp Company (electric vehicle fleet, farming investment, and facilities improvements). This is becoming a differentiator in terms of companies wanting to work with B-Corp-certified organisations, both for our consumer business and corporates.

Key Information

Outstanding debt

The company has the following outstanding debts:

1. A payment deferral arrangement with HMRC for a total of £100,520 with monthly payments of £4,309, and final payment being due 27 May 2023.

2. A bounce back loan of £50,000 received on 21 July 2020. This is repayable over 5 years at an interest rate of 2.5%. The first payment is not due until December 2021.

3. The company has outstanding creditors due to covid deferred payments. The aggregate total amount owed is £110,744, with monthly repayments a total of £9,522.

4. Due to a rent payment holiday, the company owes £22,261 to their landlord, with a monthly repayment of £930.

None of the funds raised will be used to repay these debts

Investor Perks

£300+
• One off discount of 50% off any fruit and veg boxes (up to the order value of £100)

£ 500+
• 15% off a large fruit & veg box subscription (weekly or fortnightly)

£ 1000+
• 25% off a large fruit & veg box subscription (weekly or fortnightly)

£ 2500+
• Invitation for you and a guest to our end of summer/harvest party at one of our farms - see where the Pale Green Dot magic happens!

• We’ll have produce picked straight from the ground cooked on our Big Green Egg, local home-reared and free range meat from our butchery partners, thought leadership talks around regenerative growing, sustainability and more, all washed down with drinks from local producers in addition to wine and softs.

• Limited number of tickets available. Ten investor places (along with guest) for each party. Three parties in total. Tickets distributed on a first come first served basis, allocation based on timestamp from campaign launch.

£ 7,000+
• Private party for you and seven friends at one of our farms. We’ll have produce picked straight from the ground cooked on our big Green Egg, local home reared and free range meat from our butchery partner, cider and beer sourced locally and a selection of wines too.

• Only ten private parties available (dates across 2021/2022). Tickets distributed on a first come first served basis, allocation based on timestamp from campaign launch.

*Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company and listed above. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.

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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 £10,005,600

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.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

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

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).

Learn more about investing and pre-emption rights.

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 is an option to invest and hold shares 'directly' in the company (rather than via the Seedrs Nominee). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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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.

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