Reel Products

Reel Products

Growth Stage

Reel Paper is a tree-free, plastic-free household paper company

Reel Paper is a tree-free, plastic-free household paper company

Overview

Raised to Date: Raised: $478,000

Total Commitments ($USD)

Platform

Wefunder

Start Date

10/10/2023

Close Date

12/06/2023

Min. Goal
$50,000
Max. Goal
$478,000
Min. Investment

$100

Security Type

SAFE

Series

Series B

SEC Filing Type

RegCF    Open SEC Filing

Early Bird Val. Cap

$50,000,000

Valuation Cap

$55,000,000

Discount

20%

Rolling Commitments ($USD)

Status
Funded
Reporting Date

12/30/2023

Days Remaining
Funded
% of Min. Goal
Funded
% of Max. Goal
Funded
Likelihood of Max
Funded
Avg. Daily Raise

$8,536

# of Investors

763

Momentum
Funded
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Year Founded

2018

Industry

Consumer Products, Goods & Services

Tech Sector

Cleantech

Distribution Model

B2B2C

Margin

Medium

Capital Intensity

Low

Location

Santa Monica, California

Business Type

Growth

Reel Products, with a valuation of $55 million, is raising funds on Wefunder. The company makes tree-less and plastic-free household paper. Reel Products’ premium and sustainable paper is made from bamboo fiber in modern and contemporary design and comes in plastic-free packaging. The business has exceeded $18 million in revenue and has been doubling its gross revenue year-over-year since its founding. Livio Bisterzo founded Reel Products in April 2018. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $443,000. The campaign proceeds will be used for marketing for customer acquisition, product innovation and development, and working capital.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$13,501,393

$7,476,272

COGS

$7,752,618

$3,800,957

Tax

$0

$0

 

 

Net Income

$-8,182,001

$-5,375,412

Summary Balance Sheet

FY 2022 FY 2021

Cash

$599,569

$1,347,080

Accounts Receivable

$489,005

$67,148

Total Assets

$2,913,539

$3,174,039

Short-Term Debt

$5,173,204

$2,910,984

Long-Term Debt

$13,765,645

$8,170,137

Total Liabilities

$18,938,849

$11,081,121

Financials as of: 10/10/2023
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Analyst Report

Synopsis

Reel Products is a company that aims to revolutionize the household paper industry by offering tree-free and plastic-free alternatives. The company's flagship product is premium and sustainable toilet paper made from bamboo fiber. Reel Paper is not only environmentally friendly but also comes in modern and contemporary designs and is packaged in plastic-free materials.


The demand for sustainable products is on the rise, and Reel Products is well-positioned to capture a significant share of the market. Reel Products has already gained traction in the market, with its sustainable toilet paper being sold in over 900 Target stores and more than 200 additional retail locations.


Investors have taken notice of Reel Products' potential, with notable names such as Baron Davis, Tony Hawk, Anne Hathaway, Maria Sharapova, and Jessica Chastain backing the company. Reel Products has already achieved impressive financial success and is expected to exceed $18 million in revenue this year.

Next Section: Price

Price

Reel Products is currently valued at $55 million and is raising funds on Wefunder. With a revenue multiple of 4.07, Reel Products is valued at a reasonable level compared to its annual revenue of $13.5 million. The company has demonstrated strong annual revenue growth of 80.6% over the past two years. This growth trajectory suggests that Reel Products has the potential to continue expanding its market presence and generating higher revenues in the future. Overall, the company's valuation is reasonable considering its current revenue and growth potential in the expanding market for eco-friendly household products.

Next Section: Market

Market

The market for sustainable household paper goods is growing, driven by increasing environmental awareness, corporate sustainability initiatives, and changing consumer preferences. The toilet paper market, in particular, is estimated to be worth $19.7 billion in the US, with a modest growth rate of 3.8%. However, the segment of the market in which Reel Products operates — tree-free paper goods — is just a small portion of this market. That said, Reel also taps into the general household paper goods market with tissue and paper towel offerings. Though the market has strong growth drivers, consumer resistance to change is one potential hurdle. Some consumers may be hesitant to switch to sustainable alternatives if they perceive them as less convenient or of lower quality, even if they are of similar standards. 

Next Section: Team

Team

Livio Bisterzo founded Reel Products. Bisterzo established Green Park Brands eight years ago and has founded several companies under the Green Park umbrella, including Reel Products and HoldOn Bags. HoldOn Bags is also raising on Wefunder. Bisterszo has previously founded and raised $50 million for HIPPEAS, a famous snack brand. He has demonstrated his ability to create and scale consumer brands successfully and sits on the board of Reel Products.

At the helm of Reel Products is CEO David VanHimbergen. Himbergen has over two decades of experience in consumer goods, most notably 18 years at Procter & Gamble in brand management roles. Overall, Reel Products' leadership has both entrepreneurial and industry insight. This team knows how to build and scale brands, as evident by their success scaling Reel Products thus far. 

Next Section: Differentiation

Differentiation

Reel Products offers premium, sustainable household, and toilet paper made from bamboo fiber. This tree-less and plastic-free paper is designed with a modern and contemporary aesthetic and is packaged in plastic-free materials. Reel Products faces established competitors such as Charmin, Scott, and Angel Soft, which offer traditional toilet paper products. It also competes more directly with other sustainable and bamboo paper brands like Caboo, Who Gives A Crap, Bippy, Grove Co., PlantPaper, and Cloud Paper. While Reel Products has demonstrated impressive performance in the market so far, many of these direct competitors also have strong customer reviews and traction. Reel Products toilet paper is also priced in line with the market.

