Pingree Detroit is offering Common Equity in its current funding round. The pre-money valuation for this round is set at $1.58 million, with shares priced at $10.00 each. This valuation implies a low revenue multiple of approximately 3.4x, based on the company's most recent annual revenue of $464k.

Investing in common equity offers both advantages and disadvantages. Common equity holders typically have voting rights and can influence company decisions through their voting power. However, they are last in line during liquidation events, which means they receive payouts only after debt holders and preferred equity holders have been compensated. This higher risk can be offset by potentially higher returns if the company performs well.

The company aims to generate returns through profit sharing instead of an exit. This approach suits a business focused on staying independent and employee-owned, with no plans for acquisition. The success of this model depends on the company's ability to improve profit margins.

Pingree Detroit operates in the US goods upcycling market, which addresses the growing consumer demand for sustainable products and environmental responsibility. The market size for waste recycling services, which includes upcycling, is valued at $1.06 billion and is expected to grow at a rate of 3% annually. Several key market drivers and trends are influencing this growth and shaping the opportunities for companies like Pingree Detroit.

A significant market driver is the rising consumer awareness of environmental issues and the benefits of recycling and upcycling. Increasingly, consumers are seeking products that align with their values of sustainability and reducing waste. This trend is particularly strong among younger demographics who prioritize eco-friendly products and are willing to pay a premium for them. This shift in consumer preferences positively impacts Pingree Detroit, as its business model is centered on creating sustainable goods from upcycled materials.

Another important trend is the growing support for zero-waste initiatives and the circular economy. Governments and organizations are implementing policies and incentives to promote waste reduction and recycling. This regulatory environment encourages businesses to adopt sustainable practices and supports the market for upcycled goods. Pingree Detroit's focus on diverting automotive materials from landfills and repurposing them into high-quality products aligns well with these initiatives, providing the company with a favorable market context.

However, the market also presents challenges. The labor-intensive nature of upcycling and the need for skilled artisans can limit the scalability of production. Additionally, maintaining consistent quality with variable input materials can be challenging. These factors could impact Pingree Detroit's ability to meet growing demand and expand its market share.

The target market for Pingree Detroit's products includes eco-conscious consumers and businesses that prioritize sustainability. While the broader market for consumer goods is vast, Pingree Detroit specifically appeals to a niche segment within this market that values handcrafted, sustainable products. The company's unique value proposition lies in its ability to transform discarded materials into desirable, high-quality goods, coupled with its commitment to social impact by providing jobs to veterans and local artisans.

In summary, Pingree Detroit operates in a growing market driven by increasing environmental awareness and regulatory support for sustainable practices. While the company targets a niche segment, the favorable market trends and rising consumer demand for eco-friendly products provide significant growth opportunities. Investors should consider these market dynamics when evaluating the potential for Pingree Detroit to expand and succeed in the sustainable goods sector.

Pingree Detroit's team is composed of dedicated individuals with diverse backgrounds and a strong commitment to the company's mission of sustainability and social impact. Key team members include Jarret Schlaff, Eric Rranxburgaj, Denise (Rayne) Rose, and Nathaniel Crawford II.

Jarret Schlaff serves as the Co-founder and CEO of Pingree Detroit. With eight years of relevant industry experience, Schlaff has a proven track record of fostering neighborhood resilience and developing opportunities for sustainable, community-driven job creation. He is a graduate of the Goldman Sachs 10,000 Small Businesses program and a Young American Leadership Fellow with Harvard Business School. Schlaff's leadership and vision are crucial to driving the company's mission and strategic initiatives.

Eric Rranxburgaj is the Facilities Manager, Co-owner, and Lead Cutting and Finishing Expert. At just 21 years old, Rranxburgaj oversees all cutting and preparation activities for products and plays a significant role in quality control and edge painting. His dedication to maintaining high standards of craftsmanship is vital to the company's commitment to producing quality goods.

Denise (Rayne) Rose is the Lead Sewer and Co-owner. With over six years of experience at Pingree Detroit, Rose leads the sewing team, trains new employees, and manages well-being initiatives. Her expertise in sewing and fashion, coupled with her leadership skills, ensures the production of high-quality, handcrafted products.

Nathaniel Crawford II is the Co-owner, VP of Footwear Operations, and a footwear maker. A post-9/11 era veteran, Crawford brings valuable experience and skills from his military service. He manages the footwear division, leads training efforts, and contributes to product design. Crawford's background and positive influence are essential to the company's operations and culture.

