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Beans Coffee Club

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Beans is a tech driven marketplace that connects coffee lovers to the best independent coffee roasters

129%
 - 
Funded 10 Jun 2024
£80,022 target
£104,104 from 86 investors
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Business overview

Location Bracknell, United Kingdom
Social media
Website beanscoffeeclub.com/
Sectors Food & Beverage Digital B2C
Company number 11974026
Incorporation date 1 May 2019
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Investment summary

Type Equity
Valuation (pre-money) £3M
Equity offered 3.34%
Tax relief

EIS

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Business highlights

  • 300% YOY growth (2022-2023), 12 month revenues of £730k*
  • Operationally profitable since Sept 2023*
  • Low-risk business model; we dont hold stock
  • Established partnerships with Currys and DeLonghi
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Key features

  • Secondary Market
  • Nominee investment min. £27.97 +
  • Direct investment min. £20,000.00 +

Pitch

About the Campaign

Beans is on a mission … to help people discover a better coffee experience at home by making freshly roasted coffee accessible to a wider market.

We do this in a number of ways

• Handpicking only the best independent roasters with interesting stories to tell

• Taking the guess work out of knowing which coffees suit people's taste with our intelligent matching system

• Allowing people to buy coffee how and when they like (we aren't JUST a subscription company)

• Ensuring every coffee is freshly roasted and sent direct for the ultimate fresh coffee experience

• Creating inspiring content about making and understanding fresh coffee

We are raising investment to develop our offerings & launch our equipment proposition, tapping into an additional revenue market and taking our business from a coffee subscription proposition to a fresh coffee marketplace targeting a main stream, mass market audience.

Market Opportunity

The DTC ‘fresh coffee’ market is estimated to be worth £500M+, and the coffee equipment is also estimated to be worth £500M, giving a combined market opportunity of over £1 billion.

The at-home coffee market has exploded with more people looking for a café experience in their own kitchen, this is only set to rise with take away coffee prices continuing to rise.

People love trying new coffees but finding good roasters & knowing which coffees are suitable for your taste can be time consuming, complicated & expensive.

Other multi roaster offerings offer limited flexibility & variety.

Traction & Key Accomplishment

Launched in 2019 Beans has enjoyed YOY growth with revenues tripling in 2023 to £650k & 12 month revenues of £730k (Feb 23-Feb 24)*. We have been operationally profitable since Sept 2023.*

In 2023 we developed & launched our own bespoke platform providing unique personalisation & advanced account management functionality. Our members are in complete control of which coffees they receive and when.

We have a low-risk operating model as we don't hold stock (coffees are shipped direct from the roasters) and we are paid in advance for orders meaning a positive cash-flow position.

We offer a mass market proposition; with our singular price point and flexible and convenient deliveries. You can enjoy a freshly roasted coffee matched to your taste from as little as £8.99 per month.

We have established partnerships with retailers & manufacturers including Currys & DeLonghi.

A large customer base: 8K active or paused subscriptions, and 32K reachable customers.

We now have the foundations to focus on driving growth & and maintaining profitability.

In 2023 we raised over £100,000 in a friends & family round.

*based on unaudited management accounts

Team

Richard and Fiona have worked in the coffee industry for 10 years. Having started out opening coffee shops they quickly moved into coffee roasting and had a small independent roasting business based in Ascot, Berkshire, providing locally roasted coffee to restuarants & cafes.

Previously Richards career was as a Product Manager supporting large scale website developments for TFL & Maersk.

Fiona has an established background as Global Design Manager, responsible for brands such as Durex & Scholl.

Business Model

Our marketing strategy comprises of:

- paid acquisition (Meta and Google)
- brand partnerships (Virgin wines, etc)
- recommend a friend (launching soon!)
- micro influencers
- affliates
- retailer partnerships (Currys, DeLonghi etc)

We are uniquely positioned to support retailer partners, ensuring a great coffee experience for customers purchasing espesso machines. Our level of personalisation ensures their customers find a coffee they love and our low entry price point means we can offer free-with promotions.

Use of Funds

The funds from this raise will be used in 2 ways; improve our offering to increase acquisition and retention & recuit a dedicated marketing team.

Planned operational changes:

- increase the roasters available from 20 to 50 & increase the coffees available from 120 to 300

- start selling brewing equipment and accessories tapping into a market size of up to £500m.

- offer increased bag sizes and add additional dispatch days

Investor Perks

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.

Key Information

Material Debt

The Company has the following outstanding loans:

1. £31,000.00 loan with 11% interest from Stripe, which was taken out in October 2023. The loan is being automatically recouped by the lender, who collect 10% of revenue generated via Stripe.

2. £17,000.00 loan with 21% interest from Maxcap, which was taken out in December 2023. The loan is being repaid in weekly instalments of £540.

3. Directors' loans totalling £86,000 with 0% interest, accrued over the past four years. There are currently no plans to repay these loans and it will not be done until the business is in a position to do so.

The funds raised from this investment round will not be used to repay these loans.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

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 campaign for Beans Coffee Club has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 17 April 2024 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, 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. Republic Europe 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 Republic Europe, 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 £3,000,342

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

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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.

Nominee investment

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Nominee investment.

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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 Nominee investment). 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.

Security Token

A security token is a digital asset that represents ownership or other rights. It is a digital form of traditional investments. In the future, you may be able to trade your investment through compatible exchanges.

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