Jibby Coffee

Jibby Coffee

Early Stage

Enhancing Coffee with Superfoods

Enhancing Coffee with Superfoods

Overview

Raised to Date: Raised: $73,439

Total Commitments ($USD)

Platform

Wefunder

Start Date

08/17/2023

Close Date

04/29/2024

Min. Goal
$50,000
Max. Goal
$124,000
Min. Investment

$100

Security Type

SAFE

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Early Bird Val. Cap

$4,000,000

Valuation Cap

$5,000,000

Discount

20%

Rolling Commitments ($USD)

Status

Active

Reporting Date

09/26/2023

Days Remaining

216

% of Min. Goal

147%

% of Max. Goal

59%

Likelihood of Max
extremely
Avg. Daily Raise

$1,836

Momentum
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Year Founded

2020

Industry

Food, Beverage, & Restaurants

Tech Sector

Non-Tech

Distribution Model

B2B/B2C

Margin

Low

Capital Intensity

Low

Location

Key Biscayne, Florida

Business Type

Growth

Jibby Coffee, with a valuation of $5 million, is raising funds on Wefunder. The company makes enhanced coffee and tea with the power of superfoods. Jibby Coffee’s beverages contain the natural benefits of cannabinoids and adaptogens and provide energy, stress relief, and mood balance. The ingredients of Jibby Coffee’s products include low-acidity coffees and teas along with superfoods, including collagen, hemp-CBD, ginkgo biloba, acacia fiber, turmeric, MCT oil, and lion’s mane. James Reina and Alvaro Ortega founded Jibby Coffee in July 2020. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $124,000. The campaign proceeds will be used for sales and marketing, digital advertising, inventory, product development, research and development of new product lines, retail partnerships, hiring, and business expenses.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$163,320

$30,776

COGS

$114,917

$12,673

Tax

$0

$0

 

 

Net Income

$-318,897

$-104,519

Summary Balance Sheet

FY 2022 FY 2021

Cash

$59,359

$235,390

Accounts Receivable

$10,953

$595

Total Assets

$173,236

$263,163

Short-Term Debt

$84,276

$66,086

Long-Term Debt

$520,000

$280,000

Total Liabilities

$604,276

$346,086

Financials as of: 08/17/2023
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Analyst Report

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Synopsis

Founded in July 2020, Jibby Coffee is a functional beverage company that offers enhanced coffee and tea brewed with superfoods. The company's beverages contain natural benefits from cannabinoids and adaptogens and are designed to provide energy, mood balance, and stress relief. Jibby Coffee's products have low-acidity coffees, teas, and superfoods, including collagen, hemp CBD, ginkgo biloba, acacia fiber, turmeric, MCT oil, and lion's mane.

Currently, Jibby Coffee's products are available through the company's online store and select retail partnerships. The company's current crowdfunding campaign on Wefunder has a minimum target of $50,000 and a maximum target of $124,000. The campaign proceeds will be used for sales and marketing, digital advertising, inventory, product development, research and development of new product lines, retail partnerships, hiring, and business expenses.

Next Section: Price

Price

Jibby Coffee offers equity through a SAFE (Simple Agreement for Future Equity) at a $5 million valuation. While Jibby Coffee has an exciting product offering with its enhanced coffee and tea infused with superfoods, the valuation seems high, given the company's current stage and financials. Jibby Coffee generated $163,320 in revenue in its most recent fiscal year, which resulted in a revenue multiple of approximately 30.61. This multiple is relatively high for a company in the early stage of development with limited revenue growth. Jibby Coffee's margin level is also low, indicating potential challenges in generating profits.

Investors should carefully consider the valuation of the company's current financials and growth potential. While Jibby Coffee has a unique product and a growing market for functional coffee, the current valuation may not be justified based on the company's revenue and profitability. It is essential to assess the company's ability to scale and capture a significant share of the US Functional Coffee Market to generate substantial returns for investors.

Next Section: Market

Market

The US Functional Coffee Market is relatively small, estimated at $987.5 million. At a market growth rate of just 2%, the market potential seems to be very low. 

Additionally, it's important to note the competitive nature of this market. Established players like Nestle, Bulletproof 360, and Tata Coffee already provide functional coffee products. Moreover, indirect competitors such as Starbucks and Dunkin' are dominant players in the overall coffee market and have the potential to move more heavily into the functional coffee space.

Next Section: Team

Team

CEO James Reina and COO Alvaro Ortega founded Jibby Coffee. Reina has a background in online sales and has previously worked in the coffee industry. Ortega has experience in e-commerce operations, which will serve Jibby Coffee well as it continues to expand its online presence.

As Jibby Coffee continues to grow, it will be necessary for the team to expand and bring on additional talent to support its vision. This could include hiring individuals with sales, marketing, and product development expertise. 

Next Section: Differentiation

Differentiation

Jibby Coffee operates in a highly competitive market, with established competitors such as Starbucks, Dunkin', Nestle, Bulletproof 360, and Tata Coffee. While Jibby Coffee offers enhanced coffee and tea with the power of superfoods, its differentiation level in terms of quality and price is low and similar to other solutions in the market. 

