Graze

Graze

Early Stage

Fully Autonomous Electric Lawn Mowers

Overview

Raised to Date: Raised: $5,344,573

Total Commitments ($USD)

Platform

StartEngine

Start Date

02/03/2021

Close Date

06/30/2021

Min. Goal
$1,000,000
Max. Goal
$10,000,000
Min. Investment

$499

Security Type

Equity - Preferred

Series

Seed

SEC Filing Type

RegA+    Open SEC Filing

Price Per Share

$5.80

Pre-Money Valuation

$23,000,000

Rolling Commitments ($USD)

Status
Funded
Reporting Date

07/03/2021

Days Remaining
Funded
% of Min. Goal
Funded
% of Max. Goal
Funded
Likelihood of Max
Funded
Avg. Daily Raise

$36,607

# of Investors

4,135

Momentum
Funded
Create a free account today to gain access to KingsCrowd analytics.
Year Founded

2017

Industry

Farming & Agriculture

Tech Sector

AgriTech

Distribution Model

B2B

Margin

Medium

Capital Intensity

High

Location

Santa Monica, California

Business Type

Growth

Graze, with a valuation of $23 million, is raising funds on StartEngine through Reg A+ crowdfunding. The company makes and sells fully-autonomous electric lawn mowers for the landscaping industry. The electric lawnmowers of Graze help reduce labor costs, operator injuries, and fuel costs. John Vlay founded Graze in 2017 and raised $3.7 million in the previous round of crowdfunding. The current crowdfunding round has a minimum target of $1,000,000 and a maximum target of $10,000,000, and the proceeds will be used for product development, personnel, and general overhead expenses. Graze has non-binding commercial contracts worth a potential value of over $19.35 million. The company is led by an experienced management team and is set for growth.

Balance Sheet

Cash and Cash Equivalents

$1,107

Investment Securities

$0

Accounts and Notes Receivable

$701,469

Property, Plant and Equipment (PP&E)

$0

Total Assets

$1,036,463

Accounts Payable & Accrued Liabilities

$1,642,942

Long Term Debt

$465,000

Total Liabilities

$2,578,302

Total Stockholders' Equity

$-1,541,839

Total Liabilities and Equity

$1,036,463

Statement of Comprehensive Income Information

Total Revenues

$0

Costs & Expenses Applicable to Rev

$0

Depreciation and Amortization

$0

Net Income

$-1,096,961

Earnings Per Share - Basic

$0.00

Earnings Per Share - Diluted

$0.00

Auditor: Artesian CPA
Financials as of: 02/03/2021
Create a free account today to gain access to KingsCrowd analytics.

Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
Graze 04/28/2024 Dealmaker Securities $25,000,000 $1,195,757 Equity - Common Funded RegCF
Graze 09/29/2022 Republic $60,000,000 - SAFE Funded RegD 506(c)
Graze 05/30/2022 Dalmore Group $27,574,760 $5,000,766 Equity - Preferred Funded RegA+
Graze 06/29/2021 StartEngine $23,000,000 $5,344,573 Equity - Preferred Funded RegA+
Graze 09/22/2020 SeedInvest $23,000,000 $4,076,610 Equity - Preferred Funded RegA+
Create a free account today to gain access to KingsCrowd analytics.

Price per Share History

Note: Share prices shown in earlier rounds may not be indicative of any stock splits.

Valuation History

Revenue History

Note: Revenue data points reflect the latest of either the most recent fiscal year's financials, or updated revenues directly from the founder, at each raise's close date.

Employee History

Upgrade to gain access

Pay Monthly
Annually (Save 17%)

Edge

$25 /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
Already a member? Log in here.

Analyst Report Analyst Report Methodology Article

Synopsis

Even in 2021 when everything from parking to check out lines is becoming automated, the landscaping industry remains incredibly labor intensive. Nearly half of all revenue that the industry generates goes to labor costs. Large organizations that rely on the land they occupy — such as golf courses and universities — suffer hefty maintenance bills as a result of landscaping’s high labor costs. 

Graze uses machine learning and computer vision to create fully autonomous lawn mowers, cutting down on the labor required to maintain land. Graze vehicles are also fully electric, eliminating fuel costs and contributing to a greener operation.

Graze’s current StartEngine raise has been rated a Neutral Deal by the KingsCrowd investment team. The round was preceded by a SeedInvest offering in the fall of last year which was rated as a Deal to Watch.

Next Section: Price

Price

Graze is raising capital via preferred equity at $5.80 per share. The pre-money valuation for this round is $23 million. The company is still pre-revenue and has kept the same valuation as their prior raise on SeedInvest — despite not having a minimum viable product for either round. This valuation is somewhat reasonable given the capital-intensive nature of the product, however, no revenue has been reported to date.

It should be noted that the preferred stock offering does provide additional benefits to potential investors. Preferred equity deals make up just nine percent of all deal flow at this time.

Next Section: Synopsis

Synopsis

Claiming to exist in the $100 billion lawn and landscaping market as suggested by the raise page is a bit generous. According to our research, the robotic lawn mower market sits at around $177 million for 2020 with a CAGR of 13.10%.

Robotic Lawn Mower Market, By Region

The North American market share — or Graze’s serviceable obtainable market — is about one third of this total, coming out to just over $5.9 million for 2020.

This is a far cry from the total addressable market reported by the founders. However, the market remains niche and void of many established competitors of the same quality, making the obtainable market a reasonable goal in terms of realistic capture.

