Svalbarði - Join our journey

GOAL: NOK 3 million

(approx €310k / $350k)

SO FAR: NOK 2,4mn (80%), 250 supporters

00Days Left

Equity offered (goal/max):   7,7% / 20%

Equity type:   Ordinary or B class depending on investment size

New shares offered (goal/max):   16.667 / 50.000

Price per share:   NOK 180 (approx €19 / $21)

Minimum investment:   25 shares - kr 4.500 (approx €460 / $520)

Pre-money valuation:   NOK 36mn (approx €3,7mn / $4,2mn)

Why Invest in Svalbarði? [[May need to change wording to leave out "invest", but this is where to give the fast summary]]

  • Just a few bullet points
  • About the company
  • And why to invest/value proposition
  • To lead into the real meat
  • Below in the accordion
  • Mention first Svalbard equity crowdfund??? Other points that make us super unique?

SEPARATELY: IS IT POSSIBLE TO LOCK DOWN EVERYTHING BUT THE OVERVIEW BELOW? IS IT POSSIBLE TO HAVE LITTLE NUMBER ALERT THINGS WHEN THERE IS NEW INFO IN ANY ACCORDION?

What is Svalbarði?

  • The Product  
  • The Source  
  • The Origin Story  
  • Taste & Testimonials
  • Our Arctic Mission
  • Our Local Community

Svalbarði Polar Iceberg Water is an award-winning luxury bottled water brand and the world's northernmost bottled water. Beautifully packaged to reflect its origin story, Svalbarði has won 14 international design and taste awards. High clarity extra-flint glass is reflective of the iceberg source. The blue-green band at the neck reflects the glacier face where ancient glaciers calve off newborn icebergs to the sea. The wood cap from sustainable forests evokes precious arctic driftwood that lines the shores of the polar region.

At present we offer still water in a 750ml glass bottle with wood cap for €75 per bottle. We plan to introduce a 330ml bottle with proceeds from the crowdfunding campaign. We are served at numerous top dining establishments around the world, including several locations where Svalbarði is the peak offering on curated water menus. These include two Michelin star rated Restaurant AOC in Copenhagen, home of America's most famous water menu Patina Downtown Los Angeles, and the TripAdvisor #2 restaurant in America Victoria & Albert's in Florida. We stand on par with and distinct from other premium beverages in fine restaurants and other settings. 


Svalbarði is a gourmet dining product in the fine waters category. We are members of the international Fine Water Society, helping to build consumer understanding that "water is not just water" and that it has unique characteristics derived from varied natural sources. Svalbarði has a light as air taste and velvety smooth texture in the mouth. It pairs particularly well with light and delicate foods such as fish and sushi. And due to its near total lack of minerals serves as an excellent palate cleanser that will not leave an aftertaste between courses.


The source is icebergs up to 4000 years old freshly calved into the fjords around the Svalbard islands at 79° north, just over 1000 kilometres from the North Pole. The ice has been preserved inside the center of the glacier until being released into the sea and requires no chemical treatment. It has the fresh taste of snow in air that fell before modern pollution. Our first edition was gathered from the Kongsfjorden region on the northwest side of Svalbard. Our recent special Dark Season Edition was gathered during the 24/7 polar night in late-2018 and came from the Isfjorden region in west-central Svalbard.


We undertake expeditions which can range from 1 to 7 days in our specially chartered gathering vessel, the M/S Ulla Rinman. Iceberg pieces are individually selected to ensure they contain the ancient snow that has been preserved inside the center of the glacier before they calved into the sea. One by one they are inspected and, if approved, lifted into bins on deck for transport back to Longyearbyen. There they are kept frozen until time for bottling, at which point they are gently melted before bottling.

The medieval sagas tell of Scandinavian explorers pushing the boundaries of the known world. Heading north they reported seeing "Svalbarði" or "Cold Coasts" covered in ice. Even for a people who settled in Greenland, these lands were too harsh and were left alone until they passed into rumour and legend.



Today Svalbard is one of Europe's last great wildernesses, inhabited by more polar bears than people. Located between 74° and 81° north latitude, these islands sit halfway between the top of Europe and the North Pole. Roughly the size of Sri Lanka, they are 60% covered by glaciers. Climate records going back more than a century have made it one of the world's most important centres of global warming research.



Svalbarði Polar Iceberg Water began with a dream to see the Arctic. Of Norwegian heritage, founder Jamal Qureshi's family lived in mainland Norway from 2009 to 2014. In 2013, he found himself alone for a month and decided to fulfill a wish to tour the far north. Traveling light, he visited towns as far as the Russian border, eventually Hiking to Knivskjellodden, the northernmost point of continental Europe. Looking north into the Barents Sea, he knew he had one more place to go.



Days later, he flew into the Arctic outpost of Longyearbyen in Svalbard. That first visit captivated him. Hiking across a glacier, he asked if the meltwater was safe to drink. Growing up camping in Colorado's Rocky Mountains, he remembered being told even apparently clean water could harbour bacteria and pollutants. But this was clean at the source, with a delightful taste. As a personal gift for his wife, he gathered a little and brought it home to make a cup of her favourite herbal tea. That set in motion the chain of events which created Svalbarði.



A year later, with an experienced Arctic captain and a close friend, he spent a week sailing the northwest coast of Svalbard. They searched iceberg-filled fjords for the right types of ice. Pulling up alongside icebergs in a small dinghy, a metre-long glaciologists' core drill was used to extract samples. Returning to Longyearbyen, 88 kilos of samples were airfreighted to a laboratory on the mainland where extensive tests were performed. The results were sent to the Norwegian food authorities where the official in charge was stunned at the high quality. He immediately gave approval to press forward.



