- Daniel Boulud, Yannick Alleno, and over 400 of the best chefs in the world are on the platform
- Video cooking classes taught by Michelin starred chefs and professors from top global culinary schools
- Digital recipes from top chefs like Mauro Colagreco (#1 on World’s50Best)
- Monthly segment on France 24 English TV on French cuisine and cooking
- Winner of the prestigious Best Concept Award by Le Cordon Bleu Paris
- Total Amount Raised: US $91,000
- Total Round Size: US $1,000,000
- Seed :
- Minimum Investment: US $1,000 per investor
- : Crowd Note
- Side by Side Offering
- : US $5,000,000 Final
- Valuation Cap Schedule: See Full Schedule
True Foodies is an award-winning online platform with video cooking lessons, recipes, chefs, restaurant recommendations, wine, culinary news and content - everything for the true foodie and the culinary industry in one place.
We aim to disrupt the culinary education industry via technology-driven solutions to reach new customer bases. We are providing more affordable and more accessible high-quality cooking courses than currently exist. Other innovations will be: "Top Chef World Tour" by famous chefs around the world, each chef presents video lessons of 3 to 4 recipes from their kitchen; "Chef Chat" for student feedback; and live cooking events.
- Video cooking courses are produced by Michelin starred chefs from the best culinary schools and restaurants in the world. They make for a highly scalable growth model. We are developing fully owned income-generating assets – video cooking classes – with long life and low up-front costs.
- Already over 100 digital recipes from top global chefs are available on the platform as single recipes, by subscription or as Bite Books™ of 5 recipes. A great opportunity for chefs to get exposure and foodies to get insider knowledge and exclusive recipes.
- "Table Tonight" last-minute cancellation saver lets restaurants send notifications with special offers to foodies nearby for a small fee to fill their empty tables. It saves restaurants from losing money on no-shows and gives foodies offers (a glass of champagne, 15% off) at restaurants they love. It is a win-win solution eliminating last-minute cancellation costs and offering valuable perks and extras.
We have built a trusted community of high-end consumers ready to spend on luxury goods and services and attractive for advertisers and partners.
Simply put True Foodies leverages multiple revenue streams by creating a culinary ecosystem benefiting all parties involved.
A Side by Side offering refers to a deal that is raising capital under two offering types. If you plan on investing less than US $20,000.00, you will automatically invest under the Regulation CF offering type. If you invest more than US $20,000.00, you must be an accredited investor and invest under the Regulation D offering type.
US $13,000 (under Reg CF only)
US $5,000,000 Final
Investors who invest $50,000 or less will have their securities held in trust with a Custodian that will serve as a single shareholder of record. These investors will be subject to the Custodian’s Account Agreement, including the electronic delivery of all required information.
All investors who invest $50,000 or less will be subject to an Investment Proxy Agreement (“IPA”). The IPA will authorize an investment Manager to act as representative for each non-Major Purchaser and take certain actions for their benefit and on their behalf. Please see a copy of the IPA included with Company's offering materials for additional details.
Investors from $1000 get a True Foodies market bag and a one year VIP subscription on True Foodies.
In addition to the above, investors from $5000 get a lifetime VIP subscription on True Foodies and a True Foodies apron.
In addition to the above, investors from $25000 get a tasting menu/menu degustation lunch or dinner for two at any restaurant in the True Foodies restaurant guide (alcohol, lodging and transport not included).
It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.
Cooking and all things culinary are hugely popular. Celebrity chefs are big business. Online learning is now mainstream and is a massive market of $190 bn USD and growing at over 10% per annum. Online learning platforms such as MasterClass, Coursera and Udacity all have revenues around $100 mln/year and valuations over $1 bn.
There are 30,000 culinary school graduates in the US annually and over 2 mln culinary professionals. However, traditional culinary school is expensive. A Grand Diplôme from Le Cordon Bleu lasts 9 months and costs $52,500 USD. US culinary school tuition ranges from $3k to $20k. On the other end of the spectrum, free platforms like Tasty are fun but have no real educational value.