The skills and experience of Pingree Detroit's team members align closely with the company's goals of creating sustainable products and providing meaningful employment opportunities. Schlaff's leadership and strategic vision, combined with the team's craftsmanship and dedication, support the company's mission of fostering community resilience and environmental sustainability.

However, there are potential gaps in the team that could be critical for achieving future milestones. For instance, the company plans to hire a fractional Chief Operating Officer (COO) to enhance operational efficiency and support scaling efforts. Filling this role will be crucial for managing growth and ensuring that the company can meet increasing demand while maintaining quality and sustainability standards.

Pingree Detroit differentiates itself in the sustainable goods market through its unique approach to upcycling automotive materials and its commitment to social impact. To understand this differentiation, it is helpful to compare Pingree Detroit with some of its industry competitors, such as Recycled Firefighter and Novoloop.

Recycled Firefighter, for example, repurposes decommissioned fire hoses into durable bags, wallets, and accessories. The company targets a similar demographic of eco-conscious consumers who value sustainability and unique, high-quality products. In terms of company size, Recycled Firefighter is relatively small but has a strong niche following. Their products are known for their durability and unique material usage, often priced at a premium due to the labor-intensive manufacturing process.

Novoloop, on the other hand, focuses on transforming plastic waste into high-performance materials. While Novoloop operates on a larger scale and targets both individual consumers and industrial clients, their product offerings are more focused on raw materials rather than finished consumer goods. Novoloop's pricing varies based on the application and volume of materials purchased, making it less directly comparable to Pingree Detroit's finished products.

Compared to these competitors, Pingree Detroit's differentiation lies in its comprehensive approach to sustainability and social impact. The company not only upcycles materials but also employs local veterans and artisans, creating a dual impact on environmental and community well-being. The product quality is high, with a focus on craftsmanship and durability, and the pricing reflects the premium nature of handcrafted, sustainable goods.

The customer demographics for Pingree Detroit primarily include eco-conscious consumers who prioritize sustainability in their purchasing decisions. This segment often comprises younger demographics, such as millennials and Gen Z, who are more likely to support brands with strong social and environmental missions. Additionally, Pingree Detroit appeals to consumers who appreciate unique, handcrafted products and are willing to pay a premium for quality and sustainability.

In summary, Pingree Detroit sets itself apart from competitors like Recycled Firefighter and Novoloop through its dual focus on environmental sustainability and social impact. By targeting eco-conscious consumers who value high-quality, handcrafted products, Pingree Detroit leverages its unique value proposition to carve out a niche in the growing market for sustainable goods.

Pingree Detroit has demonstrated solid financial performance and growth over recent years. The company reported annual revenue of $464k for the most recent fiscal year, a 35.5% increase from the previous year's revenue of $343k. This consistent growth indicates a positive trajectory in the company's ability to generate sales and expand its market presence.

The company's profitability is another notable aspect of its performance. Pingree Detroit has been profitable for two consecutive years, with a net income of $3,304 in 2023 and $7,810 in 2022. This consistent profitability underscores the company's ability to manage its costs and generate a positive bottom line, even as it scales its operations.

Pingree Detroit's financial metrics also include a monthly burn rate of $0, indicating that the company is effectively managing its expenses relative to its revenue generation. The most recent fiscal year-end cash on hand was $54k, providing a cushion for operational expenses and potential investments in growth initiatives. However, the company also carries short-term debt of $21k and long-term debt of $101k, which will need to be managed carefully to maintain financial stability.

In terms of traction, Pingree Detroit has achieved several milestones that reflect its market acceptance and operational success. The company has generated over $1.5 million in revenue to date and diverted 48,000 pounds of automotive material from landfills. Additionally, Pingree Detroit has been awarded the Social Impact Award for Sustainability and Standards by Gingras Global every year since 2018, highlighting its commitment to environmental and social responsibility.

Overall, Pingree Detroit's financial performance and growth metrics indicate a company that is effectively navigating its market and managing its resources. Investors should consider these performance indicators when evaluating the potential for future returns and the company's ability to sustain its growth trajectory.

Investing in Pingree Detroit involves several specific risks that potential investors should carefully consider. These risks are unique to the company's business model, market positioning, and operational challenges.

One critical risk is the reliance on part-time founders. The CEO, Jarret Schlaff, despite having substantial industry experience and a strong commitment to the company's mission, is not fully dedicated to Pingree Detroit. Part-time involvement by key leadership can limit the company's ability to respond quickly to market changes, operational challenges, and strategic opportunities.

