A Future Equity Agreement (SAFE) gives you the right to future shares in the company. If you invest, you're betting the company will be worth more than $8M eventually.
We’re here to fix that.
Did you know that “earth-friendly” single-use plastics aren’t actually earth friendly at all? In 2015, the FTC issued a warning to plastic bag manufacturers due to the lack of an industry-accepted standard defining “biodegradable plastics.” Since plastic isn’t an organic product (and therefore isn’t actually biodegradable by definition), the governing bodies set about creating an industry standard for plastic manufacturers so they can legally promote their products as such (in the US, this is called ASTM D-6400). In order to meet guidelines set forth for breaking down plastics, an ingredient called EPI is injected into the plastics to hasten their deterioration.
Instead of disappearing, these plastics convert to hundreds of millions of microplastic particles that enter the air we breathe, the water we drink and the food we consume. According to many studies and as reported by Isabelle Gerretsen on CNN in 2019, we ingest approximately a credit card-sized amount of plastic each WEEK due to this pollution. That same year, Sir David Attenborough reported that microplastics have been found to permeate cell membranes, cross the blood-brain barrier and have also been found in the placentas of unborn babies. According to Sir Attenborough, ingesting microplastics has been shown to kill over one million people a year.
How does POOCH PAPER address this issue?
By saving our planet one PUP at a time!
There are an estimated ONE TRILLION single-use plastic bags deposited into landfills each year, upwards of 380 billion of which come from the US. Of that number, over 500 million of these are plastic dog waste bags. While all environmental issues are nearly impossible to solve with one initiative, we have embraced the challenge of tackling a large part of this issue by disrupting the $4 billion-dollar US market for single-use plastic dog waste bags. According to the 2020 American Pet Products Association (APPA) State of the Industry Report, the pet industry is experiencing an unprecedented rate of growth, surpassing over $100 billion, which is expected to nearly triple to $275 billion by 2030.
With growth like this, we can be sure of a third constant in life: death, taxes and now dog waste!
Studies conclude there are twenty-two BILLION pounds of dog waste produced each year in the US alone. Our mission is to mitigate the over 500 million single-use plastic dog waste bags added to US landfills each year, as well as the destructive effects microplastics and methane gasses have on our environment.
What sets Pooch Paper apart?
Made in the USA, Pooch Paper is a non-chlorine bleached paper alternative to single-use plastic dog waste bags. Our sheets are 100% biodegradable, 100% compostable and are manufactured using renewable energy.
Our PFAS-free and fluorochemical-free grease-resistant coating is made naturally during the pulp drying process to ensure that dog waste remains inside the paper and not on a person's hand. We are a team of humans passionate about mitigating pollution caused by plastic and microplastic alike – for people, pup and planet!
Our provisionally patented Pooch Paper was brought to market in February 2020, growing through sales generated online and in over 2,000 retail locations nationwide. Pooch Paper is also distributed to retailers across Canada, Japan, South Africa and Dubai. Since 2021, Pooch Paper has grown its product offering from one item to seven. Thus far, Pooch Paper has successfully sold outdoor dispensers to US municipalities across the nation, replacing plastic bags with our paper, assisting those cities in becoming compliant with single-use plastic bag legislation. Pooch Paper has replaced plastic dog waste bags in select dog parks in ten states and is still growing!
Benefits of deploying Pooch Paper in parks and recreational areas:
TOTAL ADDRESSABLE MARKET (TAM)
US MunicipalitiesThere are over 90,000 US municipalities spanning the nation. Ten states have already enacted legislation banning single-use plastics (as well as an additional 300+ cities outside of these states). This initiative is trending upward, with sustainability and climate change at the forefront driving most governmental policy considerations. Furthermore, PFAS chemicals (per- and polyfluoroalkyl substances which are highly toxic, build up in our bodies and never break down in the environment - known as "forever chemicals") are a byproduct of most manufacturing that render soils useless when they come in contact with PFAS. Nearly all 50 states have regulations pertaining to PFAS chemicals - standards that continue to expand in conjunction with ongoing sustainability efforts. Since Pooch Paper is PFAS-free, we have seen overwhelming interest in our solution, as it satisfies both zero-plastic and PFAS-free legislation.
