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10 Slide Pitch

Co-Founder and Vice President at FairFunders
Jun. 16, 2020
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10 Slide Pitch

  1. Cook to Learn! Teaching Kids Math, Social & Nutritional Science through Cooking LAYLA SABOURIAN-TARWE, Founder/CEO | layla@chefkoochooloo.com| +1-650-463-6041
  2. 2 PROBLEM/OPPORTUNITY Childhood obesity is rising Children are becoming depressed “Childhood obesity links to poor grades and depression.” -CDC, Time Magazine, International Journal of Obesity Test scores are falling
  3. Imagine if healthy eating habits were formed at an early age? With Chef Koochooloo, kids learn to eat healthy, while improving their STEAM and Social Studies skills! VALUE PROPOSITION WE CONTRIBUTE TO CHILDREN’S Happiness Education Health
  4. UNDERLYING MAGIC: SOLUTION Chef Koochooloo App Recipient of SBIR Award from the National Science Foundation
  5. Business Model *Software Subscriptions Only* *For ingredients and kits to be included* $25/student
  6. 1. Email Marketing Campaign 2. Presence in Conferences 3. Thought Leadership Number of Participants: 16,540 schools (in CA, TX, NY, MA) Campaign effectiveness: 4.5% (750 schools) Go-to-Market Strategy CA NY TX
  7. Diverse, Passionate and Talented Team Cofounders Team Cecelia Aguilar Technology and Culinary Education Researcher, Translator and Instructor Wendy Kou Illustrator Layla Sabourian CEO/Founder Antoine Tarwe Co-Founder Delarai Tarwe Chief Chef Officer Marcelle Al-Zoughbi K-5 Teacher And Curriculum Creator Asmita Jain Product Management Intern Advisors Dr. Ksenia A. Korobkova Postdoctoral Research Fellow Terrell Joseph Animator/Illustrator Developer of the Harvard "Science and Cooking” class Dr. Michael Brenner Science & Cooking Professor of nature science and chemistry at Stanford University Chair in the Education Department at UC Santa Cruz, current director of the MA/Credential program Dr. Kip Tellez Dean of Education Personalized learning consultant, teacher coach Heather Stinnett Lead Advisor of Khan Lab School Dr. Richard Zare Developer of LIF Former CEO of LeapFrog, Knowledge Universe, Sega, Matchbox, and Mattel. Tom Kalinske Chairman at Global Education Learning Dr. Daniel Zoughbie Lecturer and Vice Chair of CMES Parham Akhavan Software Architecture Advisor Emeline Fellus FReSH Director at WBCSD Dr. Amanda Antico CEO EvolvED Global and CSO Dr. Lance Vikaros Product Consultant Mauricio Davila Morlotte Advisor for UNICEF Project Collaboration Alex Johnson Illustrator Kristen Honeycutt Nutritionist and Content Creator Gabriela Wiborn Project Coordinator Dahlia Theriault Illustrator
  8. High STEAM Incorporation Low STEAM Incorporation High Nutrition Advocacy Low Nutrition Advocacy Competitive Analysis
  9. 2015 - 2019 2020 2021 2022 2023 2024 Revenue $293,000 $585,000 $6,379,085 $13,950,289 $22,776,602 $33,800,949 Number of student subscriptions 854 23,400 250,158 524,074 826,789 1,187,262 Number of Classrooms 30 780 8,125 17,030 26,871 38,584 Number of schools 30 60 625 1,310 2,067 2,968 Avg Price/student/year $12 $25 $25 $26 $27 $28 Total user cost 84,000 $446,306 $4,341,824 $8,083,056 $11,059,093 $13,522,191 Potential Revenue Share Model 3% (kick in 3rd year) - - $690,000 $1,000,000 5 Year Revenue Forecast The Potential 9
  10. Current Status: ● Paid pilots in 30 Schools, accumulated revenue of $363K. 9000 end users ● Receipt of $1 million dollars in non-dilutive funds from Phase 1 & Phase SBIR grants from NSF ● Patented in the USA Raising: ● 1.5 Million, ($500 Matching funds committed by NSF ● Scalable version of MVP scheduled to launch in September 2020. Uplift Education with Chef Koochooloo! Terms of Investment ● Safe / Convertible note ● 3 million Price Cap (20% discount) *Raised $40K *Raised $30K
