Eden Grow Systems

Eden Grow Systems

Early Stage

GROW ANYTHING, YEAR-ROUND

GROW ANYTHING, YEAR-ROUND

Overview

Raised to Date: Raised: $194,441

Total Commitments ($USD)

Platform

Dalmore Group

Start Date

10/25/2023

Close Date

03/31/2025

Min. Goal
$50,000
Max. Goal
$1,240,000
Min. Investment

$500

Security Type

Equity - Common

Series

Pre-Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$1.00

Pre-Money Valuation

$4,347,476

Rolling Commitments ($USD)

Status

Active

Reporting Date

05/07/2024

Days Remaining

327

% of Min. Goal

389%

% of Max. Goal

16%

Likelihood of Max
unlikely
Avg. Daily Raise

$997

# of Investors

36

Momentum
cold.svg
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Year Founded

2017

Industry

Farming & Agriculture

Tech Sector

AgriTech

Distribution Model

B2B

Margin

High

Capital Intensity

High

Location

Houston, Texas

Business Type

High Growth

Eden Grow Systems is raising funds on Dalmore Group. It is an agricultural technology company on a mission to provide food independence to local communities across the world. Eden Grow Systems uses modular farming systems based on its aeroponic technology to grow food in self-contained indoor systems, eliminating the need for farmland or soil. The system is cost-effective, space-efficient, and hassle-free for everyone and helps to save time, cost, and energy. Leo Barton Womack and Jeff Raymond founded Eden Grow Systems in March 2017. 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 growth and expansion.

Summary Profit and Loss Statement

FY 2023 FY 2022

Revenue

$205,430

$27,542

COGS

$319,595

$1,488

Tax

$0

$0

 

 

Net Income

$-1,373,603

$-1,001,399

Summary Balance Sheet

FY 2023 FY 2022

Cash

$29,519

$32,828

Accounts Receivable

$76,609

$16,253

Total Assets

$160,556

$151,164

Short-Term Debt

$0

$372,875

Long-Term Debt

$0

$0

Total Liabilities

$0

$372,875

Financials as of: 10/25/2023
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Analyst Report

Synopsis

As the global population continues to grow, the demand for food is increasing, especially in cities. However, traditional farms are far from cities. When products reach customers' plates, they have lost most of their nutrients. These challenges, coupled with the high land and water use of conventional farming, have led to the emergence of indoor farming, a method of growing crops in controlled environments.

Eden Grow Systems is an agricultural technology company that aims to provide food independence to local communities worldwide. The company uses modular farming systems based on aeroponic technology to grow food in self-contained indoor systems. This eliminates the need for farmland or soil, making it possible to grow food anywhere, regardless of climate or season. It also allows to grow plants closer to customers.

Eden Grow Systems' aeroponic technology is more energy-efficient than traditional indoor farming methods, reducing the cost of operation. Additionally, the system is designed to be easy to use, making it accessible to people without prior farming experience. This could potentially democratize food production, allowing individuals, communities, and businesses to grow their own food locally.

Next Section: Price

Price

Eden Grow Systems is raising funds at a fair valuation of $4.35 million through common equity. Eden Grow Systems is positioned to begin worldwide operations with projects in Ukraine, Mexico, and Africa. The US Air Force and Space Force have also chosen the company for deployment at their most remote bases on Earth, including a $50,000 phase-1 award and a $1 million direct-to-phase-1 award. These partnerships and endorsements from reputable organizations validate Eden Grow Systems' technology and potential market demand. Therefore, the company's valuation seems fair for investors at this current stage.

Next Section: Market

Market

Eden Grow Systems operates within the US indoor farming market, valued at $8.9 billion. The market is projected to grow at a compound annual growth rate of 13.2%. This growth is driven by increased consumer awareness about the benefits of consuming fresh and high-quality food and rising global population levels, particularly in emerging economies like China and India. These factors have led to an increase in food demand and the potential growth of the indoor farming market.

According to The World Bank Group, another critical driver for this market's growth is the decreasing arable land per capita, which has declined from 0.38 hectares in 1961 to 0.19 hectares in 2016. Land degradation has led to a scarcity of arable land, prompting farmers to seek new solutions for food production. Indoor farming, such as the solutions provided by Eden Grow Systems, offers a viable alternative.

Furthermore, changing climatic conditions exacerbate environmental problems such as soil degradation and groundwater depletion, affecting traditional food and agriculture production systems. Governments are encouraging the establishment of indoor farms to address these issues, further fueling the growth of this market sector.

However, the market is not without its detractors. Indoor farming could be polluting and affecting climate change as it is energy-intensive. Indoor farms that aren't using clean energy could harm the environment and the population's well-being, hindering the acceptance of this technology.

Next Section: Team

Team

Eden Grow Systems is led by founder and CEO Barton Womack. The last six years in the company have been Womack's first experience in the agricultural space. Womack has worked since 2008 as a Principal in his single-family office, Ramsey Financial Group. Being part of a family office gives him access to capital to invest in the company regularly. However, this side venture can also be a distraction.

The company's CTO is Jeff Raymond, a veteran with technical management experience who worked for the last 15 years on food production systems for the Earth and space.

Next Section: Differentiation

Differentiation

Eden Grow Systems offers a modular farming system based on aeroponic technology. This innovative approach allows for cultivating food in self-contained indoor systems, eliminating the need for farmland or soil. Using aeroponics, Eden Grow Systems addresses the increased energy costs associated with large-scale indoor farming operations. The company's system is designed to be energy-efficient and accessible to users of all experience levels.

