Container Door Limited

By Container Door Limited

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About

Container Door Limited

What We Do

We’re a retail disruptor, helping people buy the cool things they want without having to pay full price. We do this by sourcing the best stuff, factory-direct, then bulk-shipping all customers’ orders to New Zealand, saving them a truckload of cash!

Welcome!

Dear friends and investors,

I am thrilled to be able to offer you the opportunity to invest in Container Door.

I am a proud New Zealander and have been importing, wholesaling and retailing for over 25 years.

At one stage in my career I owned a retail chain with 18 stores (Barkers Mens Clothing) and I was also one of the largest wholesale suppliers to The Warehouse and Farmers retail chains. Trading is in my blood and I love it!

I believe that Container Door is one of the most exciting business opportunities in e-commerce today and we have huge plans for the future.

We are not your regular e-commerce business. Container Door’s business model is very disruptive - we are disrupting the retail landscape by changing the way consumers shop. This is not a “me too” business - I sketched the idea on the back of an envelope over 10 years ago.

The digital age has made it possible to enable big shifts in consumer behaviour. And I believe smart investors look for shifts.

Remember when there were expensive taxi companies and when empty guest rooms weren’t being monetised in your house? Think Uber and AirBnB. But these businesses don’t become profitable overnight.

When there is a shift in consumer behaviour it can take time. However once fixed costs stabilise, the business can often scale up considerably.

We all know too well the stories of Amazon and Facebook. How many times have we heard someone say “OMG, if only I had bought Amazon shares at $x or Facebook shares at $y!” Hindsight is a wonderful thing.

After four years in business, we reckon we’re still New Zealand’s best-kept secret, and that’s all about to change thanks to you.

We want you to be a part of the Container Door family and to have a genuine interest in all that we do.

We’d love it if you were the proud owner of a piece of the Container Door pie.

To Infinity and Beyond!

BEN NATHAN
Founder & CEO, Container Door Limited.

Container Door Executive Summary

  • Direct-to-consumer retail disruptor
  • Factory-to-consumer buying model
  • Unique ability to import and deliver bulky consumer items cost-effectively
  • 4 years of trading under our belt
  • Pre-order system - customers pay us before the order is placed
  • No retail stores
  • Revenue of more than $20m since inception; nearly 100,000 successful transactions
  • For all our e-commerce nerds/experts, our Customer Acquisition Cost: $18.87; Average Basket Size: $286.14; Average Gross Margin: 20.3% - excluding freight variances. (12 months from Sept 2018-Aug 2019)
  • Huge growth opportunity from untapped markets in New Zealand and abroad.
  • Potential expansion to a marketplace platform locally and globally – we want to be the Amazon of big things.
  • Ben’s medium-term dream is to reach $100m in sales.
  • Exit strategy: our goal is the eventual sale to a global entity.

Highlights to Date

READ OUR INFORMATION MEMORANDUM

The Offer

This offer is for investor class shares in Container Door Limited (Investor Class Shares). Our nominee, Container Door Shareholding Limited, will hold legal title to these Investor Class Shares on trust for investors under this offer.

 

The Offer is to purchase non-voting Investor Class Shares in Container Door Limited which will be held on trust by Container Door Shareholding Limited. 

Please read our Information Memorandum carefully to learn more about the Nominee Structure, Share Classes, and Rights attached to the Shares.

The Wholesale Offer is to purchase voting ordinary shares in Container Door Limited. The offer to wholesale investors is a “top-up” of the crowdfunding offer under which Container Door Limited is seeking to raise the difference between the amount raised under the crowdfunding offer and $3,000,000.

Where We’re At

Our first deal went live on the website in late August of 2015. By the end of the first two weeks we knew we were onto something big.

We’ve been in business for four years now, with a great operating business model and custom-built tech.

We have seen copycats try to duplicate our business model and they have failed. Not only do we have first-mover advantage in this direct-to-consumer space, we have mastered a model that has a lot of moving parts. We have the resources, experience and expertise to execute – that’s the difference. Not to mention our marketing edge.

As at September 2019, we have over 118,000 registered users, more than 93,000 successful transactions under our belt and we’ve saved our customers up to $45 million* – and counting. Not bad since we started from absolute scratch.

But, of course, we are always looking for ways to take Container Door to the next level, so in 2018 we raised $2m from wholesale investors at a pre-money valuation of $39m.

Read more about Where We're At in our Information Memorandum here.

Our Key Categories

Our Marketing

Ben is the face of the company, personally endorsing the products we sell. His humorous authenticity and radical honesty has created a genuine sense of trust, credibility and goodwill among customers.

We also create videos that don’t involve Ben. Instead, we seek out endorsements from genuinely enthusiastic experts, like this surfboard review by Piha legend Phil Wallis.

By creating funny, informative and aspirational product videos that consumers enjoy and look forward to seeing, we are cultivating our own media channel. Our videos appear in our online deals as well as spearheading our paid advertising programme on Facebook and Instagram.

If you have seen any of our product videos you will know why we have such a passionate community of engaged customers.

Read more about our Marketing in our Information Memorandum.

The E-Commerce Market

The growth of global e-commerce is mind-boggling. In 2018 it reached around US$2.7 trillion and is expected to hit US$5 trillion in 2021 (according to a Statista report).

In 2021, over 2.14 billion people worldwide are expected to buy goods and services online, up from 1.66 billion global digital buyers in 2016 (according to a Statista report).

 

Read more about the E-Commerce Market Globally, in New Zealand, and Competition in our Information Memorandum.

Our Growth Plans

Firstly, we want to take our New Zealand business to the max - maximum customers, product range, sales and cost-efficiencies.

But that’s not all.

We want to find under-served markets in Australia and even further afield where we can roll out the same business model to help customers buy awesome stuff at cheaper-than-wholesale prices thanks to bulk ordering and bulk shipping.

But there’s a bigger picture too...

When we pull out our telescopes and our crystal balls, we’re visualising
a future in which Container Door becomes a bulk-shipping conduit to New Zealand and Australia from a whole world of sources – not just our hand-picked factories.

We see a world where we could leverage the buying power of some of the world’s biggest retailers who haven’t found a way to ship large items to this part of the world cost-effectively.

Read more about our Growth Goals in our Information Memorandum.

How Will We Use These Funds?

To raise our profile and expand our community of customers:
$350,000
The more customers we have, the better it is for our community. More deals will succeed, so everyone will be able to buy a wider range of products and save more.

To expand the number and range of products we offer:
$250,000
We want to make sure that there’s not only something for everyone but LOTS of things for everyone.

To improve our website and user experience:
$450,000
We will make our website even easier to navigate, provide more features, and sharpen delivery methods and customer response times.

Broaden our liquor offering:
$100,000
Container Pour Limited, which holds a remote off-license for web-based sales, is a 100%-owned subsidiary of Container Door Limited. We have some exciting products at the planning stage. 

Replicate our model in new markets:
$250,000
Carefully invest in growing the Australian offering by partnering with an established company with an active customer base.

Operating capital:
$470,000
We will use some funds as working capital to smooth out the occasional peaks and troughs in our cashflow and help pay down some short-term loans, as noted in the Financial Commentary section.

Capital raise costs:
$130,000
Costs associated with using a crowdfunding platform, preparing legal documents and advisory fees.

Share Classes

Container Door Limited is offering its crowdfunding investors non-voting Investor Class Shares and its wholesale investors Ordinary Shares with full voting rights. Further information on the rights and restrictions associated with each share class are clearly outlined in the Container Door Limited Constitution. You should read this before subscribing for any shares.

The legal title in all Investor Class Shares in Container Door Limited will be held by a nominee company on trust for crowdfunding investors. The terms on which the Nominee will hold the Investor Class Shares are described below and in the section of this Information Memorandum headed Nominee Shareholding Structure.

It is important that you read that section.

The minimum holding for Ordinary Shares has been set at 30,120 shares and is available for wholesale investors only. Wholesale investors must submit a completed certificate confirming the applicant’s status as a wholesale investor as defined in clause 3 of Schedule 1 of the Financial Markets Conduct Act 2013, and must sign Container Door Limited’s shareholders’ agreement.

Share Breakdown in Container Door Shareholding Limited

Container Door Shareholding Limited will hold the legal title to Investor Class Shares in Container Door Limited on trust for the crowdfunding investors.

Share Breakdown in Container Door Limited

* Adjusted for share split.  

** we have issued the shares to our investors from December 2018, but our aim is to complete the $5,000,000 round by raising the rest of the capital through equity crowdfunding and a Wholesale Investor round.  

*** includes the conversion of a $6,053,939 loan at $2.66 per share (being a discount of 20% to the price per share under the crowdfunding round).  

**** There is an Employee Share  Ownership Plan in place for 526,000 shares. This is an employee share scheme allocation and it is expected that over time these shares will be issued to employees selected by the board. These shares have not yet been issued.  After completion of this crowdfunding capital raise, the board expects to increase the options available for allocation to employees from 526,000 to 1,279,000.  If the Employee Share  Ownership Plan is fully allocated and assuming the capital raise is fully subscribed, this will result in employees holding 8.49% of the shares of the company and will lead to the percentage shareholdings of the crowdfunding investors decreasing to 4%.   

We have created a nominee company, Container Door Shareholding Limited (Nominee), to hold the Investor Class Shares in Container Door Limited. We aim to scale and raise investment internationally in the future, and after consulting with our advisors we believe fewer investors listed on our capitalisation table and registered on our share register will make this easier to achieve.

The non-voting Investor Class Shares to be issued by Container Door Limited are to be issued to the Nominee, which will hold legal title to those Investor Class Shares on trust for each person investing in Container Door Limited through the crowdfunding offer (i.e. the investor). The full terms on which the Nominee will hold the shares are set out in the Declaration of Trust (which forms part of the Offer Documents). You should read this before subscribing for any shares. You agree that by subscribing for Investor Class Shares that you are bound by the terms of the Declaration of Trust.

 

Read more about our Share Classes, and Nominee Shareholding Structure in our Information Memorandum.

Financials for Container Door Limited (000's)

  

Read more about our Financial Commentary in our Information Memorandum.

Risks & Mitigations 

Replication of Business Model – someone copying what we do.
Attempts to replicate our unique business model have occurred in the past but no one has managed to establish a sustainable business, as we have mastered a model that has a lot of moving parts. We have the resources, experience and expertise to execute – that’s the difference. Not to mention our humorous videos that have created a genuine sense of trust, credibility and goodwill with customers.

Copying Intellectual Property and Trademarks – someone using our brand for their benefit. 
The name Container Door Limited (containerdoor), logos and brand are protected by the International Protocol using the Madrid System. Trademark registration exists in NZ, Australia, USA, China and the EU.

Cashflow Management – ability to cope with seasonality, creditors and debtors. 
Cash collection is predominantly pre-order so we don’t have debtors to manage. There is some seasonality to supplier orders/ invoices, predominantly in August and September when we are ordering products for the anticipated Xmas rush. We run a weekly cashflow model which anticipates cash receipts for the coming week based on credit card orders (via Stripe).

Supply Chain Disruption – from factory to door, all the things that could go wrong. 
There is always the chance of factories not supplying, shipping cancellations (or late) and delivery issues. We have long standing (up to 20 years) relationships with factories so it’s rare they let us down. We deal with 3-4 shipping companies so we have backup should demand dictate. Plus we are able to use local 3PL (3rd Party Logistics) providers that can store product and manage alternative delivery options. Our inventory management system is also integrated to the many last-mile delivery companies for maximum flexibility and cost-effectivness.