Although Jibby Coffee positions itself as a wellness solution that seamlessly fits into the daily ritual of many Americans, it faces significant competition from many direct competitors in the functional coffee market. With low entry barriers, many companies offer similar products and target the same customer base.

Given the highly competitive landscape and the presence of well-established players, Jibby Coffee will need to clearly define and communicate its unique value proposition to gain market share and successfully differentiate itself in the industry.

Next Section: Performance

Performance

As an early-stage company, Jibby Coffee has not yet achieved profitability. However, it has already gained traction in the market and has paying customers. The company generated $163,320 in annual revenue, indicating demand for its unique product offerings. However, the company's margins are pretty low, with gross margins at 29%. Moving forward, this will be a concern, mainly when the company invests more heavily in a retail rollout where margins tend to be lower than DTC. While the company does have 350 small-scale retailers selling the product, Jibby will need to sign a significant player like Whole Foods or Costco to scale the company in any meaningful way. 

Despite this, Jibby Coffee has already raised $576,000 in prior rounds. This demonstrates investor interest in the company's unique product offering and potential for growth. However, it is essential to note that Jibby Coffee's financials indicate a monthly burn rate of $26,574.75, suggesting ongoing expenses that must be managed effectively as the company seeks to achieve profitability.

Next Section: Risk

Risk

Jibby Coffee faces several risks that potential investors should take into consideration. One of the main risks is the highly competitive landscape in the coffee industry, with well-established competitors such as Starbucks and Dunkin'. Jibby Coffee must differentiate and effectively market its products to gain market share. Additionally, the company has a high burn rate, indicating significant expenses compared to its revenue. Moreover, the company's valuation appears to be overvalued, which could impact potential returns for investors. Overall, Jibby Coffee operates in a competitive market, faces scalability challenges, and carries financial risks that investors should carefully consider.

Next Section: Bullish Outlook

Bullish Outlook

Jibby Coffee operates in the growing market of functional coffee, which offers unique wellness benefits to consumers. The company's beverages are infused with superfoods, including cannabinoids and adaptogens, providing energy, stress relief, and mood balance. Jibby Coffee's products combine low-acidity coffees and teas with collagen, hemp CBD, ginkgo biloba, acacia fiber, turmeric, MCT oil, and lion's mane.

The functional coffee market has gained traction among consumers seeking healthier alternatives to traditional coffee. Jibby Coffee stands out by catering to the wellness needs of over two-thirds of Americans. Its products fit seamlessly into the daily routines of consumers who are increasingly aware of the benefits of superfoods and are looking for convenient ways to incorporate them into their diets.

Despite being in the early stage of development, Jibby Coffee has demonstrated some user adoption and has the potential to tap into the growing demand for functional beverages. 

Next Section: Bearish Outlook

Bearish Outlook

Jibby Coffee operates in a highly competitive market, with well-established players like Starbucks and Dunkin' dominating the coffee industry. While Jibby Coffee positions itself as a unique player in the functional coffee market, it still faces intense competition from other brands like Nestle, Bulletproof 360, and Tata Coffee. These companies have already established a strong presence and brand loyalty among consumers. Jibby Coffee may struggle to gain significant market share and differentiate itself from these established competitors.

Furthermore, Jibby Coffee's valuation of $5 million seems inflated, considering its current financial performance. The company's financials do not support such a high valuation, with an annual revenue of only $163,320 and a negative net income of $318,897. 

The low margin level of Jibby Coffee indicates that the company may face challenges in generating sufficient profits from its products. The competitive landscape and the low entry barriers in the industry further add to the risks and uncertainties surrounding Jibby Coffee's future success.

Next Section: Executive Summary

Executive Summary

Jibby Coffee offers enhanced coffee and tea brewed with superfoods, including cannabinoids and adaptogens. These ingredients provide a range of benefits, such as energy, stress relief, and mood balance. The company's product line includes low-acidity coffees and teas combined with superfoods like collagen, hemp-CBD, ginkgo biloba, acacia fiber, turmeric, MCT oil, and lion's mane. This unique approach positions Jibby Coffee in the functional coffee market, aiming to provide a wellness solution that fits seamlessly into consumers' daily routines.

However, Jibby Coffee operates in a highly competitive industry, with major players like Nestle, Bulletproof 360, and Tata Coffee as direct competitors and Starbucks and Dunkin' as indirect competitors. The company has not established partnerships and is not backed by venture capital. While it has raised $576,000 in prior rounds, Jibby Coffee has reported a net income loss of $318,897 for the most recent fiscal year, and its annual revenue stands at $163,320. The company's burn rate is relatively high and is currently in a pre-profit development phase.

Despite these challenges, Jibby Coffee seeks to raise funds with a valuation of $5 million. The proceeds from the current crowdfunding campaign will be used for various purposes, including sales and marketing, digital advertising, inventory, product development, research and development of new product lines, retail partnerships, hiring, and business expenses. While the company's unique product offering and focus on wellness could appeal to health-conscious consumers, investors should consider the company's financial performance and competitive landscape when evaluating this investment opportunity.

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Jibby Coffee on Wefunder 2023
Platform: Wefunder
Security Type: SAFE
Valuation: $5,000,000

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