Loop Biotech

Company profile

Are you ready to redefine life after death? We are the founders of Loop Biotech, a fast growing scale up based in the the Netherlands, growing mushroom coffins that enrich nature rather than deplete it. Inspired by the natural recycling power of mycelium discovered during research at the Technical University of Delft, we've created a solution to transform the way we think about our final footprint. Traditional end-of-life processes contribute to material depletion, CO2 emissions, and soil pollution. But what if we could turn our last act into a gift to the earth?

Our vision has already captured global attention, leading to more than 1,000 lives celebrated and returned to the earth in Europe, strategic partnerships with major funeral homes, and over 2.5 million in investment to scale our impact. Join us in this journey as we expand, turning nature’s graveyard into forests, and leaving a legacy that truly lasts. Because with Loop Biotech, life after death isn’t just an idea—it’s a beautiful, sustainable reality.

Company Info 

Products and services

We at Loop Biotech have invented the world's first mushroom coffin that empowers us to enrich life after death. Grown in just 7 days from local mushrooms and upcycled hemp fiber. These patented, award-winning, 100% natural, fully biodegradable products don’t just reduce harm; they actively feed our earth, increasing biodiversity and enabling new life to flourish.
 

Business model

Our business model targets large funeral homes and distributors in Northern Europe and the USA for B2B partnerships, alongside direct consumer engagement via our webshop and voucher system to boost brand visibility and product experience.

Introducing Our Innovative Product: We at Loop Biotech introduced the world's first mushroom coffin, a pioneering Dutch innovation aimed at making funeral practices more sustainable. This product aligns with the global trend towards environmental consciousness.

Our Strategic Focus on Global Distribution: We aim to establish a strong global presence, focusing on Northern Europe and the USA, regions known for their receptiveness to sustainable solutions. Our strategy involves leveraging the networks of large funeral homes and distributors to facilitate our mushroom coffins' distribution.

Forging B2B Partnerships: Our approach to market penetration includes forging B2B partnerships with key funeral homes and distributors to scale our distribution. These alliances allow us to leverage their market presence, enhancing our product's introduction to consumers.

Engaging Directly with Consumers: We also engage consumers directly through our online webshop and a voucher system, integral to our D2C strategy. This allows consumers to purchase our coffins directly or use vouchers, enriching the product experience and increasing brand visibility.

Synergizing B2B and D2C for Market Expansion: By combining B2B and D2C strategies, we aim to expand our market presence, promote sustainable funeral practices, and connect deeply with consumers. This dual approach positions Loop Biotech at the forefront of the sustainable funeral movement.

Market

The global traditional funeral industry, worth over $110 billion in 2022 and projected at $190 billion in 2030, is transitioning towards sustainability, driven by increasing demands for eco-friendly burial options. This trend, growing annually by 5-10% as per the Global Funeral Services Market Report 2023-2028, is where our innovative products, the Loop Living Cocoon™ and Loop Earthrise™, come in. They offer premium, affordable, and eco-conscious alternatives that not only honor the deceased but also benefit the planet, aligning with the values of environmentally conscious consumers.

We've established ourselves as leaders in the emerging sustainable funeral market by transforming traditional practices with our unique, award-winning product portfolio—the only market offerings with a positive environmental impact. Through patents, trademarks, and strategic partnerships, we've ensured our solutions remain distinctive and expanded our reach. Our efforts are more than just participation in this shift; we're leading the movement towards a more sustainable future in the enormous funeral industry.

Management

Distribution of company shares

Loop Biotech's share distribution showcases a strategic alignment of interests among its key stakeholders, ensuring a solid foundation for its operational and strategic decisions. The majority stake of 59.28% is held by Force For Good, a collaboration between Bob Hendrikx, the CEO, and Lonneke Westhoff, the COO/CFO. “This significant shareholding grants them primary influence over the company's direction, enabling effective guidance of its growth and development.

