A N Y B O DY, A N Y W H E R E C A N A C C E S S H E A LT H Y F O O D R E C O N N E C T I N G TO N AT U R E
hexagro.io Hexagro Urban Farming Srl. Confidential
G LO B A L F O O D S E C U R I T Y I S I N DA N G E R
Ve r t i c a l Fa r m s a i m t o i n c r e a s e fo o d p ro d u c t i o n fo r t h e 6 0 % o f u r b a n p o p u l a t i o n b y 2 0 3 0 . H o w e v e r, t h e i r s c a l a b i l i t y i s c h a l l e n g e d . U R B A N I Z AT I O N “Urbanization is pushing 70% of the world population to live in cities. Posing serious threats to our health and sustainable living. We spend more than 90% of our time in indoor environments”. Source
F O O D VA LU E C H A I N I S B R O K E N “We waste more than 40% of the food we produce, mostly at consumer’s house”. “Due to long distance trade, the supply chain is fragile and when crisis occur, many countries fall into food security issues” Source
V E R T I C A L FA R M I N G FA C E S C A L A B I L I T Y C H A L L E N G E S “Centralized large-scale farms require enormous startup costs, highly skilled labor currently in shortage and can only maximize a few varieties of produce, thus limiting biodiversity and becoming less resilient to market demand shifts”. Source Hexagro Urban Farming Srl. Confidential
A S C A L A B L E I N D O O R FA R M I N G P L AT F O R M
Hexagro brings indoor farming into any existing space with modular gardens to offer countless crop varieties “hyper -locally ” H A R D WA R E
S O F T WA R E
SERVICES International resource supply
IoT gardens as-a-service
Remote Automation
for easy adoption and long-time customer value
to guarantee high efficiency of plant’s growth
of plants, nutrients and components
Modular parts
Data tracking
System maintenance
for different sizing, crop-types and scaling-up overtime
of user feelings, environmental and agronomic data
for corporate clients via local partners
Customized finishing
Online community & Gamified UX
Dashboard
to fit every interior design and taste
to create viral user generated content and educate users
Hexagro Urban Farming Srl. Confidential
for data visualization and predictive maintenance
C O V I D - 1 9 A C C E L E R AT E D C H A N G E
H e x a g r o ’s r e s p o n s e t o t h e c u r r e n t c r i s i s : a cce le rating B2 C go - to -ma r ket to in cre ase s e cu r ity a n d imp rove we llb e ing
P EO P L E WA N T TO G ROW T H E I R OW N “Online sales of smart gardens and seeds boomed during the Covid outbreak. Many companies run out of stock and seen requests go up 1500%” Source
P EO P L E WA N T G R E E N A RO U N D T H E M “Online sales of plants dramatically surged too because of people’s need to make their houses cozy and more wellness oriented” Source
T R A D I T I O N A L W AY S T O A C C E S S F O O D H A V E C H A N G E D “Due to social distancing measures to contain the virus, many countries are now imposing restricted entrance into grocery stores, door-to-door online markets are booming even in less digitalized countries”. Source Hexagro Urban Farming Srl. Confidential
MARKET OPPORTUNITY
Any indoor space may offer opportunities during and after the COVID-19 outbreak and future possible crisis BETWEEN 2008-2009 CRISIS, FOOD G A R D E N I N G R O S E B Y 6 3 % Source Market niches addressable via the Wellness economy: • Healthy eating and Nutrition: € 702B in 2018 CAGR 6% • Workplace wellness: €35B in 2018 CAGR 6,8% - Source
SERVICEABLE ADDRESSABLE MARKET Indoor Greenery Market Hexagro Urban Farming Srl. Confidential
€17B CAGR 6,3% - Source
SERVICEABLE OBTAINABLE MARKET During COVID-19 crisis B2C & B2B2C Households, Residences and Distributors
After COVID-19 crisis B2C & B2B2C Previous + Offices (+ 3,000 Target Companies in EU, +1M employees)
B2B Greenery Companies, Real Estate, Hotels, Commercial Malls, Airports, Education, etc.
