Farm + Feed

Farm + Feed

Growth Stage

Bringing Everyone’s Inner Gamer Out

Bringing Everyone’s Inner Gamer Out

Overview

Raised to Date: Raised: $0

Total Commitments ($USD)

Platform

StartEngine

Start Date

08/18/2023

Close Date

09/25/2023

Min. Goal
$15,000
Max. Goal
$1,235,000
Min. Investment

$250

Security Type

Equity - Common

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$0.44

Pre-Money Valuation

$7,460,248

Rolling Commitments ($USD)

Status
Not Funded
Reporting Date

09/25/2023

Days Remaining
Not Funded
% of Min. Goal
Not Funded
% of Max. Goal
Not Funded
Likelihood of Max
Not Funded
Avg. Daily Raise

$0

Momentum
Not Funded
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Year Founded

2018

Industry

Media, Entertainment & Publishing

Tech Sector

Non-Tech

Distribution Model

B2C

Margin

High

Capital Intensity

High

Location

Boston, Massachusetts

Business Type

Life Style

Farm + Feed, with a valuation of $7.46 million, is raising funds on StartEngine. It is a social video gaming venue that offers food, drinks, service, and video games. Farm + Feed is one of the top-reviewed concepts in the Dallas-Fort Worth region and has received several Best of accolades in 2022. The business served more than 70,000 guests in its first year and generated $1.8 million in revenue. Maximilian Seel founded Farm + Feed in November 2018. The current crowdfunding campaign has a minimum target of $14,999.60 and a maximum target of $1.23 million. The campaign proceeds will be used for operations, working capital, and marketing.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$1,647,427

$0

COGS

$454,750

$0

Tax

$0

$0

 

 

Net Income

$-824,121

$-470,292

Summary Balance Sheet

FY 2022 FY 2021

Cash

$41,762

$372,024

Accounts Receivable

$22,545

$0

Total Assets

$3,330,039

$1,472,633

Short-Term Debt

$2,689,776

$2,630,628

Long-Term Debt

$2,622,371

$0

Total Liabilities

$5,312,147

$2,630,628

Financials as of: 08/18/2023
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Analyst Report

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Synopsis

Farm + Feed is a social video gaming venue that offers food, drinks, and fun. The company is one of the top-reviewed concepts in the Dallas-Fort Worth region and has received several Best of accolades in 2022. The business served over 70,000 guests in its first year and generated $1.8 million in revenue.

Video gaming has become a significant part of modern culture. This growth is driven by factors such as the increasing popularity of esports, advancements in gaming technology, and the growing adoption of smartphones. However, video gaming is often solitary, and many gamers crave a social aspect to their hobby.

Farm + Feed addresses this need by providing a social venue where gamers can play video games, enjoy food and drinks, and socialize.  

Next Section: Price

Price

Farm + Feed is offering equity at a $7.46 million valuation. This valuation is reasonable, given the company's performance and potential for growth. Farm + Feed generated $1.8 million in revenue in 2022 for a valuation-to-revenue multiple of just 4.1x. 

Investors considering Farm + Feed should know that the company is in growth and has not yet reached profitability. However, the initial solid performance and positive reception from customers and critics suggest that Farm + Feed has the potential to become a successful and profitable venture. With a valuation of $7.46 million, the price per share is $0.44, offering an attractive entry point for investors looking to participate in the growth of this unique social gaming venue.

Next Section: Market

Market

The Dallas-Fort Worth Arcade, Food, and Entertainment Complexes Market is a niche sub-sector of the broader entertainment industry, offering a blend of gaming, dining, and social interaction. This market, while simultaneously experiencing a slight contraction with a growth rate of -1.4%, is relatively small, with an estimated market size of over $54 million. 

Farm + Feed's unique blend of video gaming and dining is well-positioned within this market. The company has established a strong presence in the Dallas-Fort Worth region, serving over 70,000 guests and generating $1.8 million in revenue in its first year of operation. This level of early success and high market acceptance indicates a strong demand for this type of entertainment complex in the region.

The competitive landscape in this market is moderately competitive. While specific competitors were not provided, the mention of Game Theory Restaurant and Cidercade Fort Worth suggests that other establishments offer similar entertainment and dining experiences. However, Farm + Feed's solid reviews and accolades suggest it has carved out a strong position within this competitive landscape.

Overall, while the market growth rate is currently negative, the strong performance of Farm + Feed indicates that there is a stable demand for its unique blend of entertainment and dining. The company's growth and success will likely depend on its ability to continue delivering a high-quality customer experience and expand its operations beyond the Dallas-Fort Worth region.

Next Section: Team

Team

Farm + Feed is led by CEO Max Seel, who has eight years of relevant industry experience in food and beverage. 

Under Seel's leadership, Farm + Feed has achieved impressive results, generating $1.8 million in revenue and serving over 70,000 guests in its first year of operation. This shows Seel's ability to get a business and record an awe-inspiring first year.

The Farm + Feed team consists of 37 members, although specific details about the team members are unavailable. However, with Seel at the helm and a dedicated team supporting him, Farm + Feed is well-positioned for further growth and expansion in the Dallas-Fort Worth market.

Next Section: Differentiation

Differentiation

One of the critical differentiators for Farm + Feed is its focus on quality. The company prides itself on offering exceptional food, drinks, and service, which sets it apart from other gaming venues. This commitment to quality has resonated with customers and has contributed to its positive reviews and accolades. 

Another differentiation for Farm + Feed is its success in its first year of operation. With over 70,000 guests served and $1.8 million in revenue generated, the company has demonstrated its ability to attract customers and develop robust financial results. This early success positions Farm + Feed as a promising player in the market and sets it apart from competitors who may not have achieved similar milestones.