Today, one person's dream to see Svalbard has become a passion to share and preserve it. Jamal Qureshi and his family of 5 moved to Svalbard in 2016. Most people will never be able to visit, but Svalbarði allows you to taste a piece of the ice at the top of the world, which in turn helps us to save our fragile arctic home.

Svalbarði's near total lack of minerals gives it a light as air taste and velvety smooth texture. Our iceberg source is essentially ancient snow that was preserved into ice almost immediately after it fell as snow up to 4000 years ago. We gather icebergs which were in the center of the glaciers that cover 60% of Svalbard, so they never touched the ground to pick up either minerals or impurities.

The result is a tastelessness that becomes a taste in itself. Or as we call it, The Taste of Snow in Air™. It is a perfect complement to light dishes such as sushi, white fish, or chicken. It also acts as an excellent palate cleanser between courses because there is no mineral after-taste to interfere with the natural flavors of foods heavy or light that come next.

Water sommelier Martin Riese guided the hosts at Buzzfeed through a tasting of multiple fine water brands. Svalbarði was the closer and the verdict was "that water was the cleanest of all time for me."



Martin Riese

Water Sommelier - California

Water sommelier and F&B director at Petit Ermitage hotel in Los Angeles. This was his first time tasting Svalbarði back in 2017. His judgement was "I think it's a great water. I really love the taste. It's very very smooth."



Michael Hemling

Water Sommelier - Germany

German tea and water sommelier was able to try Svalbarði for the first time at the April 2019 international Fine Water Summit in Stockholm. His take was "you experience a very light, almost like light as a feather taste, it gives you a clean, unique fresh taste."



Ruriko Suzuki

Water Sommelier - Japan

Japanese water sommelier Ruriko Suzuki also tried Svalbarði for the first time at the 2019 Fine Water Summit. We're working on the Japanese translation still, but her brief words in English included "Very light. Very neutral. Sweet."



Michael Mascha

Fine Water Academy

The Austrian owner of finewaters.com and co-director of the Fine Water Academy. "This is a perfect alternative to wine in a fine dining experience. You don't want to drink something ordinary if you want to celebrate. I think that [Svalbarði] would be the perfect water."


Jessica Altieri

Water Sommelier - Florida

Founder of the WineChannelTV digital network and Wine and Water Sommelier at the Four Seasons Resort Palm Beach. Her take on Svalbarði blends her wine and water expertise. "Given its lightness, Svalbarði blends ideally with a soft, suave wine with a moderate alcoholic level."



Our mission as a family business in the Arctic is to save our melting Svalbard home by turning Svalbard into a carbon negative region. The natural yearly balance of ice in Svalbard is being thrown off by global warming. The billions of icebergs that naturally calve off the glaciers that cover 60% of Svalbard every year are normally replenished through winter snow. Instead, because of the warming they are losing more ice than can be replaced. The permafrost is melting and the seas are not freezing as much, threatening polar bears and other wildlife.


This is why one of the key reasons Svalbarði exists is to generate revenue to finance projects that will help reverse global warming. Our long-term environmental plan is to turn all of Svalbard into a carbon-negative region that will net remove greenhouse gases from the atmosphere. Which will also set an example that if the world's northernmost town in an isolated corner of the Arctic can remove CO2 with local resources, anyone can.


In the first phase of our long-term environmental plan we have been Carbon Neutral certified. We now also go beyond, supporting further projects such that every bottle sold removes enough CO2 to save 100 times the amount of arctic ice utilized. We also only gather ice pieces which are about to melt into the sea, and which are too small to be usable by polar bears or seals for hunting or resting. In so doing we are taking a local resource which global warming is about to destroy and instead using it to help solve the problem.

Svalbard and the main settlement of Longyearbyen are going through a period of great upheaval. Svalbarði is working to be a stable long-term contributor to the community and local economy. We wrote an extensive blog post worth reading last year called Coal, Climate, and Community: Svalbard in Transition. In short, for over a century the economy was based around coal mining, but the mines are now mostly shut. And with them the old economic and social core of the community. What comes next?


Svalbard is important for Norway as the country's northernmost territory and the government will always work to maintain a small but viable community. The question is how can this be done in a way that creates both economic stability and the lightest and most responsible environmental footprint possible? Tourism is exploding, but is highly unstable in terms of employment and brings its own environmental challenges. Local entrepreneurs are starting businesses producing fresh local greens, beer, chocolates, photography and other items.


It is Svalbarði's goal to play an important part as well. Instead of the old massive foreign coal tankers, now our local 23 metre ice gathering vessel the Ulla Rinman will ply Svalbard's waters. Instead of extracting carbon from the mountains, we will prevent sea level rise by gathering excess ice from the fjords just before it melts. As we grow, we aim to create local year-round jobs in fields such as online marketing, bottling, logistics, clean energy, and accounting among others. At the end of the day, Svalbard is our home. We feel the importance of both environmental and community stewardship and exist to do our part.

The Team

Jamal Qureshi

CEO & Founder

LinkedIn

Born in Colorado, Jamal has lived a peripatetic life between the USA, Northern Europe, and the Middle East. He had 15 years experience in commodity market analysis before the Arctic's rock and ice got into his head and heart. His international experience has proven vital for a business with global suppliers and customers. Above all, Jamal is a creator and problem solver, having successfully put together a business no one has ever done and many said was impossible.