COMPETITORS B 2C INDOOR GARDENS
MODULAR DESIGN DIGITAL INTERACTIVE EXPERIENCE WELLNESS ENVIRONMENT DATA PRODUCT-SERVICE MODEL HARDWARE COSTS FUNDING Hexagro Urban Farming Srl. Confidential
$
$$$ FUN. <$500K
$$ REV. $10M
$$$$ FUN. $7.4M
$$$$
$
FUN. $10.3M
FUN. $17.9M
HEXAGRO’S B 2C PRODUCT READY TO SELL *Launched in response to COVID-19 Crisis for lower income households
POTY Kit Configurations • S Kit x5 Farming Pots • M Kit x8 Farming Pots • L Kit x10 Farming Pots
Design Finishes A variety of colors to fit different spaces with a fine texture to touch
Low-Pressure Fertigation Easy to pack, ship and assemble thanks to the repetition of the same part
X1.5 faster plant growth, 50% less water than soil, organic substrates and various crop types (herbs, leafy greens, ornamental plants and small fruits)
Nutrient Containers
Nano-nutrients
10L each with a submergible water pump
Highly soluble nutrients easy to dose for a complete an efficient nutrition for plant growth
Stackable parts
Hexagro Urban Farming Srl. Confidential
*Go to POTY Image Gallery
G R O W I N G VA R I E T Y W I T H F E R T I G AT I O N Dia Day00
Day 1
Day 8
Dia 21 Day 20
POTY • • • •
Pre-sales campaing online from Q2 2020 Aimed to o create a consumer customer base Provide revenues while core product is ready Talking to distribuitors to open new sales channels
*Retail price to be defined. Hexagro Urban Farming Srl. Confidential
HEXAGRO’S B 2C PRODUCT TO BE LAUNCHED *Re-designed to be launched for households
L i v i n g Fa r m i n g Tr e e ( L F T ) Kit Configurations • S Kit x4 Farming Modules • M Kit x7 Farming Modules • L Kit x13 Farming Modules
LED Lights for Horticulture Blue, Red and White Channels customizable spectrum
High-Pressure Aeroponics
Environmental sensors Temp/Hum, C02, Air flow, Ambient Light and additional environmental quality sensors may be included
X3 faster plant growth, 90% less water than soil, various crop types (herbs, leafy greens, microgreens, small fruits, ornamental plants)
Plug&Play Nutrient Containers
Farming Modules
7.5L each with Water temperature and Water level sensors (pH and EC to be included)
Plug&Play, made of recyclable materials with a robust spraying nozzle and customizable finishing
Hexagro Urban Farming Srl. Confidential
*Go to LFT Image Gallery
G R O W I N G E F F I C I E N T LY A E R O P O N I C S
The Living Farming Tree has acquired important sustainability labels thanks to its Circular Economy approach and overall impact. World Alliance for Efficient Solutions Ellen MacArthur Foundation
Hexagro Urban Farming Srl. Confidential
S O F T WA R E LFT Maintenance User
AWS IoT Cloud
Hexagroâ&#x20AC;&#x2122;s IP, Data Analytics & Know-how
Service IoT Dashboard and Quantitative Data Gathering
End-User App
User or Service Provider Dashboard
Customer User Interface and Qualitative Data Gathering
Shows the current status of each system, controls systemâ&#x20AC;&#x2122;s actuators, and collects environmental data from sensors
Gamified application to guide cultivations' process and plants use while gathering user feeling data to provide HR with wellbeing stats.
*For LFT
*For LFT and POTY
Hexagro Urban Farming Srl. Confidential
O U R CO M P E T I T I V E A D VA N TAG E A N D I P
Our agronomic protocols, know-how and data are our IP HIGH-PRESSURE AEROPONICS
I N - V I T R O G E R M I N AT I O N
G A M I F I C AT I O N
Efficiency
Special Crops
User education
40% less water and fertilizer use than conventional hydroponics
Exotic seeds grown into gel in controlled environments
Guide step-by-step for farming & plant benefits and use
Lightweight
Shipping and stock
Data tracking
Without substrate nor mechanical resistance for root growth
Plants can be preserved during days for clients
User, environment and plant qualitative data gathering
Controllable
Exponential growth
Wellness reports
Adaptable nutrient dosing for each crop-type and growth phase
Preservation of the most efficient genetic strains
Based on tracked qualitative & quantitative (sensor) data
Hexagro Urban Farming Srl. Confidential
LFT COST STRUCTURE AND TRACTION
A hardware-as-a-service business model to drive recurrent revenue streams and create long term customer relationships B2B
B2C
Average pricing
€ 250 /month
€ 50-120 /month
Margin
60%
85%
Lock-in period
18 months
24-36 months
Expected contract 60 months length
60 months
Customer Lifetime Value
€ 4K per household
€ 90K per company
Hexagro Urban Farming Srl. Confidential
FIRST ADOPTERS – Before 2020 Digital Companies
Corporates
Education and R&D
B U S I N E S S M O D E L A N D PA RT N E R S H I P S DIRECT SALES
HARDWARE
Hexagro’s Industrial Partners & Outsource Providers
SOFTWARE
Hexagro’s SW Team & Amazon Web Services Partnership
SERVICES
Hexagro’s supply services & Maintenance partnerships
% of revenues are redirected to contribute the launch of Siembra Vertical Social an impact project to democratize vertical farming Hexagro Urban Farming Srl. Confidential
Online sales processes for B2B and B2C customers.
