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MinFarm bia AB

Crowdfund a local food network, for all of Sweden

Become a co-owner of a growing online food social business that is connecting households and small farmers all over Sweden (This year we launch two new farmer networks; Gothenburg and Malmo!). New owners get amazing discounts on all orders (see below) and free home delivery for 12 months, including for our new MinFarm Fresh next day delivery service. They help small farmers sell their farm food direct to local households, providing a business model for sustainable local farming. Thank you for your support.

Investor proposal

Three great ownership packages:

- 1 share (600 kr): 10% discount on all orders with free home delivery on all orders for 12 months
- 10 shares (6,000 kr): 20% discount on all orders,  plus free home delivery on all orders including our new next day delivery service
- 100 shares (60,000 kr): 25% discount on all orders, plus all of the above.

Note: If you are an existing shareholder, then you will automatically get the benefits listed above for your shareholding starting in June 2018. Any more shares you order in this round will be added to your existing number  

Product

The problem this product solves

Today, more and more small farms are shutting down in Sweden. Often these are the best kind of farms, run by passionate people concerned with their animals’ welfare, their farming methods environmental impact and the quality of their farms’ food products. This is happening despite the growing interest in buying direct from local farms with local households. Somehow these small farms and the consumer are not connecting as we believe they can, and both sides are the poorer for it.

How the product solves it

MinFarm’s core skills puts us in a great position to address this problem.
LOCAL SUPPLY Over the past five years we have built a farm to customer kitchen logistics network that can handle local suppliers with extremely small stock
ONLINE SALES We are where customers are 
INNOVATIVE We are rolling out services that are entirely innovative and new.
DATA DRIVEN Each aspect of every new service is subject to rigorous data analytics and review. This lets us know what is working and what is not.

Product features

MinFarm Gardsbutik service: First introduced in our Jamtland trial in 2013. This service allows customers buy farm food products online, direct from local farms

MinFarm Local Matkasse: A meal kit service supplied 100% by local small farms, first launched in 2016.

2018 MinFarm Fresh This planned next day delivery service, will bring local seasonal favourites at their very first yearly harvest to the door of local households.

2018 MinFarm Fridge board: A  'connected' kitchen hardware product designed to make it easier to buy direct from local farms, with home delivery (without a phone or computer). Simple orders and no screen time!

Product use cases

A typical family household of four, interested in where their food comes from, places an order for our meal kit or Gardsbutik service, for home delivery to their apartment in Stockholm.Farmer: A local small sustainable  farm receives an order for ingredients. They have set their own prices for these ingredients and each order makes a huge contribution to the survival of this small family run sustainable farm. MinFarm creates recipes and packages and delivers the final food products to the customer’s address.

Team

Stephen Lynam avatar
Stephen Lynam CEO
Bachelor of Philosophy from Trinity College Dublin. A co-owner in Klas Ltd, an IT start-up founded in Ireland, Stephen spent eight years working in marketing in the United States and Europe. There he worked with product development and marketing strategy for satellite based secure communication services. Stephen managed a successful ... See more
Bachelor of Philosophy from Trinity College Dublin. A co-owner in Klas Ltd, an IT start-up founded in Ireland, Stephen spent eight years working in marketing in the United States and Europe. There he worked with product development and marketing strategy for satellite based secure communication services. Stephen managed a successful exit for the original founders of Klas in 2015, at a valuation of 12 million USD. Stephen lives today with his wife Anna, a co-founder of MinFarm, and their family in Stockholm. See less
Carl Tano avatar
Carl Tano Chief Operations Officer
Carl 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 runs the daily operations and supply planning. He is also responsible for financial reporting, accounting, budget and administration. Has been with MinFarm ... See more
Carl 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 runs the daily operations and supply planning. He is also responsible for financial reporting, accounting, budget and administration. Has been with MinFarm since February 2014 See less
Henry Lynam avatar
Henry Lynam Chief Technology Officer
Henry has worked in the IT communications industry for over 20 years. Co-owner of Klas Ltd, 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 ... See more
Henry has worked in the IT communications industry for over 20 years. Co-owner of Klas Ltd, 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 also holds a degree of Ancient Greek and Theology from Trinity College Dublin. See less
Ronan Hurley avatar
Ronan Hurley Senior engineer
Ronan holds a diploma in Mechanical Engineering from the Dublin Institute of Technology. He has worked as an interactive website software engineer for over ten years in Dublin. He has extensive experience in HTML, CSS, PHP, MySQL and JQuery coding of online content management systems. Responsible for building the IT ... See more
Ronan holds a diploma in Mechanical Engineering from the Dublin Institute of Technology. He has worked as an interactive website software engineer for over ten years in Dublin. He has extensive experience in HTML, CSS, PHP, MySQL and JQuery coding of online content management systems. Responsible for building the IT platform for MinFarm, together with Henry Lynam. See less
Sofia Dahlberg avatar
Sofia Dahlberg Regional farmer manager
Sofia has a background in communications and graphic design. She has worked in the print 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.
Elin Magndahl avatar
Elin Magndahl Chef
Elin lived for two years in Portugal working on organic farms and discovering a passion for sustainability, design and farm food. For six months in 2014 was a part of the core crew of Ridgedale permaculture as the "farm chef" planning, cooking and serving farm style meals for groups (15-50ppl) ... See more
Elin lived for two years in Portugal working on organic farms and discovering a passion for sustainability, design and farm food. For six months in 2014 was a part of the core crew of Ridgedale permaculture as the "farm chef" planning, cooking and serving farm style meals for groups (15-50ppl) and PDC-students. This role included harvesting, foraging, baking, making cheese, yoghurt, sauerkraut, slaughter, keeping to a budget and offering workshops in foodcraft. Currently finishing part time studies of Mealecology at the university of Örebro See less
Folke Nilsson avatar
Folke Nilsson Quality assurance management
Folke Nilsson. MSc in Computer Science from Linköping University, and has been working with software development, project management and consulting in quality assurance, QMS development and quality improvement for over 30 years. He was responsible for the implementation of TickIT in Sweden and has participated in the Development of TickITplus. ... See more
Folke Nilsson. MSc in Computer Science from Linköping University, and has been working with software development, project management and consulting in quality assurance, QMS development and quality improvement for over 30 years. He was responsible for the implementation of TickIT in Sweden and has participated in the Development of TickITplus. He is also responsible for ITQuality Nordic Institute in Sweden and member in JTISC, Joint TickIT Industry Committee. See less

