# Less than 1 WEEK left to become a Mainstem investor! Here's how we'll spend your money. | Mainstem Malt - Canonical URL: https://wefunder.com/feed/150382 - Entity ID: wefunder:feed_item:150382 - Published at: 2021-11-12 21:24:08 UTC - Updated at: 2025-07-16 07:13:42 UTC ## Author Phil Neumann ## Subject Mainstem Malt ## Content Hi All!There's officially less than 1 week remaining on Mainstem's first equity crowdfund round. And with the countdown clock now ticking on our Wefunder page, we're seeing a new rush of investor activity (~$15k so far this week; see Chart 1 below). This is prime time for all of you fans out there to make final investment decisions and help spread the word about why Mainstem matters to YOU. Think we can crack $250k? $500k?? Let's do it!Learn more and invest on our campaign homepage.It's also a perfect time for an update from me about Mainstem's planned use of investor funds. Rest assured, we have big things to do with the money invested so far. Any additional investments will provide a swifter, clearer, more certain path toward our vision for success.So! What are we going to do with the money? In a nutshell:(1) Buy more time for our lean team to grow annual revenue beyond $1MM;(2) Secure the partnerships and grant funding needed to support the launch of our first industry-leading malt facility in Walla Walla, Washington.NOTE: Detailed use-of-funds info lives in the "Details" section, in our SEC Form C filing, and in our pitch deck. Consider this update a current perspective, knowing what we know now, but still well within the originally proposed use of funds.GROW REVENUE BEYOND $1MM/YEAROur use of funds up to $250k has always been to provide more working capital support growth under our current business model. Our malting partnership with Montana Craft Malt has opened up a substantial amount of growth potential for the 4 new products we launched this year, but it takes cash to run the supply chains. In addition, we're working on setting up at least one new 3rd party logistics warehouse arrangement to cut less-than-truckload (LTL) freight costs to customers and streamline order fullfillment. We'll also be making smart investments in our sales & marketing capacities.Our recently onboarded "Malt Concierge" and rising spirits star Courtney Kristjana joins Mainstem's already amazing Customer Innovations team with big dreams of what's possible. It helps that the demand for our malt is growing with customers both new and old. From my perspective, there are no concrete barriers between us and hitting the $1MM annual revenue mark in 2022, where a target 20% gross margin earns us $200k to fund operations and the potential for a lean form of profitability.BUILD AN INDUSTRY-LEADING FACILITYThe goal remains to build our first specialty maltings and innovation center in Walla Walla, allowing us to keep pushing the limits of malt and strengthen Mainstem's positioning in the global malt landscape.The "specialty maltings" part means that we'd get to produce a wider range of freshly-prepared products like organic malts, malts from unique grain varieties, roasted malts, smoked malts, and crystal malts, making Mainstem a one-stop shop for discerning brewers and distillers. The "innovation center" part means we'd get to team up with grain-savvy Land Grant universities like Washington State and Oregon State on timely research in quality and sustainability, and to support the commercialization of promising new varieties and farming practices. Artisan and consumer engagement opportunities would be supported by pilot brewing and distilling capacities, and a tasting room. We also want to help our local (and legendary) Walla Walla Community College train a diverse next generation of professionals in malting, brewing, distilling, and related grain agriculture.Here's the property we're striving to secure, kitty corner to the Community College's internationally recognized Center for Enology and Viticulture. Imagine an analagous facility within a stone's throw, focusing on malting and the many products it enables.Until recently, we've had our sights set on raising $750k-1MM from investors like you, and using that cash to support a facility build with a hefty dose of support from a private development partner. As the risk of not raising that kind of money from this round has increased, so has our desire to identify new approaches. It became clear that we were overlooking the transformational potential of public/private partnerships, and a slew of associated grant funding opportunities.All of that is to say, a portion of the money from this round will buy us time and energy to line up new partnerships and secure said grant funding. I'll be leading this charge, with increasing support from Luke Knowles. Luke is our outstanding new contractor teammate, currently tasked with identifying grant funding opportunities we could leverage to support our specialty maltings and innovation center here in Walla Walla. Born and raised in Juneau, with deep experience in value-added agricultural systems and with remarkable political connections in Alaska, we believe Luke is an important part of our company's ambitious future. The goal is to be able to hire him on with us full time ASAP. Following our closing of this round, we'll take a moment for some housekeeping, 2022-23 financial planning, getting to know our new investors, and a breath or two. Then we'll make a spirited push on the above efforts. Our current vision is to build enough momentum to feel great about launching a second, briskly-paced equity crowdfunding round at a higher valuation in the first half of 2022.Once again, a HUGE thank you to everyone reading these updates and making the decision to support us in so many unqiue ways. You all are a huge part of what keeps our team so positive about the future.With dynamism,PhilChart 1. Mainstem For All campaign funding and investor count from 4/13/2021 to 11/12/2021.Cover Photo: A Blue Mountain foothills view towards the location of the proposed Mainstem specialty maltings and innovation center, Walla Walla, WA.