Batchwell Capital raise through snowball effect

[Mr Slothbear]

Hi all, apologies if this is the wrong category, its not on the nzx but this is probably the most relevant place to put it.


Buy in valuation is 2.5x forward revenue with the forward estimate based on 70% of the financial year already complete so should be fairly accurate. Seems reasonable given their revenue CAGR for past 3 years has been 60%+ and this should continue or accelerate given more growth capital

All capital to date has come from the founders so they sure have plenty of skin in the game and interests all very well aligned

i have not yet tried their product but will be giving it a try in the next day or two.

heres the link to the offer / details
https://www.snowballeffect.co.nz/offers/batchwell-vld76vw


media piece
https://www.scoop.co.nz/stories/BU2107/S00316/batchwell-kombucha-launches-nz1m-capital-raise-via-snowball-effect-to-drive-growth-strategy.htm

so far I am in the process of doing due dilligence and research, curious on your thoughts.

In 2015 i took part in a similar capital raise through snowball effect in a wine company called Invivo and have to date done extremely well. Very illiquid and you must be prepared for a long ride but the rewards sure are there for these high growth companies with lean structures and passionate founders.

[petty]

Hi all, apologies if this is the wrong category, its not on the nzx but this is probably the most relevant place to put it.


Buy in valuation is 2.5x forward revenue with the forward estimate based on 70% of the financial year already complete so should be fairly accurate. Seems reasonable given their revenue CAGR for past 3 years has been 60%+ and this should continue or accelerate given more growth capital

All capital to date has come from the founders so they sure have plenty of skin in the game and interests all very well aligned

i have not yet tried their product but will be giving it a try in the next day or two.

heres the link to the offer / details
https://www.snowballeffect.co.nz/offers/batchwell-vld76vw


media piece
https://www.scoop.co.nz/stories/BU2107/S00316/batchwell-kombucha-launches-nz1m-capital-raise-via-snowball-effect-to-drive-growth-strategy.htm

so far I am in the process of doing due dilligence and research, curious on your thoughts.

In 2015 i took part in a similar capital raise through snowball effect in a wine company called Invivo and have to date done extremely well. Very illiquid and you must be prepared for a long ride but the rewards sure are there for these high growth companies with lean structures and passionate founders.



I understood this is for wholesale investors only? At this stage I didn’t dig much deeper but here are my thoughts.

A) FMCG products like these are popping up everywhere and I imagine it’s a highly competitive, complex and challenging business to turn a profit.
b) I see this as bit of a fad. Lots of sezlters and ‘hard fizz’ popping up left right and center.

[Mista_Trix]

Bit late to the party there. About 2 years ago everyone was drinking kombucha. Now nobodies drinking it as it's not really the 'on trend' thing any more. Good luck to them.

[Mr Slothbear]

I understood this is for wholesale investors only? At this stage I didn’t dig much deeper but here are my thoughts.

A) FMCG products like these are popping up everywhere and I imagine it’s a highly competitive, complex and challenging business to turn a profit.
b) I see this as bit of a fad. Lots of sezlters and ‘hard fizz’ popping up left right and center.

it is open to everyone not just wholesale

i understand where you’re coming from from regarding competition as you’re 100% right it is extremely competitive.

in saying that if I had said that a few years ago about Invivo and passed it off due to competition with there being thousands if not tens of thousands of wine companies, pretty much dime a dozen then I would have missed out. I invested at $1 per share and their latest cap raise had them at $4.80 per share and I have no doubt this is still just the beginning. Completely different company but also FMCG and some food for thought