{"data":{"type":"company_profile","id":34873,"entity_id":"wefunder:company:34873","attributes":{"canonical_url":"https://wefunder.com/warehouserepublic","generated_at":"2026-06-08T02:55:16Z","updated_at":"2026-06-07T05:01:56Z","entity_ids":{"company":"wefunder:company:34873","slug":"wefunder:company_slug:warehouserepublic"},"profile_visibility":{"owner_published":true,"public_search_results":true,"site_search_listed":true,"privacy_mode":"promote","invite_only":false},"provenance":{"source":"wefunder_public_company_profile","as_of":"2026-06-08T02:55:16Z","claims":{"total_amount_raised":{"source":"FrontCompanySummary#amount_raised","last_verified_at":"2026-06-07T05:01:56Z","as_of":"2026-06-08T02:55:16Z","confidence":"high"},"total_investors":{"source":"FrontCompanySummary#number_of_investors","last_verified_at":"2026-06-07T05:01:56Z","as_of":"2026-06-08T02:55:16Z","confidence":"high"},"active_raise_states":{"source":"Fundraise.visible(nil, nil)","last_verified_at":"2025-02-06T01:17:55Z","as_of":"2026-06-08T02:55:16Z","confidence":"high"},"latest_fundraise_state":{"source":"Fundraise.visible(nil, nil).order(funding_started_at)","last_verified_at":"2025-02-06T01:17:55Z","as_of":"2026-06-08T02:55:16Z","confidence":"medium"}}},"company":{"id":34873,"entity_id":"wefunder:company:34873","slug":"warehouserepublic","name":"Warehouse Republic","tagline":"Warehousing and Logistics for E-Commerce Sellers\r\n ","elevator_pitch":"We provide simple, flat-fee pallet storage and fulfillment services for 3rd party Amazon sellers. This allows our customers to increase profits by lowering their inventory storage costs. They avoid long-term storage fees by dripping their inventory into Amazon. These sellers are ignored by traditional 3rd Party Logistics services due to their smaller warehousing needs and niche business requirements.","story":"This slide contains forward-looking projections that cannot be guaranteed.This slide contains forward-looking projections that cannot be guaranteed.","location":"Austin, TX","website":"https://warehouserepublic.com","total_amount_raised":283467,"total_investors":230,"is_funded":true,"is_active":true,"quality_score":5,"related_urls":["https://wefunder.com/warehouserepublic","https://warehouserepublic.com"]},"media":{"share_image_url":"https://uploads.wefunder.com/uploads/company/header_media_photo/34873/xxl_cropped_IMG_3375.jpg","header_media_url":"https://uploads.wefunder.com/uploads/company/header_media_photo/34873/standard_cropped_IMG_3375.jpg","cover_photo_url":"https://uploads.wefunder.com/uploads/company/header_media_photo/34873/standard_cropped_IMG_3375.jpg","profile_video_url":"https://wefunder.wistia.com/medias/7olhu6dbzr"},"links":{"company_url":"https://warehouserepublic.com","facebook_url":"https://www.facebook.com/warehouserepublic/"},"highlights":[],"quick_facts":[{"index":1,"claim_id":"claim-fact-1","value":"We are profitable and growing fast. On track to do ~$2M+ in revenues in 2021"},{"index":2,"claim_id":"claim-fact-2","value":"Waitlist of 400+ customers, ready to grow with us. We expect to 4-5X our monthly revenue in 1 year (not guaranteed)"},{"index":3,"claim_id":"claim-fact-3","value":"Our customer base represents the fastest-growing segment in e-commerce"},{"index":4,"claim_id":"claim-fact-4","value":"We have grown mostly via word of mouth. We get 3-5 organic inquiries every day"},{"index":5,"claim_id":"claim-fact-5","value":"Demand for our services outstrips the supply in our industry for the next 5-10 years!"