Any questions regarding the opportunity should be directed to Natanel Barookhian email@example.com or +1-516-672-4770
Investing Ends: 11/14/2015
28 Dane Street Somerville, MA 02143
Please describe your idea/startup
We’re building a network of machines that purify, flavor, and bottle water at the point of use. Bottles are stored empty and flat, and expanded and filled at the time of sale. Our system cuts the distribution costs and the carbon footprint of bottled beverages by about 80%, while providing an unprecedented ability to customize healthy beverages in a machine.
Who are your main target customers
We are starting out in the $3B office water delivery market, by replacing traditional water coolers with customizable, internet-connected flavored water machines. Specifically, our target customers are offices with between 50-150 employees. The key decision-maker in locations of this size is typically the office manager. Over time we will roll out our technology beyond offices – to gyms, universities, high schools.
What are the current alternatives and who offers them
When offices and gyms want to give their employees/members access to beverages, they currently choose between water coolers (primarily from DS Waters and Nestle) and soda vending machines (with Coca-Cola, Pepsi, and other sugary drinks). People find the former option boring, and the latter option unhealthy. Both these options are costly since they involve trucking full bottles or jugs from bottling plants, a process which is both labor-intensive and fuel-intensive.
How are you different
What makes you and your team uniquely qualified to succeed in the space and to execute on your plans
Our management team has direct professional experiences in many of the core aspects of our business: brand management, plastics manufacturing, product design, mechanical engineering, and water quality testing. We have successfully recruited an engineering team with excellent mechanical and robotics skills, and advisors with successful track records in beverage vending.
What is the stage of your prototype
We currently have two active beta prototypes and have run pilots in four locations to date. Our newest machine allows users to mix and match four healthy flavor additives to still or sparkling water. Our prototypes are internet-connected and allow us to monitor usage and inventory. We are making a few revisions in advance of professionally manufacturing 10 machines in September/October.
Have you done a beta test, and if so, what has the feedback been
Our beta tests have generated over $300/month per machine on average, putting us on track for a payback period of less than 2 years. (As our production costs decrease with more scale, the payback period of one machine should drop to as low as 6 months.) User feedback has been primarily positive, and in fact many users have requested machines for their own gyms and offices. We already have locations lined up for our 10 machines coming out in the early fall.
How much capital have you raised to date
We have $700K in cash and hard commitments from a group of angel investors, including people with backgrounds in vending machines.
How much are you seeking in this round
We are seeking an additional $300K in total.
How specifically do you plan to use the money
Our seed round will be used to get our first 50 machines to market, each of which will collect an operating profit of over $100/month. This will entail designing for manufacturing, developing intellectual property around beverage recommendation algorithms, and conducting significant user research to strengthen our brand. By late 2015, we will raise a Series A round of $3-4M, which will get us to profitability.