In a survey of our community of foodies, we found that a full 82% of them had thought about going to culinary school. What was stopping them? 33% said it was too expensive, 33% had time limitations and 18% had no school nearby. A full 48% said they were interested in video cooking courses. The market opportunity is clear: affordable, accessible, professional online courses.
According to Knowledge Sourcing Intelligence "The global online education market is projected to witness a CAGR of 10.26% … to reach a total market size of US$286.62 bn by 2023." Furthermore, Forbes predicts the market will be $325 bn in 2025.
Another market we will tap into is last-minute cancellations at restaurants. No-shows cost the restaurant industry in the UK alone over $20 bn USD/year. Globally we estimate the losses at over $200 bn/year. Online reservation platforms make it easy for customers to make multiple reservations and not bother to cancel. Restaurants are willing to give incentives to customers to come at the last minute and fill those tables. We believe this market could be worth over $2 bn USD globally in the fine-dining segment alone.
The reviewing CPA has included a “going concern” note in the reviewed financials. Specifically, the Company has incurred losses from inception of approximately $427,859 which, among other factors, raises substantial doubt about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon management's plans to raise additional capital from the issuance of debt or the sale of stock, its ability to commence profitable sales of its flagship product, and its ability to generate positive operational cash flow. The accompanying financial statements do not include any adjustments that might be required should the Company be unable to continue as a going concern.
We have not prepared any audited financial statements. Therefore, you have no audited financial information regarding the Company’s capitalization or assets or liabilities on which to make your investment decision. If you feel the information provided is insufficient, you should not invest in the Company.
True Foodies faces competition from other companies in the online culinary education space. Existing companies that engage in the online cooking courses business or are within the culinary education space could introduce new or enhance existing products. If True Foodies is able to establish a market around its product, it may find that larger, better funded companies may enter the market, which could negatively impact True Foodie's growth.
The Company may be unable to maintain, promote, and grow its brand through marketing and communications strategies. It may prove difficult for True Foodies to dramatically increase the number of customers that they serve or to establish itself as a well-known brand in the online cooking courses space. Additionally, the product may be in a market where customers will not have brand loyalty.
Currently, 25% of the Company's revenue is from the United States, which may exacerbate fluctuations in financial performance. The Company is subject to risks of doing business internationally, including but not limited to volatility in currency exchange rates. Fluctuations in currency exchange rates and changes in the proportion of our revenue and expenses denominated in foreign currencies could impact the Company's expenses. At this time True Foodies does not, but we may in the future, enter into derivatives or other financial instruments to hedge foreign currency exchange risk. It is difficult to predict the impact hedging activities would have on their results of operations.
The Company may not have accurately forecast demand for its product. The company may need to start closing a significant number of customers in order to reach their sales goals. This may be a very manual effort because of the low cost of their product and the freemium model in place at this time. There is the risk that the company will fail to execute on sales opportunities or not identify enough potential customers given their current success rate. The company may struggle to convert their pipeline into paying customers. The Company may find it difficult to grow its business or to survive if their actual market is smaller than expected.
True Foodies is targeting a new and unproven segment within the last-minute reservation market, which introduces unknowns, such as potential downward impacts to expected attach rates, retention rates, and customer adoption. The Company may struggle to increase their unit sales if restaurants fail to adopt the platform or are not willing to pay an adequate price for the service.
