INVEST
min $100
A Convertible Note is debt that converts to equity. If you invest, you're betting reef grows will be worth more than $8M in the future.
As states continue to legalize, more consumers are looking into better ways to get their cannabis. The next wave of cannabis will be driven by the desire for increased individual control over quality, greater transparency and sustainability in the grow process, and a direct relationship from consumer to plant.
As more and more people look to take advantage of the benefits of home cultivation, the industry is on the cusp of a major transformation that will have far-reaching implications for the future of how we cultivate our cannabis. Our mission is to pave the way for this transformation, by providing user-friendly and design first solutions that will catalyze the conversion of consumers into cultivators.
Findings from a ‘New Frontier Data’ report show that 3 million cannabis consumers currently grow their own flower at home, comprising 6% of all cannabis consumers. The report projects significant growth in the next decade with over 4.1 million consumers growing at home by 2030.
This system is designed to fundamentally shift the narrative around home growing. Our mission is to make home growing the most appealing option for the modern cannabis user. We’re building an ecosystem of products at the intersection of high design and technology: cultivation tools designed for the modern home.
The reef Signature grow system’s form factor resembles furniture you’d find at a West Elm store, so that our customers can showcase their grows in their living spaces rather than hide them away in their basements or closets. We use only premium and sustainably sourced materials to set a new standard for how home cultivation can look and feel.
We’ve integrated all of the necessary technologies into one holistic product. A Wifi-connected microprocessor enables the customized LED, irrigation, and climate control systems to adapt dynamically throughout the stages of each grow. It works together with a smartphone app to ensure users stay updated at all times. reef is ready to grow the day it’s delivered to our customer’s homes.
Our mobile app gives growers access to all the essentials:
We’re working on partnering with existing genetics brands and post-processors to get our customers the finest quality seeds available and transform their flower into high-quality consumables. This results in premium, craft cannabis that can be displayed and shared in top-notch packaging.
To accomplish this conversion of mainstream cannabis consumers to cultivators, we need to change the way people perceive home growing.
This is why we are going to market with our flagship product positioned as a premium product targeting affluent cannabis consumers. We want to turn home growing into a status symbol and put reef in the hands and homes of the trendsetters. It will be a curated experience in three select form factors designed specifically with key interior styles in mind.
“With more than half of home growers earning over $50,000/year, and a quarter earning over $100,000, premium suppliers will find opportunities to serve more affluent growers.” - New Frontier Data, 2022
Our most effective early sales strategies are in-person product showcases and word-of-mouth referrals. We want to get in front of as many well-connected cannabis consumers as possible to market reef, which is why we’ve decided to launch in LA. It’s one of the biggest legal-cannabis metro centers in the world, home to major brands and dispensaries on nearly every block, resulting in a heavy concentration of consumers in our core demographic.
We are seeking partnerships with high-quality flower and dispensary brands that share our values and are already catering to our target demographic. This will allow us to showcase our products where our future customers are already shopping and increase our visibility in the market. In 2022, many flower brands expressed interest in diversifying into the home grow space, according to a report by MJBizDaily.
After we’ve gained traction in the premium market demographic, we’re going to expand our product offerings to convert cannabis consumers of a variety of income levels and design preferences. Our offerings will resemble the Apple Ecosystem, ranging from our flagship reef ‘all-in-one’ unit to the reef Mini, a grow hub for existing growers. It will allow centralized smart control of many individual modular pieces of equipment, automating the routine tasks of lighting, watering and climate control.
We've taken a lean approach over the last two years, testing and validating our assumptions at every stage of growth. This has been crucial in de-risking our product and investment, especially given the challenges of scaling a hardware startup.
We’ve been able to complete all of the R&D (ideation, design and engineering processes) necessary to enter the engineering validation phase with a product ready for Beta launch.
Your investment will take us through our next phase of growth, in which we will:
After a successful beta launch, we will turn our efforts to customer acquisition and aggressive production scaling. During this stage, we will pursue additional capital from VC firms and other sources to support our expansion.
We’re currently raising our pre-seed round in the form of a convertible note.
This investment instrument is designed to help pre-valuation startups raise capital while providing early investors with favorable terms before larger rounds are raised.
The equity funding trigger is the future fundraising amount that will trigger the conversion of your note into shares of the company. For instance, if we raise a $2 million series seed financing round, this would trigger conversion because the amount raised exceeds $500,000.
The valuation cap protects early investors from excessive equity dilution if the value of the company during the next equity round is significantly higher than expected, in our case higher than $8mm.
For instance, if we raise a $2 million financing round at a $20 million pre-money valuation, early investors would be safeguarded from dilution as their equity would convert at an $8 million valuation cap, resulting in larger equity for early investors than if the cap were not in place.
This mechanism protects early investors in the case the future equity fundraising round is priced at or below the valuation cap. In any case, a conversion discount gives note holders a 20% discount on the price per share of future price rounds.
Until the convertible notes are triggered by the equity funding trigger, they operate as loans that earn interest annually at 8% in our case.
We decided to launch our WeFunder in order to raise funding in a way that aligns with the vision of our company: empowering individuals.
We want to share this funding opportunity on WeFunder so our early supporters can join us on our journey and be part of the story and successes as we continue to grow.
If you want to learn more about our story, current progress or investment opportunity you can book a 1-on-1 with me and we can talk through the details together:
Schedule an appointment to talk.
Conor Sheehan
Founder, CEO
reef grows
