Blind Barrels
About this raise
Blind Barrels, with a valuation of $10 million, is raising funds on Wefunder. The company provides access to exclusive rare craft whiskeys only available in their native states. Blind Barrels offers a double-blind tasting experience with its kits that include hard-to-find whiskeys carefully curated by Fred Minnick, the top American whiskey critic. The business has many whiskeys in its lineup and is on track to hit a revenue of $1.1 million in 2024. Robert DeMars founded Blind Barrels in January 2021. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $1.24 million. The campaign proceeds will be used for sales and marketing, inventory, R&D, working capital, and general and administrative expenses.
Investment Overview
Committed $106,150 :
Deal Terms
Company & Team
Company
- Year Founded
- 2021
- Industry
- Alcohol, Tobacco, & Recreational Drugs
- Tech Sector
- Distribution Model
- B2C
- Margin
- Low
- Capital Intensity
- Low
Financials
- Revenue +199% YoY
- $520,158
- Monthly Burn
- $5,711
-
Runway
- 24+ months
- Gross Margin
- 39%
Upgrade to gain access
-
$12.50 /month
billed annually - Free portfolio tracking, data-driven ratings, AI analysis and reports
- Plan Includes:
- Everything in Free, plus
- Company specific
Kingscrowd ratings and analyst reports
- Deal explorer and side-by-side comparison
- Startup exit and failure tracking
- Startup market filters and historical industry data
- Advanced company search ( with ratings)
- Get Edge Annual
Edge
Synopsis
Blind Barrels is a company that offers a unique tasting experience by providing access to exclusive, rare craft whiskeys. These whiskeys are typically only available in their native states. The company's primary customers are whiskey enthusiasts and collectors who are interested in discovering and tasting rare and hard-to-find whiskeys. Blind Barrels operates with a business model that focuses on providing a double-blind tasting experience. This experience allows customers to taste whiskeys without being influenced by the brand or label, focusing solely on the flavor and quality.
The problem addressed by Blind Barrels is the limited access to rare and exclusive craft whiskeys for consumers. Many of these whiskeys are not widely distributed and are only available in specific regions, making it challenging for enthusiasts to explore new flavors. The company's solution is to curate kits containing these hard-to-find whiskeys, allowing customers to experience a variety of unique options that they might not otherwise have the opportunity to try. The kits are carefully curated by Fred Minnick, a respected American whiskey critic, ensuring a high-quality selection.
In everyday scenarios, whiskey lovers often find themselves limited to what is available at their local stores or bars. This can lead to a repetitive experience with little opportunity to explore new and unique options. Blind Barrels addresses this by offering a subscription service that delivers a diverse range of rare whiskeys directly to the consumer's door. This service allows customers to expand their palate and discover new favorites without the need to travel or search extensively. The double-blind tasting approach enhances the experience by removing biases, letting the taste speak for itself. This concept resonates with consumers who enjoy the discovery aspect of whiskey tasting and wish to broaden their horizons in a convenient manner.
Price
Blind Barrels is raising funds through a Simple Agreement for Future Equity (SAFE). The terms of this SAFE include a valuation cap of $10 million and a 20% discount. These terms set the maximum valuation at which the SAFE will convert into equity in a future priced round, providing a potential early investor advantage through the discount on future equity pricing.
The exit potential for startups in the alcohol and spirits sector, such as Blind Barrels, can vary widely based on market adoption and competitive positioning. To achieve a 10X return on investment, Blind Barrels would need to reach a valuation of approximately $100 million at the time of exit. This calculation does not account for potential dilution that might occur in subsequent funding rounds.
Blind Barrels currently has a revenue multiple of 19.2x, which suggests that the company may be overvalued based on its current revenue levels. High revenue multiples typically indicate that a company is priced at a premium compared to its revenue, which could imply less favorable deal terms for investors if the company's growth does not meet expectations. Investors should consider this multiple in the context of the company's growth trajectory and industry norms when evaluating the potential for returns.
Market
The U.S. craft spirits market, valued at approximately $9.2 billion, is experiencing significant growth with an annual growth rate of 28.4%. This rapid expansion is driven by increasing consumer interest in unique and premium alcoholic beverages. Consumers are increasingly seeking diverse flavor profiles and exclusive offerings, which aligns with the products offered by Blind Barrels.