Profitability – getting to a point where the business is profitable and not requiring additional capital. 
We are working hard to become profitable and self-sustaining. Our focus in the last 4 years has been to grow the business and acquire customers instead of focusing on profits. As we are becoming more efficient, we are now putting more emphasis on fixed costs and have a strategy underway to reduce spend right across the entire business. Our management reporting tracks the pathway to profitability.

Capability & Staff Requirements – having the people to allow the business to function and grow. 
We have an incredibly loyal and capable team at Container Door. Of course there will always be changes but given our brand persona we find it easy to attract people to vacant roles. We are now at an optimum staffing level and if revenue increases as per plans we will be in a position within 6 months to recruit some senior roles based on the requirements of the business plan.

Key Person Risk. 
There’s no getting around it: there is only one of Ben. However, he is passionate about his baby and is not planning on exiting anytime soon. Although his creative genius is unique and his business acumen is acute, much of his knowledge, perspective and attitude has been enshrined in our business model and baked into our operating structure. Management and staff handle all day-to-day operations, keeping the business humming, and it is envisaged that the-yet-to-be-appointed board of directors would be strategically selected to mitigate the Key Person Risk.

Price Competition – being able to stay competitive on price through the product range. 
As Container Door is ‘factory-direct’, our prices are very hard to replicate or beat. We won’t list deals on the website unless we know we are significantly cheaper than other companies. The competition will have to sell their products at a loss in order to match our pricing so we are confident we cannot be beaten on price under ordinary circumstances.

Regulatory Requirements – managing any legal requirements on all products sold in NZ. 
Safety rules on selling types of products in NZ are clearly specified on Government websites. We monitor these regularly and check specifications prior to listing any product. We also have a robust ‘recall’ system if we find a problem with the products after the customer receives them. However our quality control team based in China mitigates the need for recalls as they are checked and double-checked at the factory.

Growth Management – being able to manage a business that is constantly growing. 
We have been in growth mode for four years now so are well practised at managing the enviable problem of managing growth. We moved to a new accounting and inventory management system in late 2018 which has helped us make better decisions faster as the data is available and accurate. Increased sales does not impact our cashflow like many businesses as under the pre-order model we receive payment before we order and pay factories. We also have fantastic factories and logistics partners worldwide who have the capacity to allow for growth.

Our strategy for growth includes finding established partners to accelerate our offering in offshore markets. If we are not able to form an agreement with a partner our revenue estimates will be reduced and we may need to invest more in marketing to reach the forecasted figures.

Foreign Exchange Volatility – having mechanisms in place that manages currency variations. 
We mostly buy from factories in China all of whom are paid in US dollars. We hedge and manage the NZD-USD exchange and have a very good system after many years of doing so.

 

READ OUR INFORMATION MEMORANDUM

 

Note from PledgeMe

We have completed a Veda check on the company and their director, as well as a Google check. There were no adverse findings. 

 

Updates 11

You need to pledge to see this update.

We just hit $1.1m - and there's still 8 hours to go!

18/11/2019 at 11:11 AM

Wow - here we are at the last 8 hours of our crowdfunding campaign and we've just hit $1.1million - FANTASTIC thanks guys! 

We're seeing a flurry of late-breaking activity both here and on our website, so you've been considering investing, today's the day. You know what to do: read our Information Memorandum, have a think about it and if you feel moved to invest you've got until 7pm to make it happen at pledgeme.co.nz!

If you'd like to know more about us, there are some informative videos with Mark Sainsbury interviewing Ben that are well worth a watch. You can find them on our PledgeMe page too.

Thanks to everyone who has invested with us already - we are very excited about the cool initiatives we have planned for you! 

And thanks to Stuff for publishing a nice update on our capital raise too. Check it out here:

https://www.stuff.co.nz/business/117492756/online-retailer-container-door-raises-1m-in-crowdfunding-campaign

Just 2 days to go...find out why we want to raise $2m!

16/11/2019 at 5:12 PM

We may have achieved our minimum investment of $1 million but we're not stopping now!


We'd love to raise as much of our $2 million target as possible, because we have a ton of cool initiatives we're itching to build out.


What We Want To Do With The Funds Raised

 

  • Source and offer many, many more products
  • Attract more customers which will mean even more deals going through
  • Improve our website to give customers a better website-browsing experience, and reduce the friction in our Checkout.  
  • Develop new product categories and introduce new deal formats
  • Invest for growth in new markets (with the help of strategic business partners)

 

The sooner we can scale up, the sooner all customers will enjoy the benefits.

And, of course, we believe our continued growth will be beneficial for all investors.
 
So if you haven't read our Information Memorandum, take the opportunity do it this weekend. Time is a ticking!
 

We're stoked! We've hit our minimum - $1 MILLION RAISED so far!

15/11/2019 at 4:55 PM

Woohoo! We are stoked to have reached our $1 million minimum today. Thanks to all our current pledgers for your support!

But we're not stopping now - we have 3 days to raise our maximum of $2 million so we can roll out all our cool growth initiatives. So jump on board, if you haven't already!

Container Door Announces its Global Champagne Brand

08/11/2019 at 4:47 PM

Ben announced this exciting news at last night's Investor Q&A! (Thanks to all who attended!)

After our massive success with the champagne label Charles Joubert last year, Ben decided to create a champagne brand that Container Door - and all investors - would own.

He visited Épernay for meetings and did a deal to create our brand Champagne Louis Marmont which we can now distribute globally.


We believe we are the first New Zealand company to own 100% of a champagne brand.

 

How It Happened

The beauty of the Container Door model is in allowing us to test products and categories before committing funds to them.

Last year we tested the champagne category with the French brand Charles Joubert and realised there was massive opportunity there. This spurred us to create a fantastic-quality champagne, at the right price, that had all of the visual appeal of a top brand -  and the result is Champagne Louis Marmont. 

It was a 3-month process for us to obtain the approval for the creation of Louis Marmont from champagne's strict governing body, Comité Champagne Interprofessionnel du Vin de Champagne. A rigmarole - but worth it!

The Quality

Of course it's not just about the premium look of the bottle and label. We've had Champagne Louis Marmont appraised by Sam Kim of Wine Orbit who rated it 5 Stars and 94/100. Here are his tasting notes:

"It is immediately appealing on the nose showing golden apple, apricot, lemon peel and brioche characters, followed by a superbly concentrated palate that is richly textured and impressively complex. An opulent style champagne offering terrific drinking."

The Size of the Opportunity
We currently have the trademark accepted under the Madrid Protocol for New Zealand, China and the whole of Europe, and pending in other jurisdictions. This is a true global marketing opportunity.

In New Zealand, we are currently negotiating with key Auckland restaurants, top supermarkets and a large national distribution network too. We are still in the pre-launch phase but the reaction to date has been fantastic.

And we will naturally be selling 6-packs of Louis Marmont via our website, delivering before Christmas.

The various price points (hospitality / retail / website) will be announced at the conclusion of our distribution negotiations.

 

We believe alcohol is going to be a big category for us. In the 12 months to March 2018, alcohol sales reached $1.6 billion - a $200 million increase from the year prior, according to Statistics New Zealand figures.

 

 

Buying shares in Container Door means you'll automatically own a share of Champagne Louis Marmont too.

Remember, our PledgeMe campaign close on 18th November, so invest now!

Meet Ben TONIGHT at the Container Door showroom - he'd love to see you there!

07/11/2019 at 11:47 AM

Yes, it's on TONIGHT from 5:30pm

Come and meet Ben - he'd love to see you.


Please CLICK HERE TO RSVP and guarantee your spot.
 

When: TODAY!   7th November, 5:30 – 7:00pm

Where:  Container Door Showroom, 10 Burrett Ave, Penrose, Auckland

(end of the cul-de-sac, off Walls Road)

Come and say hi and sample our wine...

Hear about the business and our PledgeMe crowdfunding...


(Ask Ben your questions through a mouthful of pie!)

 Mmmmm - we love pie.

Have You RSVP'd Yet? (There Will Be Pie!)

06/11/2019 at 10:03 AM

 

Meet Ben!

Hear about the business and our PledgeMe crowdfunding!


(Ask him your questions through a mouthful of pie!)

 


When: TOMORROW! - THURSDAY 7th November, 5:30 – 7:00pm

Where:  Container Door Showroom, 10 Burrett Ave, Penrose, Auckland

(end of the cul-de-sac, off Walls Road)

Please CLICK HERE TO RSVP and guarantee your spot.
(We’d hate to run out of pie and wine!)


PS We’re excited that our 
crowdfunding campaign is over $800,000 already so we're 80% of the way to our first target! A big thank you to everyone who has invested so far.

You need to pledge to see this update.

Ben takes your questions on Facebook Live - 4pm today!

24/10/2019 at 10:17 AM

Hey guys, Ben here. Join me for a real-time Q&A session at 4pm TODAY on Facebook Live!

If you're curious to find out more about our business and crowdfunding campaign - or you just want to say hey - please tune in - we'd love to see you there! In addition to answering questions, I'll chat more about my vision and talk about our background. 

The team and I have been so touched and humbled by all of the amazing comments that are rolling in with the investment pledges - we read all of them. It is really heart-warming that we have such a passionate, committed community of happy customers and fans out there who also understand our goals and vision!

And of course we are all excited that our crowdfunding campaign has got so much traction. We still have a little way to go to get to our $1m minimum, so we'd definitely appreciate you sharing this opportunity with anyone you know who may be interested. And get them to tune in to Facebook Live at 4pm today too!

See you there I hope!

BEN NATHAN

Founder/CEO

 

Funding Update, Media Coverage and Facebook Live Q&A Session!

23/10/2019 at 8:14 PM

I'm stoked to have raised over $700k in just 3 days of crowdfunding on PledgeMe - thank you!

The comments rolling in from customers are amazing and heartwarming - we are really touched that our community is so excited by this!

We have received a bit of media coverage too.

You may have seen an article about us in the NZ Herald this afternoon. Their angle was that we are fundraising to pay debt and then wishing to exit, giving the incorrect impression that Container Door is struggling and looking to give up. 

We get it - they’re a tabloid with click-throughs to achieve and papers to sell. However, we find their angle unfortunate, to say the least, as nothing could be further from the truth.

Here are the facts:

We have not raised money through crowdfunding before, as stated. Our last $2 million raised was through experienced wholesale investors who believe in us and share our vision.

We are now seeking a minimum of $1m from equity crowdfunding now, and if really goes gangbusters, up to $2m. If this higher target is achieved, we will repay a $300,000 short term loan. That’s just 15% of the investment - hardly worth the rather alarmist angle they have taken, in our opinion.

The reason we have chosen to open up our business to crowdfunding shareholders is because we are all about our community! As I keep saying, our deals are all crowd-funded – it’s baked into our DNA – so why shouldn’t our capital raise also involve our community of passionate customers?

Plus I want everyone to, literally, share in the fun of the journey with us - and in any future returns.

Are we looking to exit now? Of course not. We are in an exciting phase of growth and have big plans to expand further. We are experiencing high demand for big-ticket items such as outdoor furniture sets and aluminium pergolas, and this is driving up our average basket value. As stated in our Information Memorandum, our average basket value across the last 12 months was $286.14. However, according to our Google Analytics data, our August average basket was $310.52 and September’s was $334.62 - and we haven’t even hit our peak summer shopping rush yet.

