The product is now finalized and ready for the international success. The customer feedback received is very positive. LullaMe is raising funds to open new international markets, enlarge the retailer network, build the awareness, raise production capacity and lower the production cost. This investment round gives the team runway to scale up the business and achieve profitability in the selected markets.
Minimum investment is only 209,43€. By investing 500€ or more you will receive 10% shareholder discount on purchases made at LullaMe online store.
B-shares: Investments under 10 000€
A-shares: Investments over 10 000€
With a minimum of 143-share investment (9982,83 euros), the investor receives A shares with 1 voting right each share, with a smaller investment the investor receives B shares with no voting rights but otherwise similar rights and duties.
The problem this product solves
Sleep is important for everyone. However, approximately 50% of the babies sleep badly. Parents work themselves up to exhaustion, just to make the little one fall asleep. Lack of sleep causes many negative consequences for the whole family. Moods go down and working parents struggle to stay awake at work.
The science hasn’t found a reason for why some babies sleep well and others don’t. Luckily every parent knows how babies calm down: with rocking. This is where LullaMe comes to help. We provide a helping hand for the continuous rocking task, so that babies can sleep and parents too!
How the product solves it
LullaMe self-rocking baby mattress simulates the movements of a parent rocking their child in their arms. With the help of the mattress, even babies with colic fall asleep easier. In the mother's womb, babies usually sleep when the mother is moving around. That's why many babies need this same movement to calm down also outside the womb.
LullaMe put the calming movement into a modern form. The beautiful mattress helps the whole family to sleep better. It fits into a standard-sized 120x60 cm cot.
LullaMe mattress has five speed options to help adjusting the rocking speed to the moods of the baby. The mattress operates with a remote control or with a smartphone application. Timer function allows user to set the movement to stop after a specified time.
A lot of effort has been put into the safety of the mattress. After all, the babies of our team members sleep on the mattress too. LullaMe mattress follows European directives and standards and is CE marked. It is developed in co-operation with designers, health care professionals, mechanical, textile and electronics experts and dozens of families.
Product use cases
LullaMe helps all kinds of babies. No matter what the problem, such as colic, stomach pain, gas, reflux or allergies. The rocking movement of the mattress is designed especially for baby’s first six months. The baby can sleep on the mattress as long as he/she sleeps in a cot.
Many parents use the LullaMe mattress because it is safer than a normal baby mattress: The structure of the mattress allows the air to flow freely through the mattress. This also helps keep the baby cool during the hot summer months.
Hanna Sissala CEO & Founder
Hanna is expert in business development. She has started new businesses before, making them grow and profitable. Hanna is a determined and diplomatic leader. She is highly appreciated among the employees. Hanna got the idea of starting the business when she had her first child. The baby didn’t sleep much ... See more
Hanna is expert in business development. She has started new businesses before, making them grow and profitable. Hanna is a determined and diplomatic leader. She is highly appreciated among the employees. Hanna got the idea of starting the business when she had her first child. The baby didn’t sleep much and was crying a lot. Hanna saw a huge business opportunity in solving the baby sleep problem. She left her previous, well-paid job to pursue this opportunity. Education: Master of Science, International marketing in industrial enterprises. See less
Markus Vihottula Co-Founder, Chief Financial & Technical Officer
Markus is a skilled negotiator. He has amazing persistence and strategic point of view. Among the team he is also known as the cost-conscious one. That's why the team has been able to reach amazing things with very little money. Before LullaMe Markus has been leading multinational technology development and ... See more
Markus is a skilled negotiator. He has amazing persistence and strategic point of view. Among the team he is also known as the cost-conscious one. That's why the team has been able to reach amazing things with very little money. Before LullaMe Markus has been leading multinational technology development and delivery teams. He knows how to fit together R&D and production. Education: Master of Science degrees in Industrial engineering and machine design, Finance and Commercial Law. See less
Mikaela Metelinen Marketing Manager
Mikaela has been working in both B2B and B2C industries and in multinational marketing teams. She is enthusiastic about brand building and digital marketing. She is a mother of a beautiful 1-year-old girl, who used to sleep very little when she was a baby. Mikaela knows LullaMe's target market and ... See more
Mikaela has been working in both B2B and B2C industries and in multinational marketing teams. She is enthusiastic about brand building and digital marketing. She is a mother of a beautiful 1-year-old girl, who used to sleep very little when she was a baby. Mikaela knows LullaMe's target market and clients and can do marketing in Finnish, Swedish and English. Education: BBA degree in Business Management, marketing and social media See less
Mikael Kärkkäinen Strategic Sourcing Manager
Mikael has over twenty years of experience in running and scaling up the production. He has been establishing Nokia's factories in Mexico and working as Program Manager at Flextronics in Finland. Mikael is a guy who's humour flourishes in even the most tight situations. When talking about delivery schedules, the ... See more
Mikael has over twenty years of experience in running and scaling up the production. He has been establishing Nokia's factories in Mexico and working as Program Manager at Flextronics in Finland. Mikael is a guy who's humour flourishes in even the most tight situations. When talking about delivery schedules, the team is joking that "Others give mercy but Mikael will not". Education: Certified Six Sigma Black Belt, Electrical Engineer, studies in Business Administration See less
Semih İşeri R&D Manager
Semih is the rising star of R&D. He has a super bright mind that solves any logical problem in seconds. He is a thinker who quickly comes up with innovative solutions or way arounds even to the most puzzling challenges. Education: Soon-to-be Msc. in Computer Science
Ilona Bessonoff Customer Service Pro & Administrative Assistant
Ilona is the heart of our customer service. She is the friendly voice on the phone always ready to help. She is the most empathetic team member, but also the one who enjoys taking care of the details and even the most routine things. The name “Ilona” means “as a ... See more
Ilona is the heart of our customer service. She is the friendly voice on the phone always ready to help. She is the most empathetic team member, but also the one who enjoys taking care of the details and even the most routine things. The name “Ilona” means “as a joy” and she really brings joy to the office and lifts the team spirit with her positive attitude. Education: Bachelor’s degree in Business Administration See less
The global baby product market is huge, ca. 10 bn euros per year (Statista). It is growing at 7% yearly rate (Grandview research). Most growth is expected to happen in new product categories such as smart baby care and products that make it easier to take care of the baby. LullaMe self-rocking baby mattress is a forerunner in these categories.