The Company relies heavily on its technology and intellectual property, but it may be unable to adequately or cost-effectively protect or enforce its intellectual property rights, thereby weakening its competitive position and increasing operating costs. To protect its rights in its services and technology, the Company relies on a combination of copyright and trademark laws, patents, trade secrets, confidentiality agreements with employees and third parties, and protective contractual provisions. It also relies on laws pertaining to trademarks and domain names to protect the value of its corporate brands and reputation. Despite efforts to protect its proprietary rights, unauthorized parties may copy aspects of its services or technology, obtain and use information, marks, or technology that it regards as proprietary, or otherwise violate or infringe its intellectual property rights. In addition, it is possible that others could independently develop substantially equivalent intellectual property. If the Company does not effectively protect its intellectual property, or if others independently develop substantially equivalent intellectual property, its competitive position could be weakened. Effectively policing the unauthorized use of its services and technology is time-consuming and costly, and the steps it takes may not prevent misappropriation of its technology or other proprietary assets. The Company's efforts to protect its proprietary rights may not be sufficient or effective, and unauthorized parties may copy aspects of its services, use similar marks or domain names, or obtain and use information, marks, or technology that it regards as proprietary. The Company may have to litigate to enforce its intellectual property rights, to protect trade secrets, or to determine the validity and scope of others’ proprietary rights, which are sometimes not clear or may change. Litigation can be time consuming and expensive, and the outcome can be difficult to predict.
The Company must acquire or develop new products, evolve existing ones, address any bugs or errors, and adapt to technology change. Technological developments, client requirements, programming languages, and industry standards change frequently in the market it operates in. As a result, success in current markets and new markets will depend upon the Company's ability to enhance current products, address any product defects or errors, acquire or develop and introduce new products that meet client needs, keep pace with technology changes, respond to competitive products, and achieve market acceptance. Product development requires substantial investments for research, refinement, and testing. The Company may not have sufficient resources to make the necessary product development investments. The Company may experience technical or other difficulties that will delay or prevent the successful development, introduction, or implementation of new or enhanced products. The Company may also experience technical or other difficulties in the integration of acquired technologies into its existing platform and applications. Inability to introduce or implement new or enhanced products in a timely manner could result in loss of market share if competitors are able to provide solutions to meet customer needs before the Company does, give rise to unanticipated expenses related to further development or modification of acquired technologies as a result of integration issues, and adversely affect future performance.
The Company does not have an employment contract in place with its key employees. Employment agreements typically provide protections to the Company in the event of the employee’s departure, specifically addressing who is entitled to any intellectual property created or developed by those employees in the course of their employment and covering topics such as non-competition and non-solicitation. As a result, if its employees were to leave True Foodies, the Company might not have any ability to prevent their direct competition, or have any legal right to intellectual property created during their employment. There is no guarantee that an employment agreement will be entered into.
The Company’s cash position is relatively weak. The Company currently has approximately $1,000 in cash balances as of November 14, 2019. This equates to less than one month of runway. The Company believes that it is able to continue extracting cash from sales to extend its runway. The Company could be harmed if it is unable to meet its cash demands, and the Company may not be able to continue operations if they are not able to raise additional funds.
The Company is overdue on its 2018 tax filings, which could subject it to penalties, fines, or interest changes, and which could indicate a failure to maintain adequate financial controls and safeguards. In particular, the Internal Revenue Service (IRS) could impose the Company with costly penalties and interest charges if the Company has filed its tax return late, or has not furnished certain information by the due date. In addition, even if the Company has filed an extension, if it underestimated its taxes, the IRS could penalize it. Potential tax consequences could adversely affect the Company’s results of operations or financial condition. The Company’s has confirmed that notwithstanding the above, no tax is expected to be due.
The Company has participated in Related Party Transactions. Specifically, during the years ended December 31, 2018 and 2017, shareholders of the Company advanced funds for operations. These advances are non‐interest bearing and have no maturity date. During the years ended December 31, 2018 and 2017, shareholders advanced funds of $25,437 and $14,585, respectively. At December 31, 2018 and 2017, the amount of shareholder advances outstanding is $160,061 and $134,624, respectively, and are recorded under ‘Advances – related party’ on the balance sheets.
