Holme & Hadfield
About this raise
Holme & Hadfield, with a valuation of $10 million, is raising funds on Republic. The company makes unique display cases for collectors of accessories. Holme & Hadfield offers display-worthy storage solutions for collectibles, such as watches, pocket knives, and challenge coins, and sells through direct-to-customer, Amazon, internationally, and wholesale. The company has generated $10 million in revenue in three years, with a CAGR of 145%, and has 65,000 followers and subscribers. Ian Holme and Phil Hadfield founded Holme & Hadfield in April 2019. 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 new products, channel expansion, and team growth.
Investment Overview
Invested $655,565 :
Deal Terms
Company & Team
Company
- Year Founded
- 2019
- Industry
- Consumer Products, Goods & Services
- Tech Sector
- Distribution Model
- B2C
- Margin
- Low
- Capital Intensity
- Low
Financials
- Revenue +49% YoY
- $5,462,268
- Monthly Burn
- $13,361
-
Runway
- 6 months
- Gross Margin
- 27%
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Synopsis
Holme & Hadfield is a company specializing in the creation of unique display cases designed for collectors of various accessories. The company focuses on providing storage solutions that are both functional and aesthetically pleasing, catering to collectors of items such as watches, pocket knives, and challenge coins. These products are developed in collaboration with a highly engaged community, ensuring they meet the needs and preferences of collectors at all levels.
Since its founding in April 2019 by Ian Holme and Phil Hadfield, Holme & Hadfield has generated $10 million in revenue over three years, achieving a compound annual growth rate (CAGR) of 145%. The company has successfully built a strong online presence, boasting 65,000 followers and subscribers. Holme & Hadfield sells its products through multiple channels, including direct-to-customer sales, Amazon, international markets, and wholesale.
Price
Holme & Hadfield is currently raising funds on Republic with a valuation cap of $10 million through a Simple Agreement for Future Equity (SAFE). The company has achieved significant traction, generating $10 million in revenue over three years with a compound annual growth rate (CAGR) of 145%. This impressive growth is reflected in their revenue multiple of 1.83x, based on their annual revenue of $5.46 million. The company's valuations sets it up as a great deal for investors.
Market
Holme & Hadfield operates within the expansive US home decor market, valued at $38.5 billion. This market is experiencing a good growth rate of 4.54%, driven by increasing consumer interest in home aesthetics and personalized living spaces. Holme & Hadfield has successfully identified and targeted a niche within this broader market: collectors of accessories such as watches, pocket knives, and challenge coins, offering them uniquely designed display cases that merge functionality with aesthetic appeal.
Holme & Hadfield employs a B2C distribution model, selling directly to customers through its website, Amazon, international channels, and wholesale partners. This multi-channel approach broadens its reach and enhances accessibility for consumers globally. Given the low level of market regulation and the high market potential, the company is well-positioned to continue its upward trajectory.
Overall, Holme & Hadfield's strategic focus on a niche market within the broader home decor industry, coupled with its robust online presence and innovative product offerings, positions it favorably for sustained growth. As it moves forward, expanding its product line and distribution channels will be key to maintaining its competitive edge and capturing a larger share of the market.
Team
Holme & Hadfield is co-founded by Ian Holme and Phil Hadfield, both of whom bring valuable expertise and a shared vision to the company. With an average of 4 years of relevant industry experience, the founders have successfully guided the company through its growth phase.
Ian Holme, serving as CEO and Secretary, is the Head of Product at Holme & Hadfield. He oversees product generation and development, leading a design team that transforms unique ideas from concepts into market-ready products. Holme's background in finance ensures the business remains profitable, bridging the gap between finance and marketing. His deep understanding of the audience's needs has been instrumental in developing products that resonate with customers. Holme's full-time dedication to the company underscores his commitment to its success.
Phil Hadfield, the Director, manages the overall operations of the business, spanning the entire supply chain and customer service. Hadfield has built a highly engaged community, growing the company's Instagram and Facebook followings from scratch. His efforts in community building have been pivotal in creating a loyal customer base and fostering a strong brand presence. Although Hadfield works part-time, his high-level managerial skills and focus on community engagement have significantly contributed to the company's growth.
The team at Holme & Hadfield consists of 15 members who collectively drive the company's mission to create beautifully crafted, patented storage solutions for collectors. The founders' dedication and complementary skill sets have enabled the company to generate $10 million in revenue over three years, with a compound annual growth rate (CAGR) of 145%. Their collaborative approach with a highly engaged community ensures that the products cater to collectors at all levels.