In short, I believe Container Door has never been stronger. Our product ranging is better than ever, we have never had more deals on offer than we do now. We are currently experiencing revenue growth (43% for our 2nd quarter, year on year.) Of course, it’s my dream to take this concept global and one day exit the business for the benefit of all shareholders but we are not planning on that for anytime soon.

We could address the calibre of the commentators that the Herald engaged (one of them is a shareholder in a competitor company, which was not disclosed lol), their myopic view of growth-related e-commerce businesses in general, and the facts they got wrong or misrepresented, but, really, that’s not worth our time. They’re entitled to read our material and form their own opinions, just as you are.

With that in mind, I hope you check out my interview with Radio New Zealand, which aired this morning. It's very informative. 

http://bit.ly/RNZ_Ben_Interview

PLUS...FACEBOOK LIVE – Q&A 

If you have any questions for me, tune in to my Facebook Live Q&A session tomorrow (Thursday) at 4pm. I'm looking forward to hearing from you!

Cheers,

Ben

 

We raised half a mil in half a day, and we’re over halfway there!

21/10/2019 at 6:21 PM

WOW! We’re excited to see such an amazing response to our crowdfunding campaign. Over $500,000 raised in just four hours is phenomenal and we’re really excited about the future.

Our minimum goal is $1 million, but we’re aiming to hit the $ 2million goal from our crowd (with the hopes of also raising an additional $1 million from wholesale investors). With this funding, we’ll aim to grow our deals and customer base, scale our technology, and grow our presence in Australia.

If you’ve pledged, we’d love for you to share why you pledged with your crowd. The more people that know about the campaign, the bigger we can go!

If you haven’t pledged yet, and have any questions about the campaign - just pop onto the questions tab or send us an email on [email protected] 

To infinity and beyond!

Ben Nathan

    Details

    Offer Details

    Current Valuation 42,757,118
    Raise Minimum 1,000,000
    Raise Maximum 2,000,000
    Share Price 3.32
    Maximum Shares Offered 602,410
    Explanation of valuation:

    In late 2018 the sole director and advisors agreed a multiple of revenues as the best gauge to calculate a valuation. This is a common method for crowdfunding. The valuation from the start of our capital raise in Dec 2018 equates to a multiple of 4.48 times the forecasted current years revenue. The current shareholders are comfortable that this multiple provides a fair market value, based on the growth potential of the business in today’s market.
    Since the start of our capital raising in December 2018, we have raised $2m from wholesale investors and converted $6m of shareholder loans to equity for the bene t of all shareholders. We have also introduced an Employee Stock Ownership Plan (ESOP). We aim to raise $2m from crowdfunding and $1m from wholesale investors.

    Financial Summary ('000s)


    Please note, the Information Memorandum has financial commentary that you should read in conjunction with the summary.


    Financial Summary

    Prev Year Current Year Est. FY 2022 Est. FY 2023
    Revenue NZ $6,439 NZ $8,663 NZ $13,278 NZ $22,693
    Operating Expenses NZ $4,012 NZ $3,854 NZ $3,722 NZ $4,484
    EBITDA -NZ $2,923 -NZ $1,969 -NZ $716 NZ $452
    Net Profit -NZ $3,199 -NZ $2,313 -NZ $1,047 NZ $118

    Company Details

    Company Name: Container Door Limited

    Company Number: 5710170

    Company details are currently being synced with the Companies Office, please wait.

    Company Documents

    Documents no longer available to download, as this campaign has closed

    Director Details

    Name Role Profile URL Invested?
    Ben Nathan Director https://www.linkedin.com/in/ben-nathan-2024a517/

    Questions 20

    Ask a Question (You must login to ask a question)


    Will you be paying dividends any time in the near future?

    Posted on 21-10-2019 by Tom

    Hi Tom, at this stage Container Door will reinvest any profits to accelerate the growth of the business. The board will review this periodically and advise of any changes to the position taken. With increased revenue and profitability we will constantly assess the right time to exit the business including a trade sale or listing. Ben has big aspirations for Container Door and wants to see this business thrive on a global scale. We believe interest will come from an offshore entity that wishes to replicate this model the world over, leveraging its existing infrastructure to scale this business rapidly.

    Answered on 21-10-2019 by Container Door Limited


    Can I up my pledge from Tier 250 shares to 302 shares ie $1,002.64 Tier2

    Posted on 21-10-2019 by Julika Clara Batten

    Hi Julika,

    if you pledge the difference, the team at PledgeMe will ensure your pledges are combined when the campaign closes.

    Cheers,
    Anna from PledgeMe

    Answered on 21-10-2019 by Container Door Limited


    Thanks for your answer but I only wanted to buy another 52 shares to get over $1,000 but it won't let me as the minimum if $498.00. I have already pledged $830. Thanks Julika

    Posted on 21-10-2019 by Julika Clara Batten

    Ah, gotcha! If you send us an email on [email protected], we can sort out increasing your pledge for you.

    Anna from PledgeMe

    Answered on 21-10-2019 by Container Door Limited


    Same as Julika’s question, I wasn’t thinking and would like to increase to tier 2. I only need to buy one more share to do so, but the system won’t allow me to. Ideas? Thanks

    Posted on 21-10-2019 by Rose Stevens

    Kia ora Rose,
    If you send us an email on [email protected], we can sort out increasing your pledge for you.

    Cheers,
    Anna from PledgeMe

    Answered on 21-10-2019 by Container Door Limited


    Hi, how can I sell my shares in the future? and what conditions are to sell them?

    Posted on 21-10-2019 by Juan Agudelo

    Container Door is a private company, so there is no immediate platform to trade your shares. We hope you will stay for the long haul but if you wish to sell your Investor Class Shares at any time, please register with us and we will try to match you with any potential buyers of Investor Class Shares who have also registered their interest.

    Answered on 22-10-2019 by Container Door Limited


    how does your gross margin stack up against the other companies gross margin in your valuation - are they similar and if not do you still consider a revenue multiple a fair way to do a pre money valuation?

    Posted on 21-10-2019 by Brent

    Hi Brent, there is no science to this really. There are numerous examples of e-commerce companies that have traded on as low as 6% margin when they first started. There are also many companies that raise large amounts of money before they have any revenue at all. Most of the start-up valuations I have personally seen are based on a revenue multiple. In our opinion it's easy to set up a basic online store and sell product which would attract a lower multiple on revenue, however if you are a retail disruptor in its true sense, and you have a global scalable business model, then the sky’s the limit. In terms of our valuation, we've also taken into account our customer metrics such as lifetime value, customer acquisition cost and average cart value, and we believe our valuation on 4.48 times projected revenue (as you can see in the table on page 29 of our Information Memorandum), is in line with comparable crowdfunding raises.

    Answered on 21-10-2019 by Container Door Limited


    thanks for the quick response - the main reason I ask is that the comparisons you have (at least from an NZ perspective as I'm not familiar of the others) are premium brands that are likely to have much higher gross margins than 20% and one of which I know has a gross margin of ~40-45%

    Posted on 21-10-2019 by Brent

    Hey Brent, Ben owns and has owned businesses with high and low margins over the years, so understands where you're coming from. Container Door is not a high margin boutique business, it’s a business that’s aiming to take on the big boys and is lower margin. It’s all about what we believe is the disruptive business plan and what growth is achievable, not about the gross margin, especially when you are establishing a new brand. Look at it this way...would you rather turn over $300m at 25% or $30m at 45%?

    Answered on 21-10-2019 by Container Door Limited


    Hi, Could you please briefly explain how as an initial investor you can get a return on your investment over time. Will there be annual dividends? or will each share be expected to raise in value so maybe in 5 years time I could sell them and get my money out? How does an investor get a return? Many thanks!
    Mark

    Posted on 21-10-2019 by Mark carter

    Hi Mark, at this stage Container Door will reinvest any profits to accelerate the growth of the business so no returns in the short term. The board will review this periodically and advise of any changes to the position taken. With increased revenue and profitability we will constantly assess the right time to either pay dividends or exit the business including a trade sale or listing. We hope you will stay for the long haul but if you wish to sell your Investor Class Shares please register with us and we will try to match you with any potential buyers of Investor Class Shares who have also registered their interest.Ben has big aspirations for Container Door and wants to see this business thrive on a global scale. We believe interest will come from an offshore entity that wishes to replicate this model the world over, leveraging its existing infrastructure to scale this business rapidly.

    Answered on 21-10-2019 by Container Door Limited


    What's the pre-money valuation for this equity offer? Is it $39m, the same as the 2018 capital raise?

    Posted on 21-10-2019 by Cristian

    Hi Cristian, the pre-money valuation at the start of our raise in December 2018 was $39million. As we’ve raised initial funding, and converted some loans to equity, the valuation now sits at $42,757,118.

    Answered on 21-10-2019 by Container Door Limited


    I have a few questions following on from Brent’s questions on valuation:
    Revenue multiples take into account the profitability margin (or expected future profitability margin) of the comparable businesses, in that light given your comment that this is a lower margin business than the comparable companies do you still think it is a relevant multiple?
    Can you explain how you’ve got to the valuation of $39m that you flag on pg29? The cap table in the IM suggests this round is at a c.$42.8m pre-money valuation not the $39m of the previous Dec-18 round (that would imply a 4.9x revenue multiple).
    What do you see the long run EBITDA margin being on this business?
    What do you see as the exit time horizon and what do you see as the exit event? IPO?

    Posted on 21-10-2019 by Andrew

    Hi Andrew,

    With my experience, valuations are based on may factors not just forecasted future profits. You could for example have an e-commerce business with high gross margins which look impressive but high CAC and low LTV, so margins become irrelevant in these cases. You can also have a very low margin business that has a very low CAC and high LTV which is amazing (but not making short term profits) Take Diapers.com as an example, they could scale with great metrics but only had a 6-9% gross margin. From memory they sold the business for $500m+ and never made a penny. Container Doors metrics are great which are in our IM. CAC is sitting just under $20 and AOV sitting just under $300 with margins over the last few months sitting between 21-25%. Looking at the maths, we are profitable on our first sale. Many websites would kill for these metrics. Valuation models can vary, and you need to dive into the numbers to understand them and then make a call as an investor. In terms of profitability and exits, we believe we will be in profit in 2 years’ time and we are looking to partner with some large global businesses which may result in a sale, or listing. The pre-money valuation at the start of our raise in December 2018 was $39million. As we’ve raised initial funding, and converted some loans to equity, the valuation now sits at $42,757,118 and is likely to continue to rise as we raise more money and build the business up.
    If you want to discuss further and are really interested in investing, please email us at [email protected] Even a phone call?

    Answered on 21-10-2019 by Container Door Limited


    Can you explain what the investor gets out of this? Your comments have indicated that no near future dividend will be given nor any indication of a future dividend will actually be given to investors, and you have also indicated that there wouldn't be any market for selling shares. So what is the possible investment that investors would get from investing in to the company?

    Posted on 21-10-2019 by Chris Neill

    Hi Chris,
    Container Door will reinvest any profits to accelerate the growth of the business. The board will review this periodically and advise of any changes to the position taken. With increased revenue and profitability we will constantly assess whether we pay dividends or exit the business including a trade sale or listing. Most probably saying there is no real market is not really correct, I will edit that for clarity. There is just no exchange at this time to trade the shares however, if you wish to sell your Investor Class Shares please register with us and we will try to match you with any potential buyers of Investor Class Shares who have also registered their interest. I would say most people will be in for the long haul and hope for a listing or a global exit. Hope that helps.

