Karma and Luck
About this raise
Karma and Luck, with a valuation of $44.94 million, is raising funds on StartEngine. It is a modern spiritual lifestyle brand known for its curated jewelry and high-vibrational home decor. Karma and Luck creates meaningful jewelry and home decor that celebrate spirituality, cultural diversity, and connection. The business has surpassed $100 million in sales and served more than 450,000 customers in 165 countries. Vladi Bergman founded Karma and Luck in March 2016. The current crowdfunding campaign has a minimum target of $123,999.40 and a maximum target of $1.23 million. The campaign proceeds will be used for research and development, inventory, company employment, working capital, marketing, and operations.
Investment Overview
Committed $36,781 :
Deal Terms
Company & Team
Company
- Year Founded
- 2016
- Industry
- Consumer Products, Goods & Services
- Tech Sector
- Distribution Model
- B2C
- Margin
- High
- Capital Intensity
- High
Financials
- Revenue +9% YoY
- $25,757,830
- Monthly Burn
- Profitable
- Cash on Hand
- $1,800,000
- Gross Margin
- 78%
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Synopsis
Karma and Luck is a modern spiritual lifestyle brand specializing in curated jewelry and high-vibrational home decor. The company has built a reputation for creating products that celebrate spirituality, cultural diversity, and connection. With over $100 million in sales and a customer base exceeding 450,000 individuals across 165 countries, Karma and Luck caters primarily to consumers who value intentional living and spiritual connection through their lifestyle choices.
The problem Karma and Luck addresses is the growing desire among consumers for products that not only serve functional purposes but also hold deeper meaning and resonance with their personal beliefs and lifestyles. Many individuals seek to incorporate elements of spirituality and cultural diversity into their daily lives, yet often find it challenging to find products that align with these values.
Karma and Luck provides a solution by offering a range of jewelry and home decor items curated with intention and inspired by timeless traditions. These products aim to foster a sense of connection and spirituality, allowing customers to integrate meaningful elements into their everyday environments. By focusing on high-vibrational designs, the company seeks to enhance the aesthetic and spiritual ambiance of its customers' homes and personal style.
In everyday scenarios, individuals often seek to create living spaces and personal styles that reflect their beliefs and aspirations. Karma and Luck's offerings allow consumers to express their spirituality and cultural appreciation through tangible, aesthetically pleasing products. This approach resonates with those who wish to surround themselves with items that not only look appealing but also carry significance and purpose.
Price
Karma and Luck is currently offering Common Equity in its fundraising round. The company's pre-money valuation is approximately $44.9 million, with shares priced at $1.96 each. This valuation places the company's revenue multiple at 1.7x based on its recent annual revenue of $25.8 million.. This is a very low valuation-to-revenue multiple when compared to the overall crowdfunding industry and suggests the company is fairly valued.
Investing in common equity grants shareholders voting rights and potential dividends, but it lacks the preferential treatment of preferred equity, such as liquidation preferences. This can impact the return potential if the company encounters financial difficulties or liquidation events.
The exit potential for Karma and Luck, as a consumer products company, is influenced by its ability to scale operations and capture a larger market share. To provide a 10X return to investors, the company would need to achieve a post-exit valuation of approximately $449 million, assuming no dilution. Achieving this would likely require significant expansion in its product line, increased sales volume, and possibly entering new markets to broaden its customer base.
Market
The global jewelry market, valued at approximately $382.8 billion, is experiencing a growth rate of 4.1%. Key market drivers include increasing consumer interest in personalized and meaningful products, as well as a growing trend towards integrating cultural and spiritual elements into lifestyle choices. These drivers align well with Karma and Luck's focus on spiritual and culturally diverse jewelry and home decor, providing opportunities for expansion within this broad market.
However, the company's offerings may primarily appeal to a niche segment of the market. Customers who prioritize spirituality and cultural diversity in their purchasing decisions are likely to be more attracted to Karma and Luck's products. This focus could limit its appeal to a broader audience, potentially constraining market reach.
Karma and Luck's ability to leverage these market trends could positively influence its growth by tapping into the rising demand for products that resonate on a personal and spiritual level. Conversely, the challenge lies in expanding its customer base beyond its current niche to capture a larger share of the overall market.
Team
Vladi Bergman, the founder and CEO of Karma and Luck, has had a diverse entrepreneurial career spanning multiple industries. Born in Ukraine and raised in Israel, Bergman's global upbringing inspired his passion for exploring different cultures and traditions. He previously founded Play4Skill in 2006, a software company where he raised over $3 million in funding and served as VP Marketing, and later launched Spa Lift in 2011 and CamilaJewelry.com in 2014. In March 2015, he co-founded Karma and Luck, transforming it from a trading solutions company into a rapidly growing spiritual jewelry brand. Bergman's leadership approach emphasizes cultural and spiritual elements in product design, with ambitious plans to expand nationally and transform the company into "the Nike of the Spiritual World." His vision includes projected sales of $100 million within two to three years and continued commitment to corporate social responsibility, including donations to organizations like Make-A-Wish Southern Nevada. Earning a spot on Inc. Magazine's list of fastest-growing private companies in 2021, Bergman has demonstrated a remarkable ability to adapt across industries while maintaining a focus on cultural exploration and spiritual connections.
