Farmstand cooks & delivers fresh customizable meals that don’t cost the earth.
Business overview
| Location | London, United Kingdom |
|---|---|
| Social media | |
| Website | www.farmstand.co.uk/ |
| Sectors | Food & Beverage Digital Mixed B2B/B2C |
| Company number | 09899173 |
| Incorporation date | 2 Dec 2015 |
Business highlights
- £1.2M seed investment from London-based VC, Kindred Capital
- Disrupting the $200BN catering market which is to double by 2032
- Distribution via canteens and outdoor markets, not restaurants
- Conscience capital business helping to grow the pie for everyone
Learn more about convertible campaigns.
Idea
Introduction
Farmstand is a plant-powered cloud caterer.
Our mission is to feed the world plants.
We’re reinventing the way people eat in the canteen and outdoor markets.
How does Farmstand work?
- First, we cook our plant-powered food in our central kitchen. We only need one per city.
- Second, we deliver it to canteens and outdoor markets.
- Third, the canteens & markets then sell it to customers via Farmstand-branded concessions staffed by their teams.
- Fourth, customers can also pre-order, pay, and pick-up via the Farmstand app.
No rent. No build costs. Capital efficient. Technology-enabled. Globally scalable.
Why did I start Farmstand?
In 2006, our Founder, Steven Novick, was diagnosed with cancer.
Changing to a plant-based diet was vital to improving his health.
1. Self-made.
Grew up in a working-class family in Milwaukee, Wisconsin, USA.
Double-majored in Economics & History and graduated with honours in both.
2. Disciplined.
1 of 500 people to climb the 7 Summits including Mount Everest.
Cancer survivor. Ironman triathlete. Marathoner (PB 3:06).
3. Experienced.
3x startup Business Development Head:
1 IPO filed (then acquired); 1 acquired; 1 private equity fund.
Our menu.
We offer something for everyone.
Our all-day offering is flexitarian and 100% customisable.
An international menu without the carbon footprint.
80% veggie, 65% vegan, 5% sustainable fish, 15% meat.
Our goal is to have everyone on the planet eat One plant-based Meal a Day. We call it, OMD.
Intended impact
Leading a Conscience Capitalism movement
We care deeply about our planet and people especially those who are struggling. So we price our food affordably so we can distribute it widely. You can get Lunch or Dinner for £5. And Breakfast for £2.
We only use ethical suppliers.
We’ve never had any landfill waste.
Our entire team are owners. And all are paid at least the London Living Wage.
Half of our Board of Directors are also women.
We believe in Conscience Capitalism.
Help us grow the pie for everyone.
What’s the market we’re addressing?
We’re disrupting the $200BN catering market which will be doubling by 2032.
What’s our business model?
Farmstand is a B2B to C (Business to Business to Consumer) business model which is proven and globally scalable.
First, we cook our food in our central kitchen in London. We only need 1 per city.
Second, we then deliver it to canteens and outdoor markets.
Third, the canteens & markets then sell it to customers via Farmstand-branded concessions staffed by their teams.
Fourth, customers can also pre-order, pay, and pick-up via the Farmstand app.
No rent. No build costs. Capital efficient. Technology-enabled. Globally scalable.
Substantial accomplishments to date
2015
- Steven tested the idea for Farmstand by hosting a pop-up at his house with 97% giving him the thumbs up to launch the business
2016
- Built a Central Kitchen in Deptford to develop recipes and cook our food. We only need 1 per city.
- Opened a Farmstand restaurant “showroom” in Covent Garden to market to caterers and outdoor markets. The restaurant was profitable and returned all invested capital. In the current climate, we decided to cut all brick-and-mortar aspects of our business and focus solely on our cloud catering.
- Profiled in Vogue and British Airways magazine
2017
- Agreed 1st catering partnership with US-based Aramark.
- Opened 1st Farmstand-branded concession in London at largest US bank
- Raised £200K in venture debt from Quadia, a social impact fund based in Geneva
- Profiled in The Guardian and The Telegraph
2018
- Agreed 2nd catering partnership with UK-based Compass Group.
- Opened 2nd concession at top-4 accounting firm. Launched a plant-based only offering (just vegan/veggie) now called Plantstand.
- Agreed 3rd catering partnership with Copenhagen-based ISS.
- Opened 3rd concession in one of the UK's largest banks
- Raised £2M Seed venture capital round led by London-based VC Kindred Capital.
- Established public company-calibre Board of Directors including head of strategy at Pret and ex-CTO of graze.com
- Named top-2 most sustainable food-service business in Europe 2 years in a row!
2019
- Agreed 4th catering partnership with top-10 UK co-working space provider, LABS (10 offices).
- Agreed another catering partnership with a plan to roll-out 50 Farmstand-branded concessions in the UK
- Opened 9th Farmstand concession
- Profiled in The New York Times
2020
- Agreed 5th catering partnership with top-10 UK street food market
- Opened 11th and 12th Farmstand concessions
Monetisation strategy
Farmstand generates revenue and a gross margin on all our food.
We also receive franchise fees for our brand and licensing fees for our app.
We are paid by the canteen, outdoor market or the customer directly via the Farmstand app.
Use of proceeds
Our plan is to be in 1000+ canteens and outdoor markets in 10 cities in 10 years.
Your investment will focus only on our UK expansion.
We’re also hiring a data scientist, a head of technology and a head of marketing.
By September, Farmstand will be launching an even more robust app.
Enabling you, your friends and colleagues to order multiple brands and add them to just 1 shopping cart.
Not several shopping carts like you have to do on Deliveroo or UberEats.
To our knowledge, no other company in the world is doing this right now. Farmstand will be the first.
Come join us on our mission to feed the world plants.
Become part of our Conscience Capitalism movement and help us grow the pie for everyone.
Key Information
Convertible key terms
This investment round is being raised by way of a convertible equity investment instrument, in this case a "deferred subscription agreement".
The key terms that apply to the Farmstand deferred subscription agreement are set out in the Key Terms Document attached to this campaign. In Summary:
Conversion of the deferred subscription agreement will take place:
• On a Qualifying Equity Fundraise of £3,000,000 or more, at the lower of (i) a 25% discount to the share price paid by investors in the Qualifying Equity Fundraise, or (ii) a price per share of £0.6045 based on a valuation cap of £12,675,000 (the discount does not apply to this valuation cap).
• If no Qualifying Equity Fundraise has occurred, on the “Longstop Date”, (6 months from the date of the deferred subscription agreement is signed), or a winding up event, conversion will happen at a share price of £0.5327 (this was the share price of the company's last funding round and equates to a current company valuation of £9,500,000) or, if lower, the price of any shares issued after the date of the deferred subscription agreement.
• If a change of control or IPO occurs prior to the above events, conversion will automatically trigger at a price per share which is the lower of (i) the lowest price per share issued or sold as apart of an IPO or change of control, discounted by 25%, or (ii) a price per share of £0.6045 based on a valuation cap of £12,675,000 (the discount does not apply to this valuation cap).
Outstanding debt
Please note, the company has the following outstanding loans:
1. £525,000 director loan, no interest. There is no written agreement for this loan and no set repayment date.
2. Three loans from a social impact fund, with an outstanding aggregate balance of £214,572 plus £45,428 in interest. The repayment for this loan was delayed due to COVID, and the date for repayments to restart has not yet been decided. It is expected to be early 2021.
None of the funds raised from this investment round will be used to repay these loans.
Lead investment
Please note, £465,000 of the raised funds reflected in the campaign was received by the company in January 2020, and £140,000 in February 2020. Both investments are a part of the same round and are on the same terms.
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