Trashy is currently raising funds on Wefunder through a SAFE (Simple Agreement for Future Equity) with a valuation cap of $7.5 million and a 20% discount. This structure allows early investors to convert their investment into equity at a future date, typically at a discounted rate compared to later investors, which can help reduce dilution and ultimately benefit early backers.

The team behind Trashy has demonstrated significant traction by generating $2 million in revenue since its launch as Pulp Pantry and selling through 600 premium locations to over 600,000 customers. The company is pricing in the increased risk of a complete rebrand, and is priced at a valuation-to-revenue multiple of 19.66x, which is reasonably priced for the equity crowdfunding space.

For investors seeking a 10X return, Trashy would need to achieve a valuation of around $75 million at exit (not accounting for dilution). Given the company's current valuation cap and revenue, this would require significant scaling and market penetration. However, the backing of notable venture capital investors like Science Inc and Branch Venture Group provides additional credibility and support for the company's growth trajectory.

Trashy operates in the competitive and rapidly expanding US healthy fruit and vegetable chips market, valued at approximately $3.24 billion in 2024. The market is expected to grow at an annual rate of 9%, driven by increasing consumer demand for healthier snack options and sustainable food practices. Trashy's unique value proposition lies in its use of nutritious vegetable scraps, addressing both consumer health trends and environmental concerns about food waste.

Despite being in the pre-profit stage, Trashy has demonstrated significant market traction in its first production run under the brand “Pulp Pantry” generating $2 million in revenue and reaching over 600,000 customers through 600 premium retail locations. This success highlights a high level of market acceptance for Pulp Pantry’s innovative product offering. Now, the company must execute in a similar fashion with its new product Trashy.

Trashy is led by founder and CEO Kaitlin Mogentale, who initially founded Trashy’s predecessor Pulp Pantry back in 2020. She led the company to millions of dollars in both online and retail revenue, and also to a successful run on ABC’s Shark Tank where she received three offers. 

As she has pivoted the company into a full rebrand as Trashy, she has already done the hard work of building out relationships with distributors and retail chains to get her new product line to market quickly. As such, she is perfectly positioned to lead Trashy to a successful future.

The other three members of the Trashy team are Jackie Bologna (Sales Coordinator), Marlyn Maghacot (Sales Operations Specialist) and Nate Hamilton (Operations Manager). These three team members seem to have strong CPG-experience but KingsCrowd was not able to verify LinkedIn profiles or confirm prior employment for them.  

Trashy differentiates itself in the highly competitive healthy snack market by focusing on sustainability and upcycling, turning vegetable scraps into nutritious and delicious chips. This approach not only addresses the growing consumer demand for healthy snacks but also taps into the increasing awareness and concern for environmental issues. By using misfit vegetables that would otherwise go to waste, Trashy contributes to the fight against climate change, offering a unique value proposition that resonates with eco-conscious consumers.

Compared to the numerous competitors in the healthy fruit and vegetable chip market, Trashy's emphasis on upcycled ingredients and sustainability sets it apart. While the snack chip landscape is extremely competitive, Trashy's high differentiation in quality and pricing positions it favorably. The company's innovative approach to utilizing vegetable scraps not only reduces food waste but also offers a unique selling point that can attract a dedicated customer base seeking both health and environmental benefits. While the chip market is dominated by big chip companies like Frito-Lay, there is no clear runaway winner in the upcycled snack chips space. This bodes well for Trashy as it tries to take away market share from legacy competitors that create unhealthy snacks and bring in customers who are looking for healthy alternatives. 

Financially, Trashy has generated $2 million in revenue since its launch and reported an annual revenue of $381,545 in 2023. However, the company experienced a significant revenue decline of 61.88% over the past year, which is solely due to the company phasing out its Pulp Pantry product line and pivoting into its rebrand as “Trashy”. 

Trashy has a broad distribution network, selling its products through 600 premium locations and reaching over 600,000 customers. This extensive reach is a testament to the product's market acceptance and the company's effective distribution strategy. These relationships will be pivotal as the company begins producing its Trashy snack line, and will give the company a much needed edge once it hits the market again. 

From a cash-on-hand and burn perspective, the company had just $4,695 in cash on hand and a burn rate of $2,052 per month. This indicates that the company will certainly need a cash infusion to bring its new product line to market, which seems to be a key reason why the company is raising an equity crowdfunding round. 

Investing in Trashy involves several specific risks that potential investors should carefully consider. One of the primary risks is the company's significant year-over-year revenue drop. The annual revenue decreased by approximately 62%, from $1 million to $381k. However, this drop was due to the company going through a complete rebranding process from “Pulp Pantry” to “Trashy”. Additionally, the company had a strong uplift in sales from its Shark Tank appearance in 2022, which led to substantial revenue during that fiscal year. 

