Featured Founders: October 2022
Top 10 New Majority founders who opened their investment round to everyday investors
Welcome to The New Majority. In this newsletter, we feature select New Majority founders currently raising from YOU and bring you updates on past featured founders. It’s then your decision to invest in the New Majority founded start-up.
For those looking to diversify their portfolio, New Majority Investor Circle members receive access to the quarterly Top 10 Featured Founders, early podcast access interviewing founders, quarterly masterclasses on angel investing, and event invites.
Coyuchi
Sustainable, organic home goods
Industry: Retail
Impact: Responsible consumption & production (SDG 12), Climate action (SDG 13)
Team Diversity: Women leadership
HQ: SF, CA
Investment type: Common share, Reg A offering
Deadline: None stated
Investor Perks: Thank you gift and other perks with $450 investment
Overview: Coyuchi was founded over 30 years ago as the first organic luxury home goods brand for sustainable living and has continued to be a leader in the space. They’ve built 2 circular program initiatives to create a closed loop and have multiple environmental and ethical certifications. They are profitable with $33.3M in sales and $1.4M in net income in 2021. Past investors include Saffron Hill Ventures. Current valuation is $117M ($33.3M x 3.5 multiplier).
Tampon Tribe
Organic, plastic-free period products
Industry: Women’s health, consumer goods
Impact: Good health & well-being (SDG 3), Sustainable cities & communities, Responsible consumption & production (SDG 12)
Team Diversity: All women founding team, LGBTQIA+ co-founder
HQ: Santa Monica, CA
Investment type: SAFE
Deadline: None set
Investor Perks: Swag bag with $100 investment
Overview: Organic, plastic-free period products including tampons, pads and liners, menstrual cups, and underwear. Selling through D2C, B2B, retail, and on Amazon. Funds raised will focus on inventory, sales, and marketing. Rose Marcario, former Patagonia CEO, is an investor.
Bison Venture Partners
Suite of companies and brands sourcing capital for New Majority founders
Industry: Media, retail, consulting, investing
Impact: Decent work & economic growth (SDG 8), Reduced inequalities (SDG 10)
Team Diversity: All Black founding team
HQ: Wilmington, DE
Investment type: Revenue share loan
Deadline: October 31, 2022
Investor Perks: N/A
Overview: A full suite of companies focused on bringing capital to New Majority founders. They do this through:
1) Direct investment into founders and companies they believe in through equity crowdfunding
2) Media and marketing brands to educate both investors and founders
3) Management consulting services for tech startups and SMBs
4) Marketplace for HCBU CPG companies and merch
Investment terms: 6% of revenue, 1.25 payback multiple (investor receives 6% of revenues each quarter starting Q2 2023 until the investor has received 125% of their principle)
*New Majority leadership co-invested in this round prior to this edition.
Champion Lender
First time home buying platform
Industry: Real estate, fintech
Impact: Reduced inequalities (SDG 10)
Team Diversity: Black founder, female founder, LGBTQIA+ founder
HQ: Orlando, FL
Investment type: Crowd SAFE
Deadline: November 25, 2022
Investor Perks: Champion swag tumbler with $200 investment
Overview: Removing barriers to home ownership for minority communities through an all-in-one platform that guides first time home buyers through the process. They have two products: HOME (B2C Web & Mobile App, focused on marginalized home buyers and providing credit improvement tools, cash to close, and educational resources) and HOME Pro SaaS (B2B mortgage software platform). Mortgage partners include DHI Mortgage, Lennar, and Freedom Mortgage.