Terje Aunevik

Partner & Managing Director

LinkedIn

Originally from the north of Norway, Terje moved to Svalbard in 1998 where in 2005 he co-founded Pole Position Logistics, one of the top logistics firms in the Arctic. He heads the local business association and is a respected voice on Svalbard and arctic policy issues. Besides for strong relationships locally and with the Norwegian government in Oslo, he brings invaluable operational expertise. By which we mean, he can fix anything! He is also a dedicated family man who has given his kids a unique arctic upbringing.

Lasse Hansen

Partner & Logistics Expert

LinkedIn

With a career in Norwegian and arctic logistics spanning almost 40 years, Lasse has been instrumental in establishing Svalbarði's global shipping system. Along with Terje, he was one of the co-founders of Pole Position Logistics where he is also head of cargo operations. Lasse also founded and manages Svalbard's Polarjazz festival - an annual February event bringing musicians to Longyearbyen to celebrate the return of the sun after months of 24 hour polar night.

Steve Rowe

Marketing Advisor

Owner of Dry Residue Consulting

dryresidue.com

Originally from the UK, Steve has worked in the world of international fine waters for over a decade as a distributor, importer, and consultant. He is one of the founding members of the Fine Water Society and has been instrumental in building out Svalbarði's distribution network. He brings expertise in branding, marketing, distribution, technical development, and regulatory issues. He is based in Barcelona from where he is centrally positioned to reach our global customer and supplier networks.

Rob Hall

Bottle & Brand Designer

Owner of Studio h London

studioh.co.uk

Rob and Nicky Hall are the owners of Studio h, an award-winning boutique design firm in London. Rob led the design of Svalbarði's acclaimed bottle and brand elements. His attention to detail and brand character have been a critical factor in Svalbarði's success to date, and he will be the designer of our new small bottle.

Heïdi Sevestre

Environmental Advisor

Glaciologist & Public Climate Awareness Advocate

heidisevestre.com

Born in the French Alps, Heïdi obtained her PhD in 2015 for her research on surging glaciers at the University Centre in Svalbard (UNIS). Besides Svalbard, Heidi has done fieldwork in the Himalayas, Greenland, and more recently the Larsen C ice shelf in Antarctica. She is also the host of the science documentary series “Extreme Earth” on TV France 5. She has been a friend of Svalbarði from the beginning and advises us on our arctic preservation strategy and initiatives.

The Business

  • Market
  • Business Model
  • Company History
  • Traction
  • Financials & Forecast
  • Valuation & Returns
  • Plan With Funds
  • Risks

Q: What market is Svalbarði in?
A: We are working to develop a new mass-luxury bottled water market segment.

By "mass-luxury", we mean the creation of a market where a luxury bottled water is seen as a regularly desirable item for consumers of *all* income levels in the same situations where they would normally purchase premium alcoholic beverages such as wine, champagne, or whiskey. This is different from the few existing luxury bottled water brands who appear to be mostly confined to a narrow wealthy-consumer "show off" niche revolving around extravagant bottle design and little else.

[[[[NOTE: Minvino crowdfund docs have some stats on various markets that could be useful here]]]

Generically speaking, Svalbarði begins as part of multiple markets:
*Packaged water: A market with [[[EUR XXX in annual sales]]] according to [[[source]]].
*Premium bottled water: A subset of packaged water and a [[[EUR XXX market]]] according to [[[source]]]
*Luxury beverages, being sold alongside fine wines, whiskies, etc. A [[[EUR XXX market]]] according to [[[source]]]
*Luxury experiences: Specifically gourmet dining experiences. A [[[EUR XXX market]]] according to [[[source]]] [[[perhaps mention number of michelin star restaurants or other fine dining restaurants in world, US, Europe, etc.]]]

[[[GRAPHIC]]]

These are all growth markets:
*Packaged water: [[[growth stat with source]]]
*Premium bottled water: [[[growth stat with source]]]
*Luxury beverages: [[[growth stat with source]]]
*Luxury experiences [[[dining specific???]]]: [[[growth stat with source]]]

[[[GRAPHIC]]]

There are multiple consumer trends driving this growth with rising demand for [[[give reasons and a stat on consumer sentiment or google trends with source for each of these]]]:
*Non-alcoholic beverage alternatives.
*Personalized "craft" products with a story behind them.
*Natural products.
*Healthy products.
*Premium bottled water.
*Experiences over "things".
*Thoughtful luxury. [[[can talk about luxury that doesn't try to appear luxury. so understated design, and more about a rare special story and characteristics to experience than a show off item]]]

[[[PERHAPS AN INFOGRAPHIC???]]]

Taken together, we believe these trends and accompanying market growth show consumers are ready to embrace bottled water as a fine-wine-level luxury product. But only if there are brands whose elements can capture their minds and hearts. While packaging is one important factor, the few existing luxury brands have shown a flashy bottle alone is not enough to become a regular "special night out" or "unique gift" type of product for the masses. The desires in the trends above need to be met.

Q: What is the potential of the mass-luxury bottled water market?
A: We believe it can grow to [[[EUR XXX]]] in global annual sales of all brands.

As with any new disruptive market concept, there are no market studies. However, we have looked at how much could be sold through 5 main channels should consumers accept the concept. We have tried to keep assumptions conservative - i.e., we do not expect it will ever become the size of the wine market - so there is further upside potential.

[[[[need to lay out the whole TAM here with assumptions and numbers. Keep it compact and to the point.]]]]

Q: Where is Svalbarði currently positioned in that market?
A: To the best of our knowledge, we are one of only three luxury bottled water brands. The other two being approximately [[[15???]]] years old in narrow established niches, and ourselves with broader ambitions but still in infancy.