Differentiation
Karma and Luck operates in a competitive market within the spiritual and intentional jewelry sector. While the company has established itself as a modern lifestyle brand offering unique jewelry and home decor inspired by global traditions, it faces competition from several similar businesses. Some of its main competitors include Purpose Jewelry, Sequin, Chan Luu, and Gorjana, all of which target similar customer segments with their jewelry and accessories. These companies vary in size and revenue, with annual earnings ranging from $2 million to $50 million. Karma and Luck itself generates an estimated revenue of $3.5 million annually and employs around 92 people. The competitive landscape also includes larger, more established jewelry brands that may offer similar products or target overlapping customer bases. To differentiate itself, Karma and Luck focuses on its spiritual and intentional design elements, as well as its commitment to social responsibility through charitable donations. The company's presence in both physical retail locations, such as airports and shopping centers, and online platforms allows it to compete across multiple channels in this dynamic market.
Performance
Karma and Luck has demonstrated steady financial performance with an annual revenue of $25.8 million in the most recent fiscal year, up from $23.6 million the previous year. This represents a year-over-year growth rate of 9.1%, indicating consistent demand for its products.
The company's net income for the most recent fiscal year was $243k, a significant improvement from a net loss of $85k in the prior year. This positive shift highlights the company's ability to manage costs and improve profitability.
Karma and Luck is profitable and the company's most recent cash on hand is reported at $1.8 million, providing a buffer to support ongoing operations and strategic initiatives.
Overall, Karma and Luck's financial metrics reflect a stable growth trajectory and effective cost management, positioning the company well to continue expanding its market presence.
Risk
Karma and Luck faces several specific risks that potential investors should consider. Firstly, the company's high level of competition in the consumer products sector presents a significant challenge. With over 100 direct competitors, distinguishing itself and maintaining market share will require continuous innovation and effective marketing strategies.
The company's capital intensity level is high, indicating that significant investment is necessary to maintain operations and support growth. This dependence on capital could impact the company's financial flexibility, particularly if it faces challenges in raising additional funds.
While Karma and Luck has achieved profitability, the company carries a substantial amount of long-term debt, totaling $10 million, which could strain cash flow and limit operational agility.
Bullish Outlook
The bullish outlook for Karma and Luck is supported by several positive factors. The global jewelry market, valued at $382.8 billion, presents significant opportunities for growth, particularly with the increasing consumer interest in products that convey personal and spiritual meaning. Karma and Luck's focus on high-vibrational designs and cultural diversity uniquely positions it to capitalize on these market trends.
The company's strong team is led by CEO Vladi Bergman, whose extensive industry experience aligns well with the strategic goals of expanding product offerings and enhancing market reach. This leadership strength is a critical asset in navigating the competitive landscape and executing growth strategies effectively.
Financially, Karma and Luck demonstrates a healthy standing with a positive net income and a zero monthly burn rate, indicating efficient cash management. The company's $1.8 million in cash reserves provides a solid foundation for supporting future growth initiatives, including potential market expansions.
Growth drivers for the company include the potential to leverage emerging trends in personalized and meaningful consumer products. Expanding into new geographic markets and broadening its customer base beyond its current niche could further enhance growth prospects. Additionally, continued product diversification and alignment with consumer preferences for spiritual and cultural elements offer avenues for increased market penetration.
Bearish Outlook
The bearish outlook for Karma and Luck is shaped by several key factors. The company operates within a highly competitive market with over 100 direct competitors, which poses a challenge in maintaining and expanding its market share. This competitive pressure may necessitate increased spending on marketing and innovation to differentiate its products effectively. Despite its unique focus on spiritual and culturally diverse designs, the company may struggle to stand out in a crowded marketplace.
Concerns also arise regarding Karma and Luck's financial structure, particularly its substantial long-term debt of $10 million. This debt could limit the company’s financial flexibility and ability to invest in growth opportunities, potentially hindering its capacity to scale operations or respond to market changes swiftly.
Additionally, the company's niche market focus, while distinctive, may limit broader market adoption. Expanding beyond its current customer base could be challenging, especially if consumer preferences shift or if it fails to resonate with a wider audience seeking more diverse offerings.
Executive Summary
Karma and Luck is a modern spiritual lifestyle brand offering curated jewelry and high-vibrational home decor, appealing primarily to consumers interested in spirituality and cultural diversity. The company has established a significant presence, with over $100 million in sales and a customer base spanning 165 countries.
Financially, Karma and Luck is offering Common Equity at a valuation of approximately $44.9 million, with a price per share of $1.96. The company has shown a stable growth rate of 9.1% year-over-year, with an annual revenue of $25.8 million. Its financial health is supported by a positive net income and strong cash management, with $1.8 million in cash on hand.
The global jewelry market, valued at $382.8 billion, presents opportunities for growth, driven by consumer interest in personalized and meaningful products. Karma and Luck differentiates itself through its focus on spiritual and culturally diverse designs, catering to a niche but growing segment of the market. This differentiation positions the company well amidst competitors like Alex and Ani and Satya Jewelry.
The team, led by CEO Vladi Bergman, is well-aligned with the company's goals, leveraging significant experience in the consumer goods sector. However, gaps in international expansion and digital marketing could pose challenges. The risks include high competition and capital intensity, with substantial long-term debt that could impact financial flexibility.
The bullish outlook for Karma and Luck is supported by its stable financial performance and alignment with market trends favoring personalized, meaningful products. The bearish perspective highlights the competitive market and the need for strategic expansion to maintain growth.
Overall, Karma and Luck presents a balanced investment opportunity. The company's established market presence and unique product offerings provide a solid foundation for growth. However, potential investors should consider the competitive landscape and the company's ability to expand beyond its niche to capture a larger market share.
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Company Funding & Growth
Funding history
- Total Prior Capital Raised
- $0
- VC Backed?
- No
Close Date | Platform | Valuation | Total Raised | Security Type | Status | Reg Type |
---|---|---|---|---|---|---|
03/27/2025 | StartEngine | $44,936,589 | $36,781 | Equity - Common | Active | RegCF |