Jane West

Growth Stage

One-stop shopping for cannabis consumers, established female led global brand

Analytics

Raised to Date: Raised: $205,000

Aggregate Commitments $

Platform

Republic

Start Date

03/08/2021

Close Date

04/24/2021

Min. Goal

$25,000

Max. Goal

$205,000

Min. Investment

$25

Security Type

SAFE

Funding Type

RegCF

Series

Seed

Valuation Cap

$15,000,000

Discount Rate

0%

Rolling Commitments $

Status
Funded
Reporting Date

04/30/2021

Days Remaining
Funded
% of Min. Goal

820%

% of Max. Goal

100%

Likelihood of Max
Funded
Avg. Daily Raise

$4,362

Momentum
Funded
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Location

Denver, Colorado

Industry

Alcohol, Tobacco, & Recreational Drugs

Tech Sector

Non-Tech

Distribution Model

B2C

Margin

High

Capital Intensity

High

Business Type

Life Style

Jane West, with a valuation cap of $15 million, is raising funds on Republic. The company makes and sells products needed to improve the experience and benefits of cannabis in both legalized and prohibition states. The hemp-derived products of Jane West include CBD sticks, CBD coffee, hemp mini joints, and hemp blends. The company also offers a proprietary travel collection. Jane West founded Jane West in March 2016. The proceeds of the current crowdfunding round, with a minimum raise of $25,000 and a maximum raise of $205,000, will be used to launch new products. Jane West is a globally-acknowledged brand and has raised over $1.8 million since its inception. The company’s 30 signature products are available both online and in stores in 13 US states and across Canada.

Summary Profit and Loss Statement

Most Recent Year Prior Year

Revenue

$202,814

$204,439

COGS

$107,275

$97,542

Tax

$0

$0

 

 

Net Income

$-374,839

$-368,066

Summary Balance Sheet

Most Recent Year Prior Year

Cash

$19,481

$45,380

Accounts Receivable

$12,900

$59,972

Total Assets

$244,588

$302,302

Short-Term Debt

$444,148

$253,023

Long-Term Debt

$-199,560

$49,279

Total Liabilities

$244,588

$302,302

Financials as of: 03/08/2021
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
Jane West 04/24/2021 Republic $15,000,000 $205,000 SAFE Funded RegCF
Jane West 04/20/2020 Republic $15,000,000 $348,783 SAFE Funded RegCF
Jane West 04/30/2018 Republic $15,000,000 $189,522 SAFE Funded RegCF
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Ratings KingsCrowd Startup Rating Methodology Article

Analyst Report Analyst Report Methodology Article

Synopsis

People from all walks of life have been smoking marijuana for thousands of years. In the U.S., marijuana has a long history of stigmatization, which has caused disproportionate arrests of Black and brown people over the last several decades. Now, though, marijuana is a booming industry thanks to widespread legalization in 33 states and counting

The rapid boom of the cannabis market sets it apart from almost any other industry. There are few examples of such popular consumer products going from illegal to legal virtually overnight. The global market for legal marijuana was valued at $17.5 billion in 2019 and is projected to grow at an enormous CAGR of 17.8% through 2027. Now that weed is legal in the majority of U.S. states, demand is huge, and a number of companies are rushing to deliver. 

Jane West is a stylish marijuana brand selling cannabis or CBD products and accessories to consumers in the U.S. and Canada (with a focus on women). Jane West products range from art deco glassware to day and night mini-joints, modern grinders, CBD coffee, and more. Jane West products are primarily sold direct-to-consumer on various e-commerce sites, but an upcoming royalty-based merchandising agreement will distribute products even farther around the world later this year. 

Jane West’s current Republic raise has been rated a Neutral Deal by the KingsCrowd investment team. 

Price

Jane West is raising a Crowd SAFE at a $15 million valuation with no discount. This isn’t an egregious valuation, but it doesn’t represent a striking deal for investors. Jane West’s 2019 revenues (the most recent year reported) were just over $200,000, and $15 million is a steep revenue multiple for a consumer products business. While Jane West has some intrinsic brand value, ultimately its products are competing against a wide landscape of other marijuana brands, and it doesn’t benefit from extensive proprietary intellectual property. As a result, Jane West’s price rating is only middle-of-the-road.

Market

The marijuana market is undoubtedly booming. A CAGR of 17.8% over the next seven years is nothing to scoff at, nor is the market’s $17.5 billion valuation in 2019. However, even a booming market can still be relatively niche. Thinking practically, not every individual has an interest in buying weed or weed-related products, even if cannabis is now legal. While many people are avidly committed to their lifestyle of cannabis consumption, many others are not. Only 12% of Americans smoke weed, dramatically limiting Jane West’s market potential. The brand’s obtainable market size is even smaller because competition among cannabis brands is intense, and it seems like new CBD and weed companies launch every week. 

While Jane West is playing in a rapidly expanding market, the universe of those who are interested in cannabis products is still relatively niche. Moreover, Jane West has to do battle with popular, well-funded competitors and a host of upstart brands trying to capture attention from the same small pool of consumers. Therefore, Jane West’s market rating is middle-of-the-road.

Team

Jane West was founded by Jane West herself, the company’s CEO. West was a corporate events manager when she started using her events expertise to create Friday night cannabis hangouts in Colorado. As these were the early days of legal marijuana, West was fired from her corporate job for the press she was receiving for these popular cannabis parties. She even received criminal charges for exceeding legal consumption at those events. 