  11. Appendix ● Business Canvas ● Trends in Enrichment Programs ● Opportunity: Supplemental Education Market ● Immediate Opportunity Size ● Pre-Launch Revenue Generating Pilots ● Recognition and Growth ● Why Schools Love Chef Koochooloo ● Chef Koochooloo Matrix of Benefits ● Significant Academic Improvements Achieved ● Business Model Risks ● Detailed Go-to-Market Strategy ● K-12 EdTech - A Highly Acquisitive Market ● Exit Strategy ● Current Cap Table ● Cash Flow Analysis ● Additional Ideas for Future ● IoT Portable Kitchen
  12. 1 2 Business Canvas 12 Key Partners 1. Educational Institutions: Primary Schools, School Districts • Customers 2. Community Centers & Events: Health, Activities, Boys and Girls Club of America, (YMCA) Jewish Community Center • Customers • Brand recognition • Volunteers 3. Parenting Clubs: (Mountain View Moms, Spanish Speaking Moms, PTA) 4. Media: Local TV Channels focused on entrepreneurship and cooking programs, parenting magazines • Customer outreach • Population/Subject focused marketing 5. Food Brands: Brand recognition can be acquired in both directions with proper food brand partner and/or health advocates. • Box Top supplier/recognizers (Nestle, Pepsico, etc…) 6. Grocery & Food Delivery Services: AmazonFresh, Hello Fresh, Google Express, Instacart (in-app food & material purchases) • Ingredient Suppliers • Sodexo 6. Data Scientists & Academic Institutions: (Insead, Indiana University) Early childhood education data. • Geographical interests • Innovative TEAM teaching methods Key Activities 1. Align curriculum of 1st and 5th grades science, technology, engineering, arts, mathematics (STEAM) 2. Discover competitive apps that have alignment with NGSS curriculum 3. Add comparison or progress appraisal (Separate dashboards for teacher and students versus one dashboard for all) 4. Obtain a portable kitchen designer/supplier 5. Pursue more pilot customers 6. Gain approval from County Health Department Key Resources: FINANCIAL • Recurring Revenue from the Services • Non dilutive funds from the National Science Foundation (1 Million) INTELLECTUAL • Patent PHYSICAL • Community of users • B2B (Schools) • B2C (Direct to Customer Sales through the app) • Great skilled and experienced team Cost Structure Key Activity Costs: • Curriculum developers • Software Development Key Resource Costs: • Patents • Recruitment • Costs related to corporate partnerships Fixed Costs: • In-company employee salaries • Office rental Variable Costs (dependent on number of schools in program): • Teacher commissions: $20/class • Ingredient costs: $10 budget/class Value Proposition Customer: Educational Institutions Problem: • Teachers are struggling to find ways to integrate NGSS standards, Common Core and NCSS standards into their lesson plan • Teachers have a hard time assessing each student’s progress • Educators have a challenging time keeping students engaged • Teachers don’t have enough basic knowledge of social sciences and STEM Need: • Solution that optimizes teaching NGSS, Common Core, and NCSS Social Studies standards in a fun and engaging way Customer: Parents Problem: • Kids are picky and unhealthy eaters • Kids are not learning core academic subjects at school Need: • Fun ways to be more involved in their child’s education & diet Value: • Chef Koochooloo curriculum brings family and classroom together to learn about the world through healthier cuisine. • Children learn math, science, social science standards as defined by NGSS, NCSS and Common Core. Customer Relations GET • Direct & Indirect Sales • Social Media Campaigns • Attend and pitch at conferences and events on topics of diversity and STEAM KEEP • Offer learning results & Data • Share Progress Reports • Satisfy and delight students and teachers • Provide parents with engaging records of kids enjoying class GROW • Thought leadership • Share pilot results with new and struggling