Upbounders
Sustainably made, representative puzzles and games
Industry: Retail
Impact: Responsible consumption & production (SDG 12)
Team Diversity: Female founder, Black founder
HQ: Washington, DC
Investment type: Bond
Deadline: November 29, 2022
Investor Perks: N/A
Overview: Founded by a Black mother who wanted to cultivate joy and belonging through play. Products include puzzles and games that represent cultural and ethnic differences accurately, feature original artwork, and are made sustainably. Puzzles priced between $15-25. Current retail placement: Maisonette, Nordstrom, Target, Camp Stores, Anthropologie, Amazon. Interest rate: 9.5% Loan term: 60 months
CLIPr
Video management software using ML and AI
Industry: SaaS, AI
Impact: Decent work & economic growth (SDG 8)
Team Diversity: Female co-founder, AAPI founders
HQ: Seattle, WA
Investment type: SAFE, side-by-side offering
Deadline: October 28, 2022
Investor Perks: Up to 8 hours content processing per month with $2,500 investment
Overview: Meeting, event, and digital marketing video management software. CLIPr uses machine learning and AI to detect speech patterns and visual aids and uses them to identify moments as Topics and Subtopics - making the video searchable, shareable, and actionable. B2B, focused on enterprise sales with freemium model. Integrations include all major video conferencing providers including Zoom, Microsoft Teams, Panopto, and Google
Bob’s Containers
Affordable housing made from containers
Industry: Real estate, tech
Impact: Industry, innovation & infrastructure (SDG 9), Reduced inequalities (SDG 10), Sustainable cities & communities (SDG 11)
Team Diversity: LatinX founders
HQ: Austin, TX
Investment type: Revenue share loan
Deadline: TBD
Investor Perks: N/A
Overview: Affordable housing using shipping containers and standardized customizable designs. Reduces new home construction from an average of 7-24 months to 4 weeks. Strong branding and social media presence with features on Netflix and partnerships with Tesla and Harvard. Techstars Austin 2022 cohort member.
Investment terms: 4% of revenue, 3.5 payback multiple (investor receives 4% of revenues each quarter until the investor has received 350% of their principle)
PopCom
Digital pop-up shop technology
Industry: Hardware, SaaS, retail
Impact: Responsible consumption & production (SDG 12)
Team Diversity: Black founder, female founder
HQ: Columbus, OH
Investment type: Common stock
Deadline: November 29, 2022
Investor Perks: Ticket to virtual PopCom investor summit with $500 investment
Overview: Kiosk machines that sell local products and automate collection of customer data to optimize sales conversions. Hardware + subscription model. Founder is a 6x founder with 1 exit. First Black woman to raise over $1M in a secure token offering and previously raised $5.69M in crowdfunding for PopCom.
Hummingbird Labs
Cannabis testing lab
Industry: Medical
Impact: Good health & well-being (SDG 3)
Team Diversity: All Black founding team, female co-founder
HQ: Grand Rapids, MI
Investment type: Revenue share loan
Deadline: December 30, 2022
Investor Perks: N/A
Overview: First African-American-owned cannabis testing lab in Michigan to ensure the safety and quality of all cannabis products. The demand for lab services currently exceeds the supply within the industry, as growers and processors are unable to bring products to the market until they are tested. Projected revenue from testing of medicinal and recreational products in high-demand markets: $550/sample. Funds are to buildout facilities, purchase equipment, and operations.
Investment terms: 1.7x payback multiple (investor receives percentage of revenues until they receive 170% of their principle - by 12/31/2027, regardless of revenue)
World Tree USA
Regenerative farming with Empress Splendor trees
Industry: Agriculture
Impact: Decent work & economic growth (SDG 8), Climate action (SDG 13)
Team Diversity: Female founder
HQ: El Segundo, CA
Investment type: Equity
Deadline: January 4, 2023
Investor Perks: N/A
Overview: World Tree plants fast-growing, carbon-crunching, soil-restoring Empress trees to produce sustainable hardwood lumber. One acre of trees planted offsets the carbon footprint for a decade. Revenue is generated by selling hardwood lumber targeting high-end markets (furniture, musical instruments, surfboards, etc.). Revenue depends on overall lumber demand, quality of lumber produced, and end-use products. Sourcing from farmers in 4 countries (Costa Rica, Guatemala, Mexico, and US). Farmers receive 50% of profits, investors 25%, and World Tree 25%.