Market drivers include the growing preference for artisanal and locally produced spirits, as well as a trend towards experiential consumption, where consumers value the experience associated with tasting and discovering new products. These trends support Blind Barrels' business model, which focuses on providing access to rare and hard-to-find whiskeys through a curated tasting experience.
Team
Blind Barrels is led by CEO Robert DeMars, who brings four years of relevant industry experience to the company. DeMars' background equips him with the necessary insights into the craft spirits market, which is crucial for steering the company towards achieving its objectives. His role involves overseeing the strategic direction of the company and ensuring the alignment of operations with its growth goals.
The team is relatively small, which can be advantageous for agility and quick decision-making. However, it may also present challenges in scaling operations efficiently. DeMars' experience in high-level management positions supports the company's strategic initiatives, yet the team may benefit from additional expertise in areas such as marketing and distribution to enhance its market presence and customer acquisition efforts.
While the current leadership has a firm grasp of the industry dynamics, expanding the team to include professionals with specialized skills in digital marketing, sales, and supply chain management could be critical for achieving Blind Barrels' future milestones and sustaining its growth trajectory. Addressing these gaps will be important as the company seeks to expand its customer base and enhance its operational capabilities.
Differentiation
Blind Barrels operates in a competitive landscape with several notable competitors in the craft spirits industry. One such competitor is Flaviar, a subscription service that offers a wide range of spirits, including whiskey, providing curated tasting experiences similar to Blind Barrels. Flaviar is larger in scale and offers a broader selection of spirits beyond whiskey, which may appeal to a wider audience. Another competitor is The Whisky Club, which focuses specifically on whiskey subscriptions, providing members with exclusive bottlings and access to rare finds. While The Whisky Club shares a similar focus on exclusivity, it primarily targets the Australian market, offering Blind Barrels an opportunity to differentiate itself in the U.S. market.
In terms of product quality, Blind Barrels distinguishes itself by featuring whiskeys curated by Fred Minnick, a respected American whiskey critic. This curation adds a layer of credibility and quality assurance to the offerings. Pricing for Blind Barrels is competitive within the premium segment, aligning with the value proposition of providing access to rare and exclusive whiskeys.
Performance
Blind Barrels has demonstrated significant growth in its annual revenue, which increased from $173,888 to $520,158, reflecting a year-over-year growth rate of 199%. This substantial increase indicates a positive trajectory in the company's revenue generation capabilities. The company is on track to achieve a projected revenue of $1.1 million in 2024, suggesting continued momentum in its business operations.
Financially, Blind Barrels maintains a monthly burn rate of approximately $5,711, with cash on hand reported at $155,009 as of the most recent fiscal period. This cash position provides a runway of several months, assuming current expenditure levels remain constant. The company will need to manage its expenses carefully to ensure sustainability and support its growth objectives.
The company's net income has shown improvement, moving from a loss of $40,247 in the prior fiscal year to a near breakeven point with a reported net loss of only $47 in the most recent fiscal year. This reduction in net loss suggests progress in cost management and operational efficiency.
Overall, Blind Barrels' performance metrics reflect a company in the growth phase, with increasing revenue and improved financial management. The challenge will be to sustain this growth while managing operational costs and maintaining a healthy cash flow to support future expansion efforts.
Risk
Blind Barrels presents several specific risks that potential investors should consider. One notable risk is the company's high revenue multiple of 19.2x. This multiple suggests that the company may be overvalued relative to its current revenue, which could pose challenges if the company's growth does not align with investor expectations. High multiples can lead to unfavorable investment terms, especially if market conditions change or if the company does not achieve anticipated growth levels.
Additionally, Blind Barrels operates in a highly competitive market with low barriers to entry. This competitive landscape can make it challenging for the company to maintain a unique position and capture significant market share. The presence of numerous competitors offering similar products could impact Blind Barrels' ability to sustain its revenue growth and market presence.
Bullish Outlook
The bullish outlook for Blind Barrels is supported by several positive factors and growth drivers. The U.S. craft spirits market, valued at $9.2 billion with a robust growth rate of 28.4%, presents significant opportunities for expansion. Blind Barrels is well-positioned to capitalize on the increasing consumer demand for unique and premium whiskey experiences, which aligns with their curated offering of rare, hard-to-find whiskeys.
Blind Barrels' competitive advantage lies in its distinctive double-blind tasting experience, which is curated by renowned whiskey critic Fred Minnick. This unique approach differentiates the company in the market by emphasizing quality and exclusivity, appealing directly to discerning whiskey enthusiasts who seek authenticity and exploration in their tasting experiences.