}],"team":[{"id":1539495,"entity_id":"wefunder:company_role:1539495","user_entity_id":"wefunder:user:1380615","role":"founder","name":"Mark Taylor","title":"CEO/Co-Founder","bio":"While working in private equity, Mark led multiple turnarounds and directed an international sales organization. His career required him to run through walls, and solve operationally complex problems. You want him in a foxhole with you.","avatar_url":"https://uploads.wefunder.com/uploads/company_role/custom_photo/1539495/square_cropped_Mark.jpg?1653326134","profile_url":"https://wefunder.com/mark.taylor.12","linkedin_url":"https://www.linkedin.com/in/mark-taylor-1910856/","related_urls":["https://wefunder.com/mark.taylor.12"]},{"id":402880,"entity_id":"wefunder:company_role:402880","user_entity_id":"wefunder:user:213449","role":"founder","name":"Abhi Dobhal","title":"COO/Co-Founder","bio":"Abhi co-founded Factom, a venture-backed blockchain company. Prior to that, he has led digital transformation projects, built a web to print manufacturing platform, and helped set up a BPO subsidiary (acquired). You want him as your wingman.","avatar_url":"https://uploads.wefunder.com/uploads/company_role/custom_photo/402880/square_cropped_IMG_9231.jpg?1635532006","profile_url":"https://wefunder.com/abhi.dobhal","linkedin_url":"https://www.linkedin.com/in/abhidobhal/","related_urls":["https://wefunder.com/abhi.dobhal"]}],"featured_investors":[{"id":5261,"entity_id":"wefunder:company_investor_profile:5261","investor_profile_id":926717,"investor_profile_entity_id":"wefunder:investor_profile:926717","subject_entity_id":"wefunder:user:1395537","name":"Chris Shonk","bio":"As a serial entrepreneur with some fortunate exits, we angel invest globally. I'm also a partner at an early-stage VC in Austin, TX","avatar_url":"https://uploads.wefunder.com/2021/user_default_icon_circle.png","profile_url":"https://wefunder.com/chrisshonk","investment_total":50000,"investment_info":"Invested $50,000 this round","is_lead_investor":true,"related_urls":["https://wefunder.com/chrisshonk"]}],"investor_memos":[],"tab_counts":{"posts":0,"ask_questions":26,"featured_investors":1,"faq_entries":5},"active_fundraises":[{"id":24823,"entity_id":"wefunder:fundraise:24823","state":"successful","offering_type":"4(a)(6)","funding_type":"note","structure":"safe","security_type":"equity","currency":"USD","testing_the_waters":false,"min_purchase":100,"max_purchase":9,"funding_target":250000.0,"minimum_target":"303000.0","maximum_target":"501000.0","funding_started_at":"2021-10-29T21:02:56Z","funding_closed_at":"2022-05-06T05:02:11Z","auto_close_at":"2022-05-01T03:59:59Z"},{"id":43709,"entity_id":"wefunder:fundraise:43709","state":"successful","offering_type":"4(a)(6)","funding_type":"note","structure":"ttw","security_type":"equity","currency":"USD","testing_the_waters":true,"min_purchase":100,"max_purchase":9,"funding_target":250000.0,"funding_started_at":"2021-03-16T06:51:09Z"}],"latest_fundraise":{"id":24823,"entity_id":"wefunder:fundraise:24823","state":"successful","offering_type":"4(a)(6)","structure":"safe","testing_the_waters":false,"can_invest_now":false,"funding_started_at":"2021-10-29T21:02:56Z","funding_closed_at":"2022-05-06T05:02:11Z","terms":{"eb":null,"nb":"$25M","txt":"valuation cap"}},"recent_posts":[],"q_and_a":[{"id":140960,"entity_id":"wefunder:comment:140960","question":"I was looking for financials and don't see any.","author_name":"Jaspreet Singh","votes":5,"created_at":"2021-04-10T15:34:46Z","canonical_url":"https://wefunder.com/warehouserepublic#question-140960","answers":[{"id":143193,"entity_id":"wefunder:comment:143193","answer":"Hello Jaspreet, please see the below link to our unaudited, operational P\u0026amp;L statement from 2020. This P\u0026amp;L is presented on cash basis accounting. Thank you! https://docs.google.com/spreadsheets/d/1_g_N5JJ268MtMWDTOLaoB79-GSezsoMJihYqD0FQ0SM/edit#gid=1683621888","author_name":"Mark Taylor","votes":1,"created_at":"2021-04-19T18:48:53Z"}]},{"id":140534,"entity_id":"wefunder:comment:140534","question":"The EBITDA Ground Freight \u0026amp; Logistics valuation multiple is 8.84. Obviously this number is not a sole variable in computing a company's valuation, but I'm calculating WR's multiple at over 14 ($22.5M investment terms / $400k revenue per quarter * 4 quarters). How are you calculating a $22.5M valuation cap? Thanks!","author_name":"Collin Ferry","votes":3,"created_at":"2021-04-08T20:50:38Z","canonical_url":"https://wefunder.com/warehouserepublic#question-140534","answers":[{"id":143180,"entity_id":"wefunder:comment:143180","answer":"Hello Collin, great question! We're basing our valuation cap using a discounted cash-flow model. Our current revenue run