Start-up investing is risky. Investing in startups is very risky, highly speculative, and should not be made by anyone who cannot afford to lose their entire investment. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup or early-stage venture often relies on the development of a new product or service that may or may not find a market. Before investing, you should carefully consider the specific risks and disclosures related to both this offering type and the company which can be found in this company profile and the documents in the data room below.
Your shares are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for these shares and the company does not have any plans to list these shares on an exchange or other secondary market. At some point the company may choose to do so, but until then you should plan to hold your investment for a significant period of time before a "liquidation event" occurs. A "liquidation event" is when the company either lists their shares on an exchange, is acquired, or goes bankrupt.
The Company may not pay dividends for the foreseeable future. Unless otherwise specified in the offering documents and subject to state law, you are not entitled to receive any dividends on your interest in the Company. Accordingly, any potential investor who anticipates the need for current dividends or income from an investment should not purchase any of the securities offered on the Site.
Valuation and capitalization. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment. In addition, there may be additional classes of equity with rights that are superior to the class of equity being sold.
You may only receive limited disclosure. While the company must disclose certain information, since the company is at an early-stage they may only be able to provide limited information about its business plan and operations because it does not have fully developed operations or a long history. The company may also only obligated to file information periodically regarding its business, including financial statements. A publicly listed company, in contrast, is required to file annual and quarterly reports and promptly disclose certain events — through continuing disclosure that you can use to evaluate the status of your investment.
Investment in personnel. An early-stage investment is also an investment in the entrepreneur or management of the company. Being able to execute on the business plan is often an important factor in whether the business is viable and successful. You should be aware that a portion of your investment may fund the compensation of the company's employees, including its management. You should carefully review any disclosure regarding the company's use of proceeds.
Possibility of fraud. In light of the relative ease with which early-stage companies can raise funds, it may be the case that certain opportunities turn out to be money-losing fraudulent schemes. As with other investments, there is no guarantee that investments will be immune from fraud.
Lack of professional guidance. Many successful companies partially attribute their early success to the guidance of professional early-stage investors (e.g., angel investors and venture capital firms). These investors often negotiate for seats on the company's board of directors and play an important role through their resources, contacts and experience in assisting early-stage companies in executing on their business plans. An early-stage company may not have the benefit of such professional investors.
Representatives of SI Securities, LLC are affiliated with SI Advisors, LLC ("SI Advisors") Representatives of SI Securities, LLC are affiliated with SI Advisors, LLC ("SI Advisors"). SI Advisors is an exempt investment advisor that acts as the General Partner of SI Selections Fund I, L.P. ("SI Selections Fund"). SI Selections Fund is an early stage venture capital fund owned by third-party investors. From time to time, SI Selections Fund may invest in offerings made available on the SeedInvest platform, including this offering. Investments made by SI Selections Fund may be counted towards the total funds raised necessary to reach the minimum funding target as disclosed in the applicable offering materials.
Frequently Asked Questions
A Side by Side offering refers to a deal that is raising capital under two offering types. This Side by Side offering is raising under Regulation CF and Rule 506(c) of Regulation D.
The Form C is a document the company must file with the Securities and Exchange Commission (“SEC”) which includes basic information about the company and its offering and is a condition to making a Reg CF offering available to investors. It is important to note that the SEC does not review the Form C, and therefore is not recommending and/or approving any of the securities being offered.
Before making any investment decision, it is highly recommended that prospective investors review the Form C filed with the SEC (included in the company's profile) before making any investment decision.
Rule 506(c) under Regulation D is a type of offering with no limits on how much a company may raise. The company may generally solicit their offering, but the company must verify each investor’s status as an accredited investor prior to closing and accepting funds. To learn more about Rule 506(c) under Regulation D and other offering types check out our blog and academy.
