Category: BULK Capital Raising

There it is – I’ve summed up the entirety of this post. Raising capital when you’re a smaller co (under $10m) becomes challenging, especially

Here’s the Real Update:

I’ve emailed around 60 VC firms, “maybe” from 3- all RBIC funds, the rest didn’t respond or said we will “sit on the sideline” which means no.

Why can’t it be easier? (Because if where everyone would fucking do it. )

So as I’m pulling financials / recasting numbers/ putting together data rooms it made think about the alternatives. If you want to grow you need cash – Your own cash flow is only going to let you grow within those limits. So what are the alternatives?

Crowdfunding – We tried a campaign with Seedinvest a few years ago, no success beside the 25k we put in to fuel the campaign. Why Someone suggested that Seed invest was more a platform and didn’t have a highly engaged investor group that backed deals. They wanted to manage your raise, and take a % of it but you actually marketing of the raise. Could be true.. but either way it failed. Here’s the video we ran :

Have been contacted buy startengine – Looking into possibly trying this 1 more time.

VC platforms -Currently checking these out

• PItchbook
• Dealstream
• Floww
• Hum Captial
  
  

We will keep pushing

Starting Week 3 in investor reach out, so far this week I’ve reached out to the following groups:

CultCapital
The Builders Fund
Cowboy VC
Westlane Captial

Let me recap the responses: “No, Not a fit, to early, maybe in the future” . The list is small and growing each week, the end goal is to have something lined up for Q1 2022. Also note, I’m spending a good amount of time reading through the groups website, following up on linked in and trying to make sure there is a fit. Some groups are more tech focused, but since we are heavy in ecommerce there is a crossover.

This are actual response’s from a few VC groups:

Hi there, 

Thanks for reaching out and your interest in ________ Ventures. Unfortunately, what you are building is not a fit for us at this time. 

Best of luck as you continue to progress. 

Starbucks talked to 217 investor groups that told him no. But this reponse looks pretty automated — “hi there” ..

Thanks for reaching out. I read through your deck and congratulations on the progress you’ve made to date bootstrapped. 

We don’t have a strong focus right now on the CPG category and plan to step back from this opportunity. I would reach out to Springdale Ventures, who does have a CPG focus.

Best of luck with the raise,

At least I was emailed a response. !

We had a chance to review the materials and discuss with the team this morning. We like you guys and the model, but you are too early stage for us at this point (your projected 2021 revenue is right at the entry point for size of business for us). We’d like to stay in touch and as you scale consider a future funding opportunity. Please let me know if you have any questions or need further detail.

Headed in the right direction ! –

Happy Friday world — Its the end of week 2 of investor reach outs and here’s whats happening:

• Advantage Cap — they might be in if I can find a matching VC for $3m
• Midwest Growth Partners – They are diving into the deck and evaluating
• Blue Highway is in for 2022 if I can prove the plan – they want to do an equity deal vs a convertible note.

Pretty good start – this week has been tight on the reach outs and follow up due to other commitments, but its slowly happening. Next weeks goal is to get the deck in front of another 20+ cpg groups.

I have a meeting setup up next week with another RBIC – Azalea Capital, they mentioned they are looking for $1m in Ebitda, I’m not there yet, but have a few acquisitions that can make that happen rather quickly.

I’ll check in next week with further updates, but so far so good.

Oh yah, another day of researching reading, getting sucked down vc articles and other rabbit holes, talking with team members, building career paths, researching the future of food / meat products, looking at brands that are on a growth path, comparing, seeing how we can own it all or just carve out our space and fit in. And don’t forget about snacking – you must snack when in in front of the computer.

Other fun things I had the pleasure of doing today

• Telling my wife I’m sorry for being a jerk
• Eating Wagyu jerky as a snack
• Eating 750 calories of chocolate covered almonds — they are soo good..
  
  Favorite thought today: I was thinking about the Sketchers business model – find the leaders, copy them, sell it for 1/2. It’s proved to work with their $5b in annual sales.

VC groups contacted today:

Cavu Ventures – I Linked in Rohan Oza (Shark Tank, Coca Cola) and gave him a quick pitch, I called the santa monica # and left a vm. These guys are invsted in thrive market/ sold off chefs cut jerky and have a pretty shiny portfolio with products I see in the stores locally. Do they need a “BULK” brand that can take every product and own the supply chain with? Maybe –

Silverton Partners – this group looks more tech focused, but it looks like they invest in a wide group – lets see if the bulk platform for world domination fits their agenda.

Green Park Brands – they fit the bill, lets see what they think of BULK’s plan.