We define a "luxury" bottled water as one for whom the typical price of a primary product in the brand lineup equates to $50/litre or more. In this niche there is only ourselves, Fillico Jewelry Water from Japan (which can price at over $300/litre), and Bling H2O from the US (around $50/litre). Fillico and Bling were both established in [[[2004???]]].

While sales numbers for Fillico and Bling are not known, there are multiple clues to their market standing. The fact that they are still here after [[[15???]]] years shows they have a viable business model of some sort. However, their broad public profile and premium-water market presence suggest both limited reach and growth. While Svalbarði's capital constraints during the beta period have kept us small, we have already surpassed them on 

*[[[stats on which water specialty distributors stock them versus us]]]
*[[[google trends stats showing both small size and no growth and no holiday seasonality]]]
*[[[social media following numbers. can play up how much more we have despite much shorter history.]]]

[[[GRAPHIC OF SOME SORT SHOWING THE ABOVE???]]]



Q: Where does Svalbarði plan to be in the market?
A: Our goal is to be the first luxury water to break into broad mainstream demand, such that we will have a strong first mover advantage when competitors eventually come to copy our success.

[[[Need to show the qualitative of how we plan to grow (generally, not business plan level for this section) and then the SAM/SOM numbers. Possibly get into valuations comparisons??? or maybe save that for later, think about it]]]








********************




Bottled water demand growing [size and growth stats]
premiumisation growing even faster [size and growth stats]
luxury water is both the ultimate logical extension and almost entirely open destination
combines fast growth and high profit margins of both luxury and premium bottled water markets [luxury size and growth stats. luxury and our margins]
only few small brands to date: fillico and bling only ones in operation we know of (using EUR 50/litre threshold??)
[[[some kind of clear statement about how this is new with huge potential? talk about "mass luxury" we aim for versus fillico/bling narrow niche. could mention some of the "medium" brands like nevas stuck with price just high enough to pull demand way down to luxury levels but don't have the margin to still make money]]]




[[[SECTION ON OUR PLACE IN THIS MARKET]]]







Svalbarði is a new type of product that sits at the intersection of multiple beverage and luxury markets.

*Bottled water: NOK Xbn annual global sales.
Within which is the NOK Xbn ultra-premium sub-segment.
Within which is the unknown but much smaller size Fine Waters sub-segment of boutique brands.
*Premium adult beverages/wine & spirits: NOK Xbn.
*Gourmet food & fine dining market: NOK Xbn.
*Non-alcoholic adult beverages: NOK Xbn.

All of these are growth markets. [[[numbers???]]]
[[[[table/charts???]]]

We are also part of the broader consumer trends seeking eco-conscious and healthy products.

[[[consumer survey, google trends, or other data to back up???]]]

Svalbarði's goal is to create a new market category for mass-appeal luxury water. We 




Svalbarði's goal is to create a new market category for mass-appeal luxury water. We are part of the Fine Waters segment which is made up of premium water brands from small natural sources. These brands are seeking to grow the number of consumers who appreciate different waters for their unique characteristics. The sector is in many ways doing what craft beers, chocolates, olive oils, and even wine has done before.

Within Fine Waters, there is a wide range of prices, with most brands in the low single-digits per litre. There are only two other brands we know of in Svalbarði's luxury price range of €50 or more per litre. Fillico Jewelry Water which often approaches €300 per litre. And Bling H2O around €50 per litre.


Bling and Fillico have chosen a narrow niche strategy appealing almost exclusively to an audience seeking over-the-top bottle design and little else. They seek to be a sort of "bling Rolls Royce" that only a tiny handful of people will experience. In contrast, Svalbarði has been built to be a rounded brand. Elegant rather than flashy design, a captivating story and source, an environmental mission, and a gourmet taste appeal. This means that while it is well suited for very high end customers, it can also appeal to a broad customer base of ordinary people seeking an affordable luxury for special occasions. Rather than being a Rolls Royce, we aim to be a high end Mercedes - still a clear luxury product not everybody indulges in regularly, but with almost 3 orders of magnitude more customers. With the potential customer base increasing with time as rising category appreciation and incomes make it an aspirational product.

We believe this new mass-appeal luxury water segment is ripe for creation because there are supportive growth trends for anyone willing to take advantage:

  • Bottled water. The entire market is worth X and is growing at X% per year. Premium brands are doing even better, growing at X%.
  • Awareness of different premium waters. The understanding that not all water is the same has been growing for years as a number of personalities and institutions have worked to raise awareness. The Fine Water Society and Doemens Academy (who train water sommeliers) have done a lot to gather enthusiasts and brand owners. They in turn have spread the word in public and by getting water sommeliers and new brands into restaurants and hotels. While those of us in the fine water space have seen this growth anecdotally, Google Trends helps quantify this by showing steadily increasing searches over the past decade for key related terms. Note that each point on the chart shows the volume of search for that month as a percentage of the peak search month of the past decade.


  • Premium adult beverages. Demand for fine wine and spirits is growing, rising by 4% in 2018 according to Bain & Company's Fall-Winter 2018 Luxury Goods Worldwide Market Study. Svalbarði frequently sells into this same market, either as a non-alcoholic substitute or complementary product.
  • Gourmet food and fine dining. Fine dining demand grew by 6% in 2018, and the broader out-of-home luxury experiences market (which also includes hospitality and cruises) has had an average annual growth rate over 10% since 2010. This is a central channel for Svalbarði, so its growth along with the growing acceptance of premium waters in restaurants are supportive.
  • Non-alcoholic beverages. Non-alcoholic replacements for situations where alcohol would often be consumed are growing. A recent Forbes article cited research saying "Bottled low- and no-alcohol beverages in the U.S. will grow by about 32 percent between 2018 and 2022—triple the category’s growth over the previous five years." Google Trends data for searches of "mocktails" gives a simple but clear example of consumer interest. Premium and sophisticated waters - from both a packaging and an epicurean perspective - fit into this niche.