Further investment in Loop Biotech is represented by Orange Wings Investments, which holds a 25.63% stake. This investment is backed by Shawn Harris, a prominent board member, underscoring the firm's commitment to Loop Biotech's vision and its potential for impact. Additionally, Pieter Schoen's stake of 13.13% further emphasizes the confidence and support from seasoned investors in the company's mission and strategic objectives.

This distribution of shares ensures that Loop Biotech is supported by a blend of visionary leadership and experienced investment, poised for future advancements and successes.

Company structure

You are investing in Loop B.V..

Use of funds

The proceeds from the current financing round are strategically allocated to fuel our growth and operational efficiency, with a clear focus on commercial expansion, market penetration, and production capabilities.

Here's how we plan to utilize the funds:

Commercial Growth: A significant portion of the investment will be channeled towards accelerating our commercial growth. This includes expanding our sales team by hiring experienced personnel with a proven track record in the funeral industry. These efforts are aimed at increasing our revenue streams and solidifying our market position globally.

Create B2C Pull & B2B Push: To further boost our revenue and market presence, we are investing increating a strong pull from consumers (B2C) and push towards businesses (B2B). We will invest indigital and physical marketing to accelerate consumer demand and strengthen business relationships.This includes online advertisement and innovative marketing materials like Loop Discovery Boxes and Loop Kits for interactive product experiences.

Factory CAPEX Investments: To support our growth in production capacity and enhance operational efficiencies, a portion of the proceeds will be dedicated to capital expenditures (CAPEX) in our factory. These improvements aim to not only increase our production capacity to meet growing demand but also to increase our gross margin, decrease our production costs, and make our sustainable solutions more accessible.

Historical Valuation:

Last Investment Round: In April 2023, Loop Biotech BV's post-money valuation was €8 million. Since then, the valuation has increased by €2 million, reflecting new developments and milestones achieved by the company.

• Product Expansion: The launch of 3 new products with a scalable mold system suggests innovation and expansion of the product line, enhancing the company's market offering.
• Strategic Partnerships: Exclusive and long-lasting partnerships with Suppliers demonstrate strategic alliances, potentially offering competitive advantages and access to new technologies.
• Operational Efficiency: Professionalization of the growing facility to scale up to 1000 Loop Living Cocoons™ and 3000 Loop EarthRises™ per month reflects increased production capabilities.
• International Growth: Establishing partnerships in Austria, Belgium, France, and Germany indicates international expansion and market penetration.
• Customer Impact: Having enriched nature for over 1000 customers showcases market acceptance and positive social impact.
• Team Development: Bolstering the team with 18 experienced employees, including a Key Account Manager with significant industry experience, illustrates an investment in human capital and readiness for commercial growth.

Our exit plan is designed with flexibility and strategic foresight, acknowledging the dynamic nature of our industry and the innovative essence of our business. We have identified multiple viable exit options, each offering a unique pathway to realize the value we've created and to ensure the continued growth and impact of our sustainable solutions. These options include:

In each case, we are committed to maximizing stakeholder value and will consider exit scenarios only when the time is right. Currently, our unwavering commitment is to the growth and expansion of our business.

Note:
*Bonuses will only be awarded to investors when the investment project is finalised and after the financed amount has been paid out to the company, approximately 4 weeks after the financing is closed.

Investment related documents

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UPDATE 28-03-2024: Shawn Harris thoughts on why Loop Biotech is an exciting investment opportunity

Shawn Harris, from Orange Wings Investments, one of Loop's esteemed partners, would like to share her thoughts on why Loop Biotech is an exciting investment opportunity. She underscores the potential and value of joining their mission. Shawn is an impact investor and entrepreneur, best known for founding Nature's Pride, a company that became a benchmark in the production industry.

UPDATE 28-03-2024: Frequently Asked Questions (FAQ)

Welcome to the FAQ section of Loop Biotech's crowd funding campaign. As a forward-thinking company with a commitment to improving our planet, we are currently raising €2 million through the crowdfunding platform Invesdor. We understand that potential investors have several questions and we are here to answer them. Below are answers to frequently asked questions about our campaign, the investment process and our vision.

