Mitte, a new spin in the home beverage space that is like a Nespresso product but for water, is crowdfunding on Republic.
The Berlin-based company is raising debt capital using a “Crowd SDA” [Crowd Simple Debt Agreement] seeking up to $100,000. Mitte previously ran rewards/e-commerce campaigns that have yet to deliver on the actual product. In 2018, Mitte received a significant vote of confidence in their product as Danone Manifesto Ventures led a $10.6 million crowdfunding round.
So why is Mitte special and worth the attention?
Sure, there are plenty of water filter type products in the market. What Mitte does differently is the product allows users to custom create their own water. Mitte explains:
“Water can be an essential source of minerals for the human body, and many minerals have higher bioavailability in water than in food, such as calcium and magnesium. However, other water purification systems remove important minerals in water along with the contaminants, creating water that’s pure but not healthy.”
Purified water is pretty bland. Most bottled waters include trace minerals that add character and flavor to the liquid. Mitte is designed to allow users to add some of these nutrients back. By using their custom cartridges you can create an in-house spring water type product – similar to what you may be buying on the grocery shelves – minus the plastic.
Moritz Waldstein, CEO of Mitte, says that by investing in Mitte you’re directly participating in their work towards a future where healthy hydration is available to all in a convenient, affordable, and environmentally sustainable form. Where people can choose the water that suits their tastes.
Any funds raised on Republic will be used to market the service in the US this year.
The business model is similar to Nespresso or perhaps SodaStream plus.
Mitte’s campaign (and co-founders) are scheduled to be featured on Meet the Drapers on January 27 on Sony Pictures Networks. This should be a decent marketing boost for the product.
So why crowdfund after raising ten million plus from Danone?
Mitte posted recently:
“The purpose of this investment campaign is to allow for our community, most of which are non-accredited investors, to participate in a round of fundraising that will contribute towards our short-term marketing activities and launch efforts in the U.S. market this year. It’s a platform for us to involve our community to share in our success and grow with our business.”
The Republic debt offering is probably more marketing driven than an actual need for new capital.
The rewards/e-commerce campaigns have been a bit of a ball and chain around the company as they, so far, have failed to deliver like so many other pre-commerce campaigns before them. Backers are pretty unhappy – and understandably so. But there may be an opportunity for Mitte to gain a foothold in the US market where clean water and home beverages have become quite popular.
If you invest, the Crowd SDA holds a term of 5 years and a return of 1.5X.
Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!