    Answered on 21-10-2019 by Container Door Limited


    Hi

    1. Can you advise on what the product failure rate is across the product line (say 3 plus percent?)? Does product failure present an existential threat to the business?
    2. Seems you are running massive losses (in excess of $7m over the last 4 years), and yet still indicate the company is valued north of $42m. I understand this $42m value is based on the latest value of the share trades, but wonder if this is somewhat over-valued as the company has generated no profit - and offers just the hope of a future return. After spending down $7m plus of capital on company operations, how can we be sure that there will be a profit?

    Posted on 22-10-2019 by Mark

    Hi Mark,

    Point 1)
    When you say product failure, do you mean products that don’t go through because there is not enough interest? The whole point of the business model is to have this exact mechanism in place. We are not a normal retailer that takes punts on stock and hope it sells. There are so many reasons why products don’t sell. It could be colour or style, shape, price or delivery to name a few? We do not see incomplete deals a threat, It’s actually a positive as the decision making has already been done by our community and we don’t take the risk on product that people don’t want.

    Point 2)
    E-commerce businesses the world over are making losses. Most of our Australian counterparts took about 8-10 years to break even. We believe we will be profitable after year 6-7. I can give you pages of data that shows disruptive online businesses all over the world who are still losing money and are valued at billions of dollars. Container Doors metrics are great which are in our IM. CAC is sitting just under $20 and AOV sitting just under $300 with margins over the last few months sitting between 21-25%. Looking at the maths, we are profitable on our first sale. Many websites would kill for these metrics. Valuation models can vary, and you need to dive into the numbers to understand them and then make a call as an investor. At this stage Container Door will reinvest any profits to accelerate the growth of the business so no returns in the short term. The board will review this periodically and advise of any changes to the position taken. With increased revenue and profitability we will constantly assess the right time to either pay dividends or exit the business including a trade sale or listing. If you wish to sell your Investor Class Shares at any time, please register with us and we will try to match you with any potential buyers of Investor Class Shares who have also registered their interest.

    Answered on 22-10-2019 by Container Door Limited


    A couple of follow on questions:
    - You keep referencing your CAC being under $20 and AOV being just under $300 at 20% margin that implies you are making c.$40 a customer? How do you see this scaling? Are you expecting CAC to raise as you have to spend more on higher cost advertising as you have reached the "easy wins" thus far?
    - Given your medium term goal of $100m in revenue how do you see the model scaling from an overheads perspective? i.e. with volumes increasing by over 10x do you have the systems in place that will scale with this or is further investment needed. Ultimately what do you see EBITDA margins looking like in the long term?

    Posted on 23-10-2019 by Andrew

    Hi Andrew,

    Yes, CAC will raise over time, naturally. However, the more product we can list the more people will flock to our site and buy and so the network effect kicks in and CAC will reduce. Lots of moving parts and scenarios. My proposed short to medium-term growth will come from partnerships in Australia and beyond. We will look to partner with established businesses with an existing large consumer reach. This will drive our CAC down and accelerate growth which will lead to less cash needed for CA and advertising. We have systems in place to handle the scale. We have built our tech from the ground up and its solid. We are always improving our tech and still have so many exciting plans to implement. In terms of EBITDA, our short to medium-term goal is to break even and then look at the next big opportunities for growth.
    We can forecast out to $100M in sales and see what that would look like in terms of EBITDA however there will be a lot of assumptions for that. As revenue grows the multiples will start to drop. From memory Dollar Shave was reported to forecast $250m in sales and sold to Unilever for $1b and never broke even. This is quite normal in the e-commerce world if you are disrupting the industry.

    Answered on 23-10-2019 by Container Door Limited


    Hi Ben, I'm interested in your model and have shopped with you before. my main concern is your GM is up and down over the years from your presentation, what is you plan to improve this? or at least create a more stable margin? also do you have a success rate measure for items you attempt to bring to the crowd? eg you offered ten lines and only 2 created sales?

    Posted on 25-10-2019 by Scott Ward

    Hi Scott - thanks for your question and apologies for the delay in replying. Our margins were lower when we first began because we encountered freight cost overruns and other complications, so technically our topline margin was actually quite stable. Now that we have streamlined our logistics and worked out these kinks we no longer have these issues and we break-even on all our freight to customers. This has had a positive impact on our overall product margins, last month we hit 25% GP. If a product doesnt get traction its a positive thing for us as it has only cost us a little bit of time to research the product and factory, check specifications etc – there is usually no hard cost involved unlike other regular retailers who take big punts on stock and hope the stock sells. Inevitably, those retailers mark the price down and sell at low or no GP and often at a negative GP to clear the goods.

    Answered on 30-10-2019 by Container Door Limited


    Hi there, just clarifying what will happen if the minimum isn't met? Will investors be refunded?
    Thanks
    Robert

    Posted on 07-11-2019 by Robert

    Hi Robert - that's right - crowdfunding investors are only charged by PledgeMe if the minimum is met. We are fielding a lot of enquiries from interested people via email and phone so we are quietly confident of making our minimum target!

    Answered on 07-11-2019 by Container Door Limited


    What happens if some pledgers don't go through with their payment and then the total investment amount drops below the $1m minimum?

    Posted on 07-11-2019 by Richard

    Hi Richard,
    The campaign will be deemed successful if the minimum goal is met by the deadline. Those that pledge are legally obliged to complete payment, and we haven’t had a situation where the minimum amount hasn’t been processed after a campaign closes successfully. Let us know if you have any more questions, and feel free to email us direct on [email protected]
    Cheers,
    Anna from PledgeMe

    Answered on 09-11-2019 by Container Door Limited


    HI I have pledged 1 x tier 1 but want to change to 1 x tier 2 how can I do this? thanks

    Posted on 09-11-2019 by Monique Graves & Stephen Graves

    Hi Monique,
    If you pledge the difference, we will make sure your pledges are combined at the end. If you have any trouble, just email us on [email protected] Thanks for supporting kiwi entrepreneurship!
    Anna from PledgeMe

    Answered on 09-11-2019 by Container Door Limited


    Hi Ben! If the crowdfunding becomes successful, which I'm confident will be. Will you cover the annual cost with Syndex? Thanks!

    Posted on 11-11-2019 by Jason Alipao

    Hi Jason, Yes we are confident we will get there we also have 2 larger wholesale investors keen to pledge over $200k which we are in talks with. We will investigate Syndex, I don't know what the annual cost is, but we can find out. Once the raise is complete we will look into the possibilities of share trading and will consult with our advisory board. Thanks for your question.

    Answered on 12-11-2019 by Container Door Limited


    Hi,
    Possibly a question for PledgeMe and apologies if the answer is somewhere on the website that I missed but how are the shares issued to me if, and when, the offer goes through?

    Posted on 13-11-2019 by Nick Mills

    Hi Nick - we just hit $1million this morning, so we are very definitely going ahead! In answer to your question, after the funding round has closed, PledgeMe will verify all investors, process funds, and then send us the details to update our registers. This offer is for investor class shares in Container Door Limited (Investor Class Shares) so our nominee, Container Door Shareholding Limited, will hold legal title to these Investor Class Shares on trust for investors under this offer. Once the shares are issued, we will be in touch with our new shareholders! Thanks for your interest - we appreciate it!

    Answered on 15-11-2019 by Container Door Limited


    Hi Ben, justca couple of quick ???s please.
    1) Are you able to divulge that of the 800; How many pledgers bought in at a specific tier? As a pledger l would find this info interesting.
    2) When the clock stopped for pledging there were 805 pledges made but as at time of asking this number has reduced to 800. Any reason for this.
    Many thanks.
    Dave Diack

    Posted on 20-11-2019 by David Diack

    Hi Dave - we are waiting for PledgeMe to confirm all of those details for us! We should have the info through in about 10 days as it takes time to confirm with everyone, as I understand it. Also re: reduction in pledgers, I know that some people were confused about whether they had pledged, and pledged twice by mistake, so at their request they had their duplicate pledge deleted.

    Answered on 21-11-2019 by Container Door Limited

    Pledgers 795

    Mike Andrews
    2019-12-02 15:06:08 +1300
    Kelly Durston
    2019-11-26 16:51:58 +1300
    Emma S.
    2019-11-21 08:35:43 +1300
    Sheriee Jamieson
    2019-11-19 12:35:03 +1300
    Jeff Meale
    2019-11-18 18:59:37 +1300
    Barrie Kanara
    2019-11-18 18:58:59 +1300
    Kane Lochead
    2019-11-18 18:58:37 +1300
    Conor
    2019-11-18 18:58:14 +1300
    Damon Coote
    2019-11-18 18:57:54 +1300
    Justin Walsh
    2019-11-18 18:55:50 +1300
    Otter Industries Ltd
    2019-11-18 18:55:24 +1300
    [email protected]
    2019-11-18 18:52:34 +1300
    Rhys Brown
    2019-11-18 18:51:19 +1300
    Susie Wolf
    2019-11-18 18:42:54 +1300
    Sandy Bedford
    2019-11-18 18:41:39 +1300
    Kali Foster
    2019-11-18 18:39:27 +1300
    Mike Berry
    2019-11-18 18:38:25 +1300
    Deborah Prideaux
    2019-11-18 18:38:07 +1300
    Hayden Spurdle
    2019-11-18 18:35:19 +1300
    Barry coughlan
    2019-11-18 18:16:50 +1300
    Stephanie Rush
    2019-11-18 18:13:03 +1300
    Katherine Hill
    2019-11-18 18:01:41 +1300
    Siegmund
    2019-11-18 17:59:10 +1300
    Ian Kirk
    2019-11-18 17:56:50 +1300
    AP
    2019-11-18 17:55:48 +1300
    Mat Weir
    2019-11-18 17:47:34 +1300
    Agnieszka Reynolds
    2019-11-18 17:46:55 +1300
    Kay Autridge
    2019-11-18 17:20:27 +1300
    Kate Bartle
    2019-11-18 17:19:07 +1300
    Frances Blake
    2019-11-18 17:17:47 +1300

    Container Door Limited

    What We Do

    We’re a retail disruptor, helping people buy the cool things they want without having to pay full price. We do this by sourcing the best stuff, factory-direct, then bulk-shipping all customers’ orders to New Zealand, saving them a truckload of cash!

    Welcome!

    Dear friends and investors,

    I am thrilled to be able to offer you the opportunity to invest in Container Door.

    I am a proud New Zealander and have been importing, wholesaling and retailing for over 25 years.

    At one stage in my career I owned a retail chain with 18 stores (Barkers Mens Clothing) and I was also one of the largest wholesale suppliers to The Warehouse and Farmers retail chains. Trading is in my blood and I love it!

    I believe that Container Door is one of the most exciting business opportunities in e-commerce today and we have huge plans for the future.

    We are not your regular e-commerce business. Container Door’s business model is very disruptive - we are disrupting the retail landscape by changing the way consumers shop. This is not a “me too” business - I sketched the idea on the back of an envelope over 10 years ago.

    The digital age has made it possible to enable big shifts in consumer behaviour. And I believe smart investors look for shifts.

    Remember when there were expensive taxi companies and when empty guest rooms weren’t being monetised in your house? Think Uber and AirBnB. But these businesses don’t become profitable overnight.