Next Section: Team

Team

Graze is led by CEO John Vlay. Prior to Graze, Vlay led Jensen Landscape as the Chairman, CEO, and President.  In 2016, Jensen Landscape was acquired by Monarch Landscape and Vlay oversaw safety for Monarch’s six rollup companies and worked on acquisition prospects. Vlay holds a Bachelor’s degree in Business and Economics from UCLA.

Vlay is joined by Lead Systems Engineer Phillip Wong. Prior to joining Graze, Wong served as the lead engineer at Knightscope, another company with repeat raises in the online private markets. Finally, Robotics Advisor Rob Anderson co-founded Miso Robotics, a KingsCrowd Top Deal.

This team has thorough startup creation and crowdfunding experience. Vlay also brings direct industry experience through his time at Jensen Landscape and Monarch Landscape.

Next Section: Synopsis

Synopsis

From a quality standpoint, Graze appears to be heavily differentiated from any competition within a very niche market. Many competitors have bluetooth, GPS, and cellular technology — but few are equipped for large corporate customers and are fully electric. Grazes computer vision and other technologies — including weather tracking and plant disease detection — appear unique to the company.

This quality comes at a price, however. The starting price for the Husqvarna Automower 435X AWD (closest and self-reported competitor) sits at $4,229. Graze comes in at $30,000 per machine up front with a recurring monthly SaaS fee of $1,000. The Husqvarna machine is also battery operated, though lacks wifi capabilities. 

Next Section: Performance

Performance

When Graze last raised on SeedInvest with the same valuation it appeared to be for the purpose of creating a minimum viable product. It seems that the team did not raise enough capital in the last round to make that happen and has returned to the online private markets. 

It also appears that one of the two LOIs present in the last raise fell through or was cancelled. Commercial landscaping company Mainscape seems to have stuck with the letter of intent mentioned in the last raise and has pre-ordered 200 mowers. It should be noted that Mainscape is also an investor in Graze. The company also looks to be in conversation with various golf courses to further prove product-market fit.

Lastly, Graze has been backed by Wavemaker Partners. In sum, Graze has raised $3.9 million in seed capital across venture funding and various raises in the online private markets.

Next Section: Other

Bearish Outlook

As always, investing in startups poses certain risks. We have yet to see a minimum viable product from the Graze team, not to mention nothing is patented. The company remains pre-revenue and needs time to scale sales and distribution. The LOIs from major companies are promising but are in no way binding. 

Additionally, Graze’s product costs up to six times that of the more expensive competition, in addition to recurring SaaS fees. This is reasonable given the amount saved on labor and fuel costs, but may pose a hard sell to some customers. 

Also of note, the offering circular reveals Vlay to be the, “one dedicated executive…who currently spends approximately three days a week in his role.” If the company hopes to scale, additional hiring will be imperative, especially to fill out sales and marketing roles.

Finally, this market is also incredibly niche, making huge returns unlikely even with significant market capture.

Next Section: Bullish Outlook

Bullish Outlook

If LOIs come to fruition and a viable product is presented in the near future, investors at this stage could see healthy returns. Additionally, though Graze is by no means a first mover in the space, the product offering (provided an MVP is delivered as described) will have a massive lead over competition in terms of quality. Not to mention, there is a general shift across the nation to move to more autonomous and greener machinery. Graze could be coming into the market at just the right time. 

Finally, Vlay and his team are well suited for the job. It would be hard to find a CEO with more direct industry experience and an exit under his belt.

Next Section: Executive Summary

Executive Summary

Graze has been rated a Neutral Deal. This is a downgrade from the prior rating of a Deal to Watch as the company valuation remains the same but a minimum viable product still has not been presented. This would massively eliminate much of the product risk associated with the deal.

Additionally, the LOIs on which much of the value proposition rests are non-binding.  In fact, the offering circular states “Investors should note that this LOI only represents potential revenue for the Company. Mainscape is under no obligation to purchase any products and we may never generate any revenue based on this LOI.” Operating in such a niche market is also a double-edged sword. On the one hand, little quality competition exists. On the other, a significant market capture, though definitely feasible, may not yield massive returns. 

An acquisition opportunity is a natural exit route for Graze, especially considering Vlay has one under his belt already. For all these reasons, Graze is a Neutral Deal at this time.

For questions regarding the KingsCrowd staff pick or ratings for this company, please reach out to support@kingscrowd.com.

Analysis written by Olivia Strobl.

Founders: enhance your startup's credibility on KingsCrowd. Create an account to claim this raise page.
Add to portfolio
Graze on StartEngine
Platform: StartEngine
Security Type: Equity - Preferred
Valuation: $23,000,000
Price per Share: $5.80

Follow company

Follow Graze on StartEngine

Buy Graze's Deal Report

Warning: according to the close date for this deal, Graze may no longer be accepting investments.

Graze Deal Report

Get KingsCrowd’s comprehensive report on Graze including:

  • How our proprietary algorithm rates their current capital raise (1-5 stars)
  • Detailed price, market, team, differentiators, performance, and risk ratings
  • Whether Graze is undervalued or overvalued
  • Scores on the founding team and key personnel's background and expertise
  • Our deep-dive analyst report reviewing the deal's investment potential and bullish vs. bearish outlook

Buy the Graze deal report for only $10!

Email address:
Looking to buy more than one deal report? Get unlimited reports by upgrading to Edge