Republic Insider: focus on DTC startups

[Republic Weekly] Republic Insider January 27, 2021 Ending soon: [Procertas]( [Hidrent]( [Ratio]( [Streitwise]( and [Asarasi]( Republic Insider: focus on DTC startups Direct-to-Consumer startups are trending. It’s never been easier to build a brand and sell directly to consumers (DTC), cutting out the retail middleman. This allows DTC companies to achieve higher profit margins. Success in this space has led to outsize valuations, especially for DTC startups that can undercut incumbents on price. Warby Parker did it with prescription glasses, and is valued at over $1 billion today. Dollar Shave Club did it for men’s grooming, and was acquired by Unilever for $1 billion. Some startups add sustainability to the equation, the way Allbirds ($1.7 billion) is doing with their wool shoes and tree-fiber jackets. Others, like Purple mattresses ($2 billion), rely on unique “secret sauce” technology.. DTC is hot for a good reason. The costs of building a consumer brand are a fraction of what they used to be. Entrepreneurs can easily host their own web store, then advertise directly to their target audience on Facebook, YouTube, and other ad networks. Word of mouth spreads quickly over social media. Cult brands that used to develop over decades can now establish themselves in months. Of course, there’s no substitute for sound business fundamentals. “Bed-in-a-box” mattress pioneer Casper (CSPR) was unprofitable for years, despite impressive year-on-year revenue growth. This impacted its IPO and subsequent share price volatility. As a rule, more hype = more thorough due diligence. What’s crucial to us as investors is that a brand’s best customers now have the chance to own a piece of the business. DTC companies can raise funds on sites like Republic, a curated platform that screens each company before it is presented to the Crowd. As always, you need to do your own due diligence and make your own investment decisions. Live DTC (direct-to-consumer) deals on Republic - [Stojo]( makes earth-conscious, reusable products that make it easier to live sustainably. $16M in revenue with just $1M of funding. - [TapRm]( enables beer brands to sell DTC. 670% growth YoY, $5M annual run rate. - [Canopy]( is building the next-generation N95 respirator. Reusable, transparent, comfortable, and affordable. Saves hospitals >50% on PPE; quickly pays for itself. - [Ratio]( makes elegant premium coffee makers. DTC revenue increased 322% in 2020 through August. - [Cannabox]( sells cannabis accessory subscriptions (boxes) DTC. $400k current monthly revenue, $11.5M sales to date. Was the first cannabis box business. - [BAOBAB]( sells their “Perfect Polo” shirt DTC. 35% customer repurchase rate with 87% of those customers buying multiple shirts. - [Moku]( looks like bacon, tastes like jerky, and is made from mushrooms. Sells through 3 DTC channels: Amazon, Thrive Market, and its own site. - [AKUA]( sells kelp jerky and kelp burgers. 70% of sales are direct-to-consumer. - [OTIS Dental]( makes custom night guards for people who grind their teeth at night. Unique DTC subscription model offers recurring revenue. - [Primal Life Organics]( makes natural organic skincare and oral care products. Profitable with almost $5M in annual sales. Note: the issuers featured in this newsletter are being highlighted as they all sell physical goods in the direct-to-consumer space. You can [see all the companies raising on Republic here](. [View all current offerings on Republic]( --------------------------------------------------------------- Launched this week [CountertopSmart]( CountertopSmart The ingenious way to save big on countertops [View CountertopSmart]( [Trusst]( Trusst The mental healthcare system is broken. Trusst is how we start fixing it. [View Trusst]( [Flatiron – Miami]( Flatiron – Miami Invest in Brickell Flatiron—one of the hottest new condo buildings in Miami. [View Flatiron – Miami]( [RealtyFeed]( RealtyFeed A social network for real estate professionals [View RealtyFeed]( --------------------------------------------------------------- Offerings closing soon [Procertas] Procertas is about to close! $42,287 raised · $100 min. investment Leveraging online learning to increase proficiency with essential business tools [View Procertas]( ​ ​ --------------------------------------------------------------- Current offerings on NextSeed [WRAD One]( WRAD One Next gen gunshot detection system, making schools, workplaces and public spaces safer. [View WRAD One]( [Lonesome Soldier]( Lonesome Soldier Feature film investment opportunity from new genre production & distribution team. [View Lonesome Soldier]( Offerings displayed above are current crowdfunding offerings that are not oversubscribed and which are being facilitated by NS Securities, LLC, a registered broker dealer and member of FINRA (check out its background on [BrokerCheck®]( an entity which is neither affiliated nor under common control with Republic. Offerings hosted by “NextSeed” can be accessed at []( (“NS Platform”). Securities offerings on the NS Platform are subject to applicable terms and conditions of NextSeed and NS Platform. No offering on the NS Platform has been recommended or approved by any federal or state securities commission or regulatory authority and is not endorsed or recommended by Republic. [Hidrent] Hidrent is about to close! $64,248 raised · $100 min. investment Off Duty. On Demand. [View Hidrent]( [Ratio] Ratio is about to close! $245,745 raised · $150 min. investment A new paragon in coffee [View Ratio]( [Streitwise] Streitwise is about to close! $140,265 raised · $1,021 min. investment 8-9% target dividends through a professionally-managed office building portfolio [View Streitwise]( [Asarasi] Asarasi is about to close! Sold out · $100 min. investment The future of water, sourced from trees [View Asarasi]( --------------------------------------------------------------- Startup updates [Trusst]( [Trusst: Trusst team members publish first empirically-backed approach to messaging-based psychotherapy]( [Intellivision Amico]( [Intellivision Amico: AMAZING support and excitement for Intellivision Amico!!]( [Po Campo]( [Po Campo: Po Campo Outperforms Competition By 426%]( [Genius Juice]( [Genius Juice: Genius Juice To Launch in 200 New Smart & Final Stores in Southern California]( [Moku Foods]( [Moku Foods: Financials - 1st 6 weeks are in!]( [Hidrent]( [Hidrent: Less Than One Week Left!]( [Edible Garden]( [Edible Garden: Organic Produce Sales Up 14% in 2020, Topping $8.5B]( [Salone Monet]( [Salone Monet: The Cut Tastemakers: The Shoe Designer Making ‘Nude’ Inclusive]( [Scooterson]( [Scooterson: NBA Star Wendell Carter invested in Scooterson!]( [Procertas]( [Procertas: The LTA is Definitely a NEED!]( [RealtyFeed]( [RealtyFeed: 100%+ Raised and the Industry is eager to have it!]( [Manta Biofuel]( [Manta Biofuel: Live: Technori Interview with Manta CEO Ryan Powell!]( [Audios]( [Audios: Audios Update: Audios featured on Technori podcast]( [Snailz]( [Snailz: Snailz Launches its Corporate Booking Division]( [Nectar Tulum]( [Nectar Tulum: And the winner is...]( [TapRm]( [TapRm: Smoked Meats and Beer Launch!]( [Ratio]( [Ratio: A major product development launch...]( Like this newsletter? 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