Have you ever wanted to be an Angel Investor or Venture Capitalist, but you don’t have a couple of million in the bank or make $200,000 a year for the past two years to be considered an “Accredited Investor”, you don’t live in Silicon Valley, or know the people who can get you meetings with the founders most likely to succeed? Well the financial space is opening up to people like you and me! I have been spending some time recently with Republic and Start Engine, which open some interesting early investing opportunities to us.
Now, I’m not going into this investing style and how it matches with my investing philosophy far in this post, because I want to focus on a specific company I invested in recently and will do so for both the companies I put small amounts in this week. Remember, there is the ability to turn a small portion of our portfolio into Risky Business section. It may not make us any money and we might lose it, but it gives a good opportunity to support up and coming companies we like in their early stages. So with that said, here we go!
The company I’m talking about today is TapRM who is looking to disrupt the online beer purchasing experience! What makes them a viable company? Their supply chain. They have collapsed the supply chain by going straight to producers and cutting out everything until delivery to consumers. Now, I think we will eventually come out COVID as an economy, but I believe online ordering and delivery of goods and services will never fall back to pre-COVID levels. We’ve found that we like the ability to have anything and everything delivered to us and we all like a wide selection of options for those goods and services.
This is where TapRM will thrive! They are constantly expanding their marketplace and building relationships with new partners all the time. If you want options other than Bud and Miller, and find some diamonds in the rough, then this is a place for you! Now, I may not have mentioned previously, but I LOVE beer. I also like to get away from the constantly advertised American beers, which I honestly don’t like, so to find a company like this was EXTREMELY exciting to me!
They have been featured in tech media and industry publications with great reviews! Now let’s get to the numbers! How does margins of 50% Business to Customer sales, 30% on Business to Business sales, and 10% on marketing dollars sound? I’ll tell you, to me it sounds pretty dang good! The online ordering and delivery of beer is growing at a parabolic expansion. They are also going to find ways to make additional revenues on the backend by selling statistical data to industry stakeholders and collection agencies to narrow the market. This provides great opportunity for ROE and ROIC for the shareholder.
They are still on the launchpad right now, but they are primed for explosive growth, especially if they can garner investment from the public. Since investing I have messaged several times with the Founder and got his permission to share about the company here. This is a down to earth group who has big dreams for the company and is truly appreciative of their investors. I will exhort you to find them on Republic, investigate them and their financials and think about what kind of companies you want to work with in the future. I’ll tell you from the Rex’s POV I want to work with companies like TapRm in the future, so I will continue to give them my full support.