West spun her newly-found public persona into a full-blown personal brand as a cannabis entrepreneur. She founded a women’s cannabis industry network and launched her eponymous cannabis brand shortly after in 2013. Now she’s the CEO of Jane West and still seems to be involved in other cannabis-related ventures related to her fame within the industry. 

The other half of the Jane West team is Kate Csillagi, vice president of sales. Csillagi has strong expertise in cannabis sales. She previously served as the vice president of sales for GRAV, another cannabis accessories company, for almost ten years. 

The Jane West brand undoubtedly benefits from the person Jane West’s industry recognition, and an experienced vice president of sales is also an asset. However, the founder Jane West doesn’t have any meaningful business experience or business credentials. While she is undoubtedly passionate about cannabis, she can’t leverage any specific expertise as the head of a consumer brand or growing startup. Therefore, the company’s team score is only slightly above average. 

Differentiators

Jane West has a specific point of view on what cannabis consumers lack: well-branded, stylish products that make smoking weed or ingesting CBD seem less intimidating and more accessible, particularly to certain demographics like women. The company seems to have a correct read on the space. Many weed brands are aggressive, masculine, hipster, or all three, catering to those with deep experience with cannabis. Jane West’s artful glassware and simple, day-vs-night branded products do connote a different cannabis experience than that of its competitors. 

However, Jane West faces countless competitors. The marijuana industry has been hailed as arguably one of the fastest-growing, biggest-opportunity industries of the modern era. Enterprising entrepreneurs have rushed into the space to create weed delivery companies, weed-growing companies, weed accessories companies, and every other type of marijuana company under the sun. Jane West is vying for consumer attention among a crowded landscape of cannabis brands, and its products aren’t defensible. Any company with a bit more traction could begin offering similar product lines, and Jane West could be seriously threatened. 

Jane West is well-branded and clearly differentiated from competitors. However, the sheer volume of competition in the marijuana industry, combined with Jane West’s low product defensibility, limits the company’s competitive advantage. Therefore, Jane West’s differentiation score is moderate. 

Performance

Jane West has built a nationwide presence with partners in many U.S. states and Canada, plus a merchandising agreement that will promote the brand internationally in 2021. In addition, Jane West sells direct-to-consumer through a couple of branded e-commerce sites. These channels generated $202,814 in revenue for 2019, the last year of financials available. That year, the company posted a net loss of $374,839. While 2020 financials aren’t yet available, founder Jane West (the person) responded to a Republic discussion question indicating that 2020 revenue roughly doubled from 2019. 

Jane West has also enjoyed fundraising success. The company has raised $1.8 million to date, the combination of a $1.3 million seed round and a prior $500,000 crowdfund raise on Republic. 

While 2020 financials aren’t yet available, it seems that Jane West was able to increase revenue substantially from 2019 to 2020. While this growth is encouraging, the company is still nowhere near reaching profitability at this time. However due to the combination of decent revenue and past fundraising success, the performance score for Jane West is its highest across all five metrics.

Bearish Outlook

The cannabis industry is a hot topic these days, and a huge number of entrepreneurs have taken advantage. The marijuana market is becoming oversaturated with brands that all have a take on the best varieties of weed, the best smoking accessories, the best CBD products, etc. There simply aren’t enough cannabis consumers to justify the number of products available in this space. 

While Jane West does offer distinctive products that might well appeal to less experienced cannabis consumers, the company still faces harsh competition from a huge landscape of other cannabis brands. That’s evident in the company’s progress. Jane West launched the brand in 2016, and revenues in 2019 were still just over $200,000. 

Jane West has won some loyal customers and will likely continue to generate attention due to founder Jane West’s personal brand in the cannabis space. However, there are signals that growth is stagnant, and investors might not be able to reap a return on their investment at this steep valuation.

Bullish Outlook

While there are a huge number of companies competing for a limited number of cannabis-friendly consumers, Jane West does have a unique stake within that landscape. Jane West is actually trying to expand the market of cannabis customers through accessible products that encourage women and other demographics who are unfamiliar with marijuana to give it a try. 

Jane West products clearly strike a chord with some consumers and cannabis partners. The company reportedly doubled revenues in 2020 and has struck a merchandising deal that will put Jane West products in front of customers in many countries worldwide. Jane West seems to be employing a broad strategy of product development and distribution, selling a wide range of products across a variety of channels and countries to create a widely-known brand. This approach, combined with the company’s differentiated branding and product lines, could propel Jane West to capture more value from the growing cannabis market.

Executive Summary

Jane West is a cannabis brand selling weed products and marijana accessories in a number of states and countries. The company was founded by Jane West, who has made somewhat of a name for herself as the rebel cannabis consumer. With West’s leadership, her eponymous brand has extended to numerous product lines and numerous revenue streams (royalties, merchandising, etc.). 

On the other hand, Jane West hasn’t grown explosively since its founding in 2016, and it doesn’t have a wide moat to defend itself from the crowded landscape of cannabis brands vying for consumer attention. It’s also worth noting that, while the marijuana industry is touted for its explosive growth, only 12% of Americans actually smoke weed. That’s a narrow market to be bombarded by so much competition. Therefore, Jane West has been rated a Neutral Deal. 

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

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Jane West on Republic
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Platform: Republic
Security Type: SAFE
Valuation: $15,000,000
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