Another risk is related to the competitive landscape of the snack-food industry, which is dominated by legacy competitors like Frito-Lay. This is an established market with numerous players and new entrants vying for consumer attention and shelf space in grocery stores. The low barriers to entry mean that new competitors can easily enter the market, potentially diluting Trashy's market share and making it harder to achieve profitability.

Financially, Trashy is currently pre-profit and has a negative net income, indicating ongoing losses. The company's monthly burn rate coupled with its limited cash on hand underscores its reliance on external funding to maintain operations. If Trashy cannot secure additional funding or significantly improve its revenue, it may face financial instability, which could hinder its ability to execute its growth strategy.

Operationally, the company faces risks related to production and quality control, which are critical in the hardware/CPG sector. As Trashy scales its production, it must maintain high-quality standards to ensure consumer satisfaction and compliance with food safety regulations. Any lapses in quality control could lead to product recalls, reputational damage, and financial losses.

Trashy is making significant strides in the healthy snack market with its innovative approach to upcycling nutritious vegetable scraps into delicious chips. By addressing the issue of food waste and creating a product that appeals to health-conscious consumers, Trashy is tapping into the growing demand for sustainable and nutritious snacks. The company's commitment to social impact sets it apart in an extremely competitive landscape.

With distribution across 600 premium locations and a customer base exceeding 600,000, the company has demonstrated strong market traction with its initial product, Pulp Pantry. The company has now rebranded itself to Trashy, and will be utilizing the same infrastructure it used to produce and sell the new Trashy product line.  

The backing of reputable VC investors such Branch Venture Group further validates Trashy's potential. The current crowdfunding campaign, aimed at raising between $100,000 and $124,000, will provide necessary capital for team growth, marketing, sales operations, working capital, and sampling. This influx of funds will bolster Trashy’s efforts to scale its operations and increase market penetration.

Trashy's recent financial performance raises significant concerns about its sustainability and growth prospects. The company has experienced a substantial decline in annual revenue, dropping by 61.88% to $381,545. This revenue decline was due to the company completely rebranding itself from Pulp Pantry to Trashy. The fact that the company is now rebranding is also a risk, as the initial product line of Pulp Pantry was not able to gain enough retail and consumer traction to build a viable business. This is why the company is now rebranding itself in an attempt to grow its business beyond what it achieved previously as Pulp Pantry. According to the founder, large grocery chains found the name Pulp Pantry to be unappealing and unappetizing. This is why the company is rebranding to Trashy with a focus on communicating the upcycled food and environmental message to customers. 

Moreover, Trashy's high monthly burn rate of $2,052, juxtaposed with its most recent cash on hand of only $4,695, indicates a precarious financial position. This limited cash runway suggests that the company may face immediate liquidity issues, potentially requiring continuous fundraising efforts to stay afloat. The capital intensity of CPG-sector further compounds this risk, as significant investment in marketing, sales operations, and working capital is necessary to achieve scale.

Additionally, Trashy operates in an industry with low barriers to entry, making it challenging to defend its market position against competitors. The lack of patents or proprietary technology further diminishes its competitive edge, leaving it vulnerable to imitation. While the mission to upcycle vegetable scraps into nutritious snacks is laudable, the company's ability to maintain and expand its customer base is uncertain given its current financial trajectory.

Trashy is a company operating in the healthy snack food industry. The company is dedicated to creating nutritious chips from vegetable scraps, addressing both the issue of food waste and the demand for healthy snacks. Since its launch, the company has sold its products through 600 premium locations to over 600,000 customers, generating $2 million in revenue under its initial brand name, Pulp Pantry. However, now that the company is rebranding to Trashy,  the company has experienced a significant revenue decline in 2023, with annual revenue dropping by 61.88% to $381,545. 

The company is currently raising funds on Wefunder with a valuation cap of $7.5 million. The crowdfunding campaign has a minimum target of $100,000 and a maximum target of $124,000. The proceeds from this campaign will be used for team growth, marketing, sales operations, working capital, and product sampling as the company launches its rebrand. This funding is crucial for Trashy as it seeks to stabilize and grow its business amidst a highly competitive landscape with low barriers to entry.

While Trashy's mission and product offering are compelling, the company faces significant challenges, including a high monthly burn rate of $2,052 and limited cash on hand. The extremely competitive market and high capital intensity level further add to the risks. However, if Trashy can leverage its current traction and effectively utilize the crowdfunding proceeds, it has the potential to carve out a niche in the healthy snack market.