|1||BARU's founding team joined forces in 2018 to reinvent the furniture industry for the 21st Century.|
|2||BARU makes shopping easier for 56% of shoppers who struggle to find furniture that fits their home.|
|3||BARU collapses the $18B industry’s 12-month global supply chain into a 1-week hometown process.|
Our journey started in 2014. BARU's founder, Tino, couldn't find a bookcase that perfectly fit a spot in his house. He was appalled by how difficult it was to buy a correctly-sized bookcase, of reasonable quality and price. After setting out to get one custom made, he discovered the current market was outrageously priced and took months to produce.
When he spoke to others about the shopping process, he discovered that other folks had experienced the same frustrations. Surveying online strangers resulted in the same opinions. Tino realized--shopping for furniture that fits perfectly is entirely unsatisfactory.
Tino was determined to change that shopping experience. He would make buying custom furniture as easy as clicking on Amazon.
Tino has a background overseeing manufacturing companies. He knew that manufacturing software and robotics had become easy to use and the machines inexpensive enough that hundreds of small cabinet and millwork manufacturers around the country had them, and knew those machines were super underused. They cut through wood like a hot knife through butter! These machines would often be done with the workshop’s daily work needs in just two hours.
Tino also discovered that the machine owners were eager to keep them operating and generating profits. He realized that the machines' geographic distribution could be used for local manufacturing to avoid long-distance shipping and its high costs.
Producing on demand in the customer's hometown lets BARU spend much less on shipping and inventory management. We use those savings on higher-grade materials to make better products.
But our team had two Challenges that we had to solve:
First, reinforcements were needed. Tino needed a rockstar team who could help build the foundation of the technology and the company’s culture. Kevin came aboard as a software engineer, Leland brought 40 years of woodworking experience, Aline, Anurag, Yuri, and a dozen others contributed their expertise to build BARU during the early years. It was awesome!
We loved the idea that we were making a difference to make designing folks’ perfect home lives easier. We cared about bringing back manufacturing and business sales to our neighbors and communities. We were enthusiastic about reducing our impact on the environment with local manufacturing instead of in far-off Asia. (BARU avoids emitting 120 lbs of greenhouse gases for every 250 lbs of furniture that isn’t imported from the Far East!)
Kevin led our team to build our smartphone app: shoppers can now see in their home exactly what they’re about to buy using their smartphone. We built into our app an Augmented Reality (AR) viewer. View furniture in your home through your phone.
BARU took its app one step further. BARU AR allows customers the ability to not only see the furniture in their homes but also customize the size and materials in real-time before buying. We even filed a patent application for our invention!
Meet our team!
BARU was even invited to display our technology at the 2020 Consumer Electronics Show in Las Vegas! Attendees loved what they saw, and Baru was recognized by the media for its incredibly novel approach to furniture shopping.
We’ve built our business and are ready to make furnishings for everyone who’s struggled to find the right size items for their homes.
Now we need to promote BARU and activate our fans and supporters. Help us bring more business to your community’s business owners. Your investments will be used to grow sales in New York City before expanding region by region.
Own part of our revolutionary company that also is changing the world for the better!
BARU has financial statements ending December 31 2019. Our cash in hand is $1,507, as of May 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $5,000/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Baru Inc. allows customers design custom furniture with our augmented reality app. When shoppers can customize each piece while seeing it in their home, shopping is easier.
Custom cabinet workshops throughout the United States and Europe underuse their machinery and often struggle to have enough business. Workshop machines are commonly only used two hours per day. BARU gives those workshops profitable business and uses the otherwise idle machines.
BARU has the opportunity to be selling $1 billion of furniture in 5 years (this cannot be guaranteed).
We hope to have 200 workshops in our network in the largest 60 metropolitan areas in the US and Europe. Over 250 million shoppers live in those regions.
With just four hours of machine time working for BARU, the 200 workshops will be able to make over $1 billion of custom furniture.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Baru Inc. was incorporated in the State of Delaware in April 2019.
Since then, we have:
Historical Results of Operations
Our company was organized in April 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 3 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 1 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Baru Inc. cash in hand is $1,507, as of May 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $5,000/month, for an average burn rate of $5,000 per month. Our intent is to be profitable in 18 months.
Since the date of our financials, we have raised an additional $53,135 in capital.
We hope to be generating revenues in July, 2020. We expect (but not guarantee) to need $50,000 from this raise in order to go to market. At the end 2020, we aim to have generated $1.5M in revenues and incurred $1.3M in expenses.
In order to cover short-term burnrate, we can pause operations to halt our expenses to $0.
For additional sources of capital outside of this Wefunder offering, we can rely on angel investors in our own network.
If BARU cannot find the right marketing message that resonates with customers the company will underperform or fail.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
If BARU cannot iterate and respond to market information faster than competitors, the company may be overtaken by a competitor. That might cause the development of BARU's marketplace and its platform’s economic network effects to fail or be weak.
If the COVID-19-induced economic recession is prolonged and consumers choose to not buy furniture or only buy the furniture at prices at which BARU cannot compete, BARU will likely fail.
If we cannot find sufficient numbers of manufacturing partners in the major metropolitan regions we choose to sell to, our fulfillment costs will be higher than projected due to shipping expenses from other regions.
If there is a stoppage of the supply of raw materials and components that BARU uses to make the furniture products, that will affect the company's ability to sell products and threaten its viability as an ongoing concern.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits, and have no voting rights or ability to direct the Company or its actions.
If a new technology is developed that outperforms BARU's technology and the company cannot adopt it, the company will be placed at a disadvantage to companies using a newer technology.
If a better capitalized and faster to develop new company enters the market, BARU may be relatively weakened and underperform relative to its potential.
Already have a Wefunder account? Login
Don't have a Wefunder account? Signup