Overall, Farm + Feed's focus on quality, early success, and lack of established competitors position it as a promising player in Dallas-Fort Worth. With its differentiated offerings and positive customer reception, the company is well-positioned for industry growth and success, mainly if it opens more locations. 

Next Section: Performance

Performance

Farm + Feed has shown strong performance in its first year of operation. The company generated $1.8 million in revenue and served over 70,000 guests. This success has positioned Farm + Feed as one of the top-reviewed concepts in the Dallas-Fort Worth region, highlighting the positive reception and demand for Farm + Feed's unique social video gaming venue offering exceptional food, drinks, service, and games.

Farm + Feed has managed to establish itself as a standout player. The company's strong performance and positive customer reviews position it well for future growth and expansion. With a valuation of $7.46 million, Farm + Feed's current crowdfunding campaign aims to raise funds for operations, working capital, and marketing, which will further support its growth trajectory.

Overall, Farm + Feed's performance in its first year demonstrates its ability to attract customers and generate revenue. The company's unique concept, exceptional service, and positive customer reception provide a solid foundation for future success in the market.

Next Section: Risk

Risk

Investing in Farm + Feed carries some risks that should be considered. One of the main risks is the company's high debt level. With significant short-term and long-term debt, Farm + Feed may face challenges managing its financial obligations and interest payments. Additionally, the company's monthly burn rate is relatively high, requiring a consistent influx of cash to sustain its operations. If the company cannot generate sufficient revenue or secure additional funding, it may struggle to meet its financial obligations and support its growth trajectory.

Another risk to consider is the competitive landscape in the Dallas-Fort Worth region. While Farm + Feed has received positive reviews and accolades, it operates in a moderately competitive market with indirect competitors such as Game Theory Restaurant and Cidercade Fort Worth. Additionally, the company is currently limited to revenue in this Texan region and will likely need to expand its location count to become a profitable venture. 

Furthermore, the need for significant capital and time to build and scale the company's operations can pose challenges. Farm + Feed is capital-intensive, requiring substantial investment in facilities, equipment, and technology. Delays or difficulties in these areas could hinder the company's growth and profitability.

Next Section: Bullish Outlook

Bullish Outlook

Farm + Feed has demonstrated strong growth and success in its first year of operation. The company's unique concept as a social video gaming venue that offers exceptional food, drinks, service, and games has resonated well with its target market in the Dallas-Fort Worth region. With several Best of accolades and positive reviews, Farm + Feed has already established itself as one of the top-reviewed concepts in the area.

With a revenue of $1.8 million and more than 70,000 guests served in its first year, Farm + Feed has proven its ability to attract and retain customers. 

The market potential for Farm + Feed is promising, particularly in the Dallas-Fort Worth region, where there is demand for unique and engaging entertainment experiences. The company's strong revenue figures and positive customer reception indicate a solid foundation for future success.

Overall, Farm + Feed's strong revenue performance, positive customer feedback, and unique concept position the company for continued growth and success in the social video gaming and entertainment market. With a solid foundation and a clear path for expansion, Farm + Feed has the potential to become a dominant player in the Dallas-Fort Worth region and beyond.

Next Section: Bearish Outlook

Bearish Outlook

While Farm + Feed has achieved some initial success with positive reviews and accolades, there are concerns regarding its long-term profitability and scalability.

Furthermore, the competitive landscape in the Dallas-Fort Worth region for arcade, food, and entertainment complexes is moderately competitive. Farm + Feed faces competition from Game Theory Restaurant and Cidercade Fort Worth. With multiple options available to consumers, there is a risk that Farm + Feed may struggle to attract and retain customers in the long run.

Additionally, the high capital intensity level of the business raises concerns about its financial sustainability. The monthly burn rate of $68,676.75 suggests that Farm + Feed is spending significant money to cover its operational expenses. Without a clear plan for revenue growth and cost management, the company may face financial challenges in the future.

Overall, while Farm + Feed has shown promise in its initial year of operation, there are concerns about its ability to achieve sustained revenue growth and profitability. Investors should carefully consider these factors before making any investment decisions.

Next Section: Executive Summary

Executive Summary

Farm + Feed is a unique entertainment venue that combines social video gaming with quality food and drink services. Despite being in operation for just one year, the company has generated $1.8 million in revenue and served over 70,000 guests. This success has earned Farm + Feed a top-rated reputation in the Dallas-Fort Worth region and several 'Best Of' accolades for 2022.

The business operates in a moderately competitive market, with indirect competitors including Game Theory Restaurant and Cidercade Fort Worth. However, the company's unique gaming and dining services blend sets it apart. T

Despite its early success, Farm + Feed is still in the pre-profit stage, with a net income loss of $824,121 in the most recent fiscal year. The company's monthly burn is $68,676.75, indicating it is still investing heavily in its growth and development. The company seeks to raise funds through a crowdfunding campaign on StartEngine, with a minimum target of $14,999.60 and a maximum target of $1.23 million. The funds raised will be used for operations, working capital, and marketing.

It's worth noting that Farm + Feed's valuation of $7.46 million appears reasonable given its significant revenue and customer base in its first year of operation. However, potential investors should consider the company's current lack of profitability and the competitive nature of the entertainment industry.

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Farm + Feed on StartEngine 2023
Platform: StartEngine
Security Type: Equity - Common
Valuation: $7,460,248
Price per Share: $0.44

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Follow Farm + Feed on StartEngine 2023

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