$
We use cookies to communicate with your browser and identify who you are. You can read more about exactly what we use them for or hide this message
  • Language
  • Currency

MinFarm BIA AB

Innovative e-commerce solutions for the grocery sector

MinFarm has been selling food online from local farms for the past five years. It is a service that we are proud of and we look forward to developing. It has taught us a lot about innovation in the food e-commerce space. Now our new Technology division, MinFarm Tech will be focused on selling innovative e-commerce solutions to larger grocery stores. This is at a time when grocery stores are investing heavily in their e-commerce value chain and presents a great business opportunity for growth and social opportunity to help steer the industry to greener solutions through innovative new technology.  

Investor proposal

We are making available a limited number of shares in the MinFarm company to fund the ongoing development of the Matmaten product family under the MinFarm Tech brand. These will make you an owner in MinFarm at an exciting time as we enter the B2B food technology market.
By investing through this campaign you accept the terms as stipulated in the Shareholder's Agreement entitled "Aktieägaravtal - MinFarm BIA AB".

Product

The problem this product solves

Our experience working with grocery customers suggests that while they enjoy the convenience of home food delivery, they also find it difficult to create and manage orders using existing interfaces - websites and apps. We believe that this is a key reason why only 3% of food is ordered online today in the US and Europe. This is bad news for business but it is also a disaster for the environment as individual trips to the store contribute more carbon to the environment than pooled home delivery.

How the product solves it

Our team of designers has taken on the challenge of making online food purchasing more accessible. Using Internet of Things (IoT) and Augmented Reality (AR) technology, we have explored new ways of purchasing food for home delivery, which we firmly believe have the potential of affecting transformative change in this market.

Our Matmaten product family has been designed to fit seamlessly into people’s everyday lives. Each can be customized to your own culinary tastes and is simple enough to be used by anyone - not just the tech-savvy.

Product features

The Matmaten-14 is the simplest of the range. This fridge-mounted device allows you to purchase up to 14 everyday food items with the flick of a switch and the push of a button. The Matmaten-50 extends this idea by making 50 items available for order and gives you a higher degree of customisation over your order. The Matmaten-Recipe lets you purchase the ingredients of a specific meal, while the Matmaten-AR takes a creative AR-powered approach to the task of weekly meal planning.

Find out more about the Matmaten range at https://www.minfarm.se/online-farmen/tech/

Product use cases

Our pilot customers share their excitement for our product range:

“Like digitalization for analog people such as my mother, 84 years old who have neither the internet nor devices with apps”.

“As a shift-working toddler mom to 3 children, it has happened many times that there is no milk for the evening coffee or the morning Oboy. ... Always getting fresh products straight to the door would be the pure dream!”

“I love digital innovation and service design,.. There is also much to improve in the retail sector, and this feels like it is at the forefront!”

