Jibby Coffee

Enhancing Coffee with Superfoods
Overview
Raised: $73,439
Rolling Commitments ($USD)
Active
09/26/2023
216
147%
59%
$1,836
2020
Food, Beverage, & Restaurants
Non-Tech
B2B/B2C
Low
Low
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 |
Upgrade to gain access
-
$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
Edge
Analyst Report
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Disclaimer
The AI-enhanced analyst reports ("AI reports") provided by KingsCrowd are experimental in nature and may exhibit certain limitations and uncertainties. These reports are generated in part or in whole by artificial intelligence algorithms, which have the potential to hallucinate (e.g. generate fictitious information), interpret data incorrectly, omit information, or reference sources of data that may contain inaccuracies.
While we strive to provide reliable and accurate information, it is essential to understand that the AI reports should not be solely relied upon as the basis for making investment decisions. We strongly advise all users to exercise caution, conduct thorough due diligence, and verify data and facts independently before making any investment decisions.
The AI reports are intended to serve as one of the tools in your investment research process, offering additional insights and perspectives, and exposing more of our dataset to customers by transforming that data into natural language. They should be used in conjunction with other sources of information and professional judgment. KingsCrowd does not assume any liability for the accuracy, completeness, or reliability of the AI reports or any investment decisions made based on them.
Investing in startups and early-stage companies involves inherent risks, and it is essential to consult with qualified professionals and seek independent financial advice before making any investment decisions.
By accessing and using the AI reports, you acknowledge and accept the experimental nature of this feature and agree to use it at your own risk.
Please note that this disclaimer may be subject to updates and revisions as we continue to enhance our AI algorithms and improve the accuracy and reliability of the generated reports.