    When there is a shift in consumer behaviour it can take time. However once fixed costs stabilise, the business can often scale up considerably.

    We all know too well the stories of Amazon and Facebook. How many times have we heard someone say “OMG, if only I had bought Amazon shares at $x or Facebook shares at $y!” Hindsight is a wonderful thing.

    After four years in business, we reckon we’re still New Zealand’s best-kept secret, and that’s all about to change thanks to you.

    We want you to be a part of the Container Door family and to have a genuine interest in all that we do.

    We’d love it if you were the proud owner of a piece of the Container Door pie.

    To Infinity and Beyond!

    BEN NATHAN
    Founder & CEO, Container Door Limited.

    Container Door Executive Summary

    • Direct-to-consumer retail disruptor
    • Factory-to-consumer buying model
    • Unique ability to import and deliver bulky consumer items cost-effectively
    • 4 years of trading under our belt
    • Pre-order system - customers pay us before the order is placed
    • No retail stores
    • Revenue of more than $20m since inception; nearly 100,000 successful transactions
    • For all our e-commerce nerds/experts, our Customer Acquisition Cost: $18.87; Average Basket Size: $286.14; Average Gross Margin: 20.3% - excluding freight variances. (12 months from Sept 2018-Aug 2019)
    • Huge growth opportunity from untapped markets in New Zealand and abroad.
    • Potential expansion to a marketplace platform locally and globally – we want to be the Amazon of big things.
    • Ben’s medium-term dream is to reach $100m in sales.
    • Exit strategy: our goal is the eventual sale to a global entity.

    Highlights to Date

    READ OUR INFORMATION MEMORANDUM

    The Offer

    This offer is for investor class shares in Container Door Limited (Investor Class Shares). Our nominee, Container Door Shareholding Limited, will hold legal title to these Investor Class Shares on trust for investors under this offer.

     

    The Offer is to purchase non-voting Investor Class Shares in Container Door Limited which will be held on trust by Container Door Shareholding Limited. 

    Please read our Information Memorandum carefully to learn more about the Nominee Structure, Share Classes, and Rights attached to the Shares.

    The Wholesale Offer is to purchase voting ordinary shares in Container Door Limited. The offer to wholesale investors is a “top-up” of the crowdfunding offer under which Container Door Limited is seeking to raise the difference between the amount raised under the crowdfunding offer and $3,000,000.

    Where We’re At

    Our first deal went live on the website in late August of 2015. By the end of the first two weeks we knew we were onto something big.

    We’ve been in business for four years now, with a great operating business model and custom-built tech.

    We have seen copycats try to duplicate our business model and they have failed. Not only do we have first-mover advantage in this direct-to-consumer space, we have mastered a model that has a lot of moving parts. We have the resources, experience and expertise to execute – that’s the difference. Not to mention our marketing edge.

    As at September 2019, we have over 118,000 registered users, more than 93,000 successful transactions under our belt and we’ve saved our customers up to $45 million* – and counting. Not bad since we started from absolute scratch.

    But, of course, we are always looking for ways to take Container Door to the next level, so in 2018 we raised $2m from wholesale investors at a pre-money valuation of $39m.

    Read more about Where We're At in our Information Memorandum here.

    Our Key Categories

    Our Marketing

    Ben is the face of the company, personally endorsing the products we sell. His humorous authenticity and radical honesty has created a genuine sense of trust, credibility and goodwill among customers.

    We also create videos that don’t involve Ben. Instead, we seek out endorsements from genuinely enthusiastic experts, like this surfboard review by Piha legend Phil Wallis.

    By creating funny, informative and aspirational product videos that consumers enjoy and look forward to seeing, we are cultivating our own media channel. Our videos appear in our online deals as well as spearheading our paid advertising programme on Facebook and Instagram.

    If you have seen any of our product videos you will know why we have such a passionate community of engaged customers.

    Read more about our Marketing in our Information Memorandum.

    The E-Commerce Market

    The growth of global e-commerce is mind-boggling. In 2018 it reached around US$2.7 trillion and is expected to hit US$5 trillion in 2021 (according to a Statista report).

    In 2021, over 2.14 billion people worldwide are expected to buy goods and services online, up from 1.66 billion global digital buyers in 2016 (according to a Statista report).

     

    Read more about the E-Commerce Market Globally, in New Zealand, and Competition in our Information Memorandum.

    Our Growth Plans

    Firstly, we want to take our New Zealand business to the max - maximum customers, product range, sales and cost-efficiencies.

    But that’s not all.

    We want to find under-served markets in Australia and even further afield where we can roll out the same business model to help customers buy awesome stuff at cheaper-than-wholesale prices thanks to bulk ordering and bulk shipping.

    But there’s a bigger picture too...

    When we pull out our telescopes and our crystal balls, we’re visualising
    a future in which Container Door becomes a bulk-shipping conduit to New Zealand and Australia from a whole world of sources – not just our hand-picked factories.

    We see a world where we could leverage the buying power of some of the world’s biggest retailers who haven’t found a way to ship large items to this part of the world cost-effectively.

    Read more about our Growth Goals in our Information Memorandum.

    How Will We Use These Funds?

    To raise our profile and expand our community of customers:
    $350,000
    The more customers we have, the better it is for our community. More deals will succeed, so everyone will be able to buy a wider range of products and save more.

    To expand the number and range of products we offer:
    $250,000
    We want to make sure that there’s not only something for everyone but LOTS of things for everyone.

    To improve our website and user experience:
    $450,000
    We will make our website even easier to navigate, provide more features, and sharpen delivery methods and customer response times.

    Broaden our liquor offering:
    $100,000
    Container Pour Limited, which holds a remote off-license for web-based sales, is a 100%-owned subsidiary of Container Door Limited. We have some exciting products at the planning stage. 

    Replicate our model in new markets:
    $250,000
    Carefully invest in growing the Australian offering by partnering with an established company with an active customer base.

    Operating capital:
    $470,000
    We will use some funds as working capital to smooth out the occasional peaks and troughs in our cashflow and help pay down some short-term loans, as noted in the Financial Commentary section.

    Capital raise costs:
    $130,000
    Costs associated with using a crowdfunding platform, preparing legal documents and advisory fees.

    Share Classes

    Container Door Limited is offering its crowdfunding investors non-voting Investor Class Shares and its wholesale investors Ordinary Shares with full voting rights. Further information on the rights and restrictions associated with each share class are clearly outlined in the Container Door Limited Constitution. You should read this before subscribing for any shares.

    The legal title in all Investor Class Shares in Container Door Limited will be held by a nominee company on trust for crowdfunding investors. The terms on which the Nominee will hold the Investor Class Shares are described below and in the section of this Information Memorandum headed Nominee Shareholding Structure.

    It is important that you read that section.

    The minimum holding for Ordinary Shares has been set at 30,120 shares and is available for wholesale investors only. Wholesale investors must submit a completed certificate confirming the applicant’s status as a wholesale investor as defined in clause 3 of Schedule 1 of the Financial Markets Conduct Act 2013, and must sign Container Door Limited’s shareholders’ agreement.

    Share Breakdown in Container Door Shareholding Limited

    Container Door Shareholding Limited will hold the legal title to Investor Class Shares in Container Door Limited on trust for the crowdfunding investors.

    Share Breakdown in Container Door Limited

    * Adjusted for share split.  

    ** we have issued the shares to our investors from December 2018, but our aim is to complete the $5,000,000 round by raising the rest of the capital through equity crowdfunding and a Wholesale Investor round.  

    *** includes the conversion of a $6,053,939 loan at $2.66 per share (being a discount of 20% to the price per share under the crowdfunding round).  

    **** There is an Employee Share  Ownership Plan in place for 526,000 shares. This is an employee share scheme allocation and it is expected that over time these shares will be issued to employees selected by the board. These shares have not yet been issued.  After completion of this crowdfunding capital raise, the board expects to increase the options available for allocation to employees from 526,000 to 1,279,000.  If the Employee Share  Ownership Plan is fully allocated and assuming the capital raise is fully subscribed, this will result in employees holding 8.49% of the shares of the company and will lead to the percentage shareholdings of the crowdfunding investors decreasing to 4%.   

    We have created a nominee company, Container Door Shareholding Limited (Nominee), to hold the Investor Class Shares in Container Door Limited. We aim to scale and raise investment internationally in the future, and after consulting with our advisors we believe fewer investors listed on our capitalisation table and registered on our share register will make this easier to achieve.

    The non-voting Investor Class Shares to be issued by Container Door Limited are to be issued to the Nominee, which will hold legal title to those Investor Class Shares on trust for each person investing in Container Door Limited through the crowdfunding offer (i.e. the investor). The full terms on which the Nominee will hold the shares are set out in the Declaration of Trust (which forms part of the Offer Documents). You should read this before subscribing for any shares. You agree that by subscribing for Investor Class Shares that you are bound by the terms of the Declaration of Trust.

     

    Read more about our Share Classes, and Nominee Shareholding Structure in our Information Memorandum.

    Financials for Container Door Limited (000's)

      

    Read more about our Financial Commentary in our Information Memorandum.

    Risks & Mitigations 

    Replication of Business Model – someone copying what we do.
    Attempts to replicate our unique business model have occurred in the past but no one has managed to establish a sustainable business, as we have mastered a model that has a lot of moving parts. We have the resources, experience and expertise to execute – that’s the difference. Not to mention our humorous videos that have created a genuine sense of trust, credibility and goodwill with customers.

    Copying Intellectual Property and Trademarks – someone using our brand for their benefit. 
    The name Container Door Limited (containerdoor), logos and brand are protected by the International Protocol using the Madrid System. Trademark registration exists in NZ, Australia, USA, China and the EU.

    Cashflow Management – ability to cope with seasonality, creditors and debtors. 
    Cash collection is predominantly pre-order so we don’t have debtors to manage. There is some seasonality to supplier orders/ invoices, predominantly in August and September when we are ordering products for the anticipated Xmas rush. We run a weekly cashflow model which anticipates cash receipts for the coming week based on credit card orders (via Stripe).

    Supply Chain Disruption – from factory to door, all the things that could go wrong. 
    There is always the chance of factories not supplying, shipping cancellations (or late) and delivery issues. We have long standing (up to 20 years) relationships with factories so it’s rare they let us down. We deal with 3-4 shipping companies so we have backup should demand dictate. Plus we are able to use local 3PL (3rd Party Logistics) providers that can store product and manage alternative delivery options. Our inventory management system is also integrated to the many last-mile delivery companies for maximum flexibility and cost-effectivness.

    Profitability – getting to a point where the business is profitable and not requiring additional capital. 
    We are working hard to become profitable and self-sustaining. Our focus in the last 4 years has been to grow the business and acquire customers instead of focusing on profits. As we are becoming more efficient, we are now putting more emphasis on fixed costs and have a strategy underway to reduce spend right across the entire business. Our management reporting tracks the pathway to profitability.

    Capability & Staff Requirements – having the people to allow the business to function and grow. 
    We have an incredibly loyal and capable team at Container Door. Of course there will always be changes but given our brand persona we find it easy to attract people to vacant roles. We are now at an optimum staffing level and if revenue increases as per plans we will be in a position within 6 months to recruit some senior roles based on the requirements of the business plan.

