Lunchbox’s $50 million Series B deck – Nob6

With extra and extra folks ordering meals from dwelling — a development that gathered momentum at a time when it was safer to eat at dwelling than in eating places — the proliferation of so-called “ghost kitchens” is constant apace. These kitchens concentrate on takeaway orders and wish a layer of know-how to maintain issues operating easily.

“When COVID started, all eating places had been required to have some relationship with know-how with the intention to survive, however the significance of this relationship has been drastically enhanced by the rise of the omicron variant,” Nabeel Alamgir, co-founder and CEO of Lunchbox, informed Nob6 by way of e-mail. “That is probably the most troublesome battle eating places have ever confronted in current reminiscence.”

Lunchbox noticed a chance, elevating $20 million in 2020 after which $50 million again in February. On this submit, I’m having a look on the deck the corporate used to lift its $50 million spherical and produce on board a formidable cadre of traders.

We’re in search of extra distinctive pitch decks to tear down, so if you wish to submit your personal, right here’s how you are able to do that. 

Slides on this deck

Lunchbox raised its $50 million Sequence B with a really tight, 15-slide deck, which the corporate very kindly shared with us. Your complete deck is unabridged, which makes it a very wonderful deck to be taught from. Let’s dive in:

1. Cowl slide
2. Lunchbox is the working system … — mission slide
3. Greatest Rising Manufacturers — buyer slide
4. third get together corporations are costly — drawback slide
5. Constructing your personal ordering system — drawback slide
6. Multi function resolution — resolution slide
7. Outcome: third get together killer — influence slide
8. Case Examine: Clear Juice — buyer deep-dive slide
9. Assembly company the place they’re — buyer journey slide
10.   Product Led Group — product street map slide
11.   An exploding ghost market — market development slide
12.   Aggressive Positioning — competitors overview slide
13.   Toast vs Lunchbox — competitors deep-dive slide
14.   Future Panorama — market development slide
15.   Let’s get cooking — contact slide

Three issues to like

That is going to be a kind of occasions once I remorse limiting myself to solely writing about three issues I beloved in a pitch deck.

This deck is a grasp class in how an organization can carve out its story and exhibit the way it reveals up. Lunchbox efficiently explains the way it impacts its clients’ lives with out rabbit-holing too deep into product options. It capably paints an image of precisely the way it stands out in a fiercely aggressive panorama.

The deck additionally tells us how Lunchbox can see a transparent path to an exit with out making that express. Very nicely performed certainly. Let’s pull up some highlights!

Illustrate the influence

About midway by the pitch, Lunchbox performs a card — or a slide, if you’ll — that actually rams dwelling its raison d’etre. The slide tells the story of how Lunchbox helps a buyer — juice bar Clean Juice.

Click on “order now” on the Clear Juice website, and also you’re taken to a fantastic, white-labeled version of Lunchbox, the place you might have the choice to decide on an outlet near you and place an order. That’s one layer of this slide — you’d finest imagine that any investor value their salt would attempt to place an order from Clear Juice to see the product in motion.

Working example: As I write this teardown, I’m saddened that the closest Clear Juice outlet is just too far-off to ship to my home. If Lunchbox is intelligent, they’d word that I submitted my handle and would feed that again to Clear Juice to inform them that maybe there’s curiosity in an outlet in Oakland, California.

The opposite layer showcases the influence Lunchbox has had on Clear Juice with arduous info, figures and numbers — the way of storytelling traders respect most.

A 31% improve so as frequency, a 55% improve in annual spend per person and a 41% improve in digital gross sales per outlet, plus a 20% bump in new customers 12 months over 12 months? These are unbelievable numbers for any enterprise and will surely be sufficient to make me lean in and listen if I had been operating a series of meals shops. Extra importantly, if Lunchbox is ready to attract a transparent parallel between the instruments and companies it supplies and the sharp uptick in site visitors its clients see, it’s going to have some unbelievable gross sales collateral.

To me, the perfect half about this slide is that it doesn’t go too deep into precisely how it accomplishes these numbers. Little doubt that’ll be a subject for dialog later within the pitch course of. As an investor, all I must know proper now could be that the product works, that the purchasers discover actual worth in it and that they’re prepared to pay for it.

These numbers inform that story in a strong manner.

Why now? Because of this now!

The most effective slides not often whisper; they shout.

My goodness, slide 11 is a shouty slide. Let me be clear: There’s no manner I’d have designed this slide like this. It’s three totally different slides masquerading as one — it tackles macroeconomic market tendencies (70% of eating places have used a ghost kitchen, and 69% stated they’re planning to open extra), the moat/defensibility of the product (“patented product”) and provides us the uncooked numbers.

The final bit is my favourite. Within the high proper nook, the corporate hides probably the most spectacular stat in all the deck in muted colours, nearly shyly telling us that it’s on an unbelievable progress trajectory. It grew 541% from 2020 to 2021 and one other 365% from 2021 to 2022 to nearly $15 million in annual recurring income (ARR).

If I had been pitching this firm to traders, these numbers could be on the second slide within the deck, and I’d be shouting about it very loudly certainly: We discovered a repeatable enterprise mannequin, and we’re elevating $50 million to lean closely on the fuel.

It’s towards this context that I like this slide a lot. It isn’t how I’d have performed issues, however any investor studying this could lean in and begin paying shut consideration. It’s a mic drop, a humble brag, a “Hey, we now have one thing defensible in an exploding market, and we’re hanging on tight as this rocket ship vanishes into the stratosphere.”

What this slide tells me is that Lunchbox must strive to not be wildly profitable. And that, girls, gents and everybody who doesn’t establish as both, is the way you pitch a Sequence B spherical — clarify how your success is inevitable.

Does it should be the reality? Completely; you’ll be able to’t lie. However what you can do is inform your organization’s story in a strong manner and let that be the opening salvo for dialogue between you and your traders.

A humble brag plus a aggressive overview

Toast is an attention-grabbing competitor for Lunchbox to place itself towards, not least as a result of the previous not too long ago filed a form S-1 for an IPO and posted a (more moderen) 10Q quarterly report.

Should you’re not used to studying these, Alex has a unbelievable evaluation of the corporate’s S-1, however Lunchbox did an excellent job at pulling out the salient particulars vis-a-vis traders taking a more in-depth look.

Understanding that Toast exists and has a current market cap of $8 billion in a market the place Lunchbox can argue that it has entry to a doubtlessly larger market is a fairly clean manner of telling this a part of the story.

To me, this slide principally screams, “Hey, we’re spooling up for an IPO!” Given the present fundraising measurement of $50 million, I wouldn’t be shocked if a part of the technique following this spherical is to rent a workforce of finance folks, a wunch of bankers (sure, a “wunch” is a collective noun for bankers; don’t suppose too arduous about it) and strengthen the operations of the group to cement a strong progress trajectory.

If Lunchbox manages to do all of these issues, an IPO would possibly turn into the logical subsequent step. Alternatively, it’d spend the money on hyperscaling its progress, after which increase a Sequence C to finance the IPO course of.

One factor is for sure: This slide is putting a stake within the floor for Lunchbox to gear up for explosive progress — and makes it appear completely affordable based mostly on in-market competitor predicates.

In the remainder of this teardown, we’ll check out three issues Lunchbox may have improved or performed otherwise, together with its full pitch deck!