Overall, the leadership of Ian Holme and Phil Hadfield positions Holme & Hadfield for continued growth and success in the US home decor market. Their combined expertise in product development, finance, operations, and community building provides a solid foundation for the company's future endeavors.
Differentiation
Holme & Hadfield differentiates itself in the highly competitive home decor market by focusing on unique, display-worthy storage solutions specifically designed for collectors of accessories such as watches, pocket knives, and challenge coins. The company's products are not only functional but also aesthetically appealing, allowing collectors to organize and showcase their collections with pride. This combination of functionality and aesthetic appeal, developed in collaboration with a highly engaged community, sets Holme & Hadfield apart from its competitors.
Despite entering a market with over 100 direct competitors, including well-known names like Wolf 1834, Deferich, and Watch Winder Station, Holme & Hadfield has achieved significant traction. The company generated $5.46 million in revenues last year, representing a 49.48% increase from the previous year. This good growth has been driven by a multi-channel distribution strategy that includes direct-to-consumer sales, Amazon, international markets, and wholesale partnerships.
Holme & Hadfield's ability to generate substantial revenue with minimal paid traffic until recently and without a dedicated retail sales team highlights the strong demand for its products. The company plans to further capitalize on this demand by expanding its presence at trade shows, hiring sales representatives, and working with retail brokers to secure partnerships with larger online retailers and Big Box Retail stores.
Performance
Holme & Hadfield has demonstrated impressive performance in the consumer products sector, particularly within the US home decor market. This rapid growth is reflected in the most recent annual revenue figure of $5.46 million, representing a 49.48% increase from the previous year.
The company’s strong online presence is highlighted by its excellent SEO performance, ranking second on Google for the search term "watch holder," just behind Amazon. This visibility has likely contributed to its success in direct-to-consumer (DTC) sales and marketplace performance on platforms like Amazon. Notably, Holme & Hadfield has achieved significant sales milestones without extensive paid advertising, only starting such efforts in September of the previous year.
Holme & Hadfield's strategic focus on retail partnerships and wholesale channels has also yielded positive results. The company achieved $500k in retail sales solely from inbound inquiries, despite not having a dedicated sales team. With plans to attend trade shows and hire a sales representative or work with a retail broker, the company anticipates substantial growth in this area. Potential partnerships with major retailers like Bloomingdale's, Saks, Neiman Marcus, Sears, and Selfridges are expected to further enhance its market presence.
Internationally, Holme & Hadfield has achieved over $500k in sales in new territories, including the UK, Canada, and Germany. The company plans to expand its product offerings on Amazon, Etsy, and its website, targeting the EU market and further expanding into Asia and Australia.
Financially, the company maintains a good cash position with $80,171.62 on hand and a monthly burn rate of $13,361. The prior rounds of funding have raised a total of $253,315.40, which has supported the company's growth initiatives. The current crowdfunding campaign aims to raise between $50,000 and $1.24 million to fund new product development, channel expansion, and team growth.
Holme & Hadfield operates in an extremely competitive landscape, but its unique product offerings and strong community engagement have positioned it well within the market. With 65,000 followers and subscribers, the company has built a loyal customer base that supports its growth trajectory. As the company continues to innovate and expand its reach, it is well-positioned to capitalize on the growing demand for aesthetically pleasing and functional storage solutions for collectors.
Risk
Investing in Holme & Hadfield involves specific risks related to its market positioning, financial stability, and operational challenges. Despite achieving a notable revenue of $5.46 million in the most recent fiscal year and experiencing impressive growth with a CAGR of 145%, the company operates in an extremely competitive market. Direct competitors like Wolf 1834, Deferich, and Watch Winder Station, as well as numerous indirect competitors in the home decor and collectibles space, present significant challenges. Maintaining market share and differentiation could become increasingly difficult.
Holme & Hadfield's financials reveal potential vulnerabilities. The company has substantial short-term debt, amounting to $1 million as of the most recent fiscal year-end, which could strain its liquidity and operational flexibility. Additionally, while the company has a positive net income, it saw a sharp decline from $389k in the prior fiscal year to $32k in the most recent fiscal year. This indicates rising operational costs or decreasing profit margins, which could pose sustainability issues if not addressed.
Production and quality control risks are inherent in Holme & Hadfield's product category. Ensuring high-quality, aesthetically pleasing, and functional products is crucial for maintaining customer satisfaction and brand reputation. Any lapses in quality or production delays could lead to customer dissatisfaction and harm the company’s standing in the market.