schools Customer Segments B2B: • Primary School District: 90,000 • Administrators • Curriculum Designers • Instructional coaches • Elementary School teachers: 3.2 M • Nutritional Science mandates in Middle School Classrooms Channels • Teaching Channel - https://www.teachingchannel.org/ • Word of mouth among teachers • Suggestion by school principal • Twitter and other social media • Partners • K-12 News, Lessons & Shared Resources Revenue Stream B2B2Cr model: • Based on our current pattern, we expect 71% of our revenue to come through our B2B channels, and 29% through our B2C solution. License & Subscription model: • Our B2 customers would be willing to pay a subscription fee for a premium version of our app, if we find an easy way for them to teach NGSS, NCSS and Common core standards Subscription with Ingredients & Portable Kitchen: • $25/Student/year • Year 1 – 625 schools = $6.38 M • Year 2 – 1,310 schools = $13.95 M • Year 3 – 2,067 schools = $22.78 M • Year 4 – 2,968 schools = $33.80 M
  13. • Increase in enrichment program spending by families over last 40 years, growing from $3500 to $9000 per child per year • Growing popularity of cooking programs across America: USDA’s Farm to School Program Trends in Enrichment Programs
  14. * NCES **MDR CHEF KOOCHOOLOO MARKET SHARE 14 GLOBAL EDUCATIONAL EXPENDITURES $47 Million | 3,977 schools | 5 years $90 Billion Spent in 2017 * Expected to grow to $103 Billion (by 2020) AIM* - Accessible Instructional Materials K-12 public schools in 2015- 2016: $12.8 Billion ** ($263 / student) US EDUCATIONAL EXPENDITURES Globally: 0.04% U.S.A.: 0.26% OPPORTUNITY: Supplemental Education Market A $90 Billion per year spending
  15. 15 Switzerland 6,000 Primary Schools 800 Thousand Students $16 090 per student USA 89,000 Elementary Schools 29,87 Million Students $11 727 per student UK 21,000 Primary Schools 8.2 Million Students $11,630 per student Germany 22,000 Primary Schools 3.24 Million Students $8 619 per student Netherlands 6,584 Primary Schools 1.5 Million Students $8 478 per student France 42,000 Primary Schools 6.81 Million Students $7 395 per student Spain … Elementary Schools 4,7 million Students $7 320 per student IMMEDIATE OPPORTUNITY SIZE Students per classroom Expenditure per student per year
  16. 58% gross profit margin 4% operating margin 15% ARR 30 Schools ● Total Paid Students to Date = 854 ● Revenue since inception = $363k 16 Number of Schools Growth 151 Students 158 Students 237 Students 308 Students Pre-Launch Revenue Generating Pilots
  17. Recognition and Growth 1 7 $1 Million!Grown from 5 schools with 151 students to 30 schools with total of 854 students in 2018 Won National Science Foundation award Successful pilots with 1000 subjects showed improved outcomes
  18. Why Schools Love Chef Koochooloo? 18 Student achievement - Math and Reading Student to teacher ratio Teacher satisfaction = better teaching quality Innovative environments for personal growth What makes a school successful? Adoption of modern tools and technology Student engagement and attendance Underserved student performance Community involvement
  19. Based on a survey of 1000 participants (parents) after 10 lessons. 19 0 20 40 60 80 100 ➢ Positive Influence on Eating Behavior ➢ New Passion ignited for STEAM subjects ➢ Improved Well Being of Families Chef Koochooloo Matrix of Benefits
  20. Significant Academic Improvement Achieved Research gained through the Chef Koochooloo study funded by NSF Advisors Dr. Claudia Mazziotti Stanford Research Institute Dr. Kip Tellez UC Santa Cruz 20 Science/Math (NGSS / CCSS) Language Arts (ELA / ELD) 51%increase 3%increase 55%increase 13%increase
