The EBITDA Ground Freight & 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...

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...

I was looking for financials and don't see any.

Hello Jaspreet, please see the below link to our unaudited, operational P&L statement from 2020. This P&L is presented on cash basis accounting. Thank you! https://docs.google.com/spreadsheets/d/1_g_N5JJ268MtMWDTOLaoB79-GSezsoMJihYqD0FQ0SM/edit#gid=1683621888

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!

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.

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?

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 :-)

Warehouse Republic

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Brian interviewed Warehouse Republic on April 13, 2021. Play Video

Brian Belley

CTO @Kingscrowd. Former Venture Partner, Founder, Startup Advisor, and recovering Rocket Scientist. Investor in 240+ startups.

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says, "A profitable and growing company with proven demand. The fact that the growth thus far has been mostly organic is very encouraging and indicates a good sense of product-market fit and being ready to scale."

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says, "The Founders have a great sense of what differentiates them from the competition, and I have a feeling that this massive market can support multiple winners. That being said, some of their competitors are large and well-funded, so the team will need to remain laser-focused on their value prop and what sets them apart in order to remain ahead in their segment."

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LEAD INVESTOR

Invested $50,000 this round

Our family office & VC fund are active investors in the logistics/supply chain, manufacturing, inventory management and freight/maritime industry. The "Amazon & Shopify Effect" has only just begun. The need for innovative and dynamic warehouse space is poised for exponential growth. Mark & Abhi are well known in their industry and respected founders. Their performance, data-driven decision making and creative problem solving have them positioned to be a leader in this space.

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