About this raise
Sun & Swell, with a valuation of $18 million, is raising funds on Wefunder. It is an online grocery store that is reinventing the world of grocery and putting people and the planet first. Sun & Swell enables consumers to purchase organic and healthy food in plastic-free packaging and is the first online plastic-free health food store focused on sustainability. The business has multiple wholesale customers and aims to reach $2.5 million in sales this year. Kate Flynn and Bryan Flynn founded Sun & Swell in 2018. The current crowdfunding campaign has a minimum target of $100,000 and a maximum target of $617,999. The campaign proceeds will be used for inventory, R&D, and hiring.
Investment Overview
Invested $247,398 :
Deal Terms
Total Commitments
Company & Team
Company
- Year Founded
- 2018
- Industry
- Food, Beverage, & Restaurants
- Tech Sector
- Distribution Model
- B2B/B2C
- Margin
- Medium
- Capital Intensity
- Low
Financials
- Revenue +42% YoY
-
$950,562
as of FY2022
- Monthly Burn
-
$10,000
as of Aug '23
-
Runway
-
6 months
as of Aug '23
- Gross Margin
-
43%
as of FY2022
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Synopsis
Sun & Swell offers consumers a healthier and more sustainable way to snack. The company’s mission is to move the food industry away from single-use plastic by offering sustainably packaged snacks. Sun & Swell’s product line includes a variety of healthy snacks like trail mix, nuts, and dried fruits, all packaged in compostable materials. This provides a solution for consumers who are conscious about both their health and their environmental impact.
Sun & Swell is also at the pilot stage of its white labelling offering, to help other brands access plastic-free and compostable packaging solutions. This offers great growth perspectives for the business, as an increasing number of customers are demanding zero-waste produtcs.
Sun & Swell is not just a company selling snacks; it is a certified B-Corp, meaning it meets high standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. This certification is an indication of Sun & Swell's commitment to creating a positive impact on the world.
The company sells its products directly to consumers through its online store and to wholesale customers. Sun & Swell aims to reach $2.5 million in sales this year, demonstrating its growth potential in the healthy snacks market.
Price
Sun & Swell is offering equity at an $18 million valuation. This valuation is relatively high considering the company's current revenue and growth rate. Sun & Swell is on pace to achieve over $2.5 million in sales this year, which is impressive for an early-stage company. However, the current valuation and most recent financials reflect an 18x revenue multiple, which is slightly overvalued for a company in the food and beverage space. While Sun & Swell has received recognition in the form of a leading food industry award for sustainability, the valuation may not fully align with the company's current stage and financials. Investors should carefully consider the valuation and potential returns before making an investment decision.
Market
Team
Sun & Swell is led by CEO Kate Flynn and CSO Bryan Flynn. Kate holds an MBA from Harvard, and Bryan holds an MBA from Loyola Marymount University. Their educational background suggests that they possess high-level managerial skills, which will be valuable in leading a consumer goods company like Sun & Swell.
Kate has a background in consulting, which will provide valuable insights into strategic planning and operations. Bryan, on the other hand, has a background in sales, which will be instrumental in driving revenue growth for the company. Their complementary skills will contribute to the overall success of Sun & Swell.
Despite being a lean team of just four members, Sun & Swell has been able to establish strong early traction. This demonstrates their ability to execute in the market. Overall, the Sun & Swell team, with its strong foundation and diverse skill set, is well-equipped to continue the company's growth.
Differentiation
The focus on plastic-free packaging sets Sun & Swell apart from many established competitors in the healthy snacks market. Sun & Swell aims to end single-use plastic in the packaged food industry by offering a line of health foods in compostable packaging. This commitment to sustainability resonates with environmentally conscious consumers and provides a unique selling point.
In terms of competition, Sun & Swell faces both indirect and direct competitors. Indirect competitors include options like bulk grocery store snacks like dried fruits and nuts, Kirkland Signature snacks, and Clif Bar & Company products. The company's direct competitors, with a more sustainable focus, include Askinosie, Thrive Market, Hive, and Nature's Path Organic.
Overall, Sun & Swell's dedication to ending single-use plastic and providing organic and healthy food in compostable packaging appeals to environmentally conscious consumers. That said, the company is not entirely alone in this mission. It may not be enough to set the company apart in a very crowded market.
Performance
Sun & Swell has experienced strong growth and success in the healthy snacks market. The company is on track to generate over $2.5 million in sales this year, which represents significant growth compared to its annual revenue of $950,562 for the most recent fiscal year. Sun & Swell's revenue growth is driven by its unique value proposition of offering organic and healthy food in plastic-free packaging, catering to the growing demand for sustainable and environmentally friendly products.
In recognition of its commitment to sustainability, Sun & Swell won the NEXTY award in the food industry for its sustainable practices. This award highlights the company's dedication to reducing single-use plastic in the packaged food industry.
Sun & Swell has products available in Whole Foods and on Amazon, which provide extensive distribution channels for its products. The company's customer base includes Fortune 100 corporate offices and global hotel chains, indicating a strong demand for its offerings in both the B2B and B2C markets. Indeed, Sun & Swell sells its snacks to large corporations like Google and Linkedin.
Sun & Swell has also raised a total of $1,366,312 in prior funding rounds. This capital infusion has supported the company's product development progress and enabled it to reach its current growth stage.