    Key Person Risk. 
    There’s no getting around it: there is only one of Ben. However, he is passionate about his baby and is not planning on exiting anytime soon. Although his creative genius is unique and his business acumen is acute, much of his knowledge, perspective and attitude has been enshrined in our business model and baked into our operating structure. Management and staff handle all day-to-day operations, keeping the business humming, and it is envisaged that the-yet-to-be-appointed board of directors would be strategically selected to mitigate the Key Person Risk.

    Price Competition – being able to stay competitive on price through the product range. 
    As Container Door is ‘factory-direct’, our prices are very hard to replicate or beat. We won’t list deals on the website unless we know we are significantly cheaper than other companies. The competition will have to sell their products at a loss in order to match our pricing so we are confident we cannot be beaten on price under ordinary circumstances.

    Regulatory Requirements – managing any legal requirements on all products sold in NZ. 
    Safety rules on selling types of products in NZ are clearly specified on Government websites. We monitor these regularly and check specifications prior to listing any product. We also have a robust ‘recall’ system if we find a problem with the products after the customer receives them. However our quality control team based in China mitigates the need for recalls as they are checked and double-checked at the factory.

    Growth Management – being able to manage a business that is constantly growing. 
    We have been in growth mode for four years now so are well practised at managing the enviable problem of managing growth. We moved to a new accounting and inventory management system in late 2018 which has helped us make better decisions faster as the data is available and accurate. Increased sales does not impact our cashflow like many businesses as under the pre-order model we receive payment before we order and pay factories. We also have fantastic factories and logistics partners worldwide who have the capacity to allow for growth.

    Our strategy for growth includes finding established partners to accelerate our offering in offshore markets. If we are not able to form an agreement with a partner our revenue estimates will be reduced and we may need to invest more in marketing to reach the forecasted figures.

    Foreign Exchange Volatility – having mechanisms in place that manages currency variations. 
    We mostly buy from factories in China all of whom are paid in US dollars. We hedge and manage the NZD-USD exchange and have a very good system after many years of doing so.

     

    READ OUR INFORMATION MEMORANDUM

     

    Note from PledgeMe

    We have completed a Veda check on the company and their director, as well as a Google check. There were no adverse findings. 

     

    You need to pledge to see this update.

    We just hit $1.1m - and there's still 8 hours to go!

    18/11/2019 at 11:11 AM

    Wow - here we are at the last 8 hours of our crowdfunding campaign and we've just hit $1.1million - FANTASTIC thanks guys! 

    We're seeing a flurry of late-breaking activity both here and on our website, so you've been considering investing, today's the day. You know what to do: read our Information Memorandum, have a think about it and if you feel moved to invest you've got until 7pm to make it happen at pledgeme.co.nz!

    If you'd like to know more about us, there are some informative videos with Mark Sainsbury interviewing Ben that are well worth a watch. You can find them on our PledgeMe page too.

    Thanks to everyone who has invested with us already - we are very excited about the cool initiatives we have planned for you! 

    And thanks to Stuff for publishing a nice update on our capital raise too. Check it out here:

    https://www.stuff.co.nz/business/117492756/online-retailer-container-door-raises-1m-in-crowdfunding-campaign

    Just 2 days to go...find out why we want to raise $2m!

    16/11/2019 at 5:12 PM

    We may have achieved our minimum investment of $1 million but we're not stopping now!


    We'd love to raise as much of our $2 million target as possible, because we have a ton of cool initiatives we're itching to build out.


    What We Want To Do With The Funds Raised

     

    • Source and offer many, many more products
    • Attract more customers which will mean even more deals going through
    • Improve our website to give customers a better website-browsing experience, and reduce the friction in our Checkout.  
    • Develop new product categories and introduce new deal formats
    • Invest for growth in new markets (with the help of strategic business partners)

     

    The sooner we can scale up, the sooner all customers will enjoy the benefits.

    And, of course, we believe our continued growth will be beneficial for all investors.
     
    So if you haven't read our Information Memorandum, take the opportunity do it this weekend. Time is a ticking!
     

    We're stoked! We've hit our minimum - $1 MILLION RAISED so far!

    15/11/2019 at 4:55 PM

    Woohoo! We are stoked to have reached our $1 million minimum today. Thanks to all our current pledgers for your support!

    But we're not stopping now - we have 3 days to raise our maximum of $2 million so we can roll out all our cool growth initiatives. So jump on board, if you haven't already!

    Container Door Announces its Global Champagne Brand

    08/11/2019 at 4:47 PM

    Ben announced this exciting news at last night's Investor Q&A! (Thanks to all who attended!)

    After our massive success with the champagne label Charles Joubert last year, Ben decided to create a champagne brand that Container Door - and all investors - would own.

    He visited Épernay for meetings and did a deal to create our brand Champagne Louis Marmont which we can now distribute globally.


    We believe we are the first New Zealand company to own 100% of a champagne brand.

     

    How It Happened

    The beauty of the Container Door model is in allowing us to test products and categories before committing funds to them.

    Last year we tested the champagne category with the French brand Charles Joubert and realised there was massive opportunity there. This spurred us to create a fantastic-quality champagne, at the right price, that had all of the visual appeal of a top brand -  and the result is Champagne Louis Marmont. 

    It was a 3-month process for us to obtain the approval for the creation of Louis Marmont from champagne's strict governing body, Comité Champagne Interprofessionnel du Vin de Champagne. A rigmarole - but worth it!

    The Quality

    Of course it's not just about the premium look of the bottle and label. We've had Champagne Louis Marmont appraised by Sam Kim of Wine Orbit who rated it 5 Stars and 94/100. Here are his tasting notes:

    "It is immediately appealing on the nose showing golden apple, apricot, lemon peel and brioche characters, followed by a superbly concentrated palate that is richly textured and impressively complex. An opulent style champagne offering terrific drinking."

    The Size of the Opportunity
    We currently have the trademark accepted under the Madrid Protocol for New Zealand, China and the whole of Europe, and pending in other jurisdictions. This is a true global marketing opportunity.

    In New Zealand, we are currently negotiating with key Auckland restaurants, top supermarkets and a large national distribution network too. We are still in the pre-launch phase but the reaction to date has been fantastic.

    And we will naturally be selling 6-packs of Louis Marmont via our website, delivering before Christmas.

    The various price points (hospitality / retail / website) will be announced at the conclusion of our distribution negotiations.

     

    We believe alcohol is going to be a big category for us. In the 12 months to March 2018, alcohol sales reached $1.6 billion - a $200 million increase from the year prior, according to Statistics New Zealand figures.

     

     

    Buying shares in Container Door means you'll automatically own a share of Champagne Louis Marmont too.

    Remember, our PledgeMe campaign close on 18th November, so invest now!

    Meet Ben TONIGHT at the Container Door showroom - he'd love to see you there!

    07/11/2019 at 11:47 AM

    Yes, it's on TONIGHT from 5:30pm

    Come and meet Ben - he'd love to see you.


    Please CLICK HERE TO RSVP and guarantee your spot.
     

    When: TODAY!   7th November, 5:30 – 7:00pm

    Where:  Container Door Showroom, 10 Burrett Ave, Penrose, Auckland

    (end of the cul-de-sac, off Walls Road)

    Come and say hi and sample our wine...

    Hear about the business and our PledgeMe crowdfunding...


    (Ask Ben your questions through a mouthful of pie!)

     Mmmmm - we love pie.

    Have You RSVP'd Yet? (There Will Be Pie!)

    06/11/2019 at 10:03 AM

     

    Meet Ben!

    Hear about the business and our PledgeMe crowdfunding!


    (Ask him your questions through a mouthful of pie!)

     


    When: TOMORROW! - THURSDAY 7th November, 5:30 – 7:00pm

    Where:  Container Door Showroom, 10 Burrett Ave, Penrose, Auckland

    (end of the cul-de-sac, off Walls Road)

    Please CLICK HERE TO RSVP and guarantee your spot.
    (We’d hate to run out of pie and wine!)


    PS We’re excited that our 
    crowdfunding campaign is over $800,000 already so we're 80% of the way to our first target! A big thank you to everyone who has invested so far.

    You need to pledge to see this update.

    Ben takes your questions on Facebook Live - 4pm today!

    24/10/2019 at 10:17 AM

    Hey guys, Ben here. Join me for a real-time Q&A session at 4pm TODAY on Facebook Live!

    If you're curious to find out more about our business and crowdfunding campaign - or you just want to say hey - please tune in - we'd love to see you there! In addition to answering questions, I'll chat more about my vision and talk about our background. 

    The team and I have been so touched and humbled by all of the amazing comments that are rolling in with the investment pledges - we read all of them. It is really heart-warming that we have such a passionate, committed community of happy customers and fans out there who also understand our goals and vision!

    And of course we are all excited that our crowdfunding campaign has got so much traction. We still have a little way to go to get to our $1m minimum, so we'd definitely appreciate you sharing this opportunity with anyone you know who may be interested. And get them to tune in to Facebook Live at 4pm today too!

    See you there I hope!

    BEN NATHAN

    Founder/CEO

     

    Funding Update, Media Coverage and Facebook Live Q&A Session!

    23/10/2019 at 8:14 PM

    I'm stoked to have raised over $700k in just 3 days of crowdfunding on PledgeMe - thank you!

    The comments rolling in from customers are amazing and heartwarming - we are really touched that our community is so excited by this!

    We have received a bit of media coverage too.

    You may have seen an article about us in the NZ Herald this afternoon. Their angle was that we are fundraising to pay debt and then wishing to exit, giving the incorrect impression that Container Door is struggling and looking to give up. 

    We get it - they’re a tabloid with click-throughs to achieve and papers to sell. However, we find their angle unfortunate, to say the least, as nothing could be further from the truth.

    Here are the facts:

    We have not raised money through crowdfunding before, as stated. Our last $2 million raised was through experienced wholesale investors who believe in us and share our vision.

    We are now seeking a minimum of $1m from equity crowdfunding now, and if really goes gangbusters, up to $2m. If this higher target is achieved, we will repay a $300,000 short term loan. That’s just 15% of the investment - hardly worth the rather alarmist angle they have taken, in our opinion.

    The reason we have chosen to open up our business to crowdfunding shareholders is because we are all about our community! As I keep saying, our deals are all crowd-funded – it’s baked into our DNA – so why shouldn’t our capital raise also involve our community of passionate customers?

    Plus I want everyone to, literally, share in the fun of the journey with us - and in any future returns.

    Are we looking to exit now? Of course not. We are in an exciting phase of growth and have big plans to expand further. We are experiencing high demand for big-ticket items such as outdoor furniture sets and aluminium pergolas, and this is driving up our average basket value. As stated in our Information Memorandum, our average basket value across the last 12 months was $286.14. However, according to our Google Analytics data, our August average basket was $310.52 and September’s was $334.62 - and we haven’t even hit our peak summer shopping rush yet.

    In short, I believe Container Door has never been stronger. Our product ranging is better than ever, we have never had more deals on offer than we do now. We are currently experiencing revenue growth (43% for our 2nd quarter, year on year.) Of course, it’s my dream to take this concept global and one day exit the business for the benefit of all shareholders but we are not planning on that for anytime soon.

    We could address the calibre of the commentators that the Herald engaged (one of them is a shareholder in a competitor company, which was not disclosed lol), their myopic view of growth-related e-commerce businesses in general, and the facts they got wrong or misrepresented, but, really, that’s not worth our time. They’re entitled to read our material and form their own opinions, just as you are.