rate is around $2.1mm without any further investment. A $3mm infusion allows us to scale into a footprint that is 5x the size of our current facility. Projected EBITDA (based on our current operations) will be $3-4MM annually, which allows us to self-fund further expansion and grow the enterprise value beyond $25mm. Based on the BGSA index, which tracks 62 publicly traded supply-chain companies, Warehouse Republic comps trade at an average of 17.6x. We've chosen $25mm because it's an attainable/attractive valuation cap given that we are profitable and all funds will be used to expand a proven hypothesis.","author_name":"Mark Taylor","votes":0,"created_at":"2021-04-19T18:16:56Z"}]},{"id":305546,"entity_id":"wefunder:comment:305546","question":"Any update??? It's frustrating that some companies don't seem to keep investors in the loop.","author_name":"Thomas Mueller","votes":2,"created_at":"2025-04-07T21:18:52Z","canonical_url":"https://wefunder.com/warehouserepublic#question-305546","answers":[]},{"id":301879,"entity_id":"wefunder:comment:301879","question":"Hello Republic, It's 2025, can you share an update and highlight the conversion to equity from April 2024?","author_name":"Gabriel DiCristofaro","votes":2,"created_at":"2025-02-10T04:30:33Z","canonical_url":"https://wefunder.com/warehouserepublic#question-301879","answers":[]},{"id":293869,"entity_id":"wefunder:comment:293869","question":"Any update???","author_name":"Thomas Mueller","votes":2,"created_at":"2024-10-10T03:42:03Z","canonical_url":"https://wefunder.com/warehouserepublic#question-293869","answers":[]},{"id":208733,"entity_id":"wefunder:comment:208733","question":"Hello just checking on status of things, since I haven't heard from you guys","author_name":"Priscilla WATSON","votes":2,"created_at":"2022-06-17T19:40:07Z","canonical_url":"https://wefunder.com/warehouserepublic#question-208733","answers":[{"id":225512,"entity_id":"wefunder:comment:225512","answer":"Hi Priscilla - Sorry we missed this. We will be sharing an update soon","author_name":"Abhi Dobhal","votes":1,"created_at":"2022-11-15T02:22:10Z"}]},{"id":188435,"entity_id":"wefunder:comment:188435","question":"Hey Guys - very interested in this opportunity. However the business metrics / financials are seriously out of date and I can only see up to the end of 2020? Can you please update the the deck / materials to show 2021 and update 2022/23 forecasts / targets based on what actually happened in 2021. TY","author_name":"Stephen Gellatly","votes":2,"created_at":"2022-01-15T06:08:01Z","canonical_url":"https://wefunder.com/warehouserepublic#question-188435","answers":[{"id":189635,"entity_id":"wefunder:comment:189635","answer":"Hello Stephen, we're in the process of getting our 2021 financials audited, but our unaudited revenues were right around the $2mm mark as we projected. We're checking with WeFunder on what we can share related to projections based on SEC guideline for crowdfunding.","author_name":"Mark Taylor","votes":0,"created_at":"2022-01-24T23:16:12Z"}]},{"id":184837,"entity_id":"wefunder:comment:184837","question":"Can you please share YTD revenue and projected for 2022?","author_name":"Varun Gupta","votes":2,"created_at":"2021-12-22T23:21:28Z","canonical_url":"https://wefunder.com/warehouserepublic#question-184837","answers":[{"id":189639,"entity_id":"wefunder:comment:189639","answer":"Hell Varun, We are waiting to provide the 2021 financials once the audit is completed. In the meantime, I'm checking with WeFunder on what we can provide related to projections. We'll circle back up here shortly.","author_name":"Mark Taylor","votes":0,"created_at":"2022-01-24T23:33:40Z"}]},{"id":178377,"entity_id":"wefunder:comment:178377","question":"Few questions (1) I see 2020 monthly results, where are 2021 and do you have monthly forecast for the reminder of 2021 and 2022 (all three statements)? (2) at the 2.1mm revenue run-rate what percent of your capacity is full?","author_name":"A V","votes":2,"created_at":"2021-11-09T15:43:11Z","canonical_url":"https://wefunder.com/warehouserepublic#question-178377","answers":[{"id":189640,"entity_id":"wefunder:comment:189640","answer":"Hello A V, 2021 has yet to be audited, but is scheduled to be audited. I'm checking on what we can provide in the realm of projections while maintaining SEC compliance. 