A Special Prospectus Prepared For The Capitalism.com Fund

Looking For A  Sweet   Investment Opportunity In An Untapped Niche With Huge Demand?


Introducing Cakes of Eden...


We help Apron Heroes Bake the World A Sweeter Place.

CakesOfEden.com

It's More Then A Brand.
It's A Way Of Life!


Cakes of Eden is known for helping busy parents make delicious and exciting desserts through fun & easy BIY (Bake It Yourself) Kits.

 

We currently specialize in 3 areas: 

  • Bakeware - Eye Popping, Mouth Watering BIY Kits (B2C)
  • Equipment - High quality decorating tools (B2C & B2B)
  • Supplies - Essentials for small & home bakeries (B2B) 


But we are most proud of our core mission - to end child hunger and to Bake the World the Sweeter Place.


View Our Products



Jesse J.

Meet The Founder


You are investing in the entrepreneur just as much as you are investing in the business.  Cakes of Eden was founded by a seasoned life long entrepreneur.  A maverick free-market capitalist with the heart of a lion and a passion for greatness.


Jesse is a student and case study for Ryan's "12 Month's to a Million" where he parlayed his 6 figure Website Design career into a 7 figure physical products brand.


He is no stranger to working hard but also recognizes his own limitations and knows the importance of building a championship team.


Did You Know The Baking Niche Has Little To No Major Players In The Direct To Consumer Space?

The Journey

Where We've Been


Cakes of Eden made it's first official sale in Jan 2018. It started on Amazon as just two products. Since then they have grown to over 9 core products (23 ASINS) in over 6 countries.


Surging Year Over Year Revenue:

  • 2018 - $380,000
  • 2019 - $890,000
  • 2020 - $2.3 - 3,000,000 (projected & with your help)

There has been no shortage of hiccups and mistakes over the past two and a half years. Our greatest growing pain has been inventory. Even though we re-invest the bulk of the profits back into the business, we have never been able to stay in stock for two consecutive quarters. We simply can not keep up with the demand. We constantly lose momentum, and as a result, we've not yet fully reach escape velocity.



The Opportunity

Where We Are Going


We are extremely optimistic for the future of the business. We see the next 24 months as being the greatest opportunity in eCommerce. Our company was already flourishing before the global pandemic and the death of retail, but now it is undoubtedly booming.


Baking has been dubbed one of the top 5 shelter in place activities and we don't think that trend is going to change in the near future.


The company was built with the intent to exit for 7 figures, however with all the opportunities presented, the companies potential, and the possible strategic partnership with Capitalism.com, we have upped our targets to the low 8 figures at minimum.

  The 3 Steps To An 8 Figure Brand

We believe Cakes of Eden provides a unique opportunity to invest in the leading eCommerce company in the baking niche with significant upside potential.


#1 Low Hanging Fruit

Inventory


As mentioned above, our greatest obstacle has been staying in stock to maintain momentum.  Even when we max our budgets and  "over purchase" we always sell out faster then our models predict. Thus losing Best Seller badges and rank. Forcing us to practically start over every few months.


 A capital infusion for inventory can easily double yearly revenue. With all things the same it can be demonstrated that simply staying fully in stock would take valuations from $2.3m to $5m in the first year.


#2 Untapped Potential

Grow the Audience 


It is no surprise our returning customer rate on Amazon is over 35% even though our products are not consumable. Why? Because once the customer receives their first package, they fall in love with the brand. They appreciate the warming attention to detail, compassionate customer support, and the overall experience they receive using our kits. Many have compared the unboxing of a Cakes of Eden product as gratifying as opening an iPhone box. That is why they buy more of our related products.


With that said, we see a huge potential in nurturing their experience and growing our 'Off Amazon' audience.


Building a community of like-minded individuals who share the same passion for baking and spreading their love and compassion through baked goods.


Ryan preaches "Grow an Audience" and we are confident that when we employ the following untapped marketing methods we could grow from the $5m to $8m mark:

  • Email Marketing - We have an email list of over 40k Amazon customers (via real email appends) and over 10k  emails/texts from Shopify, SlickText and ManyChat yet we have never fully nor consistently marketed to them. These lists may be too cold now but we can easily create FB audiences and campaigns to get them to opt back in. Plus new initiatives to grow the list. Email marketing has been an unchartered strategy we know is a must to be an 8 figure brand.
  • Influencer/Ambassador Marketing -  There is no shortage of baking influencers on FB, Instagram, and Youtube. With the right outreach strategy, we can tap into a much larger pool of buyers and dramatically grow the business.
  • Social Media Marketing & Groups - This has been an under-exploited strategy that we just started to venture into. So far we are seeing promising results. With the right direction, I can see Shopify accounting for 50% of our sales in the next 12-24 months.


#3 New Product Development

Upsells, Downsells & Cross Sells... Oh My!

This section is the most exciting and in our opinion the greatest potential.  

  • Consumables - To create a friction-less experience it is only logical that customers can also buy the ingredients along with the baking kits.  Such as cake mix, frosting, sprinkles, food coloring, fondant, etc... To become a one-stop-shop for all things baking. No one is doing that, not even Wilton.  We can even employ the Xerox strategy, where they use to give printers away for dirt cheap then charge fifty bucks a pop for the ink cartridges. We can do the same by offering the bakeware at a discount (possible free + shipping) and up-selling them on the consumable ingredients - with the option for subscribing and saving.
  • Additional Kits - We already designed 6 new kits to be developed and launched. We just need the fuel (capital) and the runway.
  • Print on Demand - Again, baking is more than an activity, it's a lifestyle . They eat, breathe and sleep baking. To satisfy that obsession we plan on offering print on demand Aprons, Oven Mits, T-Shirts, Pillow Cases, etc... all with fun & cheeky baking expressions. Since no inventory is needed this will help with cash flow and increase margins.
  • Bakers Class - I'm sure you are familiar with 'Master Class' where the greatest minds share their professional secrets. Picture that but just for bakers. A digital Culinary Institute where the top social media bakers host instructional videos - of course using Cakes of Eden products and ingredients in the videos. Now imagine implementing the Dollar Shave Club strategy where we set up automatic emails to be sent out a week before each class. They would say something like 'Your class with Shelly Jaronsky is coming up soon. Would you like to order the baking kit and ingredients she will be using so you can follow along? Click here to order now..."


