|1||Cleaned 1,000+ outfits — 200+ users, 70% retention, 4.9/5 customer satisfaction, 84 NPS|
|2||7 signed contracts with residential and commercial property management companies (20+ properties)|
|3||Backed by Alchemist Accelerator (#1 B2B). Raised $915K from top angels and a hardware VC in NYC.|
|4||Moderne Ventures Passport Program - Premier PropTech VC|
|5||Founding team has previously worked at Uber, IBM, and Pratt & Whitney.|
I love seeing smart founders who obsess over "boring" areas: fields that few of us bother noticing and even fewer start companies to improve. Naren and team have clearly done this: they've built a better way to clean clothes, and customers are happily paying them for it. I'm excited to see Pristem grow recurring revenue by widely deploying their machines. Based on their rate of progress so far and scrappy approach to building their devices, I'm confident they can get many more machines into the laundry rooms of customers quickly and profitably.
Today, there are no good cleaning options for the clothes you love. Laundry causes fading and shrinking with every wash and dry cleaning is too expensive, takes too long, and is unreliable. We built Pristeem to offer people a third option that's gentler than washing and faster and cheaper than dry cleaning. We have raised almost $1M since graduating from Alchemist Accelerator Class 22 last year. With hardware manufacturing, software engineering, and business consulting experience from Uber, IBM, and Pratt & Whitney, we are the perfect team to execute our vision.
At-home dry cleaning solutions exist but are very expensive. We're taking inspiration from these solutions and building a faster, better performing, and shared use version. By democratizing access to these solutions, anyone can now clean the clothes they love in a shared space for just $1 per garment whenever and wherever you need it.
We're creating a network of Pristeem kiosks across residential and commercial properties, hotels, airports, lounges, gyms, stores with uniformed workers, and more. Using our web app, anyone can find the nearest Pristeem and clean their clothes in minutes.
"The fashion industry is responsible for 1 % of annual global carbon emissions, more than all international flights and maritime shipping combined" (The World Bank). Pristeem directly reduces this in 3 main ways:
1. 12 million tons of apparel are thrown away each year and nearly 70% end up in landfills. By taking better care of your clothes and extending their life you can reduce apparel waste.
2. 70% of dry cleaners still own a PERC (perchloroethylene) machine. PERC is a toxic chemical used to dry clean your outfits and has profound environmental effects. By substituting Pristeem for dry cleaning, you can help reduce these environmental effects.
3. A single wash in a high-efficiency washer today uses between 15 to 30 gallons of water. With the same amount of water, Pristeem can clean 720 to 1440 garments.
Pristeem is a small but gritty team with top software and hardware engineers - along with incredible investors and advisors who have supported our mission since day one.
Nobuhiro Seki, Managing Director at Monozukuri Ventures, previously invested $450K and has been super helpful on the tech, product, and manufacturing side of things. Daniel Ha, co-founder of Disqus, the largest commenting app that touched more than 2 billion users, is working with Pristeem to build the best user experience.
To date, we have already cleaned 1,000+ garments with over 200 unique users, 70% retention, a 4.9 out of 5 customer satisfaction rating, and 84 NPS across pilots and contracts. Hundreds of people have integrated Pristeem effortlessly into their weekly routines and can't imagine life without it.
Our paid contracts include 2 offices and 5 residential/commercial property management companies. We have verbal commitments from 15+ more residential property management companies that will convert to signed contracts within the next 2 months. Each signed contract contains 2-4 initial test properties with 12-month service terms. Since our sales strategy thus far has been top-down, the next step will be to establish rollout strategies with each company to expand to their portfolio of 100's or 1000's of properties.
Globally, the laundry and dry cleaning service market is a massive $40 billion opportunity. In the next 5 years, we will focus on large residential and commercial properties in the U.S. In order to reach a $100 million run rate, we need to capture just 2% of the market or 7,000 properties.
On-demand laundry and dry cleaning services are expensive and hard to scale while maintaining high quality without damage or loss to clothing. Steam closets. Smart wardrobes. Clothing purifiers. Whatever you call it, a new category of clothing care is gathering steam around the world.
Products from LG & Samsung are positioned as "refreshers" for the laundry room or closet. They are luxury indulgences for the privileged. By targeting multifamily residential properties, Pristeem is the category's first shared experience. Building on early momentum, we make this kind of clothing care affordable and accessible to a diverse category of consumers for the first time.
Pristeem partners directly with property owners, developers, and managers. Specifically, asset managers looking to incentivize tenants and increase revenue for a portfolio of properties. We give multifamily residential properties a way to stay relevant to attract, delight, and retain today's tenants. We generate money through a monthly subscription and revenue share.
We're raising a $2M round to continue building and supporting Pristeem as we launch into residential and commercial properties and start ramping up growth. Scaling manufacturing, refining the consumer experience, adding new features, and expanding our userbase will be our priorities before we raise a larger Series A round in the next 12-18 months.
Just like Uber today is the preferred way to get from point A to point B, Pristeem will be the preferred way to clean the clothes you love anytime, anywhere. Let's do this!
Pristeem has financial statements ending December 31 2019. Our cash in hand is $159,905.68, as of June 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $20,000/month, and operational expenses have averaged $50,000/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.
Pristēm is the world's first instant laundry and dry cleaning solution for shared spaces. Our smart self-service cleaning systems sanitize, deodorize, and de-wrinkle clothes in just ten minutes on the spot, providing a welcome, new alternative to traditional laundry and dry cleaning.
We combine the unparalleled convenience of on-demand laundry & dry cleaning services, a rapidly growing global industry, with low cost ($1 per garment) and 10-minute turnaround times to create the future of clothing care.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Unwrinkly Inc was incorporated in the State of Delaware in January 2019.
Since then, we have:
Historical Results of Operations
Our company was organized in January 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
To-date, the company has been financed with $10,000 in convertibles and $905,500 in SAFEs.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 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 3 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
Unwrinkly Inc cash in hand is $159,905.68, as of June 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $20,000/month, and operational expenses have averaged $50,000/month, for an average burn rate of $70,000 per month. Our intent is to be profitable in 18 months.
Monthly expenses have decreased while COGS have increased because initial R&D is complete and we are now focused on manufacturing more units and generating revenue.
3 months after the raise, we hope to have $25,000 in monthly revenue (10 residential properties).
6 months after the raise, we hope to have $75,000 in monthly revenue (25 residential properties).
In terms of other sources of capital, there are residential properties that are willing to pay us upfront for the units, therefore, potentially funding production.
Scaling manufacturing while maintaining high-quality is difficult. Politics may also affect supply chains.
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.
People may be happy with their current laundry and dry cleaning habits and it's not as sharp of a pain point in people's lives as we think.
Larger technology incumbents in the space can copy our product and use their resources to win the market.
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.
We are successful in the top 5 cities in the U.S., similar to other on-demand laundry and dry cleaning services, but unable to achieve meaningful traction outside of them.
As we grow into new verticals, we are unable to successfully maintain our unit economics and build a business that is profitable.
Temporary Rule 201(z)(2) provides temporary relief from certain financial information requirements by allowing issuers to omit the financial statements required by Rule 201(t) in the initial Form C filed with the Commission. This offering has commenced in reliance of Temporary Rule 201(z)(2) and, as a result, the following must be disclosed: (i) the financial information that has been omitted is not otherwise available and will be provided by an amendment to the offering materials; (ii) the investor should review the complete set of offering materials, including previously omitted financial information, prior to making an investment decision; and (iii) no investment commitments will be accepted until after such financial information has been provided.
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