About the investment round
1.     What is the purpose of Loop Biotech's crowd funding campaign?
Loop Biotech aims to raise 2 million euros to further advance our mission of enriching nature. This capital will be used to grow our sales in the Netherlands and in Europe. In addition, we will make the necessary CAPEX investments in the production facility to scale up with it.
2.    What is the minimum investment I can make?
The minimum investment is 3 shares (€262.50), through which we want to give a wide range of investors the opportunity to be part of our mission to enrich nature.
3.    What do I get for my investment?
For your investment, you will receive certificates entitling you to shares in Loop Biotech, making you a co-owner and benefiting from the company's financial success.
4.    How can I invest?
Investments can be made directly through the crowd funding platform Invesdor. Follow the instructions on the platform to complete your investment safely and easily. 
5.    Are there any risks associated with my investment?
As with any investment, there are risks associated with your investment. Of course, Loop Biotech is fully committed to achieving a significant increase in value.
6.    How will certificate holders be kept informed? And with what frequency?
Certificate holders receive an update at least annually, including the Financial Statements. There is a standard business update twice a year, in the spring and fall.
7.    Do you have anything recorded anywhere about dividend distribution? When you do and when you don't?
In this growth phase, achieving revenue growth has priority over dividend payments. Decisions on dividend distribution are made carefully in accordance with the Shareholders' Agreement (SHA), which sets out rules. These include investor approval for dividend payments exceeding 25% of annual net profit, and consultation with the board including financial examination of liquidity and solvency, based on relevant legislation (Article 2:216 of the Dutch Civil Code) and for the benefit of all stakeholders, including investors.
8.    What is the expected increase in value of the organization over the years?
We are currently active in the venture capital journey, with our investors Shoe Investments and Orange Wings Investments aspiring for significant growth. Our goal is to achieve a 5-7x increase in value within 4-6 years, which fits with our ambition to generate significant returns for our investors.

About Loop Biotech
1.    What makes Loop Biotech unique?
Loop Biotech offers an innovative and sustainable solution for funerals with the world's first patented mushroom funeral box made from local mushrooms and upcycled hemp fibers. These products not only help reduce harm, but actively enrich the health of our planet. With strong market demand and exclusive contracts, and a solid financial base and experienced team, Loop Biotech is firmly positioned for rapid growth. The growing market for eco-friendly burials offers significant investment potential. Join us in our mission to enrich the earth with Loop Biotech.
2.    How does Loop Biotech use the funds raised?
a.    Commercial growth: Expansion of the sales team with experienced professionals to drive revenue growth in the Netherlands and Europe, strengthening our global market position and increasing revenues.
b.    Marketing investments: Develop digital and physical marketing campaigns to attract both consumers and businesses and build strong business relationships.
c.    Factory investments: Increase production capacity and improve operational efficiency to meet growing demand for our sustainable products, while striving to reduce production costs and improve profit margins.

If you have any other questions, please do not hesitate to contact us. You can email us at info@loop-biotech.com or call us at +316 21 36 16 71. For questions related to the Invesdor platform, you can also contact Invesdor directly at 020-568 20 70 or email service@invesdor.nl. We are ready to help you!
 

UPDATE 21-03-2024: We’ve hit the € 1 million mark in 1 day!

What an incredible day yesterday has been. Starting with our Champagne Breakfast to launch our investment round. Within one day, our counter surged past €1,000,000!

We are overwhelmed by the fantastic turnout at our headquarters to celebrate this milestone moment. A huge thank you goes out to all who joined us already, especially our esteemed partners: Shawn Harris, Orange Wings Investments, Limbraco International, Shoe Investments, Natuurbegraven Nederland, TU Delft and all our funeral partners.

Thank you to everyone who has invested in Loop, joining our mission to enrich nature and becoming a valued shareholder of our company. Your support means the world to us. Onwards to €2M!

Let's close the Loop!