Bakeys produces edible utensils made from grains like rice, millets, and wheat. They see an opportunity in the billions of plastic utensils discarded each year in the US alone. Bakeys utensils are more convenient, healthier, and better for the environment than plastic or compostable alternatives. Their management team has business degrees and experience. They are seeking $700k in seed funding to automate production and market Bakeys in the US and internationally. Financial projections estimate $67 million in revenue by 2023 with 100%+ annual growth.

1. Siyi Chen, Pin Gao, Yizhou(Lillie) Li, Milind Patel
Bakeys
Edible
Utensil

2. pain point

3. Product
Rice
Millets
Wheats
Savoury
Sweet
plain

4. Competition and competitive advantage
Plastic Compostable Edible
Convenience ★★★★★ ★★★★★ ★★★★★
Cost ★★★★★ ★★★★ ★★★
Disposal ★★ ★★★ ★★★★★
Taste ★★ ★★ ★★★★★
Health ★★ ★★★ ★★★★★
Effect on environment ★ ★★★ ★★★★★
Energy used to
produce
★★ ★★★ ★★★★★
WINNER

5. Market Size
40 billions pieces thrown away each year in US
+
Average $5-10 per 500 counts
=
$400-$800 Millions
+
Environmental Cost!!!

6. Management team
Yizhou(Lillie) Li
CTO/COO
MBA, D’Amore-McKim
School of Business
“It always seems
impossible until it’s
done.” - Nelson
Mandela
Pin Gao
CMO
MBA, D’Amore-
McKim School of
Business
“Good companies will
meet needs; great
company will create
markets” - Philip
Kotler
Siyi Chen
CFO
MBA, D’Amore-McKim
School of Business
“It’s no longer only
about Money”
Milind Patel
CEO
MBA, D’Amore-McKim
School of Business
“If you’re changing the
world, you’re working
on important things.
You’re excited to get up
in the morning.” – Larry
Page
Narayana Peesapaty
Advisor
MBA, IIFM - Bhopal
Founder and Managing
Director of Bakeys

7. Business Model
Large Warehouse
Order online, subscription

8. How will it work
● First focus on businesses those would value sustainability
○ Big restaurant and retail chains those have committed to sustainable business practices
○ Individual restaurants and takeout
○ Cafes and Catering companies (and companies contracting with them)
○ Schools and Universities
● Small lots of samples and discounts to early adopters
● Explore new international markets
● Create end user awareness

9. Timeline
Year 1
- Consider and research
potential markets
- Sustainable supply chain
Year 2
- High Growth in US
and India
Year 3
- Enter at least
one new market
Year 4
- Marketing
- Automation
- Legal
- Generate sales in US
- Grow sales in India

10. Risks and Derisk
● Sustainability risk:Product extension and geographic extension
● Food Safety risk:Allergy warning as well as child warning on the
packaging
● Material cost risk:Hedging together with other financial instruments on
commodities
● Regulation risk:Comply with FDA food standards
● Restoration risk:Bulky packaging with divider inside to prevent
contamination
● Supply chain risk: Partnership with Farmers, farmers’ associations and
NGOs

11. Proposed Deal
4 management personnel and 22 workers for first 12 months.
Double production team in year 2, with additional resources to manufacture and
penetrate into target market in the US.
10 machines for automated production.
Continue R&D for potential variation of the product
10 Machines + labor = $400k
Marketing and promotion = $200k
R&D = 100k
TOTAL: 700k
Potential Investors:

12. Seed MileStones
1. Revenue keeps growing at least 100% annually, reaching $67 million by
2023.
2. Sign up at least 3 big chains of supermarkets to solidify the customer base by
2020.
3. Establish complete production automation line by year 3.
4. Breakeven by year 3.

13. Q&A
Thank you!

14. Appendix

16. Plastic Waste Landscape

17. Nutrition

18. Efficiency
Comparison

19. Detailed Competitive advantage

20. Competition and competitive advantage

21. Competitors
Foodie Spoon
Plastic Cutlery Producer: Diamond, Dixie, etc.
Biodegradable plastics

22. Marketing Plan
- Social Media (youtube, Facebook, Twitter)
- Pilot (discounted or free samples)
- Direct Sales
- Food Events
- Trade shows
- Promotions (on minimum orders)

23. Potential Customers

24. Customer characteristics
Big restaurant and retail chains those have committed to sustainable business practices
and already incorporated green practices
Restaurants and takeout; focusing first on places who already uses compostable utensils
and hippie style restaurants as they already have interest in the environmentally
friendly products
Cafes and catering services in offices and companies contracting with them)
End users - End users who have interest in preserving environment. Even though they
might not be direct buyers, growing base of environmentally friendly end users would
be very crucial to boost demand from businesses

25. Potential Market for penetration
Japan
China
Singapore
Denmark
Sweden
Finland
Iceland

26. Financial projections Assumptions
Discount Rate: 50%
COGS: 27% first 2 years, 15% following two years, 10% thereafter
SG&A: 40% first 2 years, 35% following two years, 30% thereafter
Forecast 1,500,000 units will be sold in Year 1 (comparable to those sold in
India)@ price $20 per 100 units
Annual Growth Rate: 100%, 150%, 200%, 200%, 150%, 100%

27. Additional Assumption

28. Financial Projection

29. Cap Table

30. Slow growth scenario
Annual Growth Rate: 50%, 100%, 150%, 150%, 100%, 100%

31. Cap Table - Slow Growth

32. Count and Sale of Utensils

33. Seed Round Term Sheet
Amount & Security: $700,000 of Seed Round Convertible Notes
Share Price: $1.00/share
Liquidation: In case of merger, reorganization, or transfer of control of Bakeys, first pay cost of convertible notes.
Participation goes away on valuation that corresponds to $30 million. Thereafter Preferred and Common share on as-
converted basis.
Redemption: At mutual agreement of seed round investors, equal annual installments years 5 through 7.
Conversion: Convertible into one share of common stock at the option of the holder, or automatically upon a
qualified IPO.
Antidilution: Conversion ratio adjusted on a Weighted Average basis in the event of an issuance at less than $1.00,
with the exception of stock issued to employees, consultants, and directors. Antidilution subject to “pay to play”
limitations. Pro rata adjustments for stock splits, combination, and dividends.

34. Seed Round Term Sheet Continued
Voting rights: Votes on an as-converted basis, but also has class vote
Board of Directions: Five total: three from management, one from representative of seed round, and one outside
advisor (Narayana Peesapaty).
Founder’s stock, options & vesting: Unless otherwise approved by the Board, Founders Common Stock Options
shall vest as follow: 25% will vest at the end of one year; the remainder shall vest monthly over the following 36
months. The company shall have the right to repurchase any unvested Common Stock at the cost upon termination
of the Founders’ employment with the company.
Founder’s termination: Founder will only be terminated in the voting event where the majority vote for termination.
In the event that a founder is terminated by the incoming CEO, a committee consisting of the remaining founders
and seed investors will determine whether some portion of that founder’s unvested equity should be accerlated.