Stem & Glory - Gloriously Plant-based
Business overview
| Location | Cambridge, United Kingdom |
|---|---|
| Social media | |
| Website | www.stemandglory.uk |
| Sectors | Food & Beverage Mixed Digital/Non-Digital B2C |
| Company number | 11013817 |
| Incorporation date | 16 Nov 2017 |
Business highlights
- New omnichannel business model
- Both London and Cambridge sites reopened post-covid
- New site in Cambridge with £200k grants and capital contributions
- Both sites planned to create new jobs under the Kickstart scheme
Key features
Learn more about convertible campaigns.
Idea
Introduction
At Stem & Glory, we are on a mission to disrupt both the world of plant-based food and the traditional hospitality model. Our new omnichannel business model serves innovative yet accessible plant-based cuisine, across a wide variety of channels, paving the way for healthier and more conscious ways of living.
Throughout lockdown, we developed our new business model which spans in-store dining, delivery, click & collect, and our ready meals and product range designed by the legendary Afroditi Krassa.
We have secured a combination of grants, landlord contribution and capital in excess of £200k towards a new site in Cambridge, and we are now raising funds to complete the new omnichannel model in both Cambridge and London, including cost-cutting state of the art tech to support both in-store and online growth.
We have an awesome and lively investor community and we would love for you to join us creating the hospitality business of the future.
Substantial accomplishments to date
Our founder Louise Palmer-Masterton is a serial entrepreneur who successfully negotiated her first exit last year, selling her multi-site leisure business in its entirety. She has a 30-year track record in business, including several online stores and a digital media company.
We believe that our omnichannel approach is enabling not only recovery, but rapid growth in the post Covid world, and creating an exciting new hospitality model for the future.
2017 - Best Newcomer - Cambridge Food and Drink Awards
2018 - Best Restaurant in Cambridge - British Restaurant Awards.
2018 - Successfully crowdfunded £773,310 for flagship London site.
2019 - London flagship opened Jan 2019.
2019 - Best Vegan Restaurant in London - Design My Night Awards
2019 - Blue Corn Tacos in Time Out's 'Top 10 vegan dishes in London'
2020 - 133% YOY growth at London Flagship between Jan 2019 and Jan 2020.*
2020 - London flagship 11.3% EBITDA (Jan 2020).*
2020 - Most Investable Concept - Global Restaurant Investment Forum (GRIF).
*Based on unaudited management accounts.
2020 - Cambridge & Peterborough Capital grant to develop post-Covid model.
2020 - Rebrand by leading design house Afroditi Krassa.
2020 - Landlord supported prime site in Cambridge for late 2020.
2020 - Multiple offers for sale of popular existing Cambridge site.
Monetisation strategy
Orders and payments are placed either on our web app, face to face, kiosk or online. Food is all made fresh to order, served fast for delivery or click & collect, or with our legendary customer service for in house dining. Our expert team know how to balance efficiency with outstanding customer care.
Online/kiosk ordering is reported to increase spend per head by up to 30%, and with delivery and click & collect firmly here to stay, the omnichannel approach offers the opportunity to upsell a range of products including ready meals.
In-store dining is to an exclusive number of covers, on high rotation, which together with new technologies mean more efficient staffing levels can be maintained.
Sales will also further be strengthened by future product sales through all channels, with the potential for a subscription model in the short term, and mass production in the future.
Use of proceeds
Proceeds from this raise, along with funds already raised from the landlord of the new site, the sale of our existing Cambridge site, and grants from Cambridge & Peterborough Combined Authority, will be used to build our new Cambridge site for which we have also received a very attractive ongoing deal. Funds will also be used to complete the tech upgrade for both sites.
We have already completed our branding and design with Afroditi Krassa, who will also design the new Cambridge site and the blueprint of all future sites.
Overfunding will allow us to be more ambitious with our marketing and development of our subscription and product range.
Investor rewards
£40 - complimentary Kombucha, juice or glass of wine with a meal.
£100 - complimentary lunch voucher.
£250 - 3-course meal for two (food only).
£500 - 3-course meal for two plus two lunch vouchers.
£750 - 3-course meal for two (food only) + 20% of food for a year (up to a table of two).
£2,500 - 3-course meal for four (food only) + 20% of food for a year (up to a table of four).
£10,000 + 3-course meal for four (food only) + 50% of food for a year (up to table of four).
Disclosures
The company has the following outstanding loans:
1. Bounce Back Loan of £53,144.46 including interest, with repayments starting in June 2021 to May 2026.
2. Asset finance loan of £42,133 including interest, to be repaid by February 2022.
3. Asset finance loan of £31,900 including interest, to be repaid by March 2022.
4. Asset finance loan of £28,952 including interest, to be repaid by March 2022.
5. Loan of £11,423.45 including interest. Repayment currently paused due to the repayment holiday. The loan is to be in full 10 weeks from when we resume payments again.
The funds raised from this investment round will not be used to repay these loans.
Key Information
Advance Subscription Agreement terms
This investment round is being raised by way of a convertible equity investment structure, in this case, an 'advanced subscription agreement'.
The key terms that apply to the Company’s advanced subscription agreement are set out below. See also attached Key Terms document for further details.
Discount – conversion at a 30% discount to the valuation set by a Trigger Event.
Valuation cap of £5,000,000.
Conversion is triggered by ("Trigger Events"):
- An Equity Fundraise – defined as the Company raising investment capital of at least £100,000 from one transaction or a series of transactions, in exchange for the company issuing Ordinary shares;
- A Change of Control of the company (transfer of more than 50% of the share capital); or
- An IPO – being a listing of the company’s shares on a recognised stock market or secondary market.
- Longstop Date is 6 months from the date of the advance subscription agreement.
If conversion has not been triggered by the Longstop Date shares will be issued on the longstop date at the Default Share Price, which is the lower of:
- the lowest price of any shares issued after the date of this Agreement; and
- a price per share based on a pre-money company valuation of £2,400,000 on a fully diluted basis.
- The convertible would also convert to equity at the Default Share Price in the event of winding up or liquidation of the company.
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