2. At $2.1mm, our 50k SF facility is completely full. That said we expanded to an east coast facility in October. With that facility at capacity, our run rate goes up to $5-$6mm.","author_name":"Mark Taylor","votes":0,"created_at":"2022-01-24T23:37:01Z"}]},{"id":177546,"entity_id":"wefunder:comment:177546","question":"What sort of potential client would you say no to? I have 5 years working with a competitor of yours; they focused exclusively on heavy/oversized products, and it's worked out really well for them. As a result of this focus, they had to turn down most of the leads that came through their website, because not every company was a good fit for them. I think it's a really interesting way to run a business, and ecommerce is such a massive, wide field that it makes sense to distinguish a warehousing company from competitors based on a particular kind of niche. So far as I can tell it looks like you're focusing on SMBs. But in terms of operations at your warehouse, that means adapting to a rather wide variety of products to handle.","author_name":"Nathan Mizrachi","votes":2,"created_at":"2021-11-04T17:05:48Z","canonical_url":"https://wefunder.com/warehouserepublic#question-177546","answers":[{"id":177594,"entity_id":"wefunder:comment:177594","answer":"Hey Nathan, It's a good question and we agree with you regarding focusing on a niche. That's why we've really focused on working with Amazon FBA sellers. Our ideal customers thus far have been sellers who began selling on FBA and have continued offering more products/increasing sales on FBA as well as expanded to selling goods off of their own website and other marketplace platforms. One of the benefits of working as an \"all things FBA\" type of warehouse is that there is something of a unified message/offering that applies to most if not all of our customers. For instance, when Amazon began changing the way they calculated storage limits in their own warehouses, it allowed us to tailor make programs that helped all of the customers we serve. It's that thinking that us work to open our second facility in North Carolina that focuses on FBA removals (I'm actually just about to write an update about it!).","author_name":"Mark Taylor","votes":2,"created_at":"2021-11-04T21:14:44Z"}]},{"id":143047,"entity_id":"wefunder:comment:143047","question":"Since 3PLs are traditionally designed to suite only a couple customers with a 2-3 year ROI on their automation. How do you design your warehouse with 10's of customers in mind and what are your product constraints?","author_name":"Joseph Lalley","votes":2,"created_at":"2021-04-19T04:23:55Z","canonical_url":"https://wefunder.com/warehouserepublic#question-143047","answers":[{"id":143189,"entity_id":"wefunder:comment:143189","answer":"The primary investment for this expansion is a much more efficient racking system and the machines required to operate within that setup. You're right about our customer load vs traditional 3PLs. We are solving for the high activity by stitching together our ever evolving technology stack. Our biggest service constraint is not having enough physical space to continue growing. Which is why we're raising this capital :-)","author_name":"Mark Taylor","votes":0,"created_at":"2021-04-19T18:41:15Z"}]},{"id":275832,"entity_id":"wefunder:comment:275832","question":"Any update on what is happening with the company?","author_name":"Adam Larky","votes":1,"created_at":"2024-02-08T21:18:44Z","canonical_url":"https://wefunder.com/warehouserepublic#question-275832","answers":[{"id":280247,"entity_id":"wefunder:comment:280247","answer":"Writing an update now :-)","author_name":"Mark Taylor","votes":0,"created_at":"2024-04-01T20:00:39Z"}]},{"id":225368,"entity_id":"wefunder:comment:225368","question":"It’s Nov 2022, as an investor, it will be good to see current monthly and/or quarterly updates","author_name":"Gabriel