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CelSell Business Plan - Jan 2023.pdf

Business Plan
Rhiannon Rae Ellis rhiannon@celsell.com
August Lasseter accounting@celsell.com
Clothing and
accessories from
celebrity closets,
to yours.
Table of Contents
Executive Summary
Market Opportunities
Products and Services
Competitive Analysis
Market Dis...
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CelSell Business Plan - Jan 2023.pdf

  1. 1. Business Plan JANUARY 2022 CONFIDENTIAL Rhiannon Rae Ellis rhiannon@celsell.com August Lasseter accounting@celsell.com
  2. 2. Clothing and accessories from celebrity closets, to yours.
  3. 3. Table of Contents Executive Summary 04 Market Opportunities 16 Products and Services 12 Competitive Analysis 20 Market Distinction 08 Target Demographic 18 Product Acquisition 15 Marketing 24 Social Media Strategy 25 Public Relations 26 Community Relations 27 Management Team 28 Financial Analysis 31 References 38
  4. 4. Now you can shop celebrity closets at a fraction of the retail cost at CelSell.com. Need With the rise of social media and constant access to our daily lives, people feel more pressure to look and dress a certain way. The continuous need for new and notable clothing is expensive and not sustainable. It's simply not affordable nor easy to maintain this lifestyle. Opportunity For certain celebrities, they don’t have this problem. Brands send them a plethora of products in hopes that the celebrity will wear or use the product to gain media exposure and the celebrity association. If the celebrity receives clothing or accessories, they usually only wear the item once, and often not at all. This creates the problem of what to do with this constant stream of new products and the best way to declutter. Concept CelSell.com is a “Re-Commerce” website that sells curated consignment pieces from celebrity closets, to yours. CelSell offers consumers the ability to live a sustainable lifestyle while enjoying articles previously owned by people want to emulate. We make it easy for the celebrities and their “entourage” to put these items back into the marketplace by offering full-service “white-glove” handling of all products. In addition, we give clients the option to donate the goods and proceeds directly to those in need through our non-profit arm, The Community Closet. Have you ever wanted to dress like a celebrity?
  5. 5. Mission We provide an elevated clothing consignment platform that grants consumers access to celebrity closets at affordable pricing. These items are acquired through unique personal relationships with celebrities that make it easy for them to dispense of them with an outlet they trust. YOU MAY NOT BE A CELEBRITY, BUT YOU CAN DRESS LIKE ONE. Value Proposition CelSell.com offers consumers unique access to high-quality goods previously owned by celebrities at fair prices and a strong ethos. Consumers want stylish high-quality apparel, and we offer these items at lower- than-retail pricing since most celebrities are gifted the items free of charge. Celebrities sell with us because of the relationship, trust, ease, and goodwill. They prefer the ease of our service versus the work of attaining the highest price. Items deemed not sellable are cleaned and donated to our Community Closet, a 501(c)3 that works directly with individuals and families in need and has genuinely made a difference in their lives. CelSell is here to make an impact with the environment, community, your closet, and your wallet. CelSell is all about giving. Giving the customer the best value and service. Giving back to the community. Giving fashion a second chance.
  6. 6. Market Opportunity There’s a paradigm shift in the perception of shopping secondhand, with Millennials and GenZ powering the transformation. The secondhand resale marketplace is currently valued at $36 Billion per year and is estimated to grow to $77 Billion per year by 2025. More than ten of the top resale marketplace companies have valuations over $1 Billion, with marketplace leaders TheRealReal valued at $9.1 Billion and Poshmark valued at $7.4 Billion. Theory of Change If we make it easy for celebrities to upcycle their clothing, the community and the environment will benefit in multiple ways. Management Team CelSell has eight partners with similar yet different backgrounds to complement each other’s strengths. •The CEO has worked in sports and entertainment for 20 years and has developed personal relationships with a plethora of celebrities. She started her own agency that represents prestigious talent as well as consulting to the CEO’s of some of the largest entertainment and Fortune-500 companies. •The COO helped develop the fashion industry in Miami and launched one of its most successful modeling agencies still operating today. •The CCO of the company has 15+ years experience working in high-end fashion retail and began her career as an assistant to high profile celebrities. •The Head of Social Media strategy has a diverse background in social media and influencer marketing with an impressive track record of implementing successful viral campaigns. •The Head of Digital Marketing has worked with iHeart for 20 years, most recently as its Vice Present of Brand Strategy. SECOND CHANCE SUCCESS
  7. 7. Financial Overview Our financial projections expect us to be cash flow positive in the third year of operations with 9.5X growth year over year in the first 5 years. With our business model, we are able to benefit from lower overhead due to the fact that we do not have upfront inventory purchase costs. This is an excellent opportunity to invest in an industry that is skyrocketing with a company that is mindful of the bottom line. Operations The company is headquartered out of Florida, with a small office in California and most management team working from home. The first operations warehouse is 2500 sq ft and centrally located in Burbank, California. From there we plan to expand to a larger warehouse in California, and adding a location in Miami for easier east coast operations. Incorporation CelSell, Inc is a registered C-Corp in the state of Florida. WELCOME TO CELSELL.COM
  9. 9. MARKETPLACE DISTINCTION While there are several secondhand retailers, there is no direct competition. Creating a marketplace of celebrity curated items requires unique access to those celebrities that few people have the foundation and trust to secure. Our C-Suite team has those celebrity relationships. Everyone works so hard to think outside the box. CelSell distinguishes itself apart from other companies by thinking inside the circle. It begins with our inner circle of relationships with celebrities and their entourages for product acquisition. These inner circle relationships include assistants, managers, stylists, family, among others. CelSell's access to unique product alone sets it apart, but it's the core value of giving that separates the company from its luxury resale competitors.
