Vive Organic, a Stage 1 client and portfolio company, has been acquired! Paine Schwartz Partners’ company Suja Life has made the purchase of Vive. A true case study in delivering a great outcome for founders, investors, team members, and brand partners.

Over the last five years, we have worked hand-in-hand with the Vive team to see their incredible organic, cold-pressed juices succeed and grow in the marketplace. Vive Organic has seen tremendous growth these last few years and make the perfect powerhouse acquisition for Suja Life. Vive was established back in 2015 and has continued to grow with the help of venture capital totaling over $15 million.

Stage 1 engaged with Vive when they were $1m in revenue, supporting them by delivering a full finance and accounting department in their early years of growth.  In addition to the operational support, the team aided the founders in navigating their early rounds of financing.  These experiences have been very rewarding for our team members. It enables our firm to share these experiences with new waves of growth brands.

Stage 1 Finance is excited to share that our client epres is officially launching! They show strong promise of becoming the next evolution in high-performance haircare. Epres is starting off with two haircare treatments, one for at-home use and another for professional use at salons.

Epres founder Eric Pressly is already an established miracle worker in the industry being the accredited inventor of Olaplex. Olaplex was founded in 2014 by Dean and Darcy Christal, with the formula developed by Dr. Eric Pressly and Dr. Craig Hawker. His science-based approach to haircare solutions has proven to be a game-changing, commercial success. To see his new product line and learn more about the brand visit epres.com.

We’ve been working with them for a year now getting them ready for this day. It’s an honor that they trusted us with helping them get set up even before launching. It just goes to show that it’s never too early to get accounting and finance assistance.

The last two years have seen some radical changes to the way people live and shop and that has meant new challenges and opportunities for young growing companies like the clients of Stage 1 Financial. For many of these high-growth companies, it can be challenging to know when to get the assistance of a CFO. We won’t go too in-depth on the subject of how and when to get a CFO but this set of data does tell a very compelling story of why you should get CFO assistance.

For this Data Insights Article we have analyzed a grouping of our clients that sell in the following three ways; Direct to Consumer, Wholesale, and through Amazon. The intention is to compare how each sales channel has performed and what the implications have on these businesses. The following are the key findings:

• Since the beginning of 2021, Wholesale & Amazon Revenue Growth has significantly outpaced Direct to Consumer (DTC) Revenue Growth
  • In both Food/Beverage & Beauty, the average growth for Wholesale and Amazon has been 345% and 169% respectively
  • For the same customer segments, DTC average growth has lagged at 19.8% from January 2021 thru July 2022
• The same trend has continued into 2022: Wholesale (+139%) & Amazon (+175%) Revenue Growth has outpaced DTC Revenue Growth (Flat)
• Outside of Q1 of 2021, there has been a high correlation between Quarter over Quarter growth for both WS & Amazon
• For DTC to support the small growth in revenue since Jan 2021, marketing spend has increased +137% and has increased 20% to keep revenue flat YTD

As we internalize these findings and circle back to why a young, fast, growing business should get CFO services there is a clear takeaway, they will help your business adjust and take advantage of situations like this to keep growing and not keep investing in a failing strategy. From a Stage 1 CFO perspective, it’s important to review profitability by channel and continue to invest in Wholesale & Amazon. As for DTC, its important to keep a close eye on the unit economics so as to not get into a negative position or increase your current cash burn.

The number of auditors in the IRS could be doubling in the near future and may result in an increased focus on tax filings for small businesses. Below please find our recommendations for preparation and readiness should your business be audited.

Record-keeping
The key focus of an IRS audit is to substantiate your tax returns, and the more organized your record-keeping the more straightforward any records requests and reviews will be to resolve. The last thing you want to do is make the IRS have to guess on any figures. Keep records of expenditures, income, and deductions filed in a detailed manner, ideally within an online bookkeeping system, and reviewed by an accounting team.

Know when to retain help
There’s no shame in admitting you need help. If you are worried about the possibility of your small business being audited and you don’t think you can get through it on your own then get some accounting and tax support. Whether you hire a new staff member or get an outsourced solution like Stage 1 Financial it can make all the difference to have talented, experienced help in your corner. While an audit may be an infrequent occurrence for your business, our experts work with them and the IRS on an ongoing basis and are familiar with the rules, processes, and procedures involved.

If you feel like your business isn’t in the right shape to weather an IRS audit right now then now is the time to correct that. Better now than when you’re actually being audited. It’s also good to keep in mind that the IRS isn’t the only reason you will be going through an accounting review. If you are planning on raising capital at some point then confidence in your current and historical financials during diligence greatly impacts speed and the probability of success.

Our resident Sales Tax Expert Adrian Rivers has identified some important sales tax changes both recent and upcoming that we know you business owners need to be aware of. Take a look and update your sale tax strategy accordingly.

