FullSkoop is raising at a $7.5 million valuation via a SAFE with no discount. The company has seen solid traction thus far, with north of $1.2 million in revenue in 2019 alone. This was double the previous year’s revenue, which shows solid growth. With these metrics in mind and the available market offered by the vending machine industry, the valuation for FullSkoop looks fair. As a result, the company’s price score is one of its strongest. 

The global vending machine market is estimated at $36.5 billion in the United States and $134.4 billion globally. Health food vending has been on the rise recently, which will only increase the market available to FullSkoop. 

The largest issue that FullSkoop will have in this market is competition. The space is rapidly becoming crowded as customers turn more and more to healthy options. Companies like Farmer’s Fridge, Naturals2Go, and HealthyYou are more mature businesses that offer similar products. It’s due to the prevalence of competition and the still niche nature of healthy vending that FullSkoop’s market score is its lowest across all five metrics. 

FullSkoop was founded by Sid Sahni and Jonnatan Leiva. The former has had a long professional career, including work as a Plant General Manager at The Tata Group followed by work in recruiting with RGA Associates. Most recently before FullSkoop, he served as COO of Dynamic Software Services. The latter is a chef who was named a rising star in the San Francisco area by the San Francisco Chronicle in 2008, appeared on two episodes of Iron Chef America, and worked as a Culinary Design and Operations Consultant at his own company, Leiva Consulting. Leiva’s experience in the industry and with world class cooking makes him an extremely valuable member of FullSkoop’s executive team. Sahni brings solid technical expertise, balancing Leiva’s specialization. The one thing both founders lack is any past entrepreneurial endeavors. Balancing all this together, the team score for FullSkoop is just slightly above average. 

FullSkoop looks to revolutionize the easy access food industry. The company wants to bring quality, farm fresh meals to accessible locations. Where soda machines once stood, FullSkoop intends to bring healthier alternatives to the vending machine industry.

FullSkoop offers an easy-to-use app where customers can monitor availability from nearby FullSkoop Smart Fridges. When buying, customers gain access to the fridge with a credit card, phone app or tap payment, choose an item, and then scan the code to pay. The payment functions and the easy-to-use nature of FullSkoop’s product may attract customers.

However, the similarities between other products on the market is certainly striking. “Farm to fridge” as an idea already has been done, even in vending machines. As mentioned in the Market section, there is much competition in this space with companies that are more established than FullSkoop. It remains to be seen if gathering data and using it to make supply decisions will be enough of a distinction to set the company apart in the market. Thus, FullSkoops differentiators score is quite low.

FullSkoop has had solid traction thus far. The company began operations in 2017, saw $637k in revenue in 2018, and most recently had a revenue of $1,241,264 in 2019. The growth has been notable, and FullSkoop wants to put 96 fridges in the Bay Area over the next year and a half. Due to this strong early traction, the performance score for FullSkoop is high.

Differentiation is key, and FullSkoop is entering a crowded market while offering a very similar product to consumers. Byte Foods, Canteen, Farmer’s Fridge, FrescoFrigo – these are all companies that offer fresh, healthy meals conveniently. If FullSkoop can’t innovate, doesn’t provide similar quality food, or has any type of health concern or negative press, its ability to outpace other companies in the market may be compromised. From a purely investment-based standpoint, the lack of discount on the SAFE is  also not encouraging for investors, as it does not offset the risk of investing so early.

The revenue growth for FullSkoop indicates that the excitement is there for the product it is offering. There has been a rising trend in health food seen around the United States that could  open up more market opportunities for FullSkoop. With a renowned chef at the helm and a data driven business model that changes the food offerings based on customer feedback and choices, FullSkoop seems well positioned to cater to a wide variety of customers with top quality food. If the growth continues and its placement of 96 fridges in the San Francisco Bay Area is successful, FullSkoop could be well on its way to profitability and, more importantly, a solid return for investors.

The industry of farm-to-fridge vending machines has been growing crowded recently, with companies like Farmer’s Fridge and Byte Foods already establishing themselves alongside FullSkoop. FullSkoop has seen its revenue double since 2018 and has plans to expand further with more fridge placements. Its use of data and analytics gives it a better chance of providing products that consumers truly want. However, there are many competitors that FullSkoop will have to outgrow in order to achieve a sizable market share. Overall, FullSkoop is a Neutral Deal at this time .

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Analysis written by Ethan Thomas.