Lavva
About this raise
Lavva, with a valuation of $3.5 million, is raising funds on Wefunder. The company makes healthy and delicious yogurt using plant-based ingredients. Lavva yogurt contains real and whole-food ingredients, including unripe plantain, coconuts, organic cassava root, and Pili nuts, and has no added sugar or flavors. The business has sold more than 13 million cups of yogurt to over 300,000 customers and is on track to break even in less than two years. Elizabeth Fisher founded Lavva in March 2022. 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 marketing, merchandising, R&D, payroll, and operational expenses.
Investment Overview
Not Funded: $2,000
Deal Terms
Company & Team
Company
- Year Founded
- 2022
- Industry
- Food, Beverage, & Restaurants
- Tech Sector
- Distribution Model
- B2C
- Margin
- Low
- Capital Intensity
- Low
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Synopsis
The global yogurt market is projected to reach $114.6 billion by 2025, according to a report by Grand View Research. This growth is driven by increasing health consciousness among consumers and the rising popularity of plant-based and lactose-free yogurt products.
Lavva is a company that produces plant-based yogurt made from real, whole-food ingredients like unripe plantain, organic cassava root, coconuts, and Pili nuts. The company prides itself on making nourishing food that tastes good and promotes a healthier way of living. Lavva's yogurt contains no added sugar or flavors, making it a healthier alternative to many traditional yogurt products.
Price
Lavva is raising funds on Wefunder at a valuation of $3.5 million. This valuation represents a revenue multiple of 11.93x, which is relatively in line with other online raises in the consumer packaged goods (CPG) industry.
Market
Lavva operates within the U.S. Probiotic Yogurt market, a segment of the Food, Beverage, & Restaurants industry. This market, valued at $800 million, is growing at a modest rate of 6.5%. The expanding consumer awareness about gut health and the nutritional benefits of yogurt are major contributors to this growth. According to Food Dive, approximately 70% of consumers eat yogurt for general health and wellness, while 60% for digestive/gut health.
Lavva's plant-based yogurt, made from whole-food ingredients without added sugar or flavors, aligns with the current consumer trend toward healthier, functional foods. The company is well-positioned to capture a share of the growing probiotic yogurt market. Furthermore, with over 13 million cups of yogurt sold to over 300,000 customers, Lavva has demonstrated significant market acceptance.
However, the market also presents challenges. It is highly competitive, with established players like Silk, Forager, and Chobani. To succeed, Lavva needs to differentiate its product from these competitors, which it appears to be doing through its commitment to natural, whole-food ingredients and a focus on gut health. However, acquiring a significant market share will be difficult.
Team
Lavva is led by founder and Chief Growth Officer Elizabeth Fisher. With seven years of relevant industry experience, Fisher brings a passion for creating healthy and delicious plant-based yogurt to the company. She uses real and whole-food ingredients, such as unripe plantain, coconuts, organic cassava root, and Pili nuts, to provide nourishing and flavorful products.
Under Fisher's leadership, Lavva has achieved significant milestones, selling over 13 million yogurt cups to more than 300,000 customers. However, the company isn't reflecting this past success through its current revenue.
Differentiation
Lavva operates in a highly competitive market with established competitors like Silk, Forager, and Chobani. While Lavva differentiates itself by offering plant-based yogurt made from real and whole-food ingredients, the market for probiotic yogurt is saturated, and profit margins tend to be low. This poses challenges for Lavva's ability to generate significant returns.
Furthermore, Lavva faces barriers to entry that are relatively low, as there are dozens of probiotics or vegan yogurt direct competitors in the market, as well as hundreds of yogurt brands. While the company has not secured any patents, it has established partnerships to support its growth.
Performance
Lavva, a plant-based yogurt company, has faced significant challenges in terms of financial performance. Despite being in operation for nearly seven years and having sold over 13 million cups of yogurt to more than 300,000 customers, the company only generates $42,000 monthly and reported no revenues in 2021. This raises concerns about the company's execution speed or potential past execution problems that may have led to production pauses. These signals are negative for potential investors.
Lavva has established partnerships with major distributors such as Whole Foods and Rainbow Grocery, which provides access to a broader customer base. These partnerships are crucial for expanding Lavva's market reach and driving sales.
Financially, Lavva had cash and cash equivalents of $166,503 as of the most recent reporting period, with a monthly burn rate of $95,058. This is a high burn rate for a company with a small team. The company's margins are also very thin so far. Although the company has raised $1,480,999 in prior funding rounds, it still faces challenges in achieving profitability. Lavva's annual revenue stands at $293,293, but there has been no growth in revenue since the last round.