Pooch Paper Affiliate ProgramWe are conducting outreach to nearly 500,000 pet professionals and social media influencers, extending an opportunity to join our affiliate program. This initiative will provide these specialists with an additional means of passive revenue while expanding Pooch Paper's direct-to-consumer footprint. Having launched our affiliate program in August 2022, we will eventually widen our reach and invite many more pet professionals into the fold of our collective Pooch Paper success.Funding will help facilitate outreach to the 90,000+ US municipalities, with the purpose of marketing and selling Pooch Paper dispensers and paper products to effect cities' compliance with existing and forthcoming single-use plastic bag legislation. In our view, Pooch Paper is the most timely and effective product on the market, providing a solution for municipalities to support their ongoing sustainability efforts.
By leveraging our engagement with associations such as the US Conference of Mayors, State Municipality Leagues and the National Recreation and Park Association, Pooch Paper will have the opportunity to engage with stakeholders across the nation through conferences, educational webinars and more. Since parks and recreation account for 3% of the nation's overall gross domestic product, our timing, visibility and access are unparalleled, with sustainability at the core of most purchasing decisions.
WHAT DOES YOUR INVESTMENT IN POOCH PAPER MEAN FOR YOU?
While Pooch Paper currently engages multiple methods to market (such as brick and mortar retail, online, municipalities, affiliate programs, multi-tenant residential and more), we have established a 5-year business strategy particularly aimed at growth in two select markets: US municipalities and our business-to-consumer affiliate program. Since its inception, Pooch Paper experienced a 300% growth rate during years one and two; we are currently in year three and continuing our upward momentum!
We believe our projections for growth are conservative, and we anticipate an acquisition or recapitalization between years four and five. Our forecasts are based on steady growth year-on-year through our municipality sales, coupled with a modest estimation of sales based on capturing only .025% of the initial targeted market through our affiliate program. It is our intention to continue collaboration with potential acquisition partners throughout the next few years to strengthen our position with respect to our exit strategy - and your liquidity event.
HOW WE SCALE
The illustration above is based upon an increase of sales year-on-year, assuming the sale of an additional 1,000 dispensers per year, plus one box of Pooch Paper refills per dispenser per month. We calculated our Affiliate Program sales to capture only .025% of our initial addressable market (420k pet bloggers), i.e., selling ten Pooch Paper boxes per month.
ANTICIPATED INVESTOR RETURNS
Markets suggest valuations applied to pet care consumable companies (as opposed to pet care hard goods) do fluctuate, but are typically anticipated to be between 12-15x EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization).
Calculating the mean of 13x EBITDA with our anticipated net revenue numbers for years three, four and five (assuming Pooch Paper's liquidity event takes place during such time), Pooch Paper's anticipated valuation is as reflected below.
What does this mean for you? Assuming our forecasts are realized and a liquidity event occurs during years three, four or five, each investor's individual return is estimated to be 18x, 28x or 42x. For example, assuming a liquidity event, a $1,000 investment is anticipated to return $18,000 after year three, $28,000 after year four and $42,000 after year five.
Assuming funding, the table below illustrates what we believe to be conservative sales projections, costs of goods sold and overall business expenses from year one through year five.
We thank you for considering Pooch Paper and our passionate pursuit to mitigate single-use plastic bags and microplastic pollution. We invite you to join our fellow heroes in this global mission to help save our planet ONE PUP AT A TIME!
If you would like to learn more about microplastic and the negative impact it has on the health of humans and that of our planet, please read some of the top articles published on this subject.
Science Direct - Dog Poop Bags: A Non-Negligible Source of Plastic Pollution
Consumer Reports - How to Eat Less Plastic
Science Alert - Microplastics are Spiraling Around the Globe in the Air We Breathe
National Geographic- Microplastics Are Raining Down from the Sky
These offering materials may contain forward-looking statements and information relating to, among other things, Pooch Paper, its business plan and strategy, and its industry. These forward-looking statements are based on the beliefs of, assumptions made by, and information currently available to, Pooch Paper's management. When used in these offering materials, the words “estimate,” “project,” “believe,” “anticipate,” “intend,” “expect," "could," "might," "will" and similar expressions are intended to identify forward-looking statements. These statements reflect management’s current views with respect to future events and are subject to risks and uncertainties which could cause Pooch Paper's actual results to differ materially from those contained in these forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Pooch Paper does not undertake any obligation to revise or update these forward-looking statements in order to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events.