Hempitecture

About this raise

Hempitecture, with a valuation of $40 million, is raising funds on Wefunder. The company is building a US manufacturing facility for HempWool insulation. HempWool is a sustainable insulation product that is not toxic and bad for the environment. The company grew its sales by 50% year-over-year in 2023 and 200% year-over-year in 2024 YTD and has secured a $1.1 million contract with the New York State Energy & Research Development Authority. Matthew Mead and Tommy Gibbons founded Hempitecture in September 2018. The current crowdfunding campaign has a minimum target of $500,000 and a maximum target of $5 million. The campaign proceeds will be used to accelerate code compliance testing for new product offerings, accelerate marketing efforts, add new distribution locations, increase customer acquisition rate, and purchase a second manufacturing line for the East Coast manufacturing hub.

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Investment Overview

Committed this round: $1,314,095

Deal Terms

Total Commitments ($USD)

Platform
Wefunder
Start Date
03/19/2024
Close Date
02/28/2025
Min. Goal
$500,000
Max Goal
$5,000,000
Min. Investment

$100

Security Type

SAFE

Series

Series A

SEC Filing Type

RegCF    Open SEC Filing

Valuation Cap

$40,000,000

Discount

20%

Company & Team

Company

Year Founded
2018
Industry
Real Estate & Construction
Tech Sector
Cleantech
Distribution Model
B2B/B2C
Margin
Low
Capital Intensity
High
Location
Ketchum, Idaho
Business Type
Growth
Company Website
Visit Website

Team

Employees
3
Prior Founder Exits?
No
Founder Name
Matthew Mead
Title
CEO
Founder Name
Tommy Gibbons
Title
CIO

Financials

as of December 1, 2024
 Revenue +80% YoY
$2,018,885
 Monthly Burn
Profitable
 Cash on Hand
$83,000

Summary Profit and Loss Statement

FY 2023 FY 2022

Revenue

$1,123,368

$811,083

COGS

$1,388,297

$813,279

Tax

$43,115

$25,751

 

 

Net Income

$-1,023,948

$-481,548

Summary Balance Sheet

FY 2023 FY 2022

Cash

$301,392

$1,166,180

Accounts Receivable

$29,402

$16,182

Total Assets

$5,855,332

$6,556,237

Short-Term Debt

$287,336

$209,005

Long-Term Debt

$2,103,636

$2,233,925

Total Liabilities

$2,390,972

$2,442,930

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Synopsis

Hempitecture creates sustainable building materials, specifically through the production of HempWool insulation. This product is designed to replace traditional insulation materials like fiberglass and spray foam, which are often toxic and environmentally harmful. Hempitecture's primary customers include construction companies and builders seeking eco-friendly alternatives for building thermal insulation. The company operates under the name Hempitecture and is incorporated in Delaware.

The problem Hempitecture addresses is the widespread use of traditional insulation materials that are detrimental to both human health and the environment. Conventional options, such as fiberglass, can release harmful particles and chemicals, while spray foam often contains substances that contribute to environmental degradation. These materials are not only hazardous but also contribute to the carbon footprint of buildings.

Hempitecture offers a solution with its HempWool insulation, which is made from natural hemp fibers. This product is non-toxic and has a lower environmental impact compared to traditional materials. HempWool provides effective thermal insulation while being safer for both installers and occupants. The company is building a U.S. manufacturing facility to produce this insulation at scale, aiming to meet the growing demand for sustainable building solutions.

Consider the common scenario of renovating a home or constructing a new building. Many homeowners and builders face the challenge of choosing insulation that balances performance, safety, and environmental impact. HempWool offers an option that aligns with these priorities, providing thermal efficiency without the associated health risks of conventional materials. This makes it an attractive choice for those looking to improve energy efficiency while minimizing ecological impact.