  21. Risk # 1: Increase of teachers’ workload Business Model Risks Advantage: Ensure the curriculum is aligned clearly with standards they are trying to adopt (NGSS, NCSS, Common Core), and helps teachers view/visualize progress. Advantage: Ensure we have a partnership with Amazon Fresh, Google Express, or Instacart in place, and the app allows for delivery of fresh food. Advantage: Already built relationships with influential innovative schools that inspire other educators Risk #2: Teachers have no time to shop for ingredients Risk #3: Education Market is hard to penetrate 21
  22. Detailed Go-to-Market Strategy Search engines: 66% Trade Shows/ conferences: Education publications: Email: 47% Webinars: 39% Awareness Interest Engagement Purchase Food Management Companies (Sodexo and Compass) Learning Management Systems (Google Classroom and Clever) Colleagues: 76% School/district leadership: 63% 60% 58% Students sharing in class Users Awareness 22 CA NY TX
  23. Source: https://www.blended.blog/edtech-exits-rise/ K-12 EdTech: A Highly Acquisitive Market
  24. EXIT STRATEGY Food Brand Renaissance Learning (K- 12) Deal size: $1.1BN Revenue: $192.5M Acquirer: Hellman & Friedman Investor type: Private Equity EDTECH: A HIGHLY ACQUISITE MARKET SunGard (K-12) Revenue: $4M Deal size: $850MN Acquirer. Vista Equity Partners/Powerschool Investor type: Private Equity Frontline Education (K-12) Deal size: >$1.0BN Revenue: $30M Acquirer: Thoma Bravo Investor type: Private Equity Source: https://www.blended.blog/edtech-exits-rise/ Forecast Revenue: 2024: $46,840,897
  25. Cash Flow Analysis (2015-2018) 2015 2016 2017 2018 YEAR $0.04 $0.04 $0.07 $0.10 Revenues in Classroom $0.04 $0.04 $0.07 $0.10 Total Revenues $0.01 $0.01 $0.03 $0.04 COGS $0.03 $0.03 $0.04 $0.06 Gross profit 73% 77% 62% 58% Gross profit $0.02 $0.03 $0.03 $0.06 Operating expenses: SG&A $0.01 $0.01 $0.01 $0.00 Operating profit 26% 13% 14% 4% Operating profit Cash Flow positive in: 2015 Burn Rate: $21,000 per month Cumulative Revenue: $335,000 Amounts expressed in USD millions: meaning $0.10 in table equates to $100,000
  26. Team Member Name Position Number of Shares Share % Layla Sabourian CEO, and Founder 2,600,000 83.9 Delarai Tarwe Co founder 250,000 8.1 Antoine Tarwe COO & CTO 2,600,0000 8.1 Current CAP Table Delaware C Corporation Patent and Incorporation by: Perkins
  27. Recipes and TV Series Portable Kitchen and Fitbit Chef Koochooloo Certified & Competitions ● iOt Portable Kitchens ○ Hotplate & oven (electric, easy to clean) ○ Knives, peelers, cutting boards, bowls ○ Measuring: thermometer, scale, cups ○ Spoons, tongs, strainers, ladles, rolling pin, whisks, spatulas ● App compatible with Fitbit ○ App will track improvements in mood and physical health ● After School Program ● Partner with restaurants in Mountain View ○ Test meals on kids' menus ○ Include logo next to healthy meals ● Chef Koochooloo cooking competition in Mountain View ○ For kids to cook the tastiest, healthiest meal ● Challenge: Eat healthy meals ○ Count consecutive days ○ Can share progress with friends on social media ● Recipe Book ○ Ready to be sent to publishers ○ How unique: Incorporates math, food-science, and geography in every dish ● Short Stories ○ Focusing on how food correlates with health ● TV Shows ○ Netflix Original Series ○ Science and cooking App Development ● Current Free Mobile App (Android and Ios) ○ Family content (Freemium) ● Developing NIH middle school app ○ Teach label reading ○ Focused on nutrition ● School Chromebook app (B2B) ○ Aligned with curriculum, K-2 (Funded by NSF) ○ Adaptive learning, focused on STEM/SS Additional Ideas for Future
  28. IoT Portable Kitchen Features: ● Compact, affordable ● IoT features, connected to our app via Bluetooth ● Main Component: Smart Oven ○ Thermometer ○ Camera ● Two electric burner coils ● Digital weighing scale, “Chef Board” ● Timely alerts within the Chef Koochooloo app - notification activity. A timer will be included. Stopwatch and countdown.
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