AMDP Investment Proposal - Lettuce Grow

 AMDP Investment Proposal


To: Professor Clark Hansen, CEO, AMDP

From: Leon Hua, R&D Analyst

Date: March 2, 2022

Re: Investment Proposal - Lettuce Grow


After comprehensive research and analysis, I recommend Lettuce Grow as a worthy investment opportunity. Lettuce Grow is a company dedicated to innovation against problems caused by big agriculture to ultimately allow for sustainable food solutions across the globe. Lettuce Grow is a company that is rethinking sustainability and environmental impact in the agriculture industry, and meets our rigorous standards, making it an ideal candidate for inclusion into our investment portfolio. 


AMDP Standards

Before continuing further discussion regarding Lettuce Grow, I would like to reiterate our standards for consideration of potential investment. 


Triple Bottom Line

The Triple Bottom Line is a term coined by John Elkington in 1994 to measure company performance (Investopedia). He summed up the three bottom lines with three P’s:

  • Profit: The traditional method of measuring company financial performance through comparison of revenue and costs.

  • People: A measurement of social responsibility of a company through its business operations and history.

  • Planet: A measurement of the firm’s environmental impact and how its practices are environmentally sustainable and/or responsible.


Corporate Social Responsibility (CSR)

Corporate Social Responsibility is a business model where the company demonstrates accountability towards not only its own interests, but also stakeholders and the public (Investopedia). Under CSR, corporations demonstrate consciousness of impact on society, the economy, and the environment. A company operating under CSR strives to enhance society and the environment, opting to avoid methods of business which contribute negatively to them.


Social Enterprise

A social enterprise is fundamentally a cause-driven business which aims to further its objectives through serving the common good, making a scalable difference in the lives of others (The Good Trade). Social enterprises embrace financial support and for-profit ventures to earn sustainable revenue, allowing them to reliably achieve their goals.


Carbon Footprint

Carbon Footprint refers to the total amount of greenhouse gases emitted through the production, use, and end-of-life of a product or service (NY Times). The most common gas is carbon dioxide, but other greenhouse gases include methane, nitrous oxide, and fluorinated gases, which trap heat in the atmosphere and contribute to global warming. A company’s carbon footprint is the amount of greenhouse gas emissions used in regular business operations, and so it is imperative to minimize a company’s carbon footprint to contribute to sustainable business.


About Lettuce Grow

Background

  • Started in 2017 by founders Zooey Deschanel and Jacob Pechenik

  • When starting a family, wanted healthy eating to be a part of their children’s routine

  • Learned about additives, processed foods, toxic agricultural chemicals, and food miles associated with big agriculture and the food industry

  • Half of all farmed produce goes to waste before it is eaten. Heavy water usage, transportation emissions, toxic chemicals and excessive packaging plague the food industry

  • Began shipping their signature product, the Farmstand in 2019

  • Self-watering, self-fertilizing hydroponic setup for home-grown vegetables that requires little prior experience or knowledge to operate properly and see results. 

  • Since beginning, have raised >660,000 fruits, vegetables, and greens, and saved over 13 million gallons of water through sustainable food growth


Mission and Values

  • Given the current supply chain, 52% of food is wasted

  • Heavy water usage, transportation emissions, toxic chemicals and excessive packaging plague the agriculture industry.

  • Most of the food we see on grocery store shelves has been processed, sprayed with chemicals, and is far from fresh by the time it reaches the consumer.

  • Home grown vegetables, done conveniently and responsibly, allow for clean, unprocessed food, decrease in transportation emissions, and reduce ocean-bound plastics.

  • Donations to and collaborations with schools for awareness and education regarding sustainable food and vegetable growth

  • Reduction of 20 gallons of water, 4 square feet instead of 40 square feet of space, zero transportation emissions, reduction of pesticide usage, maintaining full nutrition of vegetables grown in the Farmstand as opposed to 70% of nutrition retained in vegetables off the shelf

  • All for 15 minutes a week of maintenance

  • Goal: 20% of produce to be grown at home for all households (for 95% less water footprint)


Financial Track

  • Private Company

  • According to Crunchcase, recently received Series A Funding from Wealthing VC Club and has a Pre-Money Valuation of $212 million

  • Hydroponic growth market is in relative infancy and has plenty of room for growth moving forward

  • Using innovation to drive positive change for environmental sustainability.


Industry Opinions


Recommendation

AMDP should invest in Lettuce Grow.



Works Cited:


https://www.investopedia.com/terms/t/triple-bottom-line.asp


https://www.investopedia.com/terms/c/corp-social-responsibility.asp


https://www.thegoodtrade.com/features/what-is-a-social-enterprise


https://www.nytimes.com/guides/year-of-living-better/how-to-reduce-your-carbon-footprint


https://www.lettucegrow.com/our-mission

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