Scoop: Grocery supply startup eyes $10M valuation
Big Wheelbarrow, a Buffalo, New York, startup that connects local food suppliers to grocery retailers, is eyeing a $10 million valuation in its ongoing funding round, Axios has learned.
Why it matters: Big Wheelbarrow purports to help large retailers reduce their emissions by reconstructing their supply chain using a network of vetted suppliers.
Driving the news: Big Wheelbarrow began its fundraising efforts in December, per a Form C filed Friday, and CEO Sam Eder confirmed the crowdfunding efforts to Axios.
- David Simmons, a Pennsylvania-based angel investor, is listed as lead investor and board member.
- The company is also pursuing a formal seed funding round with institutional investors, Eder tells Axios.
By the numbers: The filing gives a glimpse into Big Wheelbarrow's long-term funding plans and path to profitability.
- Big Wheelbarrow has raised just under $90,000 in convertible notes on WeFunder tied to a $10 million valuation.
- The startup is targeting up to $250,000 in funding, according to the SEC filing.
- The company lost $12,532.53 in its most recent fiscal year, an improvement from the prior year's $271,343.76 loss.
Details: According to its investor presentation, Big Wheelbarrow sold $5 million worth of food to a single grocery retailer over 137 transactions and reduced the number of miles driven for delivery by 90%.
- It is pursuing two revenue models — a standard fee-based structure that increases the cost per good, and a subscription model that takes a fee per transaction and a license fee for producers and customers.
- Its biggest customer is the Western New York-based chain Tops Friendly Markets, Eder confirmed.
- Big Wheelbarrow relocated from Austin, Texas, to Buffalo, New York, in January to better work with Tops directly, Eder says.