DiCristofaro","votes":1,"created_at":"2022-11-13T19:20:42Z","canonical_url":"https://wefunder.com/warehouserepublic#question-225368","answers":[{"id":225511,"entity_id":"wefunder:comment:225511","answer":"Hi Gabriel! We will be sending out /posting an update before the end of the year","author_name":"Abhi Dobhal","votes":0,"created_at":"2022-11-15T02:21:46Z"},{"id":226111,"entity_id":"wefunder:comment:226111","answer":"Hello Gabriel, Thank you for your comment. An investor update has been posted. Best, Mark","author_name":"Mark Taylor","votes":0,"created_at":"2022-11-18T20:52:44Z"}]},{"id":223543,"entity_id":"wefunder:comment:223543","question":"Hello Mark, Any News or Updates?","author_name":"Mario M Teel Jr.","votes":1,"created_at":"2022-10-24T17:31:02Z","canonical_url":"https://wefunder.com/warehouserepublic#question-223543","answers":[{"id":223548,"entity_id":"wefunder:comment:223548","answer":"Hello Mario, Things have been going well. Southern California has been calm and operating at capacity this entire year. We're continuing to keep a tight watch on what's going on in the economy and react/plan accordingly. Our North Carolina facility is slowly but surely picking up steam. We're in the process of onboarding a very large customer and have two other large customers in the pipeline that are showing good promise. Meanwhile, we are also actively vetting our first automation systems we're implementing in the warehouse. There are a lot of things going on and everything is moving in a positive direction. I'll aim to get a proper investor update out in the next week or two! Thank you for asking :-) Best, Mark","author_name":"Mark Taylor","votes":0,"created_at":"2022-10-24T17:58:36Z"}]},{"id":193048,"entity_id":"wefunder:comment:193048","question":"Do you anticipate future capital raises for additional warehouses? If so, what do you anticipate?","author_name":"Dani L","votes":1,"created_at":"2022-02-17T22:37:21Z","canonical_url":"https://wefunder.com/warehouserepublic#question-193048","answers":[{"id":196525,"entity_id":"wefunder:comment:196525","answer":"Hello Dani, It honestly all depends. If we continue the \"raise as we need\" model, then I can foresee us not needing additional capital. Between Southern California and North Carolina full, we could grow at a solid pace while self-funding future expansions. On the other hand, if someone comes in with an excellent valuation and an investment that allows to do what's best for the company and our investors, we'd take that expansion capital and execute a more aggressive plan. Thanks! Mark","author_name":"Mark Taylor","votes":0,"created_at":"2022-03-15T17:54:53Z"}]},{"id":189853,"entity_id":"wefunder:comment:189853","question":"Hi Mark. 1) You mention a target 40% IRR as you expand to more sites \u0026amp; sqft. Does this hopeful IRR include dilution from additional capital raises or not? 2) Hypothetically, how would your “Warehouse rent” line item change if you financed a warehouse instead of renting?","author_name":"Dani L","votes":1,"created_at":"2022-01-26T06:41:06Z","canonical_url":"https://wefunder.com/warehouserepublic#question-189853","answers":[{"id":190569,"entity_id":"wefunder:comment:190569","answer":"Hello Dani, 1. The IRR in this case included dilution up to $5mm raised in this round. The IRR number is based off of several assumptions related SqFt under management, time to expand and fill out locations, and exit multiples based on public and private data I've been fortunate enough to have been exposed to. I have to be very clear in stating again that the IRR is a projection, not a certainty. 