Title III of the JOBS Act outlines Reg CF, a type of offering allowing private companies to raise up to $1 million from all Americans. Prior capital raising options limited private companies to raising money only from accredited investors, historically the wealthiest ~2% of Americans. Like a Kickstarter campaign, Reg CF allows companies to raise funds online from their early adopters and the crowd. However, instead of providing investors a reward such as a t-shirt or a card, investors receive securities, typically equity, in the startups they back. To learn more about Reg CF and other offering types check out our blog and academy.
When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by True Foodies. Once True Foodies accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to True Foodies in exchange for your securities. At that point, you will be a proud owner in True Foodies.
To make an investment, you will need the following information readily available:
- Personal information such as your current address and phone number
- Employment and employer information
- Net worth and income information
- Social Security Number or passport
- ABA bank routing number and checking account number (typically found on a personal check or bank statement)
If you are investing under Rule 506(c) of Regulation D, your status as an Accredited Investor will also need to be verified and you will be asked to provide documentation supporting your income, net worth, revenue, or net assets or a letter from a qualified advisor such as a Registered Investment Advisor, Registered Broker Dealer, Lawyer, or CPA.
An investor is limited in the amount that he or she may invest in a Reg CF offering during any 12-month period:
- If either the annual income or the net worth of the investor is less than $100,000, the investor is limited to the greater of $2,000 or 5% of the lesser of his or her annual income or net worth.
- If the annual income and net worth of the investor are both greater than $100,000, the investor is limited to 10% of the lesser of his or her annual income or net worth, to a maximum of $100,000.
Separately, True Foodies has set a minimum investment amount of US $1,000.
Accredited investors investing $20,000 or over do not have investment limits.
You are a partial owner of the company, you do own securities after all! But more importantly, companies which have raised money via Regulation CF must file information with the SEC and post it on their websites on an annual basis. Receiving regular company updates is important to keep shareholders educated and informed about the progress of the company and their investment. This annual report includes information similar to a company’s initial Reg CF filing and key information that a company will want to share with its investors to foster a dynamic and healthy relationship.
In certain circumstances a company may terminate its ongoing reporting requirement if:
- The company becomes a fully-reporting registrant with the SEC
- The company has filed at least one annual report, but has no more than 300 shareholders of record
- The company has filed at least three annual reports, and has no more than $10 million in assets
- The company or another party purchases or repurchases all the securities sold in reliance on Section 4(a)(6)
- The company ceases to do business
However, regardless of whether a company has terminated its ongoing reporting requirement per SEC rules, SeedInvest works with all companies on its platform to ensure that investors are provided quarterly updates. These quarterly reports will include information such as: (i) quarterly net sales, (ii) quarterly change in cash and cash on hand, (iii) material updates on the business, (iv) fundraising updates (any plans for next round, current round status, etc.), and (v) any notable press and news.
Currently there is no market or liquidity for these securities. Right now True Foodies does not plan to list these securities on a national exchange or another secondary market. At some point True Foodies may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when True Foodies either lists their securities on an exchange, is acquired, or goes bankrupt.
You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement. If invested under Regulation CF you may also receive periodic updates from the company about their business, in addition to monthly account statements.
This is True Foodies's fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity. If the company runs a side by side offering that includes an offering under Regulation CF, you may also find a copy of the True Foodies's Form C. The Form C includes important details about True Foodies's fundraise that you should review before investing.
For offerings made under Regulation CF, you may cancel your investment at any time up to 48 hours before a closing occurs or an earlier date set by the company. You will be sent a reminder notification approximately five days before the closing or set date giving you an opportunity to cancel your investment if you had not already done so. Once a closing occurs, and if you have not canceled your investment, you will receive an email notifying you that your securities have been issued. If you have already funded your investment, your funds will be promptly refunded to you upon cancellation. To cancel your investment, you may go to your account's portfolio page by clicking your profile icon in the top right corner.
If you invest under any other offering type, you may cancel your investment at any time, for any reason until a closing occurs. You will receive an email when the closing occurs and your securities have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your account's portfolio page by clicking your profile icon in the top right corner.