Another significant risk is the company's need for a longer time to scale production. Due to the labor-intensive nature of upcycling and the handcrafted process involved, scaling operations to meet rising demand can be challenging. This limitation can cause delays in fulfilling orders, potentially impacting customer satisfaction and repeat business.

Additionally, Pingree Detroit's business model involves a high degree of manual labor, which can lead to higher production costs. The company's focus on quality and craftsmanship, while appealing to certain consumer segments, may limit its ability to compete on price with mass-produced alternatives. This cost structure could constrain profit margins, especially if the company faces increased competition in the sustainable goods market.

While Pingree Detroit has achieved profitability and consistent revenue growth, its market is moderately competitive. The company faces competition from other businesses that also focus on upcycling and sustainable products. Maintaining its market position will require continuous innovation and effective marketing to differentiate its offerings from those of competitors.

Finally, the company's low founder ownership percentage (9%) may be a concern for some investors. Low founder equity can indicate a higher risk of misalignment between the founders' interests and those of external investors, particularly if future funding rounds necessitate further dilution of ownership.

In summary, while Pingree Detroit presents a compelling business model with a strong social impact, potential investors should weigh these specific risks against the potential benefits. A thorough understanding of these challenges will be crucial in making an informed investment decision.

Several factors contribute to a bullish outlook for Pingree Detroit, making it a potentially compelling investment opportunity. These factors encompass market opportunities, unique strengths, strong leadership, notable achievements, and favorable financial metrics.

Pingree Detroit operates within the growing market for sustainable goods, which is valued at $1.06 billion and expected to grow at 3% annually. The rising consumer awareness of environmental issues and the increasing demand for eco-friendly products present significant market opportunities for the company. As consumers continue to prioritize sustainability, Pingree Detroit is well-positioned to capture a larger share of this expanding market.

One of the company's unique strengths is its comprehensive approach to sustainability and social impact. By upcycling automotive materials and providing employment to veterans and local artisans, Pingree Detroit differentiates itself from competitors. This dual focus on environmental and community well-being resonates strongly with eco-conscious consumers and enhances the company's brand reputation.

The leadership team, led by Co-founder and CEO Jarret Schlaff, brings valuable experience and a strong commitment to the company's mission. Schlaff's background in neighborhood resilience and sustainable job creation, combined with the team's craftsmanship and dedication, aligns well with the company's goals. The planned addition of a fractional COO to enhance operational efficiency further strengthens the leadership team.

Pingree Detroit has achieved several notable milestones, including generating $1.5 million in revenue to date, diverting 48,000 pounds of automotive material from landfills, and consistently winning the Social Impact Award for Sustainability and Standards since 2018. These achievements underscore the company's ability to execute its mission effectively and gain market recognition.

Favorable investment terms also support a bullish outlook. The company's valuation of $1.58 million, with shares priced at $10.00 each and a revenue multiple of 3.4x, is reasonable given its financial performance and market potential. This valuation provides an attractive entry point for investors looking to support a company with a strong social impact mission and growth potential.

Several growth drivers could lead to significant expansion for Pingree Detroit. The company is leveraging emerging trends in upcycling and zero-waste initiatives, which align with broader sustainability movements. Additionally, Pingree Detroit's plans to expand its product offerings and enter new markets present opportunities for revenue growth and increased market penetration.

Financially, Pingree Detroit has demonstrated strong revenue growth, with a 35.5% year-over-year increase from $343k to $464k. The company's profitability over the past two years further supports a positive financial outlook. The monthly burn rate of $0 indicates effective expense management, while the cash reserve of $54k provides a cushion for operational needs and growth investments.

In summary, Pingree Detroit's favorable market conditions, unique strengths, strong leadership, notable achievements, and positive financial metrics contribute to a bullish outlook. The company's ability to capitalize on emerging trends, expand its market reach, and maintain financial health positions it well for continued growth and success. Potential investors should consider these positive factors when evaluating the investment opportunity presented by Pingree Detroit.

Several factors contribute to a bearish outlook for Pingree Detroit, which potential investors should carefully consider. These factors span market challenges, competitive disadvantages, concerns about leadership, and financial metrics that may impact the company's growth trajectory.

One of the primary market challenges is the labor-intensive nature of Pingree Detroit's upcycling process. This reliance on skilled artisans for handcrafted products can limit the company's scalability and ability to meet increasing demand. In contrast, competitors with more automated processes or lower-cost production methods could potentially outpace Pingree Detroit in terms of market expansion and production efficiency.

