Rocketo continues to grow its revenue sources and volumes and so far are reaching our financial forecasts for 2021 well. Key highlights since the loan was issued:

• Launched sales on Amazon in June and show 2x monthly growth there;
• Launched B2B sales to Hong Kong, South Korea, Japan. 2 shipments are already full-filled and standing orders are already for €785k;
• Monthly recurring revenue or MRR has reached €72k in August;

Now Rocketo is preparing for an equity financing round which will take place in late October / early November. The planned round size is for €2-3 million and the valuation of Rocketo will be set between €12-15 million. Currently, the Company is seeking additional financing of EUR 306,000 on the same terms and on the same agreement as the active venture debt product (EUR 204,000 issued in May of 2021). Funds would be used to prepare the needed level of stock for the high retail season (pre-Christmas) as well as B2B orders fulfillment. A higher level of inventory is also needed having in mind that new lockdowns or restrictions might be activated in near future.

After a review of the latest data, we believe our original forecasts are still valid and thus they are not changed. In the key financials table, we provide the latest data for 8 months of operations.

EUR	2019	2020	2021,Q1	2021,8m	2021 forecast	2022 forecast	2023 forecast
Turnover	85,670	354,068	281,868	922,133	1,416,272	4,248,816	7,647,869
Gross profit	-24,046	156,059	198,740	377,186	566,509	2,124,408	4,588,721
Net profit	-600,784	-673,265	-150,451*	-517,896*	-1,116,054	-764,787	-458,872
Total assets	63,223	187,951
Financial debt	1,058,469	543,403
Equity	-568,500	-1,241,765

*EBITDA

All warrant calculations have been changed proportionally to the new loan size. We offer investors an opportunity to join-in this tap-up round, joining in with the pool of the current loan-syndicate investors. 

Original description prepared 2021-05-12, Update prepared 2021-09-24.

The Company is a startup founded in Lithuania that challenges the traditional dog food industry in Europe by producing raw and organic dog food with a high gross margin. The Company was founded in 2018 and is backed by venture capital funds Practica and Open Circle Capital. The Company is looking for a debt for working capital financing before closing its seed financing round by the end of 2021. The proceeds of the loan will be used to execute new marketing campaigns, increase inventory and launch new products. The total loan amount is EUR 204,000 repayable in 2 years or at the financing round expected at the 1st quarter of 2023 – whichever comes first. The loan will have fixed monthly interest and an additional return paid at the financing round in 2023 or in 3 years from the loan agreement date. The fixed interest rate will be set at 10%. The variable return is tied to the growth of the Company’s value in the financing round in 2023 with a minimum additional return of 1.28%. Based on the forecast model by Capitalia that projects the Company’s value would double in 2 years, the investors could earn up to 6.9% yearly as additional return on top of the fixed interest bringing the total expected return to 16.9% (see Financing section to learn more). The loan will be secured with a commercial pledge on the Company’s assets.

There are a number of factors that make the investment in the Company an attractive opportunity and the main highlights are as follows:

• The Company’s operations are well in line with the prevailing consumer trends –  it challenges the dog food industry by introducing a healthy (raw and organic) dog food option.
• The Company is managed by highly experienced individuals in food product innovation and retail of pet food and supplies. 
• The Company is backed by VC funds and a strategic partner, whose previous experience and knowledge of the industry helps the Company in growing its market share.
• The Company’s turnover is growing rapidly. In 2020 it grew by 300%. The Company forecasts to grow sales by 670% in 2021 and 125% in 2022.  
• The gross margin of the Company’s product is already high and the Company expects to increase it further in the following years based on a clear operations plan.
• The loan is secured with a commercial pledge on the Company’s assets.
• Investors have an opportunity to earn more on top of the fixed interest if the Company continues growing successfully with a minimum additional return of 1.28% a year.