  • Healthy beverages.
  • Eco-conscious products. aslkjfsadkjf

Svalbarði


  • asdfsadf
  • asdfsadf
  • asdffsd


















*************


Market trends (growth of bottled water market, premiumization of bottled water growth, growth of luxury experiences as restaurant potential growth for us, growth of premium beverages, growth of non-alcoholic alternatives markets, etc.), growth of eco-conscious brands, low bottled water barriers to entry, but high super premium luxury products barriers to entry. Competitors


*****



Svalbarði is at the forefront of creating a new "luxury water" segment. Very few bottled waters have attempted to sell their main products at prices of $100 or more per litre (speaking in terms of typical retail prices).  While there are a few brands in the space - primarily Filico Jewelry Water and Bling H2O - they have been primarily focused on a design-focused appeal to a narrow customer base. The luxury water market is nascent at best.


In a big picture sense, luxury water stands at the intersection of the kr 2,5 trillion bottled water and kr 650 billion luxury beverage segments. While we know of no market studies for luxury waters, we have conducted our own bottom-up analysis of what the eventual market size could be. Making assumptions on potential sales to restaurants, hotels, first class airline cabins, clubs, and e-commerce, we estimate the global Total Available Market (TAM) for all brands could grow to kr 50 billion annually.


[VENN DIAGRAM] [SMALL/LARGE/TOTAL BY SECTOR CHART]










In order to create a market of this size, brands are needed that can tap into new consumer desires for beverages that are sophisticated, healthy, eco-conscious, and unique dining experiences. Consumers are showing all of those desires in the growth trends of:



Svalbarði enters at a time where numerous supportive trends are underway to benefit from.







Need to discuss model assumptions on how got the TAM ???????????????????






Svalbarði exists at the intersection of numerous growth markets. Bottled water, luxury dining experiences, luxury beverages (wine, spirits, etc.), and non-alcoholic beverages.


in many ways creating a new market segment, luxury water. Very few bottled waters have attempted to sell their main products at prices of $100 or more per litre (speaking in terms of typical retail prices). While a few competitors exist, the luxury water segment is nascent at best. It stands at the intersection of bottled water, luxury goods, fine dining experiences, luxury beverages (wine, spirits, etc.), and non-alcoholic beverages. All growth sectors. The consumer sentiments driving those markets create an openness to new beverage concepts that provide sophistication, health, and unique dining experiences.




Long-term rise of fine waters



List of stats for each of these growth market segments???



While we know of no market studies that exist for luxury water, one way to view it is that it stands at the intersection of the kr 2,5 trillion bottled water and kr 650 billion premium beverages segments.

Attempting to understand the market better, we have conducted our own bottom-up analysis of what the eventual market size could be. Making assumptions on potential sales to restaurants, hotels, first class airline cabins, clubs, and e-commerce, we estimate the global Total Available Market (TAM) to all brands could grow to kr 50 billion annually.

Svalbarði has luxury economics, not bottled water economics. Typical bottled water companies fight for volume on thin margins. Svalbarði on the other hand has very high per-unit margins and can achieve profitability at a fraction of even other premium brands.


The key reason for this difference is luxury-level brand differentiation. Most bottled water companies struggle to be seen as clearly different in the consumer's mind. They tend to become just another commodity and end up having to chase volume by cutting prices and margins. Svalbarði on the other hand has established clear luxury brand differentiation that has allowed us to actually raise our online price with no discernible impact on sales.


[[[[[[[[[[Maintaining brand differentiation is a key aspect for all luxury brands. Our design signals elegant luxury. Our unusual pricing signals desirability. And our Svalbard source and story (including an environmental message tied specifically to the place) are hard to copy. Even if a huge multinational decided they wanted a brand like ours, it is the very fact that we have a personal story from a small place and very rare source managed by hand which makes us unique. A large multinational may eventually look to acquire brands like ours because simply copying it is not possible. Eventually as we succeed, other small brands will follow our lead, but our goal is to have established a strong first mover advantage and market position by then.?????????]]]]]]


We have a strong defensible position because brand building is uniquely difficult even for premium bottled waters.


 Many bottled water companies struggle to maintain a clear brand differentiation for consumers 


Making their brand stand out is very difficult as consumers tend to see them as all being alike.


asdfsadf

OLD "The Company" Description:

The basic business model (wholesale, e-commerce with subscriptions, etc.), performance to date, forecasts, prior investment rounds, current investors/cap table, government support, outstanding debt, justify valuation, organization number, regulatory approvals???, assets???, very very different financial model from other bottled waters, competitors, SWOT, risks to us, some honest reality on our weaknesses, high barriers to entry for brands like ours even if low for bottled water generally, future raises where investors can get their returns at higher valuation. give number of bottles per month needed to break even (now, and with higher post-raise spend). Profit margins.


Only need X bottles to break even!


---moat???---

---when discussing the various stage developments, need to give some specific scenarios of what it takes in practical client/sales/volume/venue terms to reach---

[[[mention 2 and 20 enviro??? -- just generally have an enviro section???]]]

[timeline of developments. perhaps best in graphical form with only light text???]