Overall, Reel Products has demonstrated significant growth and success in the market, with a loyal customer base and a strong revenue trajectory. The comprehensiveness of the product line (toilet paper, tissues, and paper towels) provides some level of differentiation and brand awareness, but the market has no shortage of competitors. 

Next Section: Performance

Performance

Reel Products has achieved impressive performance in its market. The company has generated over $35 million in revenue, with annual revenue reaching $13.5 million. This represents a remarkable growth rate of 80.6% year over year. Reel Products has established itself as a leading sustainable toilet paper, sold in 900 Target stores and over 200 additional stores. The company's success is further evidenced by its large customer base, with over 100,000 customers and nearly 50,000 subscribers. The company has also partnered with the Forest Stewardship Council and One Tree Planted, demonstrating its dedication to environmental conservation.

Reel Products has established strong partnerships with major distributors such as Target and Amazon, enabling widespread distribution of its products. The company's performance is reflected in its positive customer feedback, with over 13,000 5-star online reviews, an 82.0 net promoter score, and a 94% customer satisfaction score.

Additionally, the company has raised over $12 million in prior funding rounds, indicating investor confidence in its growth potential.
Overall, Reel Products has demonstrated strong performance in the household paper goods industry, driven by its commitment to sustainability, strategic partnerships, and impressive revenue growth. 

Next Section: Risk

Risk

Reel Products faces a slew of competition from well-established brands such as Charmin, Scott, and Angel Soft, as well as from other sustainable toilet paper companies like Caboo, Who Gives A Crap, Bippy, Grove Co., PlantPaper, and Cloud Paper. This competitive landscape challenges Reel Products to differentiate itself and attract a significant market share. It will be hard to stand out from a quality or price perspective in household paper goods. Ultimately, differentiating will lie solely in brand recognition.

Financially, Reel Products has a high level of debt, both short-term and long-term, totaling $5.1 million and $13.7 million, respectively, for the most recent fiscal year. This debt burden may limit the company's financial flexibility and increase its vulnerability to economic downturns or changes in market conditions. 

Next Section: Bullish Outlook

Bullish Outlook

Reel Products is well-positioned in the growing market for sustainable household paper products. With a focus on offering consumers a premium, eco-friendly alternative, the company has tapped into the increasing demand for sustainable products. As more consumers become conscious of their environmental impact, the market for tree-free paper is expected to grow significantly in the coming years. 


Reel Products has already demonstrated strong traction in the market, with their sustainable toilet paper being sold in 900 Target stores and over 200 additional stores. This distribution network gives the company a wide reach and the opportunity to expand its customer base further. Additionally, Reel Products has successfully raised significant funding in prior rounds, totaling over $12 million, indicating confidence from investors in the company's growth potential.


The company's growth is impressive, with annual revenue reaching $13.5 million for the most recent fiscal year, representing an 80.6% growth rate. Reel Products has attracted notable investors, including Baron Davis, Tony Hawk, Anne Hathaway, Maria Sharapova, and Jessica Chastain, further highlighting the company's potential for success. With a valuation of $55 million, the current crowdfunding campaign on Wefunder allows investors to participate in Reel Products' growth at a reasonable price.

Next Section: Bearish Outlook

Bearish Outlook

Reel Products operates in a highly competitive market, with established brands such as Charmin, Scott, and Angel Soft dominating the industry. While Reel Products offers a unique selling point by providing tree-less and plastic-free household paper made from bamboo fiber, it faces stiff competition from direct competitors like Caboo, Who Gives A Crap, Bippy, Grove Co., PlantPaper, and Cloud Paper. These competitors have established themselves in the sustainable toilet paper market and built a loyal customer base. Reel Products must differentiate itself significantly to capture market share from these established players. Finally, although Reel Products has shown significant revenue growth, it is important to note that the company is still operating at a loss and had $13.7 million in long-term debt for the most recent fiscal year. 

Next Section: Executive Summary

Executive Summary

Reel Products is a tree-free, plastic-free household paper company that produces its products from bamboo fiber. The company is tapping into the growing trend of environmental consciousness and the increasing demand for sustainable products. Reel Products has made a significant impact on the market, with its products being sold in over 900 Target stores and on Amazon, reaching over 100,000 customers to date. The company has also garnered over 13,000 five-star online reviews and has a high net promoter score of 82.0.


Despite these significant achievements, Reel Products has yet to reach profitability, with a net income of -$8,182,001 for the most recent fiscal year. The company is also burning through cash at a high rate, with a monthly burn of $681,833. However, the company has seen an impressive annual revenue growth of 80.60%, reaching $13,501,393 in the last fiscal year. The company has also previously raised over $12 million in prior funding rounds.


Overall, while the financials show some areas of concern, Reel Products has demonstrated strong traction and growth in a promising market. The company's clear commitment to sustainability and its proven track record of customer satisfaction suggests the potential for continued success.

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Reel Products on Wefunder 2023
Platform: Wefunder
Security Type: SAFE
Valuation: $55,000,000

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