The company is developing another side of its business: white labelling plastic-free and compostable packaging for other food brands. The company already has its equipment and is currently developing its operations and piloting with potential customers.
Risk
Sun & Swell operates in an extremely competitive market, with many direct and indirect competitors. The healthy snacks market is saturated with well-established brands and products, making it challenging for Sun & Swell to differentiate itself and gain market share. This competitive landscape poses a risk to Sun & Swell's ability to attract and retain customers.
Financially, Sun & Swell has negative net income, indicating that it is not currently profitable. The company needs to demonstrate a path to profitability and sustainable growth to justify its valuation and attract investors.
Furthermore, while Sun & Swell has a strong mission and focus on sustainability, barriers to entry in the market are relatively low. This means that other companies may be able to replicate Sun & Swell's business model and offerings, posing a threat to its market position.
Overall, Sun & Swell faces significant competition, financial risks, and the potential for imitation by competitors. Investors should carefully consider these risks before making an investment in the company.
Bullish Outlook
Sun & Swell is offering healthy, organic foods in plastic-free packaging. With an emphasis on sustainability and environmental impact, Sun & Swell is well-positioned to capture some market share in the US healthy snacks market. The company's commitment to ending single-use plastic in the packaged food industry is commendable and aligns with the growing consumer demand for eco-friendly products.
But it's not the most interesting part about the company. Sun&Swell is pivoting to become a white labelling sustainable packaging business for other companies. This is a great way to help other brands develop sustainable packaging without having to invest in the equipment. Most importantly, it brings great revenue growth perspectives for the company.
Despite being in the early stage of development, Sun & Swell has already achieved significant revenue growth, with sales reaching $950,562 in the most recent fiscal year. This demonstrates the market's positive response to their offerings and validates the viability of their business model. Additionally, Sun & Swell's certification as a B-Corp further enhances its reputation as a socially responsible company.
Bearish Outlook
Sun & Swell's snack retail side of the business operates in an extremely competitive market, with direct competition from brands like Askinosie, Thrive Market, Hive, and Nature’s Path Organic. These competitors have established footholds in the healthy snacks market and have likely built strong brand loyalty among consumers. Sun & Swell will face significant challenges in gaining market share and standing out in such a crowded landscape.
The company sells its healthy snacks to large corporations Like Google and Linkedin, proving that it can close large and stable B2B contracts.
While Sun & Swell aims to differentiate itself by offering organic and healthy food in plastic-free packaging, it is important to note that other brands have started to prioritize sustainability as well. As more companies adopt eco-friendly packaging practices, Sun & Swell's unique selling proposition may become less significant, making it difficult for the brand to maintain a competitive advantage. Additionally, the company is slightly overvalued at $18 million for the food and beverage industry.
Executive Summary
Sun & Swell is both offering healthy and organic snack options in plastic-free packaging, and offering a white labelling plastic-free and compostable packaging solution to B2B businesses.
The company has gained traction in the market, with projected sales of over $2.5 million this year. Sun & Swell has also been recognized for its commitment to sustainability, winning the NEXTY award for sustainability in the food industry. The company also sells its snacks to Linkedin and Google to serve their employees. These B2B contracts provide a large and stable revenue for the company.
The market drivers and trends in the healthy snacks industry are favorable for Sun & Swell. There is a growing awareness among consumers about the importance of health and wellness, leading to an increased demand for healthier snack alternatives. Additionally, the shift towards convenience and on-the-go snacks aligns with Sun & Swell's product offerings. The company's focus on sustainable packaging solutions addresses the rising environmental concerns and resonates with environmentally conscious consumers.
Sun & Swell has established distribution channels with Whole Foods and Amazon, as well as Fortune 100 corporate offices and global hotel chain customers. These partnerships provide significant distribution opportunities and access to a wide customer base.
Sun & Swell is still developing the white labelling side of its business, which will offer it strong and stable growth perspectives.
That said, it is important to note that Sun & Swell operates in an extremely competitive market. There is no shortage of healthy snack companies and barriers to entry in this market are relatively low. Overall, Sun & Swell, with its focus on healthy snacks and plastic-free packaging, has the potential to capture a niche market. However, investors should carefully evaluate the competitive landscape and other risks before making an investment decision.
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Company Funding & Growth
Funding history
- Total Prior Capital Raised
- $1,366,312
- VC Backed?
- No
Growth Charts
Revenue History
Note: Revenue data points reflect the latest of either the most recent fiscal year's financials, or updated revenues directly from the founder, at each raise's close date.
Valuation History
Price per Share History
Note: Share prices shown in earlier rounds may not be indicative of any stock splits.
Employee History
Founder Interview
Sustainable Packaging Meets Snacking: The Sun & Swell Way
The world is crumbling under single-use plastics. Indeed, 40% of plastic production is only used once and discarded. Customers are increasingly willing to move away from plastics…but many manufacturers, especially in the food industry, rely on them. Why? Because plastic-free packaging alternatives are expensive and difficult to set up.Kate Flynn and her husband, Bryan Flynn, faced the same issue when they launched their healthy snacks company. After investing in their own plastic-free solution, they decided to pilot white-labeling for plastic-free packaging in the food industry - on top of selling healthy snacks.
We reached out to Kate Flynn to learn more about the ins and outs of her business.
Note: This interview was conducted over phone and email. It has been lightly edited for clarity and length.