As of August 2020, Mindful Chef is my biggest startup investment I've ever made. Startup investments are risky - and I assume there is a 30% chance that my investment is completely gone and Mindful Chef goes broke. In the event that they do not receive follow-up financing.
But on the plus side, this is a company that provides regular, timely, and informative quarterly updates to investors, which in itself speaks for a well-run company. A lot of other startups just don't do that. The KPIs I know are developing well. As a reference again June article on Mindful Chef with some key figures that I will not repeat here. However, new metrics include an ARR (Annual Recurring Revenue) of £84MM, which is one of the founders in a interview called in June. In my opinion, this number could be higher than the annual sales that can actually be expected after the end of the lockdown. But let's assume a hypothetical £50MM annual turnover and a turnover multiple of 3x. Then the company would be valued at £150MM in the next round of funding. The current rating on Seedrs (as of last round of funding) is £23.3MM. So would be a 6x increase in enterprise value.
30% Chance of a total loss vs. 70% Chance of a 6x capital increase in likely under a year – as Mindful Chef has been seeking a £25MM funding round since May 2020. I was lucky enough to snag a large sharelot of Mindful Chef on the secondary market and had the courage to invest a larger amount at high risk. Now we have to wait and see if and when the follow-up financing will come and what the new company valuation will look like then.
Startup analyzes are complex: dozens of startup updates Seedrs read, analyze and collect publicly available information about startups. But if you do this conscientiously, there are sometimes brilliant opportunities to increase your own capital. The considerable risk of total loss of start-up investments must always be taken into account.