Dice Cream

Dice Cream

Early Stage

A robotic solution with a sweet conclusion

A robotic solution with a sweet conclusion

Overview

Raised to Date: Raised: $103,323

Total Commitments ($USD)

Platform

StartEngine

Start Date

02/13/2024

Close Date

05/14/2024

Min. Goal
$15,000
Max. Goal
$2,500,000
Min. Investment

$300

Security Type

Equity - Common

Series

Pre-Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$1.00

Pre-Money Valuation

$10,000,000

Rolling Commitments ($USD)

Status

Active

Reporting Date

04/15/2024

Days Remaining

29

% of Min. Goal

689%

% of Max. Goal

4%

Likelihood of Max
unlikely
Avg. Daily Raise

$1,667

# of Investors

120

Momentum
cold.svg
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Year Founded

2023

Industry

Food, Beverage, & Restaurants

Tech Sector

AutomationTech

Distribution Model

B2B2C

Margin

High

Capital Intensity

High

Location

Los Angeles, California

Business Type

Growth

Dice Cream, with a valuation of $10 million, is raising funds on StartEngine. The company is creating the prototype of an autonomous ice cream parlor. Dice Cream’s technology combines robotics with the best of ice cream and helps to manage costs by minimising labor and eliminating brick-and-mortar complexities. The company is currently in the pre-revenue stage, and the prototype is expected to be launched in 2024. Chang Jy Richard Wu founded Dice Cream in September 2023. The current crowdfunding campaign has a minimum target of $15,000 and a maximum target of $2.5 million. The campaign proceeds will be used for research and development, company employment, working capital, accounts payable, and debt repayment.

Summary Profit and Loss Statement

FY 2023 FY 2022

Revenue

$0

$0

COGS

$0

$0

Tax

$0

$0

 

 

Net Income

$-324,188

$0

Summary Balance Sheet

FY 2023 FY 2022

Cash

$2,940

$0

Accounts Receivable

$0

$0

Total Assets

$2,940

$0

Short-Term Debt

$327,028

$0

Long-Term Debt

$0

$0

Total Liabilities

$327,028

$0

Financials as of: 02/13/2024
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Analyst Report

Synopsis

Advancements in automation and robotics are transforming industries across the board, and the foodservice sector is no exception. Dice Cream Robotics, Inc., operating under the brand name Dice Cream, is at the forefront of this innovation, crafting an autonomous ice cream parlor that merges the traditional joy of ice cream with state-of-the-art robotics. This novel approach aims to disrupt the US Ice Cream Market by providing a unique solution that not only delights consumers but also addresses cost management concerns faced by traditional brick-and-mortar establishments.

Currently in the pre-product phase, Dice Cream is developing a prototype with an anticipated launch in 2024. The company's robotic technology is designed to minimize labor costs—a major expense in the food industry—and circumvent the complexities and overhead associated with running a conventional ice cream parlor. By leveraging automation, Dice Cream's business model could potentially offer a more cost-effective and scalable entry into the burgeoning food automation space.

Next Section: Price

Price

Dice Cream is in the early stage of development and is valued at $10 million pre-money. The company is raising funds through common equity with shares priced at $1.00 each. Given that Dice Cream is pre-revenue and still in the prototype phase, the valuation is speculative and based on the potential success of its autonomous ice cream parlor concept.

At this stage, without a product in the market or revenue to report, traditional financial metrics such as revenue multiples are not applicable. The valuation is likely derived from the company's perceived potential in the US Ice Cream Market, the novelty of its technology, and the cost-saving implications of its business model which aims to minimize labor and eliminate traditional brick-and-mortar complexities. However, investors should be cautious as the company has yet to prove its concept and begin operations, making this a high-risk investment.

For investors considering this opportunity, it is important to recognize that the potential for a 10X return depends on the successful development and market adoption of Dice Cream's autonomous ice cream parlor. This would require not only a successful product launch in 2024 but also substantial market penetration and rapid scaling of operations. Given the company's current stage, achieving such returns would be considered highly speculative and the high valuation is a definite risk.

Next Section: Market

Market

The US ice cream market is currently sized at around $2 billion, exhibiting a low compound annual growth rate of 3.6%. Not only is the growth stagnating in this relatively small domestic market, but the ice cream market is marked by a high level of competition, with established players like Coldstone Creamery, Ben and Jerry's, Baskin-Robbins, Dairy Queen, and Carvel holding significant market share. These competitors have built strong brand identities and have a loyal customer base. However, Dice Cream's proposition of an autonomous ice cream parlor could introduce a new niche to the market.

One of the key market drivers for Dice Cream's technological proposition is the potential for increased efficiency and cost savings in food production processes. Robotics in the food industry offers possibilities for higher productivity and reduced labor costs, as machines can perform repetitive tasks more quickly and accurately than humans. Additionally, automation can enhance food safety by reducing the risk of contamination from human handling, ensuring consistent hygiene standards and precise food processing.

However, there are concerns about the implications of such technology on employment. The widespread adoption of robotics, while beneficial for operational efficiency, raises concerns about job displacement. This factor may influence market acceptance going forward.

Next Section: Team

Team

Dice Cream is spearheaded by CEO Jack Yang, who brings over a decade of engineering experience to the company. With 12.5 years under his belt, Yang's expertise is expected to be a significant asset in the development of Dice Cream's autonomous ice cream parlor. Yang is a first-time founder and spends approximately 15-25 hours per week on the company in addition to his full-time job. The team is modest, with a few other employees who each spend around 5 hours per week on the company. Once the product launches, Yang will likely have to commit more time to the venture and bring on additional full-time hires to accelerate growth.  