Next Section: Price

Price

Hempitecture is raising funds through a SAFE (Simple Agreement for Future Equity) with a valuation cap set at $40 million and a 20% discount. This structure provides early investors with the potential to convert their investment into equity at a future date, typically during a priced equity round, at either the valuation cap or a discounted rate, whichever is more favorable.

The valuation cap of $40 million implies that investors will receive equity at a maximum valuation of this amount, regardless of the company's actual valuation during subsequent funding rounds. The 20% discount offers an additional incentive by allowing investors to purchase shares at a reduced price compared to new investors in the future round.

For investors seeking a 10X return, Hempitecture would need to achieve a post-exit valuation of approximately $400 million. Achieving this level of valuation would likely require significant revenue growth, market expansion, and possibly strategic partnerships or acquisitions. This calculation does not account for potential dilution that may occur in future funding rounds.

Hempitecture's current revenue multiple stands at 19.81x, which is relatively high. This multiple suggests that the deal may be overvalued, offering less favorable terms to investors. High revenue multiples often indicate that a company may need to demonstrate substantial growth to justify its valuation.

In summary, the SAFE offering provides investors with early access to Hempitecture's equity at a capped valuation with a discount. However, the high revenue multiple and the need for significant growth to achieve a 10X return are important considerations for potential investors.

Next Section: Market

Market

Hempitecture operates within the U.S. building thermal insulation market, which is valued at approximately $11.5 billion and is projected to grow at a rate of 4.5%. Several key market drivers are influencing this sector, including the increasing demand for eco-friendly building materials and stringent regulations promoting energy efficiency and sustainability in construction. As environmental concerns continue to rise, builders and consumers are seeking materials that reduce carbon footprints and improve indoor air quality.

The trend towards sustainable building practices is a significant positive factor for Hempitecture, as its HempWool insulation aligns well with these market demands. The insulation's non-toxic nature and ability to sequester carbon can attract environmentally conscious builders and consumers, potentially expanding its market appeal.

However, the product targets a niche within the larger insulation market. While it benefits from broader trends towards sustainability, it primarily appeals to those specifically looking for green building solutions. This niche focus could limit its addressable market compared to traditional insulation products that serve a wider range of construction needs.

Another consideration is the higher upfront costs associated with hemp-based materials compared to conventional options. This cost difference may hinder adoption among cost-sensitive builders. Additionally, regulatory hurdles and infrastructure development for hemp cultivation and processing can impact the availability and pricing of raw materials, influencing the company's growth potential.

Overall, while Hempitecture's product aligns with positive market trends in sustainability and energy efficiency, it must navigate niche market challenges and cost considerations to effectively capture market share within the expansive insulation sector.

Next Section: Team

Team

Hempitecture's team is led by Matthew Mead, the founder and CEO, who has a background in architectural studies and environmental studies. Mead's experience in sustainability and clean energy is crucial for guiding the company’s mission to provide eco-friendly building materials. His practical experience as a builder provides valuable insights into the challenges and opportunities within the construction industry.

Tommy Gibbons, the co-founder and COO, brings expertise from his background in public policy and international affairs. Prior to Hempitecture, Gibbons worked as an analyst at Goldman Sachs and contributed to the growth of a startup. His business acumen and strategic insights are vital for scaling Hempitecture and managing its operations efficiently.

Both founders were recognized in Forbes' "30 Under 30" list for Manufacturing & Industry in 2020, reflecting their impact and potential in the sector. Their complementary skills in sustainability, finance, and operations align well with Hempitecture's goals of expanding its market presence and enhancing its manufacturing capabilities.

Despite the strengths of the founding team, Hempitecture's small size poses challenges as the company scales. With a total team size of four members, there is a need for additional expertise in marketing and manufacturing to increase product awareness and optimize production processes. Expanding the team to include specialists in these areas could be critical for achieving future milestones and sustaining growth.

Overall, Hempitecture's leadership team is well-equipped to drive the company's mission, but strategic hires will be necessary to support its expansion and market penetration efforts.

