Pickleball Superstore

Pickleball Superstore

Early Stage

Pickleball Store

Pickleball Store

Overview

Raised this Round: Raised: $250,000

Total Commitments ($USD)

Platform

Andes Capital

Start Date

07/25/2023

Close Date

10/31/2023

Min. Goal
$50,000
Max. Goal
$250,000
Min. Investment

$100

Security Type

Equity - Common

Series

Pre-Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$10.00

Pre-Money Valuation

$4,580,000

Year Founded

2022

Industry

Consumer Products, Goods & Services

Tech Sector

MarketplaceTech

Distribution Model

B2C

Margin

Medium

Capital Intensity

Low

Location

TUSTIN, California

Business Type

Growth

Pickleball Superstore is raising funds on Andes Capital. It is an online store that sells pickleball paddles, balls, and accessories. Pickleball Superstore is created by pickleball players for pickleball players and provides high-quality products, game-improving content through its blog, and a rewards program for loyal customers. The business also operates a physical in Tustin, California. Steve Raack, Ted, and Pat founded Pickleball Superstore in February 2022. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $250,000. The campaign proceeds will be used for marketing and inventory.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$401,135

$0

COGS

$227,258

$0

Tax

$0

$0

 

 

Net Income

$63,087

$0

Summary Balance Sheet

FY 2022 FY 2021

Cash

$30,400

$0

Accounts Receivable

$33,259

$0

Total Assets

$245,747

$0

Short-Term Debt

$64,188

$0

Long-Term Debt

$0

$0

Total Liabilities

$64,188

$0

Financials as of: 07/25/2023
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Synopsis

Pickleball Superstore is an online retailer that specializes in providing a wide range of pickleball paddles, balls, and accessories. The company was founded by pickleball enthusiasts who aimed to create the ultimate destination for the pickleball community. With a mission to become the number one pickleball store in the world, Pickleball Superstore offers a comprehensive selection of high-quality products and prides itself on delivering exceptional customer service.

Next Section: Price

Price

Pickleball Superstore offers equity at a $4.58 million valuation. This valuation represents an 11x revenue multiple, which aligns with consumer products companies in the early stage. While the valuation may be considered reasonable given the company's current performance, investors should carefully assess the pickleball equipment market's growth potential and competitive landscape before making an investment decision.

Next Section: Market

Market

Pickleball Superstore operates in the niche market of pickleball equipment, catering to the sport's growing popularity. Pickleball, one of the fastest-growing sports in the United States and gaining traction in other countries, offers accessibility, easy-to-learn rules, and suitability for all ages and skill levels. This widespread appeal has contributed to the increasing demand for pickleball equipment.

One of the critical drivers for the market is the growing popularity of pickleball. As more people discover and engage in the game, the demand for pickleball equipment increases. Additionally, pickleball's low-impact nature makes it attractive to older adults, who seek recreational activities that are easier on their joints than other racket sports. With the global population aging, there is a growing market of seniors looking for enjoyable activities, further driving the demand for pickleball equipment.

The addressable market for Pickleball Superstore is the US pickleball equipment market, estimated to be valued at $518.98 million. The market is projected to grow at a healthy rate of 9.52% from 2024 to 2030, indicating significant potential for Pickleball Superstore's growth despite the limited addressable market.

Overall, Pickleball Superstore operates in a niche market with a high growth rate and a strong target audience. With its focus on customer satisfaction and its goal to become the top pickleball store in the world, the company is well-positioned to capitalize on the growing popularity of pickleball and cater to the needs of pickleball players.

Next Section: Team

Team

The team behind Pickleball Superstore consists of three founders: CEO Steve Raack, Chairman of the Board Pat Rolfes, and Board Member Ted Angelo. The trio are avid pickleball players and have led Pickleball Superstore to profitability within two years of operating the venture. All three have held high-level positions outside the sporting goods industry at various firms. None of the founders appear to be full-time with the company, and there are no full-time employees. Despite the lack of commitment, the founders have executed well. That said, the team's low fidelity, lean nature should be considered when evaluating the company's risks.

Next Section: Differentiation

Differentiation

Pickleball Superstore aims to become the go-to destination for pickleball players, offering a wide range of high-quality products and a customer-centric approach. While there are established competitors in the broader sporting goods industry, Pickleball Superstore is carving out a niche specifically for pickleball equipment. The company differentiates itself by focusing solely on the needs of pickleball players and providing a comprehensive selection of paddles, balls, and accessories.

Pickleball Superstore sets itself apart from general sporting goods retailers like Dick's Sporting Goods and online marketplaces like Amazon by offering a specialized shopping experience tailored to pickleball enthusiasts. The company's founders, who are pickleball players, understand the unique needs and preferences of the community. This deep understanding allows Pickleball Superstore to curate a collection of products that meet the specific requirements of pickleball players, providing them with a one-stop shop for all their pickleball equipment needs.

With a few direct competitors such as Pickleball Central, The Pickleball Exchange, Fromuth Pickleball, and Pickleball Galaxy, Pickleball Superstore stands out with its emphasis on quality, customer service, and community involvement. With its high-quality products, customer-centric approach, and dedication to the pickleball community, Pickleball Superstore is well-positioned to capture a significant share of the growing US pickleball equipment market.

