Home » Deal Marketplace » Castor crop for seeds -

Castor crop for seeds -

Mickey Lazar Thu, 2010-08-05 06:19

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Mickey Lazar · Thu, 08/05/2010 - 05:19

Business

Business Overview: 

BC Agrotech will deliver 15'000 tons castor seeds to chinese market, to the end buyer at highest prices

Project Type: 
Industry: 
Project Location: 
Awash river - east, AF, 48056
Ethiopia
What are your future milestones, and how much capital will you need to achieve each of the milestones outlined?: 

buying agro machinery and establish logistic center to smooth operations - 400'000 USD

plowing and sowing 500 Ha - 500,000USD

What is your total and operating cash burn (the amount you're spending) per month? : 

Operating cash burn: 30,000 USD

Total cash burn : 50,000 USD

How many future rounds of financing do you project? : 

this coming one; after operating 3,000 ha , the project profitability will enable development for new locations

Services Desired: 
Marketing
Capital Broker/Dealer
Who is the Customer?: 

a major chinese trade house - details can be disclosed only after NDA signoff.

we have a 3 years purchase contract backed by long term Letter of Credit

What is the Customer Pain that you are solving?: 

Huge need for raw material - castor seeds for practically unlimited volume.
customer needs 50'000 ton annualy; in the best situation we will be able to deliver 12'000 tons.

castor seeds price growing steadily during last years and will continue to grow as the usages for castor oil are endless.

Names of any current or recent customers: 

cannot be disclosed w/o NDA

What is the Target Market?: 

Castor oil producers

How big is the Target Market in terms of Annual Sales?: 
$5B-$50B
Sales/Marketing Strategy: 

tight contact with 3 major Castor seeds buyers in the world. effective access to 50% of global buyers

Competition: 

Growers in India, Brazil

One-line Pitch: 

the best Castor seeds producer

Business Model: 

we need Bank Guarantee to be the security/colateral for the loan we are taking from ethiopian bank for rolling the project

Technology

What makes the technology/business unique and have a defendable competitive advantage?: 

1. very low cost labor
2. total control over growth of the crop using irrigation. competitors use rain only.
3. top species who provide 4-5 times more yield
4. very low logistics cost due to special location and logistics organisation.
5. direct sell contract with end buyer

What, if anything, has been proven (and how far is this from a commercial scale)? : 

we have now 10 ha proven project

we have 140 ha sowed already

What challenges/risk does the technology face for commercialization?: 

none, we are ready with the overall model; need to enlarge volume of land sowed

Team

NameTitle
Mickey LazarCFO
Hector KoticPresident
Yanai ManVP
Current Investors: 
Founders

Financials

Amount Sought: 
$1,000,000
Pre-Money Valuation: 
$700,000
Amount invested by Founders: 
$150,000
Funding Stage: 
Pre-Revenue
Funding History: 
Funding Round Funding TypeFunding dateFunding Source/ InvestorsAmountPre-Money valuation
Seed/BootstrapEquityAug 2009founders1500000

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