Pitch Deck Teardown: Lunchbox’s $50 million Sequence B deck

With extra and extra individuals ordering meals from residence — a pattern that gathered momentum at a time when it was safer to eat at residence than in eating places — the proliferation of so-called “ghost kitchens” is continuous apace. These kitchens deal with takeaway orders and want a layer of know-how to maintain issues working easily.

“When COVID started, all eating places had been required to have some relationship with know-how to be able to survive, however the significance of this relationship has been drastically enhanced by the rise of the omicron variant,” Nabeel Alamgir, co-founder and CEO of Lunchbox, informed TechCrunch by way of e-mail. “That is essentially the most tough wrestle eating places have ever confronted in latest reminiscence.”

Lunchbox noticed a chance, raising $20 million in 2020 after which $50 million again in February. On this put up, I’m looking on the deck the corporate used to lift its $50 million spherical and convey on board a powerful cadre of buyers.

We’re searching for extra distinctive pitch decks to tear down, so if you wish to submit your individual, here’s how you can do that. 

Slides on this deck

Lunchbox raised its $50 million Sequence B with a really tight, 15-slide deck, which the corporate very kindly shared with us. All the deck is unabridged, which makes it a very wonderful deck to be taught from. Let’s dive in:

1. Cowl slide
2. Lunchbox is the working system … — mission slide
3. Greatest Rising Manufacturers — buyer slide
4. third get together firms are costly — downside slide
5. Constructing your individual ordering system — downside slide
6. Multi functional resolution — resolution slide
7. Consequence: third get together killer — influence slide
8. Case Examine: Clear Juice — buyer deep-dive slide
9. Assembly friends the place they’re — buyer journey slide
10.   Product Led Group — product street map slide
11.   An exploding ghost market — market pattern slide
12.   Aggressive Positioning — competitors overview slide
13.   Toast vs Lunchbox — competitors deep-dive slide
14.   Future Panorama — market pattern slide
15.   Let’s get cooking — contact slide

Three issues to like

That is going to be a kind of instances after I remorse limiting myself to solely writing about three issues I liked in a pitch deck.

This deck is a grasp class in how an organization can carve out its story and showcase the way it reveals up. Lunchbox efficiently explains the way it impacts its clients’ lives with out rabbit-holing too deep into product options. It capably paints an image of precisely the way it stands out in a fiercely aggressive panorama.

The deck additionally tells us how Lunchbox can see a transparent path to an exit with out making that specific. Very properly accomplished certainly. Let’s pull up some highlights!

Illustrate the influence

[Slide 8] By exhibiting the influence on a buyer, it turns into simple to know why the corporate is vital. Picture Credit: Lunchbox

About midway by the pitch, Lunchbox performs a card — or a slide, if you’ll — that actually rams residence its raison d’etre. The slide tells the story of how Lunchbox helps a buyer — juice bar Clean Juice.

Click on “order now” on the Clear Juice web site, and also you’re taken to a ravishing, white-labeled version of Lunchbox, the place you could have the choice to decide on an outlet near you and place an order. That’s one layer of this slide — you’d finest consider that any investor value their salt would attempt to place an order from Clear Juice to see the product in motion.

Living proof: As I write this teardown, I’m saddened that the closest Clear Juice outlet is just too far-off to ship to my home. If Lunchbox is intelligent, they’d word that I submitted my tackle and would feed that again to Clear Juice to inform them that maybe there’s curiosity in an outlet in Oakland, California.

The opposite layer showcases the influence Lunchbox has had on Clear Juice with arduous information, figures and numbers — the style of storytelling buyers admire most.

A 31% enhance so as frequency, a 55% enhance in annual spend per consumer and a 41% enhance in digital gross sales per outlet, plus a 20% bump in new customers 12 months over 12 months? These are unimaginable numbers for any enterprise and will surely be sufficient to make me lean in and concentrate if I had been working a series of meals shops. Extra importantly, if Lunchbox is ready to attract a transparent parallel between the instruments and providers it gives and the sharp uptick in site visitors its clients see, it’s going to have some unimaginable gross sales collateral.