INDIRECT SALES PARTNERSHIPS To scale up internationally Hexagro is developing the Indoor Farming Platform where local partners will drive sales and provide maintenances. Hexagro will keep suppling growing resources, IoT monitoring and Training.
A N I N T E R N AT I O N A L T E A M B A S E D I N M I L A N MSc. Felipe Hernรกndez - COL Lead Product Development / Founder
MSc. Augustin de Tournemire - FRA Lead Agronomy Development
MSc. Claudia Tarantola - ITA Lead Marketing & Communications
MSc. Alessandro Grampa - ITA
MSc. Mehmood Daudi - PAK
Lead Business Development / Co-Founder
Electronics and Automation Engineering / Intern to hire
MSc. Marija Predarska - MK Lead Software Engineering / Intern to hire
MSc. Arturo Montufar - MEX
2020 HIRING PLAN
Lead System Engineering / Co-Founder
UX/UI Interactive Design / Intern Software Engineering Support / Intern Embedded Software Engineer / FT Manufacturing, maintenance, technicians Freelancers and external collaborators
Hexagro Urban Farming Srl. Confidential
A D V I S O R S A N D I M PAC T N E T W O R K S PhD. Luca Rossettini – IT
Delia Koren – Israel
CEO / D-Orbit
Product Innovation | UX Expert | Storyteller
Business development, fundraising, company management and networks
User Experience, Product management, Consumer Trends, Chatbot development and storytelling
CPA Cole Orobetz – USA
John Cooper – USA
CFO / Alpha Foods Fundraising, financial development, accounting and networks
Principal - CFO / Integro Ventures Financial planning, data analytics and operations management
Andrea Tessera – ITA
Ritalba Lamendola – ITA
CMO / Sole24Ore Business School
Managing Director / EVEURA
Marketing and branding strategies, UX/UI and business development
Product Industrialization, scale up strategy, certification, go-to-market strategy
James C. Roberts III – USA Management Partner / Global Capital Fundraising, legal advisory, business development and networks Hexagro Urban Farming Srl. Confidential
PARTNER IMPACT ORGANIZATIONS
H E X AG RO E MPOWE R S FAR ME R S WI T H T E C H POTY SYSTEMS FOR GREENHOUSE
AEROPONIC TOWERS FOR GREENHOUSE
Our B2B line aims to democratize the access to vertical farming solutions with low-cost, modular and automated systems transferring technology developed by Hexagro.