Team

Stephen Lynam avatar
Stephen Lynam CEO
Stephen co-owned and worked on the management team of the Klas Group, a leading satellite and encryption technology company based in Ireland and the US. Stephen spent eight years working in marketing and new product development. Stephen managed a successful exit for the founders of Klas in 2015, at a ... See more
Stephen co-owned and worked on the management team of the Klas Group, a leading satellite and encryption technology company based in Ireland and the US. Stephen spent eight years working in marketing and new product development. Stephen managed a successful exit for the founders of Klas in 2015, at a valuation of 12 million USD. Stephen has a Bachelor of Philosophy from Trinity College Dublin. See less
Carl Tano avatar
Carl Tano COO and CFO
Carl Tano holds a Masters degree in Business Administration and Accounting from Umeå University. His background includes movie production and sales, and debt negotiation with clients for Citibank. Carl has run the daily operations, supply planning and financial accounting at MinFarm since 2014.
Henry Lynam avatar
Henry Lynam CTO
Henry Lynam has worked in the IT communications industry for over 20 years. Co-owner of the Klas Group, he has held positions of Managing Director, Head of Engineering and Senior Programmer in the company. He has project managed multiple developments of satellite and encryption communication products. His core area of ... See more
Henry Lynam has worked in the IT communications industry for over 20 years. Co-owner of the Klas Group, he has held positions of Managing Director, Head of Engineering and Senior Programmer in the company. He has project managed multiple developments of satellite and encryption communication products. His core area of programming is on real time communication devices in C. Henry holds a Bachelor of Arts from Trinity College Dublin. See less
Ronan Hurley avatar
Ronan Hurley Senior developer
Ronan has been with MinFarm since 2014. He has worked as an interactive website software engineer for over ten years in Dublin and has extensive experience of HTML, CSS, PHP, MySQL and jQuery technology stacks. Ronan is responsible for the mechanical design, prototyping and manufacturing of MinFarm Matmaten product range
Una Lynam avatar
Una Lynam Head of production
Una Lynam is head of production at MinFarm and has been with the company since 2015. Una has a Bachelor of Science (Hons, Chemistry) Degree and Masters Degree from University College Dublin. Una co-owned and worked on the management team of the Klas Group, and spent 16 years in Klas, ... See more
Una Lynam is head of production at MinFarm and has been with the company since 2015. Una has a Bachelor of Science (Hons, Chemistry) Degree and Masters Degree from University College Dublin. Una co-owned and worked on the management team of the Klas Group, and spent 16 years in Klas, in the role of Production Manager. Previous to that Una worked in the pharmaceutical industry as a validation engineer. See less
Frank Lynam avatar
Frank Lynam Senior developer
Frank joined MinFarm in 2018 as it began work on the Matmaten project. Frank holds a PhD in Digital Humanities from Trinity College Dublin, and he has spent over a decade as a product manager and co-owner of the Klas Group. Recently, Frank has worked as the Head of Interactive ... See more
Frank joined MinFarm in 2018 as it began work on the Matmaten project. Frank holds a PhD in Digital Humanities from Trinity College Dublin, and he has spent over a decade as a product manager and co-owner of the Klas Group. Recently, Frank has worked as the Head of Interactive Development with Noho Ltd., a digital media company, and as a lecturer in the School of English in Trinity College Dublin. See less
Sofia Dahlberg avatar
Sofia Dahlberg Regional farmer manager
Sofia has a bachelor degree of communications from Umeå University. She has a background in communications and graphic design. She has worked in the print and digital media industry for several years and part time with MinFarm. She now works in a full time position with MinFarm working with bringing ... See more
Sofia has a bachelor degree of communications from Umeå University. She has a background in communications and graphic design. She has worked in the print and digital media industry for several years and part time with MinFarm. She now works in a full time position with MinFarm working with bringing new farmers into the service. See less

Market

Target Market

The MinFarm Tech brand is targeted at supermarket chains, who are looking to increase their online market share by exploiting new technology. Recently, food retailers have begun to invest heavily in their technology. For instance, Walmart spent 3.3 billion USD on the acquisition of Jet.com, an e-commerce platform in 2016. Amazon’s entry into the market has only intensified this technology investment trend and made analysts project a growth in US online food sales from 2% today to 20% by 2022.

Competitive landscape

Companies that are currently selling technology to supermarket chains can be separated into the following different categories: AI/Big Data analytics, marketing/promotion, brand loyalty, pricing and e-commerce. MinFarm Tech will compete within the last of these. The majority of e-commerce solutions providers are building web and mobile platforms that are designed for smartphones and computer users. This is not our competition. Instead, it is against the makers of smart kitchen devices such as smart fridges (Samsung and LG) and of more specific food ordering products (Hiku,  Amazon Dash) that we would look to compare our offering.

Unique differentiator from competitors

The MinFarm team combines over 20 years of IoT manufacturing experience from our former business Klas Telecom with our current in-depth grocery e-commerce knowledge at MinFarm. Klas was founded and owned by the MinFarm executive team, until a successful exit in 2014 for 12 million USD. Our speciality was building remote satellite monitoring kits with technology that now forms the basis of the IoT industry. Applying this technical knowhow to our marketing knowledge in grocery e-commerce has enabled us to produce world class engineered solutions that add value where it matters most: to customer orders and retention.