2022 Change:

• Colorado Retail Delivery Fee Tax (CO RDF) – The CO RDF impacts all companies that make taxable sales in CO and their taxable product is delivered by any vehicle within CO. The actual RDF is a flat rate for each taxable invoice delivered by a vehicle in CO and the fee is due at the same frequency as the CO sales tax return.

Upcoming Change:

• Exemptions – CO and IA (Iowa) are exempting diapers and feminine hygiene products from sales tax in 2023.

We are posting this in September of 2022 but we will keep updating this over the next month as more changes are announced. Check back with us for further updates.

Here’s a full list of the Sales Tax Services we offer:

• Nexus and Liability Reports
  • Back Due Filings
• Filing of State and Local Tax
• Sales Tax Reconciliations Report
• On-Going Sales Tax Management
• Local Tax – B&O Filings

Dallas, May 22, 2023/ — G.O.A.T. Fuel, the amazing new energy drink, has completed raising a $5 million Seed round of funding led by Stage 1 Fund. Stage 1 Fund is dedicated to strengthening consumer-driven brands like G.O.A.T. Fuel and it is Stage 1 Fund’s honor to be a part of this raise.

G.O.A.T. Fuel is co-founded by the NFL Legend & Hall of Famer Jerry Rice along with his daughter, CEO Jaqui Rice Gold, and his son-in-law, CMO Trevion J. Gold. Jerry Rice is considered by most NFL fans to be the Greatest Of All Time wide receiver. His drive for excellence continues off the football field and into the business arena. It’s why they call it G.O.A.T. Fuel.

G.O.A.T. Fuel was born from the lack of a healthy option in the energy and sports drink market. Jerry Rice decided he could find a better solution and that determination lead to the birth of G.O.A.T. Fuel. An energy drink crafted from the very mushrooms that Hymilain goats consume to get more oxygen to their bloodstream. He succeeded in bringing something better to beverage enthusiasts everywhere.

Stage 1 Fund’s partner David Bartholomew had this to say about G.O.A.T. Fuel’s deal, “Stage 1 Fund is pleased to announce our 2^nd investment in the emerging beverage silo with our closing of G.O.A.T. Fuel.  In particular, The U.S. energy drink market continues on an explosive path and is projected to be $30 Billion by 2027.  G.O.A.T. Fuel has differentiated itself from the competition by formulating clean energy derived from plant-based adaptogens and has already demonstrated strong growth and velocities via a large distribution network.  We are excited to be partnered with Co-Founders Jaqui Rice Gold & T.J. Gold, as well as the Greatest Of All Time, NFL Hall of Famer, Jerry Rice said Stage 1 Fund Managing Partner, David Bartholomew.”

Katy Triefenbach, CEO at Stage 1 Financial added, “Over the past several months Stage 1 Financial tracked a significant decrease in the amount of invested capital in the beverage silo. However, Stage 1 Fund saw a unique market opportunity for G.O.A.T.  Fuel to take a leadership position in the growing segment of adaptogen Energy Drinks. Similar to what we saw in Lemon Perfect three years ago, G.O.A.T Fuel’s strong leadership team and unique flavor profile allow them to stand out among competitor brands entering the market. We are thrilled to partner with G.O.A.T. Fuel and project significant near-term achievements for the brand.” 

This round of funding will be their first infusion of institutional growth capital and marks a significant shift in success for G.O.A.T. Fuel.

ABOUT G.O.A.T. Fuel
Greatest of All Time. The Energy Drink that Fuels Your Greatness. Tap into the Frequency. Tap into the Mindset. Tap into YOUR Greatness. No sugar, no preservatives, no aspartame, NO EXCUSES. To learn more about their brand or to find their products please visit Goatfuel.com.

ABOUT STAGE 1 FUND
Stage 1 Fund has built a robust and proprietary pipeline of deal flow through its affiliate Stage 1 Financial, which provides outsourced corporate services to consumer companies that are potential investment candidates. This unique and advantageous model applies quantitative and qualitative protocols via the core business of Stage 1 Financial, thereby heavily vetting potential investment opportunities prior to deploying capital. Stage 1 Fund is also focused on consumer brands that are driven by sustainability, environmental concerns, female and minority-founded companies. Learn more at stage1fund.com.

For more information, contact David Bartholomew – david@stage1fund.com

SOURCE Stage 1 Fund
Related Links
http://www.stage1financial.com

Our partners at Bond Pet Foods deserve a lot of praise as they secure their Series A round of funding for $17.5 million. They have a new facility that will have its production expanded and new product lines that will be added thanks to this new infusion of cash. 

Bond Pet Foods is “Reimagining pet nutrition so people, pets, farm animals, and the planet all win. We are an Ally For All Animals.”  Check out their products and learn more at bondpets.com.

Stage 1 Financial began with Bond during their early R&D days and could not be more excited about their growth and our continued partnership. 

Read Bond Pet Food’s full press release here.

Discover more partner news here!