From a financial perspective, Blind Barrels has demonstrated strong revenue growth, with an increase from $173,888 to $520,158, highlighting its ability to capture market interest and drive sales. This positive trajectory suggests a strong potential for continued revenue expansion as the company scales its operations and broadens its market reach.
Bearish Outlook
The bearish outlook for Blind Barrels is influenced by several factors that may challenge the company's growth trajectory. The competitive market for craft spirits presents significant hurdles, with numerous competitors offering similar curated experiences, potentially diluting Blind Barrels' unique value proposition. This crowded space may limit market share expansion and customer acquisition.
Strategically, the company faces disadvantages compared to larger competitors who have broader product offerings and more established brand recognition. These competitors can leverage economies of scale and extensive distribution networks, which Blind Barrels may struggle to match.
Financially, the high revenue multiple of 19.2x suggests overvaluation, raising concerns about the attractiveness of the investment terms. This high valuation relative to revenue may deter potential investors, especially if future growth does not materialize as expected. Additionally, while the company has demonstrated revenue growth, the cash reserve provides only a modest runway, indicating potential funding challenges if revenues do not continue to increase.
Growth inhibitors include the potential for limited market adoption due to the niche nature of the product offering. As Blind Barrels primarily targets whiskey enthusiasts, expanding beyond this specific segment may prove difficult.
Executive Summary
Blind Barrels offers a unique service by providing whiskey enthusiasts access to rare and exclusive craft whiskeys through a curated tasting experience. The company's primary customers are collectors and aficionados who appreciate the opportunity to explore diverse and hard-to-find spirits.
From a financial perspective, Blind Barrels is raising funds through a SAFE with a $10 million valuation cap and a 20% discount. The company has shown impressive revenue growth, increasing its annual revenue by 199% to $520k. However, it maintains a high revenue multiple of 19.2x, suggesting potential overvaluation. The company's financial health is stable with a monthly burn rate of $5,711 and cash reserves of $155k, providing a reasonable runway.
The U.S. craft spirits market, valued at $9.2 billion and growing at 28.4% annually, offers significant opportunities for Blind Barrels. The company targets a niche market of whiskey enthusiasts and differentiates itself with a focus on exclusive offerings curated by a renowned critic. Despite the competitive landscape, Blind Barrels' unique product positioning and focus on experiential consumption align well with current market trends.
From a bullish perspective, the growing demand for unique craft spirits and Blind Barrels' curated offerings could drive continued revenue growth and market penetration. Conversely, the bearish outlook highlights potential challenges in valuation and competition, which may hinder long-term growth.
Disclaimer
The AI-enhanced analyst reports ("AI reports") provided by Kingscrowd are experimental in nature and may exhibit certain limitations and uncertainties. These reports are generated in part or in whole by artificial intelligence algorithms, which have the potential to hallucinate (e.g. generate fictitious information), interpret data incorrectly, omit information, or reference sources of data that may contain inaccuracies.
While we strive to provide reliable and accurate information, it is essential to understand that the AI reports should not be solely relied upon as the basis for making investment decisions. We strongly advise all users to exercise caution, conduct thorough due diligence, and verify data and facts independently before making any investment decisions.
The AI reports are intended to serve as one of the tools in your investment research process, offering additional insights and perspectives, and exposing more of our dataset to customers by transforming that data into natural language. They should be used in conjunction with other sources of information and professional judgment. Kingscrowd does not assume any liability for the accuracy, completeness, or reliability of the AI reports or any investment decisions made based on them.
Investing in startups and early-stage companies involves inherent risks, and it is essential to consult with qualified professionals and seek independent financial advice before making any investment decisions.
By accessing and using the AI reports, you acknowledge and accept the experimental nature of this feature and agree to use it at your own risk.
Please note that this disclaimer may be subject to updates and revisions as we continue to enhance our AI algorithms and improve the accuracy and reliability of the generated reports.
Company Funding & Growth
Funding history
- Total Prior Capital Raised
- $200,000
- VC Backed?
- No
Close Date | Platform | Valuation | Total Raised | Security Type | Status | Reg Type |
---|---|---|---|---|---|---|
04/30/2025 | Wefunder | $10,000,000 | $106,150 | SAFE | Active | RegCF |