Tadah! Foods

Growth Stage

One of the fastest-growing plant-based food brands in the country

Analytics

Raised to Date: Raised: $772,516

Aggregate Commitments $

Platform

Wefunder

Start Date

03/30/2021

Close Date

07/12/2021

Min. Goal

$250,000

Max. Goal

$1,070,000

Min. Investment

$100

Security Type

SAFE

Funding Type

RegCF

Series

Seed

Valuation Cap

$12,500,000

Discount Rate

12%

Rolling Commitments $

Status
Funded
Reporting Date

07/31/2021

Days Remaining
Funded
% of Min. Goal

309%

% of Max. Goal

72%

Likelihood of Max
Funded
Avg. Daily Raise

$7,428

# of Investors

356

Momentum
Funded
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Location

Springfield, Virginia

Industry

Food, Beverage, & Restaurants

Tech Sector

Non-Tech

Distribution Model

B2B/B2C

Margin

Medium

Capital Intensity

High

Business Type

Growth

Tadah! Foods, with a valuation cap of $12.5 million, is raising funds on Wefunder. The company has developed the fastest-growing plant-based food brand inspired by international flavors. The ultimate goal of the company is to improve the way people eat and to give back to those in need. John Sorial founded Tadah! Foods in November 2020. The current crowdfunding round has a minimum target of $250,000 and a maximum target of $1,070,000. The raise proceeds will target marketing, sales, product promotion, hiring, product and inventory, and debt reduction. Tadah! Foods reported a 250% growth in net sales from 2019 to 2020 and expects to reach $2.5 million in 2021.

Summary Profit and Loss Statement

Most Recent Year Prior Year

Revenue

$1,537,884

$544,566

COGS

$1,235,044

$470,659

Tax

$0

$0

 

 

Net Income

$-371,706

$-290,007

Summary Balance Sheet

Most Recent Year Prior Year

Cash

$118,588

$93,128

Accounts Receivable

$273,118

$26,347

Total Assets

$512,930

$218,867

Short-Term Debt

$676,274

$639,775

Long-Term Debt

$858,491

$229,221

Total Liabilities

$1,534,765

$868,996

Financials as of: 03/30/2021
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Ratings KingsCrowd Startup Rating Methodology Article

Analyst Report Analyst Report Methodology Article

Synopsis

It’s no secret that the US has a nutrition and health problem. Around 117 million Americans suffer from one or more chronic diseases due to improper nutrition and lack of exercise. While the average citizen fails to eat the daily recommended amount of fruits and vegetables, most overindulge in sodium. Combine generally inadequate diets with the prevalence of sedentary lifestyles and it’s no wonder that over 70% of American adults are either overweight or obese as of 2021. Fortunately, according to a Harvard study, this is slowly changing. With the advent of plant-based meats, veganism, and other healthy eating trends, more and more Americans are looking to eat healthier. 

TaDah! Foods is a company that’s in line with this growing trend. TaDah! is a plant-based food brand selling East Mediterranean frozen foods, primarily frozen falafel wraps and falafel poppers. These products are designed with both health and convenience in mind as they are not heavily processed and can be quickly prepared in the microwave. The company sells directly to consumers on its site and through various grocery stores across the US. TaDah! gained some publicity after it was featured in season 11 of the show Shark Tank. The company is raising on Wefunder in order to continue to support product demand, expand across retailers, and develop new products. 

TaDah! Foods’ current Wefunder raise has been rated a Neutral Deal by the KingsCrowd investment team.

Price

TaDah! Foods is raising a SAFE with a $12.5 million valuation cap and no discount. The multiple for this valuation cap is rather high given the industry. Therefore, the startup’s deal terms are rated only slightly above average compared to the other active raises in our database.

Market

The US plant-based foods market is worth approximately $5 billion. Compared to various other markets in the food industry, this particular market is quite small. But it’s growing at a promising compound annual growth rate of 11.4%. This small but fast-growing market gives the company an overall below-average market score.

Team

TaDah! Foods founder John Sorial has a strong educational and work background. Sorial grew up in a family of food service and restaurant entrepreneurs. He holds a chemical engineering degree from the esteemed Johns Hopkins University. Additionally, Sorial’s marketing and sales experience at various companies lends itself well to his current venture. Notably, Sorial has been running TaDah! Foods and its parent company Eat Good Do Good for more than 10 years. His cumulative marketing experience, years of running Eat Good Do Good, and execution thus far lead to a strong team and founder score.

Differentiators

Although the plant-based foods market is still rather small, the increasing popularity of plant-based food products has brought many companies to the space. This means TaDah! Foods has plenty of competition. The company, fortunately, has significant product differentiation as its current offerings of non-processed falafel wraps and poppers look and taste much better than similar products. Unfortunately, it would not be difficult for current competitors to create their own frozen falafel wrap products. The company plans on releasing future products (unannounced as of yet) that may further differentiate it from competitors. Altogether, TaDah! receives an average differentiation score.

Performance

According to TaDah! Foods’ financial statements, it generated revenues of a little over $1.5 million in 2020, which represents 182% growth from 2019’s revenue figure. Although this is impressive, investors should consider that the founder started his brand more than 10 years ago. So the company should ideally have more traction at this point. Still, it’s undeniable that founder John Sorial has executed at a fairly high level with very little capital. TaDah! Foods’ products are sold in more than 3,500 US stores at high-profile grocers like Kroger, Whole Foods, and more. Investors should also consider whether Sorial can successfully raise more capital in the future given he has no formal fundraising experience, having only raised from family and friends up to this point. As capital and fundraising is the lifeblood of any early-stage venture, it remains to be seen if TaDah! Foods can successfully raise multiple rounds of capital from crowdfunding investors as well as institutional investors.

Bearish Outlook

As TaDah! Foods’ products are not particularly definsible, it is entirely possible for a competitor to create similar foods at an even cheaper price in an effort to replicate TaDah!’s success. Additionally, the company’s valuation cap is rather high for a food consumer product brand. Companies in the retail grocery and food industry generally have a price-to-sales multiple of less than one. As this is a startup, the multiple will probably be higher. However, TaDah! is setting a multiple of over seven times, meaning investing in this round will make it hard to see the high return that investors crave.

Bullish Outlook

TaDah!’s already successful raise could help the company accelerate its store expansion and product development, potentially leading to a massive increase in sales. Achieving such growth in the next five or so years would put the company in a good position to get acquired at a higher-than-average multiple. The nationwide trends toward healthier eating and veganism also create a greater opportunity for the company to grow. Lastly, the founder of TaDah! Foods, John Sorial, has done well to get TaDah! to where it is today, and there is little reason to believe that he can’t continue this success.

Executive Summary

TaDah! Foods has a lot going for it. The company has seen healthy revenue growth, distributed its products to retailers, appeals to a growing market, and has a strong founder. However, investors should note the company’s products are overall not very defensible, and its valuation cap is quite high for its industry. Although revenue is decent, it could be much better since the company has been in business for over a decade. Finally, there is the question of whether or not this raise will allow the company to acquire institutional investors in the future. Thus, balancing the positives and negatives of the company, we ultimately gave it a Neutral rating.

For questions regarding the KingsCrowd staff pick or ratings for this company, please reach out at support@kingscrowd.com

Analysis written by Francis Vu.

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Tadah! Foods on Wefunder
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Platform: Wefunder
Security Type: SAFE
Valuation: $12,500,000

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