Additionally, the company's leadership structure presents certain concerns. The CEO, Jarret Schlaff, is only part-time, which may hinder the company's ability to respond swiftly to market changes and operational challenges. Effective, full-time leadership is crucial for navigating the complexities of scaling a business, particularly in a competitive and dynamic market.

While Pingree Detroit has established notable partnerships and achieved recognition for its social impact, there is no indication of any significant setbacks. However, the company's low founder ownership percentage (9%) raises potential concerns about alignment between the founders' interests and those of new investors. This misalignment could impact future strategic decisions and long-term commitment to the company's growth.

From an investment perspective, the valuation of $1.58 million with shares priced at $10.00 each implies a revenue multiple of 3.4x. While not excessively high, this valuation may still be perceived as ambitious given the company's current scale and financial metrics. Investors might find more attractive opportunities with lower valuation multiples or companies demonstrating higher revenue growth.

Growth inhibitors include the potential regulatory hurdles associated with sustainable manufacturing and sourcing upcycled materials. Additionally, Pingree Detroit's market adoption may be limited to a niche segment of eco-conscious consumers. Expanding beyond this niche could prove challenging without significant marketing efforts and broader consumer education on the benefits of upcycled products.

Financially, Pingree Detroit's growth rate, while positive, may not be sufficient to attract investors looking for higher returns. The company's net income has decreased from $7,810 to $3,304 over the past fiscal year, indicating potential profitability concerns. Moreover, the monthly burn rate of $0, while indicative of stringent cost management, might also suggest limited investments in growth initiatives.

In summary, while Pingree Detroit has demonstrated commendable achievements in sustainability and social impact, several factors contribute to a bearish outlook. The company's reliance on labor-intensive processes, part-time leadership, niche market focus, and current financial metrics may hinder its ability to scale and compete effectively. Potential investors should weigh these risks against the company's positive attributes when making their investment decisions.

Pingree Detroit, a design and manufacturing cooperative based in Detroit, Michigan, creates sustainable goods from upcycled automotive materials. The company primarily targets eco-conscious consumers who value high-quality, handcrafted products and social impact. Pingree Detroit has been profitable for two consecutive years, generating $1.5 million in revenue to date and diverting 48,000 pounds of automotive material from landfills.

The company aims to generate returns through profit sharing instead of an exit. This approach suits a business focused on staying independent and employee-owned, with no plans for acquisition. The success of this model depends on the company's ability to improve profit margins.

Financially, Pingree Detroit has demonstrated solid performance with a 35.5% year-over-year revenue growth and consistent profitability. The company has a monthly burn rate of $0 and a cash reserve of $54k, although it also carries short-term and long-term debt totaling $122k. These metrics indicate effective cost management and a positive growth trajectory.

Pingree Detroit differentiates itself through its comprehensive approach to sustainability and social impact. Compared to competitors like Recycled Firefighter and Novoloop, Pingree Detroit offers a unique combination of upcycled materials and community-focused employment, particularly for veterans and local artisans. This dual impact resonates with the company's target demographic of eco-conscious consumers.

The team at Pingree Detroit includes key members such as CEO Jarret Schlaff, Facilities Manager Eric Rranxburgaj, Lead Sewer Denise (Rayne) Rose, and VP of Footwear Operations Nathaniel Crawford II. Their diverse backgrounds and commitment to the company's mission align well with its goals. However, the part-time involvement of the CEO and the need for a fractional COO to manage operational efficiency highlight potential gaps in leadership and management.

Unique risks associated with Pingree Detroit include the reliance on part-time founders, the labor-intensive nature of production, and potential scalability challenges. Additionally, the company's low founder ownership percentage may raise concerns about alignment between founders' and investors' interests.

On the bullish side, Pingree Detroit benefits from favorable market trends, consistent revenue growth, and a strong commitment to sustainability and social impact. The company's unique value proposition and dedicated team position it well for continued success in the niche market of sustainable goods.

On the bearish side, scalability challenges, reliance on part-time leadership, and potential competition in the sustainable goods market could inhibit growth. The company's ability to manage these risks and execute its strategic initiatives will be crucial for achieving long-term success.

In conclusion, Pingree Detroit presents a balanced investment opportunity. While the company has demonstrated solid financial performance and benefits from favorable market trends, potential investors should carefully consider the unique risks and scalability challenges. The company's commitment to sustainability and social impact, combined with its growth potential, make it a compelling option for investors aligned with these values.