[[[perhaps use this as a section to flesh out the "beta test" concept to date???]]]


press, other brand awareness, prestigious local partners/shareholders, local Svalbard support (organizations and individuals), government support, prestige locations/total locations/distributors (with charts or calendar of growth), prior raises???, pre-raise contributors???, prizes, have a visual timeline


*****

With an idea as novel as Svalbarði, our goal to date has been to prove the business is viable - a goal we now believe has been achieved. This has consisted of building the physical infrastructure of the business, establishing a strong brand, and showing that customers exist. We have had numerous accomplishments in these spheres which give us confidence that with your partnership the business can now move to solid profitability.

*****


  • Awards: adsfasdf
  • Press: Widespread media coverage in dozens of publications around the world. Including such sources as The Economist, Buzzfeed, The Ellen Show, South China Morning Post, Quartz, The Guardian, GQ, [list more including Polish YouTuber]. A fuller though by no means complete list with links can be seen here [link to google sheet]. [graphic with publication logos]
  • Team Building: asdfasdf
  • Physical Infrastructure: asdfadsf [plant including ice melting, ice gathering methodology, distribution logistics/DHL]
  • Online Infrastructure: adfasdf
  • Distribution Network: asdfsdf
  • Prestigious Customers: asdfsad [have map showing distributor and prestige locations]
  • Fundraising: NOK [4,9mn] [need to add in my loans and equity] (approximately € XXXk / $ XXXk). This has come in the form of NOK 1mn in equity by Terje Aunevik on [date] in exchange for 10% equity. NOK 500k in equity by Lasse Hansen on [date] for 5% equity. NOK 1mn in equity by [Arshad's company and state his name as real owner] on [date] for 10% equity. NOK 1mn in equity by [Arshad's company] on [date] for 5% equity. Besides for spending approximately NOK [???NOK 2,6mn???] to build the business out of personal and US holding company funds both prior to and after the establishment of Svalbardi AS [???is this legally ok to talk about???], Jamal Qureshi has injected equity of NOK [XXXk] as equity capital and currently owns 70%. A shareholder loan of NOK 500k by Terje Aunevik on [date]. A shareholder loan of NOK 500k by Lasse Hansen on [date]. A series of shareholder loans by Jamal Qureshi totaling NOK [XXXk] between [date] and [date]. And a convertible loan by Terje Aunevik of NOK 400k on [date]. [Pie graph showing owners] [Perhaps simplify this whole thing and give the details elsewhere, including leaving out ownership pie graph from here].
  • Government Support: [Innovasjon Norge including untapped portion, Miljøvernfond, Lokalstyre]
  • Sales: [give figures including number of customers, sales/turnover including something to show the growth trend. Include a chart]

[timeline of developments. perhaps best in graphical form with only light text???]

[[[perhaps use this as a section to flesh out the "beta test" concept to date???]]]


press, other brand awareness, prestigious local partners/shareholders, local Svalbard support (organizations and individuals), government support, prestige locations/total locations/distributors (with charts or calendar of growth), prior raises???, pre-raise contributors???, prizes, have a visual timeline


*****

With an idea as novel as Svalbarði, our goal to date has been to prove the business is viable - a goal we now believe has been achieved. This has consisted of building the physical infrastructure of the business, establishing a strong brand, and showing that customers exist. We have had numerous accomplishments in these spheres which give us confidence that with your partnership the business can now move to solid profitability.

*****


  • Awards: adsfasdf
  • Press: Widespread media coverage in dozens of publications around the world. Including such sources as The Economist, Buzzfeed, The Ellen Show, South China Morning Post, Quartz, The Guardian, GQ, [list more including Polish YouTuber]. A fuller though by no means complete list with links can be seen here [link to google sheet]. [graphic with publication logos]
  • Team Building: asdfasdf
  • Physical Infrastructure: asdfadsf [plant including ice melting, ice gathering methodology, distribution logistics/DHL]
  • Online Infrastructure: adfasdf
  • Distribution Network: asdfsdf
  • Prestigious Customers: asdfsad [have map showing distributor and prestige locations]
  • Fundraising: NOK [4,9mn] [need to add in my loans and equity] (approximately € XXXk / $ XXXk). This has come in the form of NOK 1mn in equity by Terje Aunevik on [date] in exchange for 10% equity. NOK 500k in equity by Lasse Hansen on [date] for 5% equity. NOK 1mn in equity by [Arshad's company and state his name as real owner] on [date] for 10% equity. NOK 1mn in equity by [Arshad's company] on [date] for 5% equity. Besides for spending approximately NOK [???NOK 2,6mn???] to build the business out of personal and US holding company funds both prior to and after the establishment of Svalbardi AS [???is this legally ok to talk about???], Jamal Qureshi has injected equity of NOK [XXXk] as equity capital and currently owns 70%. A shareholder loan of NOK 500k by Terje Aunevik on [date]. A shareholder loan of NOK 500k by Lasse Hansen on [date]. A series of shareholder loans by Jamal Qureshi totaling NOK [XXXk] between [date] and [date]. And a convertible loan by Terje Aunevik of NOK 400k on [date]. [Pie graph showing owners] [Perhaps simplify this whole thing and give the details elsewhere, including leaving out ownership pie graph from here].
  • Government Support: [Innovasjon Norge including untapped portion, Miljøvernfond, Lokalstyre]
  • Sales: [give figures including number of customers, sales/turnover including something to show the growth trend. Include a chart]

[[[perhaps use this as a section to flesh out the "beta test" concept to date???]]]

[[[perhaps build the forecast up first showing venues targeting to be in to, bottles per venue, then do the revenues & costs. make it tangible what we're talking about doing, not just randomly chosen numbers in their eyes ]]]

Because we are attempting to create a new market segment rather than capture a slice of an existing competitive market, we believe...