    With that in mind, I hope you check out my interview with Radio New Zealand, which aired this morning. It's very informative. 

    http://bit.ly/RNZ_Ben_Interview

    PLUS...FACEBOOK LIVE – Q&A 

    If you have any questions for me, tune in to my Facebook Live Q&A session tomorrow (Thursday) at 4pm. I'm looking forward to hearing from you!

    Cheers,

    Ben

     

    We raised half a mil in half a day, and we’re over halfway there!

    21/10/2019 at 6:21 PM

    WOW! We’re excited to see such an amazing response to our crowdfunding campaign. Over $500,000 raised in just four hours is phenomenal and we’re really excited about the future.

    Our minimum goal is $1 million, but we’re aiming to hit the $ 2million goal from our crowd (with the hopes of also raising an additional $1 million from wholesale investors). With this funding, we’ll aim to grow our deals and customer base, scale our technology, and grow our presence in Australia.

    If you’ve pledged, we’d love for you to share why you pledged with your crowd. The more people that know about the campaign, the bigger we can go!

    If you haven’t pledged yet, and have any questions about the campaign - just pop onto the questions tab or send us an email on [email protected] 

    To infinity and beyond!

    Ben Nathan

      Offer Details

      Current Valuation 42,757,118
      Raise Minimum 1,000,000
      Raise Maximum 2,000,000
      Share Price 3.32
      Maximum Shares Offered 602,410
      Explanation of valuation:

      In late 2018 the sole director and advisors agreed a multiple of revenues as the best gauge to calculate a valuation. This is a common method for crowdfunding. The valuation from the start of our capital raise in Dec 2018 equates to a multiple of 4.48 times the forecasted current years revenue. The current shareholders are comfortable that this multiple provides a fair market value, based on the growth potential of the business in today’s market.
      Since the start of our capital raising in December 2018, we have raised $2m from wholesale investors and converted $6m of shareholder loans to equity for the bene t of all shareholders. We have also introduced an Employee Stock Ownership Plan (ESOP). We aim to raise $2m from crowdfunding and $1m from wholesale investors.

      Financial Summary ('000s)


      Please note, the Information Memorandum has financial commentary that you should read in conjunction with the summary.


      Financial Summary

      Prev Year Current Year Est. FY 2022 Est. FY 2023
      Revenue NZ $6,439 NZ $8,663 NZ $13,278 NZ $22,693
      Operating Expenses NZ $4,012 NZ $3,854 NZ $3,722 NZ $4,484
      EBITDA -NZ $2,923 -NZ $1,969 -NZ $716 NZ $452
      Net Profit -NZ $3,199 -NZ $2,313 -NZ $1,047 NZ $118

      Company Details

      Company Name: Container Door Limited

      Company Number: 5710170

      Company details are currently being synced with the Companies Office, please wait.

      Company Documents

      Documents no longer available to download, as this campaign has closed

      Director Details

      Name Role Profile URL Invested?
      Ben Nathan Director https://www.linkedin.com/in/ben-nathan-2024a517/

      Ask a Question (You must login to ask a question)


      Will you be paying dividends any time in the near future?

      Posted on 21-10-2019 by Tom

      Hi Tom, at this stage Container Door will reinvest any profits to accelerate the growth of the business. The board will review this periodically and advise of any changes to the position taken. With increased revenue and profitability we will constantly assess the right time to exit the business including a trade sale or listing. Ben has big aspirations for Container Door and wants to see this business thrive on a global scale. We believe interest will come from an offshore entity that wishes to replicate this model the world over, leveraging its existing infrastructure to scale this business rapidly.

      Answered on 21-10-2019 by Container Door Limited


      Can I up my pledge from Tier 250 shares to 302 shares ie $1,002.64 Tier2

      Posted on 21-10-2019 by Julika Clara Batten

      Hi Julika,

      if you pledge the difference, the team at PledgeMe will ensure your pledges are combined when the campaign closes.

      Cheers,
      Anna from PledgeMe

      Answered on 21-10-2019 by Container Door Limited


      Thanks for your answer but I only wanted to buy another 52 shares to get over $1,000 but it won't let me as the minimum if $498.00. I have already pledged $830. Thanks Julika

      Posted on 21-10-2019 by Julika Clara Batten

      Ah, gotcha! If you send us an email on [email protected], we can sort out increasing your pledge for you.

      Anna from PledgeMe

      Answered on 21-10-2019 by Container Door Limited


      Same as Julika’s question, I wasn’t thinking and would like to increase to tier 2. I only need to buy one more share to do so, but the system won’t allow me to. Ideas? Thanks

      Posted on 21-10-2019 by Rose Stevens

      Kia ora Rose,
      If you send us an email on [email protected], we can sort out increasing your pledge for you.

      Cheers,
      Anna from PledgeMe

      Answered on 21-10-2019 by Container Door Limited


      Hi, how can I sell my shares in the future? and what conditions are to sell them?

      Posted on 21-10-2019 by Juan Agudelo

      Container Door is a private company, so there is no immediate platform to trade your shares. We hope you will stay for the long haul but if you wish to sell your Investor Class Shares at any time, please register with us and we will try to match you with any potential buyers of Investor Class Shares who have also registered their interest.

      Answered on 22-10-2019 by Container Door Limited


      how does your gross margin stack up against the other companies gross margin in your valuation - are they similar and if not do you still consider a revenue multiple a fair way to do a pre money valuation?

      Posted on 21-10-2019 by Brent

      Hi Brent, there is no science to this really. There are numerous examples of e-commerce companies that have traded on as low as 6% margin when they first started. There are also many companies that raise large amounts of money before they have any revenue at all. Most of the start-up valuations I have personally seen are based on a revenue multiple. In our opinion it's easy to set up a basic online store and sell product which would attract a lower multiple on revenue, however if you are a retail disruptor in its true sense, and you have a global scalable business model, then the sky’s the limit. In terms of our valuation, we've also taken into account our customer metrics such as lifetime value, customer acquisition cost and average cart value, and we believe our valuation on 4.48 times projected revenue (as you can see in the table on page 29 of our Information Memorandum), is in line with comparable crowdfunding raises.

      Answered on 21-10-2019 by Container Door Limited


      thanks for the quick response - the main reason I ask is that the comparisons you have (at least from an NZ perspective as I'm not familiar of the others) are premium brands that are likely to have much higher gross margins than 20% and one of which I know has a gross margin of ~40-45%

      Posted on 21-10-2019 by Brent

      Hey Brent, Ben owns and has owned businesses with high and low margins over the years, so understands where you're coming from. Container Door is not a high margin boutique business, it’s a business that’s aiming to take on the big boys and is lower margin. It’s all about what we believe is the disruptive business plan and what growth is achievable, not about the gross margin, especially when you are establishing a new brand. Look at it this way...would you rather turn over $300m at 25% or $30m at 45%?

      Answered on 21-10-2019 by Container Door Limited


      Hi, Could you please briefly explain how as an initial investor you can get a return on your investment over time. Will there be annual dividends? or will each share be expected to raise in value so maybe in 5 years time I could sell them and get my money out? How does an investor get a return? Many thanks!
      Mark

      Posted on 21-10-2019 by Mark carter

      Hi Mark, at this stage Container Door will reinvest any profits to accelerate the growth of the business so no returns in the short term. The board will review this periodically and advise of any changes to the position taken. With increased revenue and profitability we will constantly assess the right time to either pay dividends or exit the business including a trade sale or listing. We hope you will stay for the long haul but if you wish to sell your Investor Class Shares please register with us and we will try to match you with any potential buyers of Investor Class Shares who have also registered their interest.Ben has big aspirations for Container Door and wants to see this business thrive on a global scale. We believe interest will come from an offshore entity that wishes to replicate this model the world over, leveraging its existing infrastructure to scale this business rapidly.

      Answered on 21-10-2019 by Container Door Limited


      What's the pre-money valuation for this equity offer? Is it $39m, the same as the 2018 capital raise?

      Posted on 21-10-2019 by Cristian

      Hi Cristian, the pre-money valuation at the start of our raise in December 2018 was $39million. As we’ve raised initial funding, and converted some loans to equity, the valuation now sits at $42,757,118.

      Answered on 21-10-2019 by Container Door Limited


      I have a few questions following on from Brent’s questions on valuation:
      Revenue multiples take into account the profitability margin (or expected future profitability margin) of the comparable businesses, in that light given your comment that this is a lower margin business than the comparable companies do you still think it is a relevant multiple?
      Can you explain how you’ve got to the valuation of $39m that you flag on pg29? The cap table in the IM suggests this round is at a c.$42.8m pre-money valuation not the $39m of the previous Dec-18 round (that would imply a 4.9x revenue multiple).
      What do you see the long run EBITDA margin being on this business?
      What do you see as the exit time horizon and what do you see as the exit event? IPO?

      Posted on 21-10-2019 by Andrew

      Hi Andrew,

      With my experience, valuations are based on may factors not just forecasted future profits. You could for example have an e-commerce business with high gross margins which look impressive but high CAC and low LTV, so margins become irrelevant in these cases. You can also have a very low margin business that has a very low CAC and high LTV which is amazing (but not making short term profits) Take Diapers.com as an example, they could scale with great metrics but only had a 6-9% gross margin. From memory they sold the business for $500m+ and never made a penny. Container Doors metrics are great which are in our IM. CAC is sitting just under $20 and AOV sitting just under $300 with margins over the last few months sitting between 21-25%. Looking at the maths, we are profitable on our first sale. Many websites would kill for these metrics. Valuation models can vary, and you need to dive into the numbers to understand them and then make a call as an investor. In terms of profitability and exits, we believe we will be in profit in 2 years’ time and we are looking to partner with some large global businesses which may result in a sale, or listing. The pre-money valuation at the start of our raise in December 2018 was $39million. As we’ve raised initial funding, and converted some loans to equity, the valuation now sits at $42,757,118 and is likely to continue to rise as we raise more money and build the business up.
      If you want to discuss further and are really interested in investing, please email us at [email protected] Even a phone call?

      Answered on 21-10-2019 by Container Door Limited


      Can you explain what the investor gets out of this? Your comments have indicated that no near future dividend will be given nor any indication of a future dividend will actually be given to investors, and you have also indicated that there wouldn't be any market for selling shares. So what is the possible investment that investors would get from investing in to the company?

      Posted on 21-10-2019 by Chris Neill

      Hi Chris,
      Container Door will reinvest any profits to accelerate the growth of the business. The board will review this periodically and advise of any changes to the position taken. With increased revenue and profitability we will constantly assess whether we pay dividends or exit the business including a trade sale or listing. Most probably saying there is no real market is not really correct, I will edit that for clarity. There is just no exchange at this time to trade the shares however, if you wish to sell your Investor Class Shares please register with us and we will try to match you with any potential buyers of Investor Class Shares who have also registered their interest. I would say most people will be in for the long haul and hope for a listing or a global exit. Hope that helps.

      Answered on 21-10-2019 by Container Door Limited


      Hi

      1. Can you advise on what the product failure rate is across the product line (say 3 plus percent?)? Does product failure present an existential threat to the business?
      2. Seems you are running massive losses (in excess of $7m over the last 4 years), and yet still indicate the company is valued north of $42m. I understand this $42m value is based on the latest value of the share trades, but wonder if this is somewhat over-valued as the company has generated no profit - and offers just the hope of a future return. After spending down $7m plus of capital on company operations, how can we be sure that there will be a profit?