Next Section: Differentiation

Differentiation

Hempitecture differentiates itself in the building thermal insulation market through its use of sustainable hemp-based materials. Key competitors in this space include KOBE-cz s.r.o in Czechia, IndiNature in the UK, and Hemspan Ltd, also in the UK. These companies also focus on eco-friendly insulation solutions but vary in size, product offerings, and market reach.

KOBE-cz s.r.o offers a range of natural insulation products, positioning itself as a notable player in the European market. IndiNature focuses on plant-based insulation, similar to Hempitecture, and targets environmentally conscious consumers in the UK. Hemspan Ltd provides hemp-based construction materials, serving a niche market within the sustainable building sector.

Compared to these competitors, Hempitecture is unique in its focus on the U.S. market and its efforts to establish a domestic manufacturing facility, which could reduce supply chain complexities and improve market responsiveness. The company's product quality is emphasized through its non-toxic and carbon-sequestering properties, appealing to builders seeking sustainable alternatives.

In terms of pricing, hemp-based insulation products generally have higher upfront costs than conventional materials. This pricing structure may limit adoption among cost-sensitive consumers but aligns with the values of those prioritizing sustainability and health.

Hempitecture's target customer demographics include eco-conscious builders, architects, and homeowners interested in green building practices. These customers are typically motivated by environmental concerns and are willing to invest in materials that contribute to sustainable construction. The company's products appeal to those looking to enhance energy efficiency and indoor air quality while reducing environmental impact.

Overall, Hempitecture's differentiation lies in its focus on sustainability and its strategic positioning within the U.S. market, catering to a growing segment of environmentally aware consumers in the construction industry.

Next Section: Performance

Performance

Hempitecture has demonstrated significant growth in recent years. The company's annual revenue reached approximately $2 million, illustrating a 79.7% increase compared to the previous fiscal year. This growth reflects the increasing market acceptance of its HempWool insulation product. 

Hempitecture broke even in 2024. This means that the company's current raise will be mostly fueling growth, hopefully increasing investors returns.

Hempitecture's production capabilities have also expanded, with the opening of a manufacturing facility in February 2023. This development is crucial for meeting the growing demand for sustainable building materials and supporting future revenue growth.

The company has successfully secured a $1.1 million contract with the New York State Energy & Research Development Authority, underscoring its ability to attract significant business partnerships. This contract is a positive indicator of market traction and potential future revenue streams.

Next Section: Risk

Risk

Hempitecture faces several specific risks that potential investors should consider. One key risk is the adoption of its hemp-based insulation products within a market traditionally dominated by established materials like fiberglass and spray foam. Being early to market with such a product carries adoption risk as the company must educate consumers and gain market acceptance, which can be a lengthy process.

Another risk is the capital intensity of scaling production. Hempitecture is in a capital-intensive industry where establishing and maintaining manufacturing facilities requires significant investment. This need for capital can strain financial resources, especially if projected revenues do not materialize as expected.

Hempitecture has no current or past lawsuits, which is a positive aspect. However, the company operates in a highly regulated industry, necessitating compliance with building codes and environmental regulations. Any changes in these regulations could impact production processes and costs.

The competitive landscape, while not overcrowded, does contain established players offering conventional insulation solutions. Hempitecture must effectively differentiate its products and capture market share to mitigate competitive pressures. Additionally, with a new product, Hempitecture faces adoption risk.

Overall, Hempitecture's unique product offering and market position present both opportunities and challenges. Investors should weigh these risks when considering an investment in the company.

Next Section: Bullish Outlook

Bullish Outlook

Hempitecture's competitive advantage lies in its commitment to sustainability and the non-toxic nature of its HempWool insulation, aligning with growing demand for green building materials. This differentiation appeals to environmentally conscious builders and architects, setting it apart from competitors using traditional materials. Led by Matthew Mead and Tommy Gibbons, the leadership team brings expertise in sustainability and business operations, with their inclusion in Forbes' "30 Under 30" highlighting their potential to drive the company forward.