COLOMBIA Hexagro Urban Farming Srl. Confidential
COLOMBIA
COLOMBIA
R OA D M A P
PRE-COVID CRISIS January-February 2020
COVID CRISIS STAGE1 (March-April-May)
COVID CRISIS STAGE2 (June-July-August)
COVID CRISIS STAGE 3 (Sept.-December)
2021 - Onwards
• Strategic shift to B2C • Retailers and resellers • Direct sales model + resource subscription
• Price definition for POTY and LFT • Cost structure for retailers and resellers
• Online sales scale up • Distribution agreements with resellers and retailers
• Additional sales channels partnerships • Maintenance partners • Start to sell in Asia
• New marketing plan • B2C user research • Re-branding of Hexagro
• Website eCommerce • Social media and PRs • Graphic material for marketing reach out
• Digital marketing for online sales conversion • Leads nurturing (email + Blog)
• Possible LFT crowdfunding • Hexagro Online community creation
• LFT Industrial Design complete
• Manufacturing of first LFT MVP04 (pre-industrial)
• Industrial LFT ready and CE certified
Business development
• B2B Sales • HaaS business model • Service partnerships
Marketing
• Offline events for HR • Fairs, conferences, etc. • Wellness oriented
Product Development
• LFT Piloting and testing • LFT MVP Version 03 • UX for Office Segment
• • • •
MVP V03 installations Offices and hotels 10 customers installed 5 customers pipeline
• Installations paused • Market segment not able to commit • B2B customer pipeline canceled
• Sales pre-campaign
Living Farming Tree Product line sales
• • • •
• Packaging complete • Resource subscription products selling • Sales pre-campaign
• LFT ready to sell and delivery • Resources subscription model
POTY Product line sales
• Installations of several vertical vases for social projects in Colombia • B2B system approach for producers
• Design for B2C product • POTY product ready to sell in EU • Siembra Vertical and COVID story development
• POTY online sales • B2C Customer base creation and nurturing
• POTY online sales • POTY products delivery • Social Installations in Colombia
• Sales and delivery of POTY • Add-ons sales • Further installations in other developing countries contexts
Hexagro Urban Farming Srl. Confidential
LFT MVP Version 04 Final Industrial design Industrialization UX for consumers
• Supply chain optimization • UX A/B testing
FINANCIAL ASK BEFORE COVID OUTBREAK
FUNDS RAISED SO FAR 2018-2019 (SWITZERLAND AND ITALY)
NUMBER OF SYSTEMS SOLD AND OPERATED BY Q1-2020
10 LFT MKits + 3 LFT SKits
REVENUES 2018
EUR 15K
REVENUES 2019
EUR 30K
€ 165K LFT Product MVP + HaaS Model validation in Milan + Market and User Experience validation
SEED ROUND Q2-Q3 2020
USE OF FUNDS HR (current + to hire Eng, Sales, UX)
40%
Marketing (Ads / eCommerce)
20%
Biz Dev (distribution partnership set up)
5%
Facility (rent, equipment)
10%
R&D (agronomic, software, research partnerships)
5%
Product Dev (industrialization CE marks, IP)
15%
Legal, accounting & consultancies
5%
€ 1M Poty product market launch LFT Product Industrialization + Agronomic laboratory set up and operations launch SERIES A ROUND Q3 2021
€ 5M LFT launch + Market expansion
Hexagro Urban Farming Srl. Confidential
VISION OF A DECENTRALIZED FOOD SYSTEM Hexagro’s b2c Platform Clients
b2c B2B 2C
b2c b2c
B2B 2C
b2c
b2c
b2c
b2c B2B
b2c
Existing spaces in urban and peri-urban areas Online community of urban farmers Varieties and production by demand through platform Energy costs distributed on building expenses Crowdsourced economy for systems maintenance Time-to-launch takes 1 day # of beneficiaries depending on amount of installations
Hexagro Urban Farming Srl. Confidential
b2c
b2c
H E X A G R O I N D O O R F A R M I N G P L AT F O R M • • • • • • •
b2c B2B
b2c b2c
b2c
b2c b2c
B2B 2C
b2c
VS
C E N T R A L I Z E D I N D O O R FA R M S • • • • • • •
Infrastructure build around cities where available Specialized personnel to run operations Productivity of few varieties by market speculation Energy costs centralized in a single facility Distributor and retail partnerships Time-to-launch can take 1-2 years # of beneficiaries depending on size of facility
A N N E X – D E E P D I V E I N TO H E X AG R O
D E TA I L E D D O C U M E N T S ( R E Q U E S T A C C E S S )
• • • • • •
Executive Summary Business Plan Hardware Presentation Software Presentation Service Presentation Hexagro Siembra Vertical Social Presentation
Hexagro Urban Farming Srl. Confidential
VIDEOS AND ARTICLES
• • • • • • •
Singularity University Article Impakter Article ZoominTV Video Ellen MacArthur Foundation Interview Hexagro B2C Teaser Hexagro B2B Teaser PR Image Kit
Felipe Hernรกndez Villa-Roel Lead Product Development & Founder
f.hernandez@hexagro.io
A N Y B O DY, A N Y W H E R E C A N A C C E S S H E A LT H Y F O O D R E C O N N E C T I N G TO N AT U R E
hexagro.io