[[[[[ DELETE???? With no other companies we know of trying to open a mass-luxury water segment, we have a valuation situation in some senses similar to disruptive new technology companies in the early commercialization stage. With all that implies for risk and reward. We believe the valuation must price that balance in the context of what capital is required to create - and hopefully gain early dominance in - this new segment. ???]]]]]]


We have used a 5-step method to arrive at the valuation:


(1) Created a bottom-up model of what we believe potential market size to be.

As discussed in the "Market" section. But to summarize: We believe that when fully developed, the global luxury water market can be NOK 50 billion in annual sales. With NOK 6,3 billion in regions we are able to access at present, and NOK 1,6 billion possibly achievable by us in the very long run.


[[[[quick market size infographic]]]]]


(2) Created a 5-year financial forecast of what we can achieve in that market based on the assumption of a full NOK 9mn raise now.

In his scenario we believe we can achieve NOK 60 million of sales in year 5, with after tax earnings of NOK 15 million.


[[[Need to decide enviro mission financial model and make sure it is fully baked into these numbers]]]



(3) Found comparable companies to see P/E ratios the market could value the company at once profitable.

Given we are so unique, there are no perfect comparables. However, there are companies with many of our key characteristics. Looked at as a whole, they may give a general idea of how the market prices companies that offer similar consumer benefits.

  • Diageo (DEO). British multinational alcoholic beverage company including Smirnoff Vodka, Johnnie Walker Whiskey, and Guiness Beer. P/E ratios past 5 years - min=17 max=28 avg=22 current = 27 https://ycharts.com/companies/DEO/pe_ratio
  • LVMH - 11 to 31 past 5 years, avg 21, current 27 - https://ycharts.com/companies/LVMUY/pe_ratio
  • Crimson Wine Group (CWGL) - wild swings 26 to 125 past 5 years, avg 54, current 106 - https://ycharts.com/companies/CWGL/pe_ratio
  • Fevertree Drinks (FQVTF) - 40 to 104 past 5 years, avg 63, current 61 - https://ycharts.com/companies/FQVTF/pe_ratio
  • Nestle (all kinds of food but acqua panna, perrier, etc. https://ycharts.com/companies/NSRGY/pe_ratio - 15 to 37 past 5 years, avg 25, current 28

[[[discuss factors that give those different ranges. Presumably (research it) growth company going through and perceived growth potential is key in these examples and we would be seen as growth if our numbers are doing that.]]]


(4) Used forecast and comparable P/Es to calculate a range of potential valuations in 5 years.


(5) Discount those future valuations to a level providing an attractive long run return potential while providing the company the resources it needs to bring those returns to fruition.


[[[discuss min, base, and upside cases???]]]




[[[say at end of year 5 will probably be at max production cap, but will have either the cash in bank and/or success giving us access to capital in order to upgrade plant for next growth phase.]]]












**************




(1) A 5-year financial forecast. Assuming the full NOK 9mn can be raised, the forecast assumes we can reach at least the "Initial Investor Returns" stage discussed in the Business Model section. Generating approximately NOK 59mn in gross revenue and NOK 15mn in after-tax profits in year 5. This is also a key milestone because we believe it is where we would be at the limits of our current physical production capacity.


(2)




(1) A 5-year financial forecast. (2) Find comparable companies to apply price to earning (P/E) ratios. (3) Calculate range of possible 5 year forward valuations. (4) Discount the future valuations to a level we believe offers an attractive long run return while providing the company the resources it needs to bring those returns to fruition.




Comparison of price to earning (P/E) ratios of companies we feel are likely to reflect similar long run investor sentiment. (3) Calculate a range of 


(1) A 5-year financial forecast based on the stages of our business model. With a full NOK 9 mn raise, we believe in year 5 we can reach the "Initial Investor Returns" stage. Generating approximately NOK 60mn in sales and NOK 15mn in after-tax profits. [[[This is also a key milestone because we believe it is where we would be at the limits of our current production capacity and be looking to invest to upgrade the plant further to meet demand and access new markets in UAE/NY/CA. Depending on situation then, could either self-finance or raise again which could give liquidity event]]]

(2) asdfsadf No perfect comparables, but there are these guys who are good because they show examples of how market is likely to perceive us and wow look how they trade especially the growth ones blah blah blah

P/E's:

Diageo (DEO) - 17 to 28 past 5 years, avg 22, current 27 - https://ycharts.com/companies/DEO/pe_ratio

LVMH - 11 to 31 past 5 years, avg 21, current 27 - https://ycharts.com/companies/LVMUY/pe_ratio

Crimson Wine Group (CWGL) - wild swings 26 to 125 past 5 years, avg 54, current 106 - https://ycharts.com/companies/CWGL/pe_ratio

Fevertree Drinks (FQVTF) - 40 to 104 past 5 years, avg 63, current 61 - https://ycharts.com/companies/FQVTF/pe_ratio

-Nestle (all kinds of food but acqua panna, perrier, etc. https://ycharts.com/companies/NSRGY/pe_ratio - 15 to 37 past 5 years, avg 25, current 28

(3) asdfdsafsda At a very low P/E from all of those of 15, implies valuation of the company in 5 years at NOK 225mn. At a low-mid-range of 25 then NOK 375mn. At high range around 60, then NOK 900mn. Obviously massive unknowns, but gives you idea of magnitude

(4) asdfasfsad To ensure good investor return of 10x minimum, we give post-money valuation (assuming full NOK 9mn raise) of



[[[[Debate: detailed on precise use of funds?? I'm thinking perhaps have the general categories and descriptions of funds use, but then have a more specific calendared plan on what we'll be doing as well. Look at Minvino docs on how they laid it out.]]]





