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Raw Halo

Platform:
Crowdcube
Stage:
Expansion
Industry:
Food & Drink
Location:
UK - London
Date Rated:
27/11/17
Raise:
£110,000
Equity:
7.75%
Valuation (Pre Money):
£1,309,355
Industry: Food & Drink
Location: UK - London
Platform: Crowdcube
£110,000 Expansion
Valuation: £1,419,355
Date Rated: 23/11/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

Raw Halo is an artisan raw chocolate brand with a collection of nine luxury bars made with organic ingredients, 100% natural and free from refined sugar, gluten sweetening their bars naturally with only organic coconut sugar and lucuma powder. Raw Halo is a winner of a Great Taste Award 2015, it is sold in over 400 stockists in 20 countries. This round of investment will be mainly used to fund the international expansion, marketing and further product development.

Financial Overview

 

 

 

There is insufficient information available to provide a financial overview

 

 

64%
SKILLS:
EXPERIENCE:
COMMITMENT:
Although the team has limited prior managerial experience, all the key roles are filled with significant expertise in sales and marketing available to push the brand forward.
This is the Founders' first venture and it appears there are no experienced advisors in place, but they are undoubtedly gaining relevant management experience and industry knowledge on the job.
The Founders have invested three years and over £20k into the business and last year they stated that their salaries would be minimal until the business was turning a significant profit.
56%
MARKET:
PRODUCT:
COMPETITION:
Although luxury chocolate is worth only about £630m in the UK, the segment is steadily growing and Raw Halo is actively expanding and is now addressing 20 countries.
Raw Halo is rapidly increasing its stockist network in the UK and abroad and it has a wide offering with a significant presence online representing 50% of the total revenue last year.
Although the company's offering is more expensive than most brands, it aims to benefit from the increasing consumer propensity to pay for higher quality products like organic and free-from.
There is insufficient information available to fairly rate this aspect of the business


Conclusion

Raw Halo raised £150k on Crowdcube in 2016 and admit to being over £100k behind their original sales target of £300k for 2017. They have however provided a full and frank explanation as to the reasons for this underperformance and appear to have taken sensible steps to catch up, and they appear confident their augmented sales and marketing team will achieve further listing in key national supermarkets both at home and abroad.

Investors should note that given the intended expansion, further funds could be needed to accelerate growth, therefore investors in this round should note that a minimum investment of £5k is required to secure pre-emption rights.

However, if you are an investor who loves chocolate, the rewards also seem interesting with discounts available for life. This offer could conceivably fall foul of the EIS rules if the discount available is deemed to be worth more than £1,000.


Note: We have not received a business plan from Raw Halo and therefore this rating is based on the information available within the Crowdcube pitch.

Related Links

Crowdcube Pitch

rawhalo.com

 

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