AMDP Investment Memo [Draft]

ANIMA MUNDI DEVELOPMENT PARTNERS

Funding Socially Responsible Businesses that Support Local Living Economies

To: Clark Hansen, CEO, AMDP

From: Collin Abe, Research and Development Department

Subject: Ready. Set. Food!: Investment Recommendation Memo

Date: October 10, 2023

After thorough research of many different companies in regard to their socially responsible, environmentally sustainable, and profitable matters, I believe that Ready. Set. Food! would be a great investment opportunity. They are changing the ways that parents are able to help children diversify their palettes at a young age to reduce the likelihood of food allergies. Before discussing my reasons for making this statement, I will provide a background of the ethics that AMDP seeks in the businesses that it invest in. 

Background

In our modern world, many businesses are striving to become more sustainable. As a way to measure this, the Triple Bottom Line was created. Rather than just measuring the general profit of a business (the bottom line), this concept measures a business’ “social and environmental impact” as well (Miller, 2020). This often coincides with becoming a social enterprise that seeks to “achieve social, cultural, community economic and/or environmental outcomes; and, to earn revenue” (“What Is Social Enterprise?”, 2021) Businesses have also started to become aware of their “responsibility to the society that exists” around them (Stobierski, 2021). 

A major reason for many businesses to become more sustainable is to reduce their carbon footprint. This can be defined as the “total amount of greenhouse gases…that are generated by our actions” (“What Is Your Carbon Footprint?”). This can be measured by taking into account where one lives, what one eats, and various other factors, which can be analyzed through many carbon footprint calculator surveys. It is crucial that our overall carbon footprint becomes reduced to ensure that global warming does not continue to cause further damage to our planet.

READY. SET. FOOD!

This company is currently the “only complete early allergen introduction system” that strives to help babies have better health by limiting food allergies (“RSF! Fall Favorites Sweepstakes.”) It does this through a three-stage process through organic mix-ins that can be used with liquids such as milk or through foods such as oatmeal. The first stage introduces the most common allergens such as nuts, eggs, or dairy. The second stage seeks to maintain exposure to these allergens to help build a better tolerance. The third stage increases exposure to additional allergens to promote a greater diet diversity. 

In 2018, this company started among family and friends in Los Angeles and has grown to a giant community including a medical advisory board of licensed pediatricians and allergists. Over the years, this company has achieved a lot of growth (“Ready, Set, Food!: Overview.”). Starting with $450k in revenues and 5 employees, the company now has about $2MM in revenues and 26 employees. Furthermore, the company has increased its initial $1.40MM funding to $1.75MM valuation ratio to $6.25MM funding to $15.00MM valuation. 

Regarding sustainability, Ready. Set. Food! is supported by USDA and medical guidelines (“Have A Question?”). In addition, this company only uses 100% non-GMO organic ingredients and does not use any added sugars, additives, or preservatives. By using only organic ingredients, there is much less carbon output when compared to other forms of food production.

Expert Appraisals

Sustainability

The use of pesticides and additives in food is a very common practice by many businesses in order to meet consumer demand. However, this is also a “key threat to the Sustainable Development Goals (SDGs) set by the United Nations” (Zhang Z., et al, 2022). In order to combat this, the Clean Label Project is a non-profit organization that strives to expose the truth regarding food and consumer product labeling. Even though there is an ingredient list on the back of all food products, most of them do not contain all of the ingredients. As a result, the Clean Label Project tests the products of companies to expose if there are any harmful additives that are not included on the ingredients list that the company provides. After thorough testing, Ready. Set. Food! was given the Purity Reward, which provides costumers peace of mind when buying this company's products. 

Business

In 2020, Ready. Set. Food! achieved the opportunity of a lifetime by being televised on one of the largest business shows of all time, Shark Tank (“Three Sharks Battle for a Food Allergy Prevention Company - Shark Tank.”). Not only did they have the chance to market their product to the world, but they received an investment offer that no one could refuse. Mark Cuban, a world-renowned businessman and one of the wealthiest and charismatic individuals in the world, made a deal with the company as he saw a lot of potential. Although he landed the deal of loaning $350k for a 10% stake, he had to battle with the two other offers from Lori Greiner and Kevin O’Leary. Nonetheless, all the sharks that provided offers were able to see the potential this company possessed and were willing to attach their image and likeness to the brand.

Conclusion

Based on the information above, I believe that Ready. Set. Food! would be a great investment opportunity. It is sustainable in the way it sources and produces its ingredients, and it is a great business opportunity as the company has only seemed to grow since it has been broadcasted on Shark Tank. In 2021, the year after Shark Tank, this company greatly increased its revenue and secured its first healthcare partnership (“Saving Babies beyond the Tank.”) Last year, healthcare partnerships expanded to 11, and they achieved their first retail launch which can be purchased at Target, Amazon, Walmart, and many more. The future seems bright as it seems this brand is just now starting to hit its stride.

Works Cited

“Have A Question?” Ready. Set. Food!, faqs.readysetfood.com/hc/en-us. Accessed 9 Oct. 2023. 

Miller, Kelsey. “The Triple Bottom Line: What It Is & Why It’s Important.” Business Insights Blog, 8 Dec. 2020, online.hbs.edu/blog/post/what-is-the-triple-bottom-line. 

“Ready, Set, Food!: Overview.” PrivCo, system-privco-com.libproxy1.usc.edu/company/ready-set-food. Accessed 8 Oct. 2023. 

“RSF! Fall Favorites Sweepstakes.” Ready. Set. Food! | Allergist Mom Developed Allergen Introduction, readysetfood.com/. Accessed 8 Oct. 2023. 

“Saving Babies beyond the Tank.” Ready, Set, Food! On Shark Tank!, readysetfood.com/pages/shark-tank. Accessed 8 Oct. 2023. 

Stobierski, Tim. “What Is Corporate Social Responsibility? 4 Types: HBS Online.” Business Insights Blog, 8 Apr. 2021, online.hbs.edu/blog/post/types-of-corporate-social-responsibility. 

“Three Sharks Battle for a Food Allergy Prevention Company - Shark Tank.” YouTube, YouTube, 19 Jan. 2020, www.youtube.com/watch?v=S0r_JEwQp8M. 

“What Is Social Enterprise?” BC Centre for Social Enterprise, 26 May 2021, www.centreforsocialenterprise.com/what-is-social-enterprise/. 

“What Is Your Carbon Footprint?” The Nature Conservancy, www.nature.org/en-us/get-involved/how-to-help/carbon-footprint-calculator/#:~:text=What%20is%20a%20carbon%20footprint,highest%20rates%20in%20the%20world. Accessed 8 Oct. 2023. 

Zhang, Z., Yan, X., Jones, K.C. et al. Pesticide risk constraints to achieving Sustainable Development Goals in China based on national modeling. npj Clean Water 5, 59 (2022). https://doi.org/10.1038/s41545-022-00202-0