Our Offer:

15% Stake = For $1!

Using Conservative projections, we modeled out your potential return to be 1,000,000% on your initial investment*.

  Facts And Questions

  • Are we really offering 15% equity for only $1?

    Yes. Only a  $1 initial investment is required to gain 15% equity ownership. * 


    Depending on the valuation multiple we could easily ask for $345k to $450k, however we want to make you an offer you can refuse. 


    We understand the value you bring through your strategic partnership. Even though we are confident we can continue to grow the business and sell for $5-6m in 4-5 years, we trust you can get us to $10m (and beyond) faster and with the least resistance. 


    Another factor we've taken into consideration is the brokerage fee. If we were to continue on our own and use a broker to sell the business, they would take 15% right off the top,  despite little to no contribution to growing the business. Where as with your strategic partnership, you have the potential to actively double the business and sales price.


    I'd rather give a basket of grapes in exchange for an orchard.


    * However, after reviewing the business and opportunities, we anticipate you will want to invest $300-600k into the business to throw gasoline onto the fire. We will leave that amount up to you.

  • Describe in DETAIL what your business or product is. What does it do? Provide as much detail as possible.

    We offer the following products:

    • Bakeware Activities - Bake it Yourself (BIY) kits for Giant Cupcakes, Cake Pops, Giant Donuts, Macrons, Cake Pops. These are full kits including the baking pans, decorating tools, and user guides.
    • Decorating Tools - Complete kits tailored to specific actives. These kits come with all the tools need to frost cakes, embellish cupcakes, decorate with fondant, etc... 
    • Baking Supplies - We provide essentials for small and at home bakeries. Replenishable items such as disposable cupcake containers and icing piping bags

  • How much equity do you own in your business?

    Founder, Jesse Jenifer owns 100% of the business

  • What investment amount are you seeking, and what percentage of equity are you willing to give in exchange? Please be realistic with your ask and valuation. These numbers may be taken into account in the decision of whether to move your company forward in the process

    Only a  $1 initial investment is required to gain 15% equity ownership. * 


    * However, after reviewing the business and opportunities, we anticipate you will want to invest $300-600k into the business to throw gasoline onto the fire. 


    We will leave that amount up to you.

  • What stage is your company in?

    We are in rapid expansion mode

  • How much money have you invested in the company and in what time frame? What was that money used for?

    Over the past 2 1/2 years I have invested over $100k and over 6500 hours into the business. This has been used for product development,  inventory, photography, marketing, education, conferences, sourcing trips to China, custom molds, etc...

  • When did you start the business and how long have you been operating as a business?

    • Started Product Development July 2017
    • First Sale was Jan 2018
    • Incorporated Jan 2019

  • What are your total business's lifetime sales since starting?

    Roughly $1,700,000

  • Approximate sales since inception?

    • Revenue: $1.7m
    • Sales: 62k+

  • What are the approximate sales of your business in the last 12 months?

    The last 12 months:

    • $1,002,277.87
    • 37,755 orders

  • If you were to receive an investment from the fund, what would you do with the money?

    For a full explanation, please see  "The 3 Steps To An 8 Figure Brand"  section above.


    Summary: 

    • Inventory
    • Expand marketing (Email, Influencers, Social Media direct to consumer)
    • New Products ( Consumables, Cross Sells, Print on Demand, Digital Bakers Class)

  • What is your unique selling proposition for your brand?

    We make baking fun, easy and clean.



    Our success so far has been largely due to:

    • Ability to listen to the customer's needs and providing them with unique and fun baking activities. As well as marketing to them in a clever and compassionate way.
    • Our kits are more than baking supplies, they are a full experience. We pay careful attention to every small detail, everything from the unboxing to the step by step user guides.
    • Because our products are so unique and differentiated, we never have to compete on price. Our brand is perceived as premium products and thus we are able to charge 100% more than other listings on Amazon.
    • Very few competitors. Wilton is the largest and oldest brand in the space. However, they have been too slow to pivot into the eCommerce and direct to consumer space. As we continue to capture their customers, I see the potential of them wanting to acquire Cakes of Eden in the near future.

BEST SELLERS

BEST SELLERS

Want a free sample? 

Experience the joy of baking with Cakes of Eden


Click the button below and checkout with coupon code "CAPITALISMFUND" for 100% off.  This coupon is only good for 2 uses. If you would need more samples please contact Jesse.

Want a free sample? 

Experience the joy of baking with Cakes of Eden


Click the button below and checkout with coupon code "CAPITALISMFUND" for 100% off.  This coupon is only good for 2 uses. If you would need more samples please contact Jesse.

Thank You For Reviewing Our Application

Ready to Invest Invest in Cakes of Eden and Exit for 8 Figures in 3 Years?


Book a call with Jesse ASAP
845-633-0439 | jesse@cakesofeden.com


The 4th quarter is rapidly approaching and to fully capitalize on the opportunity a very large inventory order should be placed by July 23rd.