One key advantage of Eden Grow Systems' technology is its versatility. The system provides users access to various crops, including root vegetables and berries. This flexibility sets Eden Grow Systems apart from its competitors and allows for a diverse and sustainable food production process.

While there are established competitors in the market, such as AeroFarms, BrightFarms, LetUs Grow, Freight Farms, and Heliospectra, Eden Grow Systems aims to differentiate itself by offering a more energy-efficient solution. By focusing on aeroponics and modular farming systems, Eden Grow Systems provides a cost-effective, space-efficient, and hassle-free alternative for indoor farming. This differentiation in quality positions Eden Grow Systems as a promising player in the industry.

Next Section: Performance

Performance

Eden Grow Systems, an agricultural technology company, has secured major partnerships with prestigious organizations such as NASA, NDSU, Texas A&M, NMSU, and Feed the Future. These partnerships demonstrate the recognition and support that Eden has received within the farming and agriculture industry. Additionally, Eden has been chosen by the US Air Force and Space Force for deployment at their most remote bases on Earth, including the Air Force Academy. This recognition from the military further validates the potential of Eden's technology.

Financially, Eden Grow Systems has raised a total of $1.72 million in prior funding rounds. However, the company's most recent cash is $13,826, with a monthly burn rate of $50,000. While Eden's founder is dedicated to investing in the company to avoid bankruptcy, the company stays in a critical financial position until it starts commercializing its product.

Next Section: Risk

Risk

Investing in Eden Grow Systems carries certain risks that investors should consider. First, Eden Grow Systems operates in the highly competitive farming and agriculture industry. The company faces competition from direct competitors such as AeroFarms, BrightFarms, LetUs Grow, Freight Farms, and Heliospectra. This competitive landscape may pose challenges for Eden Grow Systems regarding market penetration and capturing market share. Some of these companies performed poorly in the last couple of years and deceived investors on the stock market.

Another risk is the high capital intensity level associated with developing and scaling the company's hardware and CPG products. Eden Grow Systems requires significant financial resources to build and scale its modular farming systems based on aeroponic technology. The cost of production and quality control of these hardware products can impact the company's profitability and ability to meet market demand.

Additionally, Eden Grow Systems currently has low market acceptance. While indoor farming and food independence are gaining attention, widespread adoption may take time. There is a risk that the market may not fully embrace the company's solutions, which could impact its revenue growth and overall success.

Financially, Eden Grow Systems has a negative net income and a high monthly cash burn rate. The company's financial position indicates a reliance on external funding to sustain its operations and fund its growth. Investors should consider the potential risk of the company's financial situation and its ability to raise sufficient capital to support its expansion plans.

Lastly, Eden Grow Systems has pending patents, which may be a potential risk if they are not successfully granted or if competitors develop similar technologies that infringe on the company's intellectual property rights.

Next Section: Bullish Outlook

Bullish Outlook

Eden Grow Systems' aeroponic technique is more energy efficient than traditional farming methods and allows for the cultivation of a wide range of crops, including root vegetables and berries. This versatility gives users full access to the entire spectrum of crops, providing them with greater flexibility and options for their farming operations.

The market potential for Eden Grow Systems is high as the demand for indoor farming solutions continues to grow. The company can capture a significant share of the US indoor farming market with its cost-effective, space-efficient, and hassle-free system.

Eden Grow Systems has already formed partnerships with key players in the industry, positioning itself as a leader in the space. The company has successfully raised over $1.7 million in prior funding rounds, demonstrating investor confidence in its business model and potential for growth.

Next Section: Bearish Outlook

Bearish Outlook

Eden Grow Systems operates in a competitive industry, with several direct competitors in the indoor farming space, including AeroFarms, BrightFarms, LetUs Grow, Freight Farms, and Heliospectra. These competitors have already established themselves in the market. However some of these companies performed poorly in the last couple of years and deceived investors on the stock market. Eden Grow Systems must prove its unique value proposition and differentiate itself to gain market share. It may be difficult for the company to raise capital when its main competitors show poor financial performance.

Additionally, Eden Grow Systems has pending patents, which means its intellectual property rights have not yet been granted or fully protected. This exposes the company to potential challenges from competitors or difficulties in enforcing its patents, which could impact its ability to gain a competitive edge.

Considering these factors, potential investors should carefully evaluate the viability and potential risks associated with Eden Grow Systems' business model before making investment decisions.

Next Section: Executive Summary

Executive Summary

Eden Grow Systems is an agricultural technology company that provides food independence to local communities worldwide. The company's innovative approach utilizes aeroponic technology within modular farming systems, enabling food growth in self-contained indoor environments. This approach eliminates the necessity for farmland or soil, creating a cost-effective, space-efficient, and user-friendly solution that saves time, energy, and resources.

While the company is still in its pre-revenue phase, it has already made significant strides, including being selected for deployment at the most remote bases of the US Air Force and Space Force. Eden Grow Systems has also secured partnerships with reputable institutions, including NASA, NDSU, Texas A&M, NMSU, and Feed the Future.

Despite these achievements, it's important to note that the company operates in a  competitive market with significant barriers to entry. Competitors such as AeroFrms, BrightFarms, LetUs Grow, Freight Farms, and Heliospectra are already established. Some of these companies performed poorly in the last couple of years and deceived investors on the stock market. The skepticism in the market regarding indoor farming solutions from investors and customers could hinder Eden's growth.

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Eden Grow Systems on Dalmore Group 2023
Platform: Dalmore Group
Security Type: Equity - Common
Valuation: $4,347,476
Price per Share: $1.00

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