Next Section: Differentiation

Differentiation

Dice Cream Robotics, Inc. is poised to carve out a unique niche in the highly competitive US ice cream market by introducing a novel concept: the autonomous ice cream parlor. This innovation seeks to disrupt the traditional ice cream retail experience dominated by players like Coldstone Creamery, Ben and Jerry's, Baskin-Robbins, Dairy Queen, and Carvel. These established brands rely on conventional brick-and-mortar operations that involve significant labor costs and complexities associated with managing physical stores.

By contrast, Dice Cream's approach is to minimize labor and eliminate the challenges of physical storefronts through the use of cutting-edge robotics. This strategy could offer a dual advantage: creating a unique customer experience and significantly reducing operational costs. 

While Dice Cream is currently in the pre-product stage, with its prototype expected to launch in 2024, the company's vision suggests a high level of differentiation in terms of both quality and price. The anticipated cost-effectiveness of the autonomous model could enable Dice Cream to offer competitive pricing while maintaining quality, which is a critical factor in the price-sensitive food industry.

The company's intellectual property strategy, with patents pending, indicates a commitment to protecting its technological innovations. This could provide Dice Cream with a barrier against competitors looking to replicate its business model. However, the true test of its differentiation will come once the prototype is operational and can be evaluated for performance, reliability, and customer acceptance.

Next Section: Performance

Performance

Dice Cream is currently in the pre-product development phase, with its key offering—an autonomous ice cream parlor prototype—slated for launch in 2024. As a pre-revenue company, Dice Cream has not yet brought its product to market and therefore has no users or paying customers at this stage. Investing in a company before a viable product has entered the market carries massive risk.

Next Section: Risk

Risk

Dice Cream, while pioneering in the field of food automation with its autonomous ice cream parlor concept, faces a number of industry-specific and development risks.

Firstly, the company is currently in the pre-product stage, which means it has not yet finalized or launched its prototype. There is an inherent risk associated with the development of the prototype, including potential delays in technology development, unforeseen engineering challenges, or difficulties in integrating robotics with the food service process. Any such setbacks could postpone the market entry and affect investor returns.

Additionally, Dice Cream operates in an extremely competitive industry, with well-established players like Coldstone Creamery, Ben and Jerry's, Baskin-Robbins, Dairy Queen, and Carvel. These companies have strong brand recognition and customer loyalty, which may hinder Dice Cream's ability to capture market share. The company's success depends on its ability to differentiate itself and create a compelling value proposition.

There are also massive risks associated with the founder and all employees being part-time. It suggests that none of the team is fully committed and may not have much skin in the game. 

Additionally, Dice Cream's patents are still pending, which could potentially leave its technology at risk of replication or infringe existing patents. The company's ability to protect its intellectual property is crucial for maintaining a competitive advantage and ensuring the uniqueness of its offering.

Finally, at the pre-product stage, Dice Cream is overvalued compared to other startups raising online and in the industry at large.

Next Section: Bullish Outlook

Bullish Outlook

Despite being in the pre-product phase, Dice Cream showcases some promise with its approach to transforming the traditional ice cream parlor experience. The company's forward-thinking vision to integrate robotics within the ice cream industry is poised to disrupt the market and address current labor cost challenges. By minimizing labor and sidestepping the complexities of brick-and-mortar operations, Dice Cream aims to carve out a cost-effective niche in food automation. The high-margin potential inherent in the automation of food services further bolsters the financial outlook for Dice Cream. Although the competitive landscape is fierce, the unique value proposition of an autonomous ice cream parlor could provide Dice Cream with a significant first-mover advantage.

Next Section: Bearish Outlook

Bearish Outlook

Dice Cream's ambition to revolutionize the ice cream parlor experience with autonomous robotics is a high-stakes venture that entails several significant risks. As a pre-product company with no current users and no customers, Dice Cream must navigate a highly competitive landscape dominated by established brands like Coldstone Creamery, Ben and Jerry's, Baskin-Robbins, Dairy Queen, and Carvel. These incumbents not only have strong brand recognition but also significant market share and customer loyalty.

The high valuation of $10 million for a company that is still in the prototype phase and that has not yet generated any revenue is a concern. This evaluation raises questions about the feasibility of achieving a reasonable return on investment.

In addition, the capital intensity of developing and deploying autonomous retail technology is high, which may lead to significant additional funding requirements before the company even begins to generate revenue. This could dilute current investments or lead to financial strain if additional capital cannot be secured. The company's current financial position does not instill confidence in its ability to sustain operations until the projected launch in 2024, and there are concerns about the actual market readiness and consumer acceptance of such an autonomous solution.

Finally, none of the employees, including the founder, appear to be working on the venture full-time.

Next Section: Executive Summary

Executive Summary

Dice Cream is an early-stage company venturing into the competitive US ice cream market with an innovative approach that merges robotics with traditional ice cream parlor experiences. The company's focus is on developing an autonomous ice cream parlor prototype, which is expected to launch in 2024. Dice Cream's technology is designed to optimize cost management by reducing labor and circumventing the complexities associated with traditional brick-and-mortar operations.

While the potential for efficiency and cost savings through food robotics is significant, Dice Cream faces an extremely competitive market dominated by established players such as Coldstone Creamery, Ben and Jerry's, Baskin-Robbins, Dairy Queen, and Carvel. 

With a high pre-money valuation of $10 million, Dice Cream is positioning itself as a forward-thinking player in the food automation space. The company's tagline, "A robotic solution with a sweet conclusion," encapsulates its goal to revolutionize the ice cream industry through technology. As Dice Cream continues to develop its autonomous ice cream parlor prototype, its success will depend on its ability to deliver on its promises and effectively manage the high costs associated with bringing such an innovative product to market.

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Dice Cream on StartEngine 2024
Platform: StartEngine
Security Type: Equity - Common
Valuation: $10,000,000
Price per Share: $1.00

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