To me, the very best half about this slide is that it doesn’t go too deep into precisely how it accomplishes these numbers. Little question that’ll be a subject for dialog later within the pitch course of. As an investor, all I must know proper now’s that the product works, that the shoppers discover actual worth in it and that they’re prepared to pay for it.

These numbers inform that story in a robust manner.

Why now? For this reason now!

The most effective slides hardly ever whisper; they shout.

[Slide 11] The Why Now slide additionally consists of traction figures which can be outrageously impactful. Picture Credit: Lunchbox

My goodness, slide 11 is a shouty slide. Let me be clear: There’s no manner I’d have designed this slide like this. It’s three totally different slides masquerading as one — it tackles macroeconomic market developments (70% of eating places have used a ghost kitchen, and 69% stated they’re planning to open extra), the moat/defensibility of the product (“patented product”) and offers us the uncooked numbers.

The final bit is my favourite. Within the high proper nook, the corporate hides essentially the most spectacular stat in the complete deck in muted colours, virtually shyly telling us that it’s on an unimaginable development trajectory. It grew 541% from 2020 to 2021 and one other 365% from 2021 to 2022 to virtually $15 million in annual recurring income (ARR).

If I had been pitching this firm to buyers, these numbers can be on the second slide within the deck, and I’d be shouting about it very loudly certainly: We discovered a repeatable enterprise mannequin, and we’re elevating $50 million to lean closely on the fuel.

It’s towards this context that I like this slide a lot. It isn’t how I’d have accomplished issues, however any investor studying this is able to lean in and begin paying shut consideration. It’s a mic drop, a humble brag, a “Hey, we’ve got one thing defensible in an exploding market, and we’re hanging on tight as this rocket ship vanishes into the stratosphere.”

What this slide tells me is that Lunchbox must strive to not be wildly profitable. And that, women, gents and everybody who doesn’t determine as both, is the way you pitch a Sequence B spherical — clarify how your success is inevitable.

Does it need to be the reality? Completely; you’ll be able to’t lie. However what you can do is inform your organization’s story in a robust manner and let that be the opening salvo for dialogue between you and your buyers.

A humble brag plus a aggressive overview

[Slide 13] Lunchbox positioning itself towards Toast. Picture Credit: Lunchbox

Toast is an fascinating competitor for Lunchbox to place itself towards, not least as a result of the previous lately filed a form S-1 for an IPO and posted a (newer) 10Q quarterly report.

For those who’re not used to studying these, Alex has a fantastic analysis of the corporate’s S-1, however Lunchbox did an incredible job at pulling out the salient particulars vis-a-vis buyers taking a better look.

Realizing that Toast exists and has a current market cap of $8 billion in a market the place Lunchbox can argue that it has entry to a doubtlessly greater market is a reasonably easy manner of telling this a part of the story.

To me, this slide mainly screams, “Hey, we’re spooling up for an IPO!” Given the present fundraising measurement of $50 million, I wouldn’t be stunned if a part of the technique following this spherical is to rent a group of finance individuals, a wunch of bankers (sure, a “wunch” is a collective noun for bankers; don’t suppose too arduous about it) and strengthen the operations of the group to cement a stable development trajectory.

If Lunchbox manages to do all of these issues, an IPO would possibly turn into the logical subsequent step. Alternatively, it would spend the money on hyperscaling its development, after which elevate a Sequence C to finance the IPO course of.

One factor is for sure: This slide is putting a stake within the floor for Lunchbox to gear up for explosive development — and makes it appear completely cheap primarily based on in-market competitor predicates.

In the remainder of this teardown, we’ll check out three issues Lunchbox might have improved or accomplished in another way, together with its full pitch deck!