2. The rent line on our P\u0026amp;L would, at first, be close to market rate. Over time we would be at a competitive advantage due to our ability to keep our rent somewhat independent of market rates assuming a fixed interest loan.","author_name":"Mark Taylor","votes":0,"created_at":"2022-01-31T16:28:47Z"}]},{"id":188574,"entity_id":"wefunder:comment:188574","question":"Hi Mark, how do you differentiate yourself from ShipBob?","author_name":"Hongwei Jin","votes":1,"created_at":"2022-01-16T21:11:47Z","canonical_url":"https://wefunder.com/warehouserepublic#question-188574","answers":[{"id":189634,"entity_id":"wefunder:comment:189634","answer":"Hello Hongwei Jin, ShipBob focuses on direct to consumer (individual product fulfillment) shipping whereas we focus on mid-term storage. Both business models serve very similar customer sets however, their \"bread and butter\" differs from ours.","author_name":"Mark Taylor","votes":0,"created_at":"2022-01-24T23:13:52Z"}]},{"id":188098,"entity_id":"wefunder:comment:188098","question":"The project is interesting and appear to offer potential. However, we need to get confidence on the management team to get the project executed as planned. Nowhere this website provide details about the promoters / founders' background, past experience etc. Where can we find that info? Also tell us the names of major investors in the project, as also details of investment if any, of the founders. Antony R Nathan","author_name":"Antony Retchaganathan","votes":1,"created_at":"2022-01-13T05:52:32Z","canonical_url":"https://wefunder.com/warehouserepublic#question-188098","answers":[{"id":189637,"entity_id":"wefunder:comment:189637","answer":"Hello Anthony, Both Abhi( https://www.linkedin.com/in/abhidobhal/) and I (https://www.linkedin.com/in/mark-taylor-1910856/ ) can be found on LinkedIn for our backgrounds, past experience, etc. Our lead investor is Chris Shonk, a seasoned entrepreneur, who is also a Partner and co-founder of ATX Venture Partners: www.atxventurepartners.com Thank you!","author_name":"Mark Taylor","votes":0,"created_at":"2022-01-24T23:20:43Z"}]},{"id":187933,"entity_id":"wefunder:comment:187933","question":"Hi, What WMS are you using right now?","author_name":"Oleksandr BARANOV","votes":1,"created_at":"2022-01-12T16:07:14Z","canonical_url":"https://wefunder.com/warehouserepublic#question-187933","answers":[{"id":189597,"entity_id":"wefunder:comment:189597","answer":"We are using a leading mid-tier WMS called 3PL Central (SaaS product). We have also built our own software application to augment our internal workflows and improve customer experience","author_name":"Abhi Dobhal","votes":0,"created_at":"2022-01-24T19:07:47Z"}]},{"id":187447,"entity_id":"wefunder:comment:187447","question":"Hello, what is what we receive for investing? i have 20k to invest it not a lot compared to your company value but i don't see what we get in return of investment? we get a quarterly % of profits? or what is what we get?","author_name":"Raul Cuevas","votes":1,"created_at":"2022-01-09T19:39:31Z","canonical_url":"https://wefunder.com/warehouserepublic#question-187447","answers":[{"id":189638,"entity_id":"wefunder:comment:189638","answer":"Hello Raul, Your investment buys you piece of the company. Our plans are to reinvest all capital earned and raised into growing the company. If we decide to issue dividends or when we sell the company, you'll get whatever your portion is based on how much equity you own.","author_name":"Mark Taylor","votes":0,"created_at":"2022-01-24T23:28:03Z"}]},{"id":177522,"entity_id":"wefunder:comment:177522","question":"What technology innovations are you developing or already in your facilities to automate manual pick/pack?","author_name":"Scott Ruffner","votes":1,"created_at":"2021-11-04T14:56:43Z","canonical_url":"https://wefunder.com/warehouserepublic#question-177522","answers":[{"id":177599,"entity_id":"wefunder:comment:177599","answer":"Hello Scott! Pick \u0026amp; Pack accounts for a minority of what we do. As such, we use your typical scanners, pick lines, batch picking, etc. programmed into our WMS. We have not yet invested in any automation. As it becomes a higher percentage of what we do, we will likely partner with companies that provide augmented picking systems such as the \"Chuck\" robots that 6 River Systems offers.","author_name":"Mark Taylor","votes":1,"created_at":"2021-11-04T21:20:28Z"}]},{"id":152850,"entity_id":"wefunder:comment:152850","question":"What is the end date for this offering?","author_name":"Harold