Company revenue streams

Matmaten products will be distributed to supermarket customer bases via their existing in-store and online distribution channels. Orders for existing farm-to-kitchen products will continue to be distributed to customers’ addresses from our warehouse in Årsta using a third party cold storage van fleet which is fully integrated into our IT logistics system.

Product/service distribution

As a B2B brand, MinFarm Tech will generate revenue by selling directly to supermarket brands. Depending on the need of the customer, this offering might take the form of a technology exchange governed by a license agreement or of the sale of Matmaten product units that will then be distributed to end-users. MinFarm will also continue to source revenue via its existing farm-to-kitchen food products sales.

Execution

Previous milestones/traction

2012: MinFarm set up by Anna and Stephen Lynam, and Ronan Hurley.
2013: First pilot of farm-to-kitchen service using a simple click-and-collect delivery model for 10 households and 8 farms in Jamtland.
2014: Service extended into Vasterbotten.
2015: Launch of Gårdsbutik service in Stockholm to over 1000 households.
2015: Home delivery service launched for Gardsbutik products in Stockholm.
2016: Meal kit service launched.
2016: Revenue of 3.6 million kr.
2017: Over 530 units of meal kit delivered to households in a single month.
2017: Revenue of 5.8 million kr.
2018: May. Matmaten-14 prototype built and demonstrated at Sweden Food Tech.

Next key objectives

2018: October. Awareness raising campaign for the the MinFarm Tech brand campaign to be launched on social media channels.
2018: November. Matmaten-14, 50 Recipe and AR product prototypes to be demonstrated at Smart Home Summit in San Francisco.

Previous Financing

2013 - 2017: Shareholder contributions from original founding member team totalling around 6,4 million kr, and one external private investor of 700 000 kr.
2017: Successful crowdfunding from over 300 new share owners, raising 2.4 million kr in capital.
2018: Successful crowdfunding from over 200 new share owners, raising close to 800 000 kr in capital.

Partnerships

Minfarm has a very good working history and ongoing relationship at a regional and national level with Sweden’s farmer union, the LRF. We are currently in the process of establishing working relationships with the technical arms of leading supermarket companies operating in the US and in Europe.

Use of funds

The funds raised in this crowdfunding round will be invested in the development of the MinFarm Tech brand. The creation of IoT and AR prototypes requires expertise in a number of engineering and design specialities: PCB design and manufacture, industrial design, 3D printing, electrical component sourcing, and embedded and cloud software development. These all come with their own costs. Investment will also be required to market the brand and this phase will begin in October 2018. A pilot programme for the Matmaten-14 will be run in Stockholm, and the products will be demonstrated at a number of US trade shows.

Industry Certifications/Awards

2014: Skaparpriset for Northern Sweden - Swedish engineering prize in memory of the inventor Alfred Nobel
2014: Sustainable Business of the Year: BIC-Galan

Return on Investment

Our objective is to manufacture an exit for the shareholders within five years. As a result of the grocery industry’s ongoing move towards technology, we believe that businesses managing to gain a foothold in this market space, will gain value and influence quickly, thus making them attractive for an acquisition by a group looking to invest. Our team has a proven track record of delivering buy-outs in the past (2014, 12 million USD Klas Telecom exit) and we believe that MinFarm is assembling all of the attributes of an attractive future investment target.

Risk Analysis

The MinFarm Tech brand targets a global market. With this come potential rewards but there will also be challenges associated with this new company dynamic. Future profitability of the company will depend on its ability to differentiate itself. Our team, however, have years of experience of building profitable hardware solutions, and we strongly believe that good design will always win out over cost. We take risk seriously, and all major strategies decisions within the company go through a rigorous due diligence process.