Parents can rock the baby by themselves. This costs nothing but causes many sleepless nights. On the other end, the richest families hire night nannies, but for an average family the cost is too high.
Some people use colic swings to calm down the baby. These are slightly cheaper compared to the LullaMe mattress but are not designed for sleeping ergonomically.
In the USA we have our closest competitor. The cost is about double of the price of LullaMe and the use time is limited only for baby's first months.
Unique differentiator from competitors
Solves the problem in a unique way:
- The only product in the world that creates the rocking movement inside a cot
- The only mattress in the world that combines breathability with the rocking movement
- Can be used next to parent’s bed: it’s easy to take the baby for feeding with minimum effort. Both the baby and the parent can stay horizontally and continue their sleep after feeding
- Hygienic, retains its value for many babies
- Patent pending for the mechanism
- Can be used as long as the baby sleeps in the cot (Competitive product’s use time is limited to 6 months)
Company revenue streams
Ways of generating revenues:
- Online store where the mattress can be bought
- Sleep as a service (a possibility to rent the mattress via online store)
- Retailer partners
- Co-operation with companies that offer the mattress as an employee benefit
We are in the test marketing phase and the product is getting excellent quality reviews. We have already gained revenues worth tens of thousands with only few thousands used on marketing. The company has received orders from eight different countries. We have interested retailers in 50 countries.
LullaMe mattress is distributed via online shop at www.lullame.com and retailers. Currently the mattress is sold in five Finnish retail stores. We use local storages in our target countries. Our goal is to deliver the product to customers within 48 hours.
Our supply network consist of 23 suppliers in Finland, Europe and Asia of which 7 are identified as critical suppliers. We have a second option supplier for each component to mitigate the delivery risks.
- The Idea
- Market research
- Building up the team
- A group of experienced mentors gathered
- Finding the right movement and a safe way to produce it
- 12 consecutive prototypes built
- Patent application to UK - preliminarily accepted
- Kind + Jugend Innovation Award Winner
- 30+ media hits in 8 countries
- First 200 orders from eight different countries
- Product finalization
- Serial production version launch
- Production capacity to 200 pcs/month
- Patent application to all major global markets
- First five retailers
Next key objectives
- Funding round closed by 10/2018
- Launch in Scandinavia prel. 11/2018
- Launch in Central Europe 02/2019
- Launch in Scandinavia 08/2019
- A round for further expansion 10/2019
- Gaining 2 MEUR turnover by 12/2019
- Gaining profitability in 2020
- Exit with valuation of 60-80 MEUR between 2023-2025
- Founders 30 keur
- Public funding, grant 50 keur
- Angel round 1, 108 keur
- Public funding, grant 50 keur
- Public funding, grant 50 keur
- Angel round 2, 280 keur
- Public funding, long-term loan 280 keur
- Bank loan guaranteed by EU and public bodies, 150 keur
The money has been used efficiently. With under 1 MEUR LullaMe has built a physical product which combines mechanics, textiles, electronics and software, launch it in Finland, build an initial retail network, online shop and team that is able to scale up the product internationally. Production and quality has been standardised. Everything’s ready for a scale-up.
Use of funds
During the next 12 month we LullaMe is aiming to grow internationally. The vast majority of the funds will be used in global marketing and PR activities starting with the launch in Sweden and the Netherlands.
Investors can expect an exit situation to a party investing in household and children brands or a larger party already in the field of children brands. We aim at growing the business for a sufficiently-sized exit. In addition to that, providing constant dividends and an IPO are possibilities. In all cases, we aim at being able to have those in five years.
Product copying - Safety-oriented brand protects against cheaper copies, and patents being extended to all major global markets.
Securing the funding for the company growth - Less funding can lead to the slower international expansion.
Possible startup hiring challenges - Recruiting positive, entrepreneurial minded staff and improving the commitment by offering a possibility to join the company’s option program.
Privanet Group is a Finnish investment service group specialized in trading unlisted shares and managing companies’ financing needs. Our group includes the parent Company Privanet Group Plc, the fully owned subsidiary company Privanet Capital Markets Ltd, which focuses on capital market transactions, and its subsidiary Privanet Securities Ltd, which operates Finland’s only marketplace for trading securities of unlisted companies. Privanet is working closely with FundedByMe, the international crowdfunding platform. The entire Privanet group employs approximately 40 people. We have branches located in Helsinki, Tampere, Turku, Oulu, Jyväskylä, Vaasa, Forssa, Joensuu, Lahti, Mikkeli, Ylivieska and Kuopio. We provide a large variety of services aimed at bringing together investors and those in need of funding. http://www.privanetgroup.fi/?lang=en