Next Section: Performance

Performance

Pickleball Superstore has shown promising performance as a relatively new player in the pickleball equipment market. The company generated $401,134.89 in annual revenue for the last fiscal year, indicating a solid operational start. Pickleball Superstore has positioned itself as a dedicated destination for the pickleball community, aiming to become the number one pickleball store in the world. The company's commitment to building the best eCommerce platform and providing a comprehensive selection of products has resonated with its target market. Additionally, Pickleball Superstore has differentiated itself by offering game-improving content through its blog and implementing a rewards program for loyal customers.

Despite being in the early stages of development, Pickleball Superstore has already achieved profitability, with one year of positive financial performance. This demonstrates the company's ability to generate revenue and manage its costs effectively. That said, the store has only been in operation for over a year. This provides a minimal scope of financial performance.

Next Section: Risk

Risk

Pickleball Superstore faces several risks in the pickleball equipment market. The company competes directly with established players such as Dick's Sporting Goods and Amazon and other pickleball-specific retailers like Pickleball Central, The Pickleball Exchange, Fromuth Pickleball, and Pickleball Galaxy. This level of competition may challenge Pickleball Superstore's market share and growth prospects. Investors should also consider the relatively low barriers to entry in the pickleball equipment market, which may result in increased competition from new entrants in the future.

Additionally, Pickleball Superstore has no full-time employees, and the founders appear to be part-time. This lack of dedication raises questions about the long-term commitment and involvement of the key individuals responsible for the company's success.

Overall, while Pickleball Superstore has established itself in the pickleball equipment market and demonstrated profitability, the company faces competition and concerns around team dedication.

Next Section: Bullish Outlook

Bullish Outlook

Pickleball Superstore has positioned itself as a go-to destination for pickleball enthusiasts, offering a wide range of high-quality products and a seamless e-commerce experience. The company's commitment to providing excellent customer service and quick shipping from its distribution warehouse sets it apart from competitors in the pickleball equipment market.

Pickleball is a rapidly growing sport with a strong and dedicated community of players. With the increasing popularity of the sport, the addressable market for pickleball equipment is expanding. Pickleball Superstore is well-positioned to capitalize on this market potential and establish itself as the leading digital destination for the pickleball community.

Despite being early, Pickleball Superstore has already achieved profitability, generating $401,134.89 in revenue in the most recent fiscal year. This demonstrates the company's ability to attract customers and drive sales. Furthermore, the company's annual revenue growth is expected to improve as it expands its customer base and product offerings.

With its solid financial performance, strong market potential, and unique value proposition, Pickleball Superstore is well-positioned for future growth and success in the pickleball equipment market. The company's crowdfunding campaign will enable it to invest in marketing and inventory, further expanding its reach and solidifying its position as a top pickleball store worldwide.

Next Section: Bearish Outlook

Bearish Outlook

Pickleball Superstore operates in a slightly competitive market with established players like Dick's Sporting Goods and Amazon. While the company aims to become the number one pickleball store in the world, it faces challenges in differentiating itself from its competitors and capturing a significant market share. With low barriers to entry, other players could easily replicate the business model and offer similar products, potentially eroding Pickleball Superstore's customer base.

Furthermore, the founders' lack of dedication raises concerns about the long-term sustainability of the business. Without dedicated founders fully committed to driving the company's growth and success, it may struggle to overcome challenges and capitalize on opportunities. Investors should carefully consider the risks associated with a venture that lacks founder commitment. Finally, though the pickleball equipment market is growing at an impressive rate, it is very niche. At $518 million, there may be little upside for a company entering the market.

Next Section: Executive Summary

Executive Summary

Pickleball Superstore is a promising player in the growing market of pickleball equipment. The company aims to become the top digital destination for the pickleball community by offering a wide selection of high-quality products, excellent customer service, and a rewarding shopping experience.

The popularity of pickleball is on the rise, driven by its accessibility, easy-to-learn rules, and suitability for all ages and skill levels. The sport's low-impact nature makes it particularly appealing to older adults. As a result, the demand for pickleball equipment is increasing, creating a favorable market environment for Pickleball Superstore.

While the company faces competition from direct competitors like Pickleball Central, The Pickleball Exchange, Fromuth Pickleball, and Pickleball Galaxy, as well as indirect competitors like Dick's Sporting Goods and Amazon, Pickleball Superstore attempts to differentiate itself by catering specifically to pickleball players and their needs. The company's strong focus on the pickleball community and its commitment to providing game-improving content through its blog further solidify its position in the market.

Pickleball Superstore has demonstrated early success, generating $401,134.89 in annual revenue. The current crowdfunding campaign on Andes Capital aims to raise funds for marketing and inventory expansion, indicating the company's intention to scale its operations and reach a broader customer base.

With just under two years in operation, the scope of performance metrics is minimal. Additionally, the company operates in a very niche market with founders committed to other projects, which presents some risks.

In conclusion, Pickleball Superstore has the potential to capitalize on the growing popularity of pickleball and become a leading player in the industry. However, Investors should be aware of the founding team's lack of commitment and relatively small addressable market.

Next Section: Analyst Report Why We Invested
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Pickleball Superstore on Andes Capital 2023
Platform: Andes Capital
Security Type: Equity - Common
Valuation: $4,580,000
Price per Share: $10.00

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