In conclusion, while Lavva has gained traction regarding user adoption and partnerships with major distributors, the company's financial performance raises concerns. The recent years' limited progress and lack of revenue indicate potential execution issues or delays. Investors should carefully evaluate these factors before considering an investment in Lavva.
Risk
Investing in Lavva carries certain risks that potential investors should be aware of. Firstly, the company operates in an extremely competitive food, beverage, and restaurant market. Lavva competes directly with established brands such as Silk, Forager, and Chobani. These competitors have significant market share and brand recognition, which could make it challenging for Lavva to gain market traction and increase its customer base.
Lavva also faces the risk of needing significant time to scale its sales and distribution. While the company has sold over 13 million cups of yogurt to more than 300,000 customers, it still needs to expand its reach and increase its market presence to achieve sustainable growth. Building brand awareness and securing distribution partnerships can be time-consuming and resource-intensive processes.
Financially, Lavva has a negative net income and a high burn rate, indicating a reliance on external funding to sustain its operations. The company reported a net loss of $1,130,885.00 in its most recent fiscal year. This financial performance raises concerns about Lavva's ability to generate sustainable revenue and achieve profitability in the near future.
Additionally, Lavva operates in a market with low entry barriers, which increases the risk of new competitors entering the space and capturing market share. As plant-based and healthy food trends continue to grow, more companies may enter the market, increasing competition and potentially impacting Lavva's market position.
Bullish Outlook
Lavva is poised to disrupt the yogurt industry with its plant-based, healthy, and delicious offerings. Unlike traditional yogurts filled with additives and sweeteners, Lavva uses real and whole-food ingredients, such as unripe plantain, coconuts, organic cassava root, and Pili nuts, to create a nourishing and flavorful product.
The market potential for Lavva in the US probiotic yogurt segment is high. With a focus on providing a healthier alternative, Lavva has already gained a significant customer base, selling over 13 million cups of yogurt to more than 300,000 customers. This strong market traction demonstrates the demand for healthier, more sustainable food options.
With backing from venture capital investors Rocana Venture Partners and Generation Capital, Lavva is well-supported to execute its growth plans and capitalize on the growing demand for plant-based food products.
Bearish Outlook
Lavva operates in an extremely competitive food, beverage, and restaurant market. The company faces direct competition from well-established brands like Silk, Forager, and Chobani, which have extensive distribution networks, brand recognition, and loyal customer bases. These competitors have a significant advantage over Lavva. They may make it challenging for the company to gain market share and establish itself as a leader in the probiotic yogurt market.
The barriers to entry in the industry are relatively low. Other companies can easily replicate Lavva's recipe and enter the market with their own plant-based yogurt offerings. This lack of significant differentiation risks Lavva's ability to maintain a competitive advantage and attract a large customer base.
Despite selling over 13 million cups of yogurt to 300,000 customers over seven years, Lavva has yet to achieve profitability. The company's net income for 2022 indicated that the company lost more than $1 million, a high number for a yogurt company. Additionally, Lavva's revenue growth has been stagnant since the last funding round, suggesting that the company may struggle to increase sales and generate sustainable revenue.
Furthermore, while Lavva has partnerships and a dedicated team, its financials raise concerns. The company's annual revenue is relatively low, and has a low cash balance.
Executive Summary
Lavva is a food technology company that produces plant-based yogurt. The company's product is made from whole-food ingredients like pili nuts, unripe plantain, organic cassava root, and coconuts. Lavva's offering is unique in the market, as it contains no added sugar or flavors, aligning with the growing consumer preference for natural and healthy food options.
Despite operating in a highly competitive market with established brands like Silk, Forager, and Chobani, Lavva has made significant strides. The company has sold over 13 million cups of yogurt to over 300,000 customers and is distributed in popular grocery chains like Whole Foods and Rainbow Grocery. Lavva has also attracted venture capital investment from Rocana Venture Partners and Generation Capital.
However, the company is still in the pre-profit stage, with an annual revenue of $293,293 and a net income of $-1,130,885. The company is also burning through cash at a rate of $94,240.42 per month. This raises concerns about the company's ability to achieve profitability and sustain its operations in the long run.
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Company Funding & Growth
Funding history
- Total Prior Capital Raised
- $1,480,999
- VC Backed?
- Yes
Close Date | Platform | Valuation | Total Raised | Security Type | Status | Reg Type |
---|---|---|---|---|---|---|
04/29/2024 | Wefunder | $3,500,000 | $2,000 | Convertible Note | Not Funded | RegCF |