Live Oak – Austin based VC – they invest in texas based companies -(Johnson City ! ) I also reached out to Krishna on linked in with the follow up request. I’m like a pitbull, and you’re my chew toy. I’m going to get you. (a conversation is what I’m aiming for)

Halen Brands They invested in chefs cut, I bet they lost on that one. They have a small office, but are right up our profile investor alley. Let’s see if they get back to me.

Other notes: Midnight Ventures in Austin accepted my Linkd in request.. whatttt — they must be writing a check right now. Lol – I wish .

BANK Financing news: currently working with Texas First National Bank on refinancing the plant in Johnson city, rolling over all the debt into 1 nice payment and improving cashflow. Slow as a snail, but I’m at the mercy of the bank. (this is a reason why we need more $ – hard to grow 100% a year when you’re hands are tied behind your back.)

Today I’ve reached out to the following groups:

Vital ventures – Lauren Rinkey

Springdale ventures – I like their brands and the advisory board. I also love the fact they have “Ya’ll” on the website. Can’t stress enough on how finding a group you want to work with.

Midnight Venture Partners

These are primarily Austin based VC’s and have a focus on CPG. Looking through each of their websites there’s a fit. Let’s see if our deck can attract some attention.

In follow up today Karin from Blue Highway gave me “no” for now. I feel that if I pressed this and came back to her with a plan I could swing this into a yes. For the time being I’m going to let it sit as I see how the week unfolds.

This weeks high level recap looks like this:

Investors Contacted: 8 RBIC investors + 2 CPG VC + 301 inc (dissolved)
Pass / No : 3 – Loftpartners / Innova / Lewis and Clark
No response (yet): Ridge Peak Partners / 301 inc / Meritusventures / Open Prairie / Azalea
Conversations: 3 Blue Highway, Midwest Growth Fund, Advantage Cap

The last VC webinar I was on said raising capital will be the hardest thing you will do and it will take up all your time. Based on the results from this week I’m feeling optimistic, but I know there is long journey ahead of us.

We had good conversations with Karin, John and Damon. Next steps are having their internal teams review the deck and get back to us if they would like to dive further.

Good question right? Are you getting playacted, ignored – politely declined? You want to know WHY did you get a no or a pass .. or at least I do , I want to figure out what I missed and how to make my presentation better .

Keep reading below and see if you can help me out.

Here’s the VC criteria :

So I’m following up from this weeks round of contacts. I had an email chain with an investment group and the response I had was “outside our focus as of now” …

So here’s my question; based on the focus of the VC and our focus I think it’s a match worth looking at. So why did I get this response?

Thanks for reaching out. Unfortunately this is a bit outside our focus as of now. Good Plans though
Please keep us posted

I followed up up with a question about the deck and if there was anyone in their network that would be a better fit. response :

I think deck was on track – although I’d add historical financials not just current year and projected. Not sure on other investors. BULK is early for most of the folks I am thinking of – but will advise if anything comes to mind.

 (if you’d like to see the deck email me ptg@bulkhq.com)

So back to the question “do investors really look at your deck?”

My goal here is to tweak the presentation so all information is front and center, I get it people are busy, they are constantly sent decks, have a short attention span, for the information that gets in front of them. I followed up with a 3rd question, no response yet but I’ll keep you posted.

If you would like to take a look at the pitch deck we’ve built – send me an email and I can get you copy.

So this is week 1 day 2 of a capital raise for BULK — everything you need in bulk . This should be simple right?

Here’s the progress so far:

Contacted the following investors:
Advantage Capital Agribusiness Partners, LP – Had a good conversation with Damon, on the other note when I emailed one of the other partners – Keith Freedman – I was blocked . See the image below, not sure what I did wrong or if there’s an etiquette I failed to follow, or if was some automated block.

• Azalea Capital RBIC Fund, L.P. – Sent Bent Wallace a deck and then followed up with a voicemail.
  
• Blue Highway Growth Capital, LLC. – Karin got back to me asap, and we have a call setup for Friday.
  
• Innova Ag Innovation Fund IV. LP – Nate emailed back, our business isn’t in their investment criteria, but I appreciated the fact that I had a response.
  
• Lewis & Clark RBIC Fund II, LP – Tried to reach out to David on linkd, we will see if I can setup a phone call.
  
• Meritus Ventures, L.P. – emailed Grady , this fund looks like its out of the target, but you never know who it could be passed to
  
• Midwest Growth Partners II, L.P. – have a call setup with John
  
• 2x Partners – emailed Andy – have chatted with him in the past, lets see what he has to say.
  
• 301inc – this is the capital arm of General Mills, but was told they are being dissolved.