We will utilize the funds primarily for marketing, introducing a small bottle, and providing a 2 year cash cushion while we aim for profitability. To date, we have had very constrained resources holding us back from a full commercialization push. The positive is that we have been able to learn a great deal about where we can achieve the maximum bang for the buck. We have a clear plan on how to spend the funds raised for maximum, focused effect. Should we raise the maximum target of NOK 9 million, we have a 24 month plan targeting clear profitability. Should we raise the minimum target of NOK 3 million, we have a 12 month plan with more modest goals but which we also believe can bring us to at least break even at lower growth levels. For any amount raised in between, we will adjust plans accordingly. The following is our plan under the kr 9 million scenario:

  • Digital marketing - NOK 3,1 mn. Aiming to go viral with an exponential expansion in content marketing, SEO, and social media marketing in particular. Both to build e-commerce sales and to raise our profile for commercial customers to find us. We also have an outstanding approximately NOK 350 thousand portion of a grant from Innovation Norway which will be released to us if we spend a similar amount before November of this year.
  • Traditional marketing - NOK 1 mn. To get targeted local salespeople on the ground. To get in front of customers at key tradeshows. To retain the services of key influencers with hospitality sector contact networks.
  • Create a small bottle - NOK 1,3 mn. We have received many requests for this, with distributors and hospitality outlets telling us the form factor and lower entry price point will open up new selling channels. These funds will be to design the new bottle, produce the moulds, purchase the first round of bottles and packaging, and produce the first batch.
  • Working capital - NOK 3,2 mn. To ensure a strong balance sheet allowing us to press the 2 year plan forward without liquidity issues. Besides salaries, money would be for things such as production supplies, unexpected legal/accounting/testing/regulatory costs, minor equipment, and other items as needed.
  • Equipment & upgrades - NOK 0,4 mn. For things such as minor improvements to bottling room and warehouse, capital equipment, IT equipment, and other items as needed.

We also have outstanding long-term shareholder loans of approximately NOK 2,8 million which we may elect to repay in part or whole depending on the total amount of funds raised.

General risk disclosures like on funderbeam and other platforms

Talk more about how returns could be achieved. Be very cautious in wording. Minvino example?

Terms of The Offering

  • Key Terms
  • Investor Perks 

AMOUNT SEEKING

NOK 3 million initial goal, NOK 9 million maximum

(approximately €310k - €940k / $350k - $1.060k)


PRICE PER NEW SHARE

NOK 180 (approximately €18 / $21)


MINIMUM INVESTMENT

25 shares - NOK 4.500 (approximately €460 / $520)


ENTITY TO BE INVESTED IN
  • Svalbardi ASA Norwegian company headquartered in Svalbard with organization number 815 343 972
  • For investments of NOK 500.000 or more (approximately €51k / $58k), or for existing shareholders as of 1 January 2019, these will be Ordinary Shares.
  • For investments of less than NOK 500.000, these will be B shares. These rank equally with Ordinary Shares in every respect (including the right to participate in dividends and capital distributions), except that B Shares do not have any voting or pre-emption rights.
  • Note that this is a private placement under Norwegian law and all investors must be legally eligible to participate on that basis for the investment to be confirmed and finalized.

PRE-CAMPAIGN SHARES OUTSTANDING IN SVALBARDI AS

200.000 ordinary shares


NEW SVALBARDI AS SHARES TO BE ISSUED (INITIAL GOAL / MAXIMUM)

16.667 / 50.000

This may occur in any combination of Ordinary and B Shares

Equivalent to 7,7% / 20% post-issuance shares of all class types


VALUATION

Pre-money: NOK 36mn (approximately €3,7mn / $4,2mn)

Post-money in case of NOK 3mn of equity raised: NOK 39mn (approximately €4mn / $4,5mn)

Post-money in case of NOK 9mn of equity raised: NOK 45mn (approximately €4,6mn / $5,2mn)

We would like all who join Svalbarði to feel a part of the team and the excitement of spreading the word. To do so, the following perks are offered depending on minimum investment level:


*NOK 5.000: A bottle of Svalbarði now and 10% off all orders for a year.

*NOK 50.000: A case of Svalbarði now, 20% of all orders for a year.

*NOK 500.000: A case of Svalbarði every 2 months for a year, 30% of all orders for a year.

*NOK 5.000.000: A dream arctic trip to Svalbard to join us on an ice gathering expedition. A year's supply of Svalbarði from the ice gathered on your expedition. 30% off all orders for a year.


In addition, all investors over NOK 5.000 will receive a personalized certificate of appreciation modeled on the original Store Norske Spitsbergen Kulkompani miner payment notes from a century ago. When Longyearbyen was an isolated arctic company town, these notes were used in lieu of cash for the company-supplied goods to miners working on the island.  [[[image of certificate and original notes]]]

Documents

pitch deck. see minvino fundedbyme docs - financial forecast, biz plan, valuation, investment memorandum.  Not sure if this whole section is even necessary frankly even info here is thorough. Perhaps besides for pitch deck just take all the info here on site and put it into a single document for download???

see folkeinvest docs for local important docs.  For pitch deck, maybe in some kind of online slideshow instead of just download?

Need to see if any of this needs to be locked down.


definitely need aksjeeierbok showing current shareholders

Discussion Forum

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Campaign Backers So Far, Join Us!

Make list showing whether equity or rewards with amount contributed [or perhaps better to not break out?]. List anon or actual according to form selection.

Campaign Updates

[[[could consider getting rid of this section]]]

[Newest on top]

XX May: Public launch and campaign website is live. Private round investors have committed [NOK XXX] at public launch.

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