      Posted on 22-10-2019 by Mark

      Hi Mark,

      Point 1)
      When you say product failure, do you mean products that don’t go through because there is not enough interest? The whole point of the business model is to have this exact mechanism in place. We are not a normal retailer that takes punts on stock and hope it sells. There are so many reasons why products don’t sell. It could be colour or style, shape, price or delivery to name a few? We do not see incomplete deals a threat, It’s actually a positive as the decision making has already been done by our community and we don’t take the risk on product that people don’t want.

      Point 2)
      E-commerce businesses the world over are making losses. Most of our Australian counterparts took about 8-10 years to break even. We believe we will be profitable after year 6-7. I can give you pages of data that shows disruptive online businesses all over the world who are still losing money and are valued at billions of dollars. Container Doors metrics are great which are in our IM. CAC is sitting just under $20 and AOV sitting just under $300 with margins over the last few months sitting between 21-25%. Looking at the maths, we are profitable on our first sale. Many websites would kill for these metrics. Valuation models can vary, and you need to dive into the numbers to understand them and then make a call as an investor. At this stage Container Door will reinvest any profits to accelerate the growth of the business so no returns in the short term. The board will review this periodically and advise of any changes to the position taken. With increased revenue and profitability we will constantly assess the right time to either pay dividends or exit the business including a trade sale or listing. If you wish to sell your Investor Class Shares at any time, please register with us and we will try to match you with any potential buyers of Investor Class Shares who have also registered their interest.

      Answered on 22-10-2019 by Container Door Limited


      A couple of follow on questions:
      - You keep referencing your CAC being under $20 and AOV being just under $300 at 20% margin that implies you are making c.$40 a customer? How do you see this scaling? Are you expecting CAC to raise as you have to spend more on higher cost advertising as you have reached the "easy wins" thus far?
      - Given your medium term goal of $100m in revenue how do you see the model scaling from an overheads perspective? i.e. with volumes increasing by over 10x do you have the systems in place that will scale with this or is further investment needed. Ultimately what do you see EBITDA margins looking like in the long term?

      Posted on 23-10-2019 by Andrew

      Hi Andrew,

      Yes, CAC will raise over time, naturally. However, the more product we can list the more people will flock to our site and buy and so the network effect kicks in and CAC will reduce. Lots of moving parts and scenarios. My proposed short to medium-term growth will come from partnerships in Australia and beyond. We will look to partner with established businesses with an existing large consumer reach. This will drive our CAC down and accelerate growth which will lead to less cash needed for CA and advertising. We have systems in place to handle the scale. We have built our tech from the ground up and its solid. We are always improving our tech and still have so many exciting plans to implement. In terms of EBITDA, our short to medium-term goal is to break even and then look at the next big opportunities for growth.
      We can forecast out to $100M in sales and see what that would look like in terms of EBITDA however there will be a lot of assumptions for that. As revenue grows the multiples will start to drop. From memory Dollar Shave was reported to forecast $250m in sales and sold to Unilever for $1b and never broke even. This is quite normal in the e-commerce world if you are disrupting the industry.

      Answered on 23-10-2019 by Container Door Limited


      Hi Ben, I'm interested in your model and have shopped with you before. my main concern is your GM is up and down over the years from your presentation, what is you plan to improve this? or at least create a more stable margin? also do you have a success rate measure for items you attempt to bring to the crowd? eg you offered ten lines and only 2 created sales?

      Posted on 25-10-2019 by Scott Ward

      Hi Scott - thanks for your question and apologies for the delay in replying. Our margins were lower when we first began because we encountered freight cost overruns and other complications, so technically our topline margin was actually quite stable. Now that we have streamlined our logistics and worked out these kinks we no longer have these issues and we break-even on all our freight to customers. This has had a positive impact on our overall product margins, last month we hit 25% GP. If a product doesnt get traction its a positive thing for us as it has only cost us a little bit of time to research the product and factory, check specifications etc – there is usually no hard cost involved unlike other regular retailers who take big punts on stock and hope the stock sells. Inevitably, those retailers mark the price down and sell at low or no GP and often at a negative GP to clear the goods.

      Answered on 30-10-2019 by Container Door Limited


      Hi there, just clarifying what will happen if the minimum isn't met? Will investors be refunded?
      Thanks
      Robert

      Posted on 07-11-2019 by Robert

      Hi Robert - that's right - crowdfunding investors are only charged by PledgeMe if the minimum is met. We are fielding a lot of enquiries from interested people via email and phone so we are quietly confident of making our minimum target!

      Answered on 07-11-2019 by Container Door Limited


      What happens if some pledgers don't go through with their payment and then the total investment amount drops below the $1m minimum?

      Posted on 07-11-2019 by Richard

      Hi Richard,
      The campaign will be deemed successful if the minimum goal is met by the deadline. Those that pledge are legally obliged to complete payment, and we haven’t had a situation where the minimum amount hasn’t been processed after a campaign closes successfully. Let us know if you have any more questions, and feel free to email us direct on [email protected]
      Cheers,
      Anna from PledgeMe

      Answered on 09-11-2019 by Container Door Limited


      HI I have pledged 1 x tier 1 but want to change to 1 x tier 2 how can I do this? thanks

      Posted on 09-11-2019 by Monique Graves & Stephen Graves

      Hi Monique,
      If you pledge the difference, we will make sure your pledges are combined at the end. If you have any trouble, just email us on [email protected] Thanks for supporting kiwi entrepreneurship!
      Anna from PledgeMe

      Answered on 09-11-2019 by Container Door Limited


      Hi Ben! If the crowdfunding becomes successful, which I'm confident will be. Will you cover the annual cost with Syndex? Thanks!

      Posted on 11-11-2019 by Jason Alipao

      Hi Jason, Yes we are confident we will get there we also have 2 larger wholesale investors keen to pledge over $200k which we are in talks with. We will investigate Syndex, I don't know what the annual cost is, but we can find out. Once the raise is complete we will look into the possibilities of share trading and will consult with our advisory board. Thanks for your question.

      Answered on 12-11-2019 by Container Door Limited


      Hi,
      Possibly a question for PledgeMe and apologies if the answer is somewhere on the website that I missed but how are the shares issued to me if, and when, the offer goes through?

      Posted on 13-11-2019 by Nick Mills

      Hi Nick - we just hit $1million this morning, so we are very definitely going ahead! In answer to your question, after the funding round has closed, PledgeMe will verify all investors, process funds, and then send us the details to update our registers. This offer is for investor class shares in Container Door Limited (Investor Class Shares) so our nominee, Container Door Shareholding Limited, will hold legal title to these Investor Class Shares on trust for investors under this offer. Once the shares are issued, we will be in touch with our new shareholders! Thanks for your interest - we appreciate it!

      Answered on 15-11-2019 by Container Door Limited


      Hi Ben, justca couple of quick ???s please.
      1) Are you able to divulge that of the 800; How many pledgers bought in at a specific tier? As a pledger l would find this info interesting.
      2) When the clock stopped for pledging there were 805 pledges made but as at time of asking this number has reduced to 800. Any reason for this.
      Many thanks.
      Dave Diack

      Posted on 20-11-2019 by David Diack

      Hi Dave - we are waiting for PledgeMe to confirm all of those details for us! We should have the info through in about 10 days as it takes time to confirm with everyone, as I understand it. Also re: reduction in pledgers, I know that some people were confused about whether they had pledged, and pledged twice by mistake, so at their request they had their duplicate pledge deleted.

      Answered on 21-11-2019 by Container Door Limited

      Mike Andrews
      2019-12-02 15:06:08 +1300
      Kelly Durston
      2019-11-26 16:51:58 +1300
      Emma S.
      2019-11-21 08:35:43 +1300
      Sheriee Jamieson
      2019-11-19 12:35:03 +1300
      Jeff Meale
      2019-11-18 18:59:37 +1300
      Barrie Kanara
      2019-11-18 18:58:59 +1300
      Kane Lochead
      2019-11-18 18:58:37 +1300
      Conor
      2019-11-18 18:58:14 +1300
      Damon Coote
      2019-11-18 18:57:54 +1300
      Justin Walsh
      2019-11-18 18:55:50 +1300
      Otter Industries Ltd
      2019-11-18 18:55:24 +1300
      [email protected]
      2019-11-18 18:52:34 +1300
      Rhys Brown
      2019-11-18 18:51:19 +1300
      Susie Wolf
      2019-11-18 18:42:54 +1300
      Sandy Bedford
      2019-11-18 18:41:39 +1300
      Kali Foster
      2019-11-18 18:39:27 +1300
      Mike Berry
      2019-11-18 18:38:25 +1300
      Deborah Prideaux
      2019-11-18 18:38:07 +1300
      Hayden Spurdle
      2019-11-18 18:35:19 +1300
      Barry coughlan
      2019-11-18 18:16:50 +1300
      Stephanie Rush
      2019-11-18 18:13:03 +1300
      Katherine Hill
      2019-11-18 18:01:41 +1300
      Siegmund
      2019-11-18 17:59:10 +1300
      Ian Kirk
      2019-11-18 17:56:50 +1300
      AP
      2019-11-18 17:55:48 +1300
      Mat Weir
      2019-11-18 17:47:34 +1300
      Agnieszka Reynolds
      2019-11-18 17:46:55 +1300
      Kay Autridge
      2019-11-18 17:20:27 +1300
      Kate Bartle
      2019-11-18 17:19:07 +1300
      Frances Blake
      2019-11-18 17:17:47 +1300
      This campaign was successful and got its funding on 18/11/2019 at 7:00 PM.

      This campaign has closed, but this company may choose to do more equity raises on PledgeMe in the future. If you're interested in investing in Container Door Limited, you can sign up to be notified when a new equity campaign from this company is published.

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      Investor Perks

      TIER 1 | Invest $498+

      NZ $498.00+

      Investor Class Shares. Attend our AGM, meet the crew and taste our latest champagne and other liquor offerings. We’ll also get our BBQs cranked up. Yes, we’ll talk shop but we want it to be fun too.

      Tier 2 | Invest $1002.64+

      NZ $1,002.64+

      Investor Class Shares. Attend our AGM, meet the crew and taste our latest champagne and other liquor offerings. Receive exclusive “first dibs” on limited availability product offerings from around the world.

      Tier 3 | Invest $5,003.24+

      NZ $5,003.24+

      Investor Class Shares. Attend our AGM, meet the crew and taste our latest champagne and other liquor offerings. Receive exclusive “first dibs” on limited availability product offerings from around the world. Exclusive “Tier 3 + 4 only” offerings directly from Ben. Free shipping events for friends and family 3 x per year.

      Tier 4 | Invest $10,003.16+

      NZ $10,003.16+

      Investor Class Shares. Attend our AGM, meet the crew and taste our latest champagne and other liquor offerings. Receive exclusive “first dibs” on limited availability product offerings from around the world. Exclusive “Tier 3 + 4 only” offerings directly from Ben. Free shipping events for friends and family 3 x per year. The opportunity to connect with Ben for exclusive meet-ups to discuss the business, your ideas, etc. AND... the chance to appear in one of our marketing videos if you wish - or gift it to a friend!

      Warning statement about equity crowdfunding

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      Issuers using this facility include new or rapidly growing ventures. Investment in these types of business is very speculative and carries high risks.

      You may lose your entire investment, and must be in a position to bear this risk without undue hardship.

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