Holme & Hadfield's reliance on multiple sales channels, including direct-to-customer, Amazon, international markets, and wholesale, adds complexity to its distribution strategy. Managing these channels effectively to ensure consistent customer experience and operational efficiency could present logistical and managerial challenges.
While the company has high market acceptance and a community-driven innovation approach, scaling its operations to meet growing demand without compromising quality will require careful planning and execution. The company needs to balance rapid growth with maintaining the quality and functionality of its products to sustain its reputation and customer base.
Bullish Outlook
Holme & Hadfield is poised for significant growth in the consumer products and home decor market, offering a unique and aesthetically appealing solution for collectors. The company has demonstrated strong market traction, generating $10 million in revenue over three years with an impressive CAGR of 145%. This growth is underpinned by a robust and engaged community of 65,000 followers and subscribers, indicating strong brand loyalty and market demand.
The company's innovative approach to product development, which involves working directly with collectors to create patented storage solutions, sets Holme & Hadfield apart in an extremely competitive landscape. Their products, designed for the display and organization of items such as watches, pocket knives, and challenge coins, cater to a niche yet passionate market segment.
Holme & Hadfield's multi-channel distribution strategy, including direct-to-customer sales, Amazon, international markets, and wholesale, enhances its market reach and revenue potential. The company's annual revenue growth of 49.48% and positive net income of $32,301 in the most recent fiscal year further highlight its financial health and growth trajectory.
With a valuation of $10 million and a successful track record of $10 million in revenue within three years, Holme & Hadfield presents an attractive investment opportunity. The ongoing crowdfunding campaign aims to raise between $50,000 and $1.24 million, with proceeds allocated for new product development, channel expansion, and team growth. These initiatives will likely drive further revenue growth and market penetration.
Bearish Outlook
Despite the impressive revenue growth and community-driven innovation, Holme & Hadfield faces several challenges that cast doubt on its long-term viability and investment potential. The company operates in an extremely competitive market, with significant direct competitors such as Wolf 1834, Deferich, and Watch Winder Station. The low barriers to entry in the US home decor market further exacerbate this competitive pressure, making it difficult for Holme & Hadfield to maintain a differentiated position.
Financially, the company is in a pre-profit phase and has a relatively modest cash reserve of $80,171.62, which could limit its ability to weather market fluctuations or invest in growth opportunities. With a monthly burn rate of $13,361, the available cash may not be sufficient to sustain operations for an extended period without additional funding.
Moreover, the low margin level indicates that the company may struggle to achieve significant profitability, especially in a market where consumers have numerous alternatives. While Holme & Hadfield has patents and a strong community presence, these factors alone may not be enough to secure a sustainable competitive advantage in the long run.
Executive Summary
Holme & Hadfield is a consumer products company that specializes in creating unique, aesthetically appealing display cases for collectors of accessories. The company offers storage solutions for various collectibles, such as watches, pocket knives, and challenge coins. Founded in April 2019 by Ian Holme and Phil Hadfield, the company has quickly gained traction, generating $5.46 million in revenues last year, representing a 49.48% increase from 2022 Holme & Hadfield's products are sold through direct-to-consumer channels, Amazon, international markets, and wholesale partnerships.
Despite operating in an extremely competitive market with low barriers to entry, the company's unique value proposition and community-driven innovation have set it apart from competitors like Wolf 1834, Deferich, and Watch Winder Station.
With this raise, Holme & Hadfield plans to capitalize on its impressive SEO positioning and expand its retail partnerships, targeting larger online retailers and eventually securing contracts with Big Box Retail stores like Bloomingdales, Saks, Neiman Marcus, Sears, and Selfridges. Additionally, the company aims to grow its international presence, having already achieved over $500k in sales in new territories such as the UK, Canada, and Germany.
Despite the low margin level, Holme & Hadfield's strategic focus on community-driven product development, combined with its strong revenue growth and effective use of online marketplaces, positions it well for future success. The company's dedicated founders a further strengthen its investment appeal. However, potential investors should be aware of the company's pre-profit status and the highly competitive nature of the market.
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Company Funding & Growth
Funding history
- Total Prior Capital Raised
- $253,315
- VC Backed?
- No
Close Date | Platform | Valuation | Total Raised | Security Type | Status | Reg Type |
---|---|---|---|---|---|---|
10/25/2024 | Republic | $10,000,000 | $655,565 | SAFE | Funded | RegCF / RegD 506(c) |