  10. 10. MARKETPLACE DISTINCTION Why buy with CelSell? VALUE CelSell offers quality products at competitive pricing in the marketplace. The items are not acquired through traditional shopping outlets, so we are able to offer items at rates better than retail. This is an important separation to gain the vital GenZ and Millennial consumers who place value as their top priority. CUSTOMER SERVICE We want customers to not only dress like a celebrity, but get treated like one. CelSell is a customer-focused company that delivers an impressive user experience that goes beyond satisfaction to create happiness. We plan to have live customer service agents available 24/7 with a wait time of less than 2 minutes and a lenient return policy. CelSell is about fostering relationships and growing our inner circle. CELEBRITY TREATMENT Celebrities and VIPs are given exclusive access to styling sessions by CelSell’s Celebrity Stylist Advisory Board and styling team. In addition, CelSell’s Stylist Advisory Board works with the communications team to provide styled looks via social media weekly, and blog posts about current styles and trends.
  11. 11. 5% of all sales goes directly to The Community Closet, CelSell’s non-profit arm. Items deemed non-sellable get donated directly to The Community Closet and celebrities receive a tax- deductible letter for the value of the item. CelSell works directly with specialized non-profits to dress those in need for job interviews, work, school, and school functions, like prom. In addition, CelSell works with highly motivated individuals seeking job placement to re-enter the workforce. COMMUNITY MARKETPLACE DISTINCTION We make it easy. CelSell provides white glove service and handles all aspects of the resale. We also offer market-leading competitive commissions, charity components, and membership to celebrity access-only pages like the ShowRoom and Exchange. Most importantly, we protect celebrity privacy and property with innovative security and technology. Why CELEBRITIES want to sell with us
  13. 13. “RE-COMMERCE” PLATFORM At the core of CelSell is our “Re-Commerce” website. This is the the public platform all products are available for purchase. New products are uploaded each Thursday.
  14. 14. CelSell hosts each item for $250. The item remains on the website for three loans or three months – whichever comes first. After which, the article/item is then automatically donated to the community closet. CelSell works with up-and-coming designers to grow their brand. Each designer is given one item for free, with each additional item hosted for $100. CELEBRITY SHOWROOM When a celebrity needs something to wear to an event, they (or their stylist) contact several fashion showrooms and designers in an attempt to borrow an outfit. CelSell’s showroom streamlines the efforts and allows celebrities to shop virtually and borrow an outfit. Celebrities who sell with CelSell are granted access to this perk.
  16. 16. SIZE OF MARKETPLACE Its estimated that more than 100 Million people shopped pre-loved merchandise in 2020. According to Statista Global Survey, more than 35 million people purchased used apparel online for the first time in 2020. Another 225 Million people have said that they would be open to trying used apparel. Poshmark has more than 50 million members, and theRealReal has more than 20 million members. In 2020, Ebay has reported a 195,691% more purchases in used high-end designer fashion pieces from two years ago. As Gen Z continues to enter the marketplace and make their own money, these statistics are expected to grow, with secondhand retail expected to more than double from $36B per year to $77B within five years.
  17. 17. TARGET DEMOGRAPHIC Gen Z owns the most resale and the most luxury products of all generations. They take their style cues from Peers (48%), Celebrities and Icons (38%), Street Style (37%), Social Media Influencers (34%). Since we have a broad clientele of celebrities and entourage, our target audience is more expansive than most other niche resale sites. Our central core demographic is female, with an age range from 16- 50. Most of our clientele are employed and earn over $75,000 per year. However, Gen Z leads the re-commerce transformation, whose marketplace numbers and spending habits can only increase. Audience surveyed could select multiple options.
  18. 18. CUSTOMER ACQUISITION CUSTOMER ACQUISITION Celebrity and stylist partnerships with social promotion component Organic and paid social media content Feel-good public relations stories from our community closet Initial cross platform product listings CUSTOMER EXPERIENCE WELCOME TO CELSELL.COM User-friendly website First-time discount code Free Shipping over a certain amount SHIPPING AND PACKAGING Upscale branded shipment packaging Same-day shipment if before 3 PM 2-3 Day Shipping CUSTOMER SERVICE