Market

Target Market

The online food market has grown rapidly in the past five years. For example, the US based meal kit home delivery service, Blue Apron, established 4 years ago reached an IPO valuation of 2 billion USD purely by focusing on servicing this new sector. Our home market of Sweden, has been an earlier adopter of online grocery shopping and meal kit services. In 2015 online sales of groceries in Sweden were over 4 billion kr having grown at a rate of 39 % in 2015 and 38% in 2016, with one in five households having shopped groceries online.  

Competitive landscape

Online food players

MatHem.se
Sweden's largest online food store with deliveries in a number of major cities. (SEK 963 million in 2016).

Mat.se
A similar service to Mathem, Mat.se offers generally quicker delivery of food to the customers door. (SEK 250 million in 2016)

Linas Matkasse
One of the earliest meal kit services to be launched in Sweden, (SEK 968 million in 2016)

Winefinder allows customers in Sweden buy wine online, with delivery to their door. (SEK 100 million in 2017)

All major grocery chains in Sweden, such as City Gross, Coop, Hemköp, ICA and Willys have an online ordering presence.

Unique differentiator from competitors

Over the past five years MinFarm has built a product labelling, sorting and delivery system that can manage suppliers with very small stock and sometimes unreliable delivery, i.e. small local farmers, and let them sell their products online. This means that we can connect our last mile home delivery and food sorting warehouses directly to local farms in the area, rather than national and international food stock databases. This provides each of our services (Gardsbutik, Matkasse and the upcoming MinFarm Fresh) with a unique food product list that other online food retailers simply do not have access too.

Company revenue streams

Every online order from either our meal kit product line or online farm shop category generates a profit for MinFarm after all variable costs are calculated, including ingredients, packaging and logistics. This gross profit is between 22% of the total price of 970 kr for our most popular and original meal kit product and up to 35% of online farm shop products. Our customer value or net margin for meal kit customers in 2018 was over 1000 kr, with average new customer acquisition cost coming in under 400 kr.

Product/service distribution

All our products are available for home delivery, with some offering options for customers to collect at market days. Physical distribution of the products to each customer’s home, after sorting and packaging in our warehouse in Ärste, takes place by a third party cold storage van fleet which is fully integrated into our IT logistics system. Customers can track their order via their smartphone with a real time map showing the location of their delivery van and estimated arrival time of their order.

Execution

Previous milestones/traction

2012 MinFarm set up by Anna and Stephen Lynam and Ronan Hurley
2013 First pilot of service using a simple click and collect delivery model for 10 households and 8 farms carried out in Jamtland.
2014 Larger scale launch in 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 single month
2017 Revenue of 5.8 million kr

Next key objectives

2018 Launch of MinFarm Fresh, next day delivery service to households in Stockholm
2018 Launch Gardsbutik and Matkasse services with new farmer supplier networks in Gothenburg and Malmo
2018 Launch of new MinFarm Fridge Board
2018: Revenue of 22 million kr
2019 Company breakeven
2019: Revenue of 45 million kr

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

Partnerships

LRF (Swedish farmers union): Minfarm has a very good working history and ongoing relationship at a regional and national level with Sweden’s farmer union

Use of funds

Funds raised in this new share issue round will be invested in the following areas:
Customer growth: Growing customer numbers and revenue for the service over the next three years. MinFarm historically has spent very little on this type of growth but has seen very positive returns on advertising campaigns in 2017.
Innovative new services: Launching and testing of innovative new services, like MinFarm Fresh next day delivery, with a focus to further improve key customer sales metrics
New farmer regions: Expanding our warehouse infrastructure to support small farmers and households in new regions (Gothenburg, Malmo etc.)

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

Exit within 5 years, through an experienced team with an amazing start up exit track record (Over 150 million kr in 2016 by executive team). Given the potential size of the online food market, and the growing interest in this segment, any company that can show value to customers and investors in this space will be well positioned for partnerships or an exit in the next 5 years. We believe that we are developing such a value proposition.

Risk Analysis

Future profitability of the company and ability to attract large capital investment needed for substantial growth depend on maintaining and improving customer Cost of  Acquisition (COA) and Average Customer Value (ACV). These numbers depend on many small incremental steps and tests, that can fail in their goals, with enough failed tests the larger targets become harder to achieve. To manage this risk MinFarm is extremely data driven, with each small change reviewed and future forecasts realigned to each outcome, giving good transparency to shareholders on setbacks and breakthroughs and their impact on forecasts.