Digital Coffee

Digital Coffee Machine with Commercial-quality at Consumer friendly Price

Founder : Gleb Polyakov
Location : California
Target : $750,000
Share Type : Common Stock

Business Overview

Established in 2011, the Company (“Project Taste”) offers smart coffee machine with first-in-industry digital temperature and pressure profiling, as well as café-class stability. Also, the smart espresso machine allows roasters, consumers, and cafes to share data. Coffee lovers can download official brew profiles, controls & analytics, wireless upload of brew profiles & settings, build user preferences, and share with other enthusiasts and roasters. The Company’s revenue streams are generated from hardware sales (the coffee machine) and data services including personal profiles with advanced usage stats, data subscriptions for roasters and cafes, coffee and hardware discovery tools.

Transaction Overview

In 2012, the Company raised US$370K from one of the world’s largest funding platform for creative projects, to do hardware design and tooling as well as Beta test of the products. Currently, they are raising US$750K. Use of proceeds includes working capital, R&D, operational costs, building website, and development of mobile portal.

Investment Highlight


  • The first digital profiling coffee machine with patented disruptive technology to optimize coffee taste: Precise temperature and pressure control are crucial to make perfect coffee, which is where home espresso machines lag behind the commercial counterparts. In contract to the imprecise mechanical controls of most home machines, which produce wild swings around the target brew temperature, the Company’s machine is the first one to leveraging PID control to enable precise temperature and pressure with digital profiling, which keep the brew temperature much closer to a programed target.

  • Proven product prototype with presales track record: as of April 2014, the Company has release the Beta hardware, and successfully achieved $525,000 pre-sales of coffee machines.

  • Value for money:  the Company’s products offer café quality coffee, while charge a price of home coffee machine. The unit price ranges from US$300-800 to cater market segments with different pricing sensitivity.

  • Coffee profiling and social platform to enhance customer loyalty: the digital profiling function of coffee machine allows the users to share coffee experience and improve the coffee quality, which is a good way to increase the publicity of the products and increase customer stickiness.

  • Huge market size and upside potential: Coffee beans with a retail value of US$80 billion are sold each year, which puts coffee second only to petroleum as a top-selling commodity. Espresso machine market enjoys a 34% annual growth, with 16% household penetration in the U.S. There is 12% annual growth in gourmet coffee sales in the U.S., an indicator of high-end home brewing. Moreover, compared to 400 cups of coffee consumption per person per year in the U.S. and 360 in Japan, the average coffee consumption in China is still less than 5 cups in urban areas. China's coffee market enjoys an annual growth of 15%. The coffee machine market in China is still blue see market with huge upside potential.

About Management Team

Available upon request.

About Our Product

We are the first smart espresso machine to allow roasters, consumers, and cafes to share data. We offer first-in-industry digital temperature and pressure profiling, and café-class stability, in a consumer machine.

About Industry

$3.8 Billion Market

  • 34% annual growth in espresso machine category (2013 NPD Group)

  • 16% household penetration of espresso machines in the US

  • 12% annual growth in gourmet coffee sales, an indicator of high-end home brewing

  • 8M units sold in US/EU annually

Financials

About Competitor

Available upon request

Exit Strategy

Available upon request
Risk Warnings
Disclosure: Investing in startups carries a high degree of risk. In general, financial and operating risks confronting both early and developmental-stage companies, as well as more mature expansion-stage companies are significant. Many emerging growth companies go out of businesses every year. It is difficult to know how companies will grow, if at all, or what changes may occur in the market. A loss of an investors entire investment is possible and no profit may be realized. Investors are responsible for conducting their own due diligence. * It should not be assumed that recommendations made in the future will be profitable or will equal the performance of securities in this list
We are the first smart espresso machine to allow roasters, consumers, and cafes to share data. We offer first-in-industry digital temperature and pressure profiling, and café-class stability, in a consumer machine.

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This section of information is for our registered investor only. Please Sign Up as a Shanghai Valley investor.




This section of information is for our registered investor only. Please Sign Up as a Shanghai Valley investor.




This section of information is for our registered investor only. Please Sign Up as a Shanghai Valley investor.