Idea

Please note that the share price for this round is £942. Due to this high share price, we have decided to allow investors to hold fractional shares. This means that we have reduced the investment multiple to £9.42 (representing 0.01 of a share), with the minimum investment being £18.84. As these shares will be held via the Seedrs Nominee, fractional entitlements are possible. In the event that shares were to be transferred out of the nominee structure, Bonaverde would take the steps required to subdivide its shares so that fractional entitlements result in whole shares.

Anyone who invests at least £500 in our campaign will have access to our soon to be released digital product for a month before it is available to the wider public. During this time, we will solicit your feedback and recommendations so we can make improvements and incorporate ideas we may not have thought of without the wisdom of the crowd.

Introduction

Bonaverde isn’t just disrupting one the world’s largest industries. We’re reinventing it. Our roast-grind-brew coffee machine transforms green beans into delicious coffee with the touch of the button. Coffee beans, currently a commodity, become a consumable, allowing us to disintermediate the world’s second-most traded commodity. Backed by respected Series A investors and with an infrastructure designed to scale, we're positioning ourselves to lead the way to a better coffee industry, bringing fresher coffee to consumers and fairer trade to farmers.

The secret is connectivity. We use the power of IoT to bring together producers and consumers. Built-in 3G technology will automatically connect machines to the cloud, while the RFID reader allows the machine to pick up the perfect roasting profile from our pouches. Coffee beans purchased through a soft subscription model are delivered in single-portion pouches with attached RFID chips carrying the beans’ exact roast-grind-brew profile. We expect that multiple new revenue streams from this network will allow us to grow rapidly as soon as the foundations are in place.

Intended impact

As a for-profit social enterprise, we have a double bottom line:

1. Fill an emerging gap in the coffee market. Growing discernment among consumers has increased demand for high-quality coffee. Yet most coffee is stale by the time it reaches consumers. By offering single-portion packages of green beans and the means to roast them directly before brewing, we provide truly fresh coffee. For one of the first times, consumers can experience coffee’s full flavour. Our research has shown that our coffee has low acidity, which can be easier on the stomach.

2. Empower growers beyond fair trade. The nuances of the commodities market still force many growers to sell close to or below production cost, creating an endless cycle of poverty. Guided by direct-trade principles, our ecosystem aims to tie every stakeholders’ profit directly to grower’s profits. Growers on our platform are guaranteed at least 25% over production cost and, for the first time, are able to increase revenue by building their own brands.

Substantial accomplishments to date

We launched in 2013 and since then have raised $4m in total. We have run three crowdfunding campaigns totalling over $2m in capital received (via a mix of equity and rewards based crowdfunding). This funding fuelled our product development. In 2016, it was followed by a €1.8m (approximately $2m) Series-A round from investors Dr. Jens Odewald (Tchibo Holding) and Dr. Christian Potthoff-Sewing (Poppe + Potthoff).

After a successful first round of Beta tests, we have 250 machines in the field, with another 3,208 machines ordered and in production. Our production line is currently producing up to 200 machines a day (5 days a week). Combining this with a second production line that we expect to activate in August, we're prepared to rapidly grow our potential sales base immediately after launch.

We’re currently seeking an infusion of growth capital that we expect will allow us to meet the demand for coffee arising from the distribution of these machines, building the backbone of our coffee sourcing and distribution capabilities. Prepared to scale quickly, we're at a pivotal moment in our industry-shaking trajectory. We're offering Seedrs investors the unique opportunity to take advantage of this moment by investing now.

Monetisation strategy

While in the beginning phases of our business, our revenue model remains product-based. We intend to generate revenue through sales of machines throughout the EU & US, as well as through coffee sales for those machines. This model serves to generate revenue while we lay the foundations of our service-based business. With a network in place, we intend to shift gears to become an IP and licensing company. Having proven the demand for our infrastructure and started to build, we intend to generate revenue through access to our operating system. We believe that growers, distributors, brands and retailers will join our ecosystem to access our consumers. Because offering the freshest and fairest coffee is an intrinsic part of our system, brands to which we license this technology are expected to gain substantial branding power from these unique selling propositions. Over time, we intend to generate our revenue entirely from ecosystem facilitation and technology licensing, moving product distribution to licensed distributors.

Use of proceeds

We’ve already tested the enormous coffee market and uncovered substantial demand for our product. We believe that we've set ourselves up to generate supply that meets this demand. While we’re flexible, we’d rather use our full supply capabilities to grow our revenue streams straight out of the gate. We believe that this Seedrs campaign will provide the necessary support to do so, serving as growth capital directed at growing our existing consumer base. We will use it to thoroughly establish the operational foundation we need for a strong, international enterprise, hiring special talents and bolstering special business development operations. It is widely believed that coffee is the most traded commodity in the world, second only to petroleum. The more capital we have to fuel infrastructure growth, the faster we believe we can stake out space in this market, on boarding more growers and building demand through an expanding distribution network.

Additional terms and conditions may apply to any rewards offered. Please contact the company to find out more and ensure you qualify.