The company has demonstrated strong growth, with annual revenue reaching approximately $2 million—reflecting a 79.7% increase over the previous year—and breaking even in 2024. This milestone means its current raise will primarily fuel expansion, enhancing investor returns. Key growth drivers include increasing manufacturing capacity, strengthening distribution networks, and advancing product innovations like carbon-sequestering insulation materials. The opening of a dedicated manufacturing facility in February 2023 further supports its ability to meet rising demand.

Hempitecture’s ability to secure strategic partnerships reinforces its market traction, including a $1.1 million contract with the New York State Energy & Research Development Authority. The company successfully leveraged its previous Wefunder raise to fulfill commitments and demonstrate growth, positioning it well for future scaling and investment opportunities.

Next Section: Bearish Outlook

Bearish Outlook

Hempitecture faces notable market challenges despite increasing demand for sustainable building materials. Its focus on a niche market limits widespread adoption, and the higher upfront costs of hemp-based insulation may deter cost-sensitive builders, slowing penetration. Competing against traditional materials requires significant education efforts, adding to customer acquisition costs.

As the U.S. leader in hemp insulation, Hempitecture benefits from minimal direct competition, especially after a key competitor failed due to high debt and poor financial management. However, this also means the company must build market awareness from the ground up, a resource-intensive process that carries adoption risks.

Growth barriers include technological and regulatory challenges in hemp cultivation, which could impact raw material availability and pricing. Additionally, the company’s small team may face operational strain as it scales production and expands market reach, potentially limiting its ability to meet demand and sustain long-term growth.

Next Section: Executive Summary

Executive Summary

Hempitecture specializes in sustainable building materials, focusing on hemp-based insulation products. Its core customers include eco-conscious builders and architects seeking environmentally friendly alternatives. The company is raising funds through a SAFE with a $40 million valuation cap and a 20% discount.

The U.S. building thermal insulation market, valued at $11.5 billion with a 4.5% growth rate, presents opportunities for Hempitecture. The company's niche focus on sustainable products aligns with market trends, but it faces challenges due to higher upfront costs and a limited target market. Differentiation comes from its U.S.-based production and non-toxic product offerings, appealing to a specific demographic of environmentally aware consumers.

The leadership team, led by Matthew Mead and Tommy Gibbons, combines expertise in sustainability and business operations, aligning well with the company’s objectives. However, the small team size may hinder scaling efforts, necessitating strategic hires. Key risks include market adoption challenges and financial constraints, which the experienced team must navigate effectively.

Bullish factors for Hempitecture include strong sales growth, reaching more than $2 million in revenue in 2024 and breaking even, alignment with sustainability trends, and strategic partnerships. Conversely, bearish factors involve financial instability, market adoption risks, and the need for additional capital to support growth. The company's ability to capitalize on market trends while managing these risks will determine its success.

In summary, Hempitecture offers a compelling investment opportunity for those aligned with sustainability and willing to navigate niche market challenges. The company's growth potential is balanced by financial and market risks, requiring careful consideration by potential investors.

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Company Funding & Growth

Funding history

Total Prior Capital Raised
$5,121,530
Grants
$10,020,000
VC Backed?
No
Close Date Platform Valuation Total Raised Security Type Status Reg Type
02/28/2025 Wefunder $40,000,000 $1,314,095 SAFE Active RegCF
04/30/2022 Wefunder $22,500,000 $4,621,680 SAFE Funded RegCF
02/05/2022 Wefunder $25,000,000 $3,735,028 SAFE Funded Test the Waters / RegCF
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Growth Charts

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.

Valuation History

Price per Share History

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

Employee History

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Hempitecture on Wefunder 2024
Platform: Wefunder
Security Type: SAFE
Valuation: $40,000,000

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