Invest in a Beautiful Solution to Single-Use Plastics with $14 Million in Revenue
Plus, how Reddit, GameStop and Bitcoin are eating the world (of finance).
If you haven’t already followed the GameStop retail investing bonanza; you must be living under Twitter suspension 😂 the gist is a bunch of Reddit overlords put Wall Street suits and hedge funds into a $2 billion trick bag, and the result is a gigantic billboard for Bitcoin. If you made a fortune on $gme, good for you. Get out very soon. Samsie for $amc $nakd and the rest of the big shorts…
Speaking of which, here’s a few more that might be on deck:
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For my newbs; every week I breakdown a startup pitch with the added hook that you don’t have to be a rich guy to invest (if you don't know what that means, click here).
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Side Note: I’m definitely still riding the Bitcoin wave, I’m not sure I believe the hype or the gold analogy with any real conviction, but I don’t dismiss it either. As an investor sometimes you need a little unbiased tutelage — so, I invited Coindesk’s Managing Editor Zack Seward on the pod to put into layman’s terms what exactly the fuck Bitcoin is really, why institutions are flocking (Miami Mayor Suarez just added Satoshi’s white paper to the .gov site 😳) and what that means for us little guys and girls.
Here’s my convo with Zack Seward 👉 https://spoti.fi/36h71Fu
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Stojo is a collapsible and portable lifestyle brand creating products that solve the world’s waste problem while giving consumers beautifully designed, reusable container options from cups and bottles to food storage.
I’m on a bit of an Earth-y healing bender. I can’t help it. I like companies that build amazing things that can do amazing things — like ending our single-use plastic addiction that is just mind-bogglingly lazy. The product is stunningly simple and functional. The business is equally simple; they make reusable containers like Yeti and a million others… but without the clunk.
Meet the Founder
Watch my full interview with Stojo Founder and CEO Jurrien Swarts, here.
Jurrien Swarts is Stojo’s Founder & CEO. Prior to this, Jurrien spent 6+ years in private equity at Credit Suisse. Beyond that, he’s a dad who started a company because he wants to leave the world a better place for his kids (and yours) by creating products that adhere to regenerative business principles and practices.
If you listen to the pitch it’s hard to walk away not thinking two important things; first, he genuinely gives a shit about Stojo’s mission and secondly, he understands how money moves through the machine. The private equity and business modeling experience shows. He is genuinely building a flywheel around better Tupperware and Stojo’s traction substantiates that.
His attention to detail and design chops stands out — not to mention his timing for a product that is both super functional and Earth-saving couldn’t be better!
$14M in lifetime revenue with just $1M in funding
#245 on the Inc. 500 List for 2020 (#26 in Consumer Products)
Grew revenue to $6.5M in 2019, a ~140% YoY increase
U.S. revenue grew 97% in 2020; profitable in August & September
Sold in over 40 countries
Launching 3 new product lines: food storage, kids, & recycled ocean plastic
Found in leading retailers like Starbucks, Urban Outfitters, and Whole Foods
A profitable startup with $14m in revenue that continued its rapid growth during Covid? Despite people having nowhere to go… Do I really need to say more?
The market for sustainable goods is going to be enormous in the coming years, and Stojo is well-positioned to take advantage.
The company has strong revenue, earning more than $5 million in 2020, enough to land it on the Inc. 500 list of fastest-growing companies in the country. With its millennial friendly pastel colors, sleek design and compelling brand message, it's easy to understand why Stojo has experienced such rapid growth.
As it grows, the company’s biggest challenge will be defending itself against more well-heeled imitators. Stojo’s products, while sustainable, are easily replicable. Established consumer goods makers can add reusable drinkware to their product lines and leverage their pre-existing manufacturing and logistics prowess to squeeze Stojo.
Nike, for instance, has an in-house incubation arm building sustainable products, and it’s easy to see the company putting out a competing line of collapsible cups and water bottles. Brands like Que and Hydaway already offer such products.
Stojo’s success is predicated on how well it markets itself, an area it excels in.
Terms & Takeaway
Invest in Stojo here 👉 https://bit.ly/3t5IBIO
Security Type: Crowd Safe
Valuation Cap: $13,000,000
Investment Goal: $1,070,000
Raised (as of publishing): $345,637
Minimum Investment: $100
Here's what I like: I absolutely LOVE the product design, functionality and mission. I’m an OCD weirdo when it comes to food storage and travel mugs; I hate bulky shit but glass and metal is a pain in the ass too. Stojo is a shocking blend that just works.
The CEO is smart and leads without ego (a rarity for designer-types). The international growth and major retail partners set Stojo up for success. And, I really like the flexibility and SKU potential that exists as Stojo moves throughout the kitchen.
Here's what I don't love: The market is super competitive and brands like Yeti spend a fortune holding down the shelf space seemingly everywhere. Even though Stojo has a lot more product versatility than most brands, with an awesome mission; it’s not like Yeti doesn’t also combat single-use plastics. So, it’s David vs Goliath which is fun to root for but doesn't typically end too well for all the David’s out there.
Who should invest and why: Here’s the fun part. $7m+ in revenue last year with a value cap of $13m (even in CPG) is a very fair price for this investment — especially given the early retail traction and potential for constant product innovation.
Also, worth noting, margins are very SaaS-like.
I typically don’t invest in CPG because I tend to be afraid of the supply chain and retail distribution challenges. That said, I love great branding and minimalist design, plus I’ll 100% be a customer. If that’s you, investing in Stojo comes with some sweet perks!
Likely exit scenarios are still pretty unclear. I can see Stojo being bought for the innovation, brand and market… but, I could also see it becoming a publicly traded company like Yeti or operate like the Patagonia ATM, in-which we’re likely to be bought out in a future fundraising round. Or, none-of-the-above 😭
As always, startup investing is super high risk, anything can happen. So, don't invest money you can’t turn into plastic... 🥤💸
Invest in Stojo here 👉 https://bit.ly/3t5IBIO
Questions? DM me on Twitter @kitun
Disclaimer: It goes without saying, but this information should not be constituted as financial advice, my investing opinions are my own and all diligence is the responsibility of each individual investor.