Looney","votes":1,"created_at":"2021-06-05T16:05:44Z","canonical_url":"https://wefunder.com/warehouserepublic#question-152850","answers":[{"id":153150,"entity_id":"wefunder:comment:153150","answer":"Our certified audit is on schedule to be completed by end of June. Once that is completed, we will likely let the campaign run for 1-2 months unless the desired amount is raised sooner.","author_name":"Mark Taylor","votes":0,"created_at":"2021-06-08T16:25:08Z"}]},{"id":152415,"entity_id":"wefunder:comment:152415","question":"I applaud your much needed service to small eCom stores and to your staff. Do you currently own or lease the Real Estate and what is your long-term Real Estate strategy?","author_name":"Harold Looney","votes":1,"created_at":"2021-06-03T14:19:30Z","canonical_url":"https://wefunder.com/warehouserepublic#question-152415","answers":[{"id":153149,"entity_id":"wefunder:comment:153149","answer":"Hello Harold! So far we've been in such a high growth phase that it makes more sense to lease the spaces we occupy. Our long term strategy is to acquire the real estate. We are actively putting these plans in place, but have not included this aspect of the strategy in this current valuation because it likely a couple of years into the future.","author_name":"Mark Taylor","votes":0,"created_at":"2021-06-08T16:23:38Z"}]},{"id":147637,"entity_id":"wefunder:comment:147637","question":"Hi Warehouse Republic Team, Congrats on the success so far. I like that you have product market fit and a waitlist of 400 customers :) One of my readers passed along your deal to me and asked for my thoughts. I’ve written a first pass of a deal memo (https://muhanzhang.com/warehouse-republic/) and had the outstanding questions below: 1. Speed of Expansion: How fast do you think you can expand to meet those 400 customers? Does there hit a point where you become the big 3PL provider who can't be as intimate/good to each of your customers? 2. Core Business: Is the 3PL your business or is there some novel technology/process you have that helps you provide a superior service? 3. Margins and Scale: Can you walk through the unit economics per customer, and specifically, how do you think those unit economics will change with scale? Thanks in advance for your responses. Bests, Muhan https://muhanzhang.com/warehouse-republic/","author_name":"Muhan Zhang","votes":1,"created_at":"2021-05-06T22:47:58Z","canonical_url":"https://wefunder.com/warehouserepublic#question-147637","answers":[{"id":149349,"entity_id":"wefunder:comment:149349","answer":"Hello Muhan! Thank you for your questions: 1. We'll be able to accommodate everyone on the waitlist with the expansion. We do not onboard all customers at once as we have to familiarize ourselves with a new set of products per customer. We would space the onboarding of our waitlisted customers over 2-4 months. We continue to improve our processes and tools to improve efficiencies at serving our customers with the goal to scale that intimate experience. 2. We would not be able to do what we're doing without being a \"tech enabled\" company. We've stitched together a formidable tech stack using \"off-the-shelf\" products. We have also been building our own proprietary tools to fill in any gaps. We prefer to downplay the tech side of things at this point since the primary use of funds will be to expand the physical operation. We do plan on investing and building more proprietary technology as we grow. 3. For our operation, the most accurate way to look at UE is the total square footage. Warehousing has a fair amount of operational leverage. The unit economics are a moving target because your pallet space utilization in the warehouse always fluctuating. For instance, our 50K SF operation's breakeven occurs at around 75% utilization, however the breakeven decreases to 61% utilization in the 250K SF operation. Key components of UE in this case are: Rent, forklift leases, utilities, recurring software expenses, insurance, and management pay. All of these items are \"chunky\" expenses that we pay regardless of whether or not the warehouse is full. That said, when we are in a larger building our rent/SF will be lower, management pay will