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Is There Really Anyone Not Interested in Beer Delivery?
Finally, a service for buying beer ONLINE (without stupid service fees).
Heyyyo,
Is 2020 over yet?? “Unplugged” has no boundary this holiday… I’m thinking of letting my daughter hide all my chargers Tuesday around noon!
Some housekeeping items, 3 newsletters ago I shared a few cool digital gift ideas, including a startup called EarlyBird, that lets you gift stocks to kids instead of buying toys they’ll never use — the app is officially live in the App Store.
Download it here 👉 https://bit.ly/3gRR2lA
Also, Republic finally has a mobile app to make startup investing (and managing all those investments) much easier… and, it’s pretty slick!
Download it here 👉 https://apple.co/3muwTmC
** Get a $15 credit when you invest $250+ using promo code: BUILDWEALTH
For my noobs; every week I breakdown a startup pitch with the added hook that you don’t have to be a rich guy to invest (if you don't know what that means, click here).
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Scott
Company Bio
TapRm is a platform for everything beer — by collapsing the supply chain, TapRm enables beer brands to sell to their consumers more directly through licensing that allows them to act as the wholesaler, retailer, delivery courier, and marketer.
Meet the Founders
Watch my full interview with TapRm’s Founder and CEO Jason Sherman here 👉 https://bit.ly/38aSlbk
Jason Sherman is TapRm’s Founder & CEO. Prior to this, Jason managed investments and acquisitions decisions into a host of beverage businesses including e-commerce, CPG, technology and logistics startups at Zx Ventures, the global incubator and venture capital team funded by Anheuser Busch InBev, the leading global brewer.
Jason also holds a J.D. from Harvard Law School and a B.A. from Harvard in economics.
Traction
Fastest growing U.S. alcohol e-comm platform during COVID-19
Over 1.5M beers sold with a $5M annual revenue run-rate
670% annual growth rate; projected $22M revenue over next 18 months
35K+ unique customers & 110 brand partners
650+ retail partners, including Whole Foods, Total Wine, Eataly & Per Se
$119B+ total U.S. market with $4B+ addressable market in New York alone
Market Opportunity
The pandemic has put a premium on home delivery. People now expect — naye, demand — home delivery on consumer goods, and the brands, retailers and platforms that provide a seamless delivery experiences are thriving in the pandemic economy.
Retail and financial experts expect this behavior to continue even after the pandemic is over, which is why it’s easy to be bullish on TapRm, an ecommerce and delivery platform for one of life’s greatest blessings: beer.
In just a year and half, TapRm has sold more than 1.5 million beers, and that’s only in New York City. TapRm’s success is due to it simplifying the beer delivery process, getting rid of the usual barriers and middlemen and thus driving down all the exorbitant costs and fees typically associated with beer delivery.
It’s reasonable to assume TapRm will grow as it expands to new cities, and as it does, it will have to contend with the Byzantine beer delivery laws in each new city. If anyone knows how to maneuver these regulatory hurdles, however, it’s TapRm founder Jason Sherman. Prior to TapRm, he was an attorney for Anheuser-Busch, helping the international beer giant in up-and-coming beer brands.
TapRm will have to compete with more established booze delivery platforms such as Drizly and Saucey, but TapRm has two distinct advantages.
For one, TapRm is not just a delivery platform, it’s also a SaaS company. TapRm provides ecommerce software that allows beer brands to sell to their customers directly.
Two, TapRm is hyper-focused on beer. When a person orders at Drizly, they’re at the mercy of what the local liquor store has in stock. Drizly’s delivery service is commodified. By concentrating strictly on beer, TapRm puts itself in a position to own the category and become the go-to ecommerce destination for all things suds. I can cheers to that.
Terms & Takeaway
Invest in TapRm here 👉 https://bit.ly/37pTw7o
Security Type: Crowd Safe
Valuation Cap: $14,000,000
Investment Goal: $1,070,000
Raised (as of publishing): $220,128
Minimum Investment: $100
Here's what I like: TapRm is a legit BFI! I’d bet my life on absolutely everything you can think of being delivered to your home by 2025. I’m also a huge believer in betting on people over ideas. In this case, I’d bet on Jason and his idea. His understanding (and ability to circumvent) prohibition-era regulation and experience navigating the deep state of brewing giants is what separates TapRm from the field. Additionally, the tailwinds are with the market… meaning, there’s no question (similar to sports betting and weed) that beer-delivery-as-a-thing is a forgone conclusion; it’s just a matter of who leads it.
Here's what I don't love: I mentioned Travis Kalanick earlier. I forgot to mention the part about him being an incredible asshole. That trait contributed to both his success and undoing at Uber. Taking on legacy regulation and systematic rigidity requires some asshole’ish’ness — but not so much that nobody wants to work with you.
Once you pave the way, the sharks will come to feast and it takes some serious cough* conviction?? to box them all out and hold the ship steady.
This is one of those investment opportunities that make so much sense that it’s easy to overlook obvious obstacles.
Who should invest and why: Given the low minimum investment of $100 and pretty sweet perks (from gift cards and kegs to bar crawls in the Big Apple) I’d say this is a great investment opportunity for anyone not opposed to the notion of selling beer. The $14m value cap is nothing to sneeze at, but the long term potential is exceptional, the founder’s connection to industry leaders in M&A make acquisition likely and market trends coupled with rapid growth should make access to capital relatively easy.
Overall, this is as much a bet on Jason’s ability to navigate the state-by-state legal maze as much as anything.
As always, startup investing is super high risk, anything can happen. So, don't invest money you can't afford to pour down the drain... 🍻💸
Invest in TapRm here 👉 https://bit.ly/37pTw7o
Questions? DM me on Twitter @kitun