be spread over more SF, software expenses remain more or less the same, and the number of forklift leases will go up but so will machine utilizations. As you can see, the unit economics get better with scale, multiple operations in multiple locations, etc. California is one of the hardest/most expensive markets to operate a warehouse. At our current location, which is inefficiently set up (as we inherited the layout), we are able to achieve EBITDA margins in the ~20%. In the new building we're investing in a much more efficient racking system, with a layout that will be built to specification. We expect EBITDA margins to increase to the 25% range in the Southern California operation. Once we move on to different markets where rental rates are lower, workman's compensation as a % of payroll are lower, etc, we will continue to see margins improve.","author_name":"Mark Taylor","votes":1,"created_at":"2021-05-17T22:04:57Z"}]},{"id":142626,"entity_id":"wefunder:comment:142626","question":"Hi, when do you anticipate the SAFEs converting, and when they do, will they convert into common or preferred equity? Also, are you all an LLC for tax purposes, and if so, do you plan on maintaining that structure? I like the pass-through business structure!","author_name":"Lucas Selvidge","votes":1,"created_at":"2021-04-17T04:26:37Z","canonical_url":"https://wefunder.com/warehouserepublic#question-142626","answers":[{"id":143191,"entity_id":"wefunder:comment:143191","answer":"We anticipate the SAFEs converting within the next year or two. They will convert into preferred stock. We are set up as a C corp and plan to maintain this entity structure.","author_name":"Mark Taylor","votes":1,"created_at":"2021-04-19T18:47:42Z"}]}],"faq":[{"question":"The EBITDA Ground Freight \u0026amp; Logistics valuation multiple is 8.84. Obviously this number is not a sole variable in computing a company's valuation, but I'm calculating WR's multiple at over 14 ($22.5M investment terms / $400k revenue per quarter * 4 quarters). How are you c...","answer":"Hello Collin, great question! We're basing our valuation cap using a discounted cash-flow model. Our current revenue run rate is around $2.1mm without any further investment. A $3mm infusion allows us to scale into a footprint that is 5x the size of our current facility. Projected EBITDA (based on our current operations) will be $3-4MM annually, which allows us to self-fund further expansion and grow the enterprise value beyond $25mm. Based on the BGSA index, which tracks 62 publicly traded s..."},{"question":"I was looking for financials and don't see any.","answer":"Hello Jaspreet, please see the below link to our unaudited, operational P\u0026amp;L statement from 2020. This P\u0026amp;L is presented on cash basis accounting. Thank you! https://docs.google.com/spreadsheets/d/1_g_N5JJ268MtMWDTOLaoB79-GSezsoMJihYqD0FQ0SM/edit#gid=1683621888"},{"question":"Service looks great, team! Good luck with the raise!","answer":"Thank you!"},{"question":"Hi, when do you anticipate the SAFEs converting, and when they do, will they convert into common or preferred equity? Also, are you all an LLC for tax purposes, and if so, do you plan on maintaining that structure? I like the pass-through business structure!","answer":"We anticipate the SAFEs converting within the next year or two. They will convert into preferred stock. We are set up as a C corp and plan to maintain this entity structure."},{"question":"Since 3PLs are traditionally designed to suite only a couple customers with a 2-3 year ROI on their automation. How do you design your warehouse with 10's of customers in mind and what are your product constraints?","answer":"The primary investment for this expansion is a much more efficient racking system and the machines required to operate within that setup. You're right about our customer load vs traditional 3PLs. We are solving for the high activity by stitching together our ever evolving technology stack. Our biggest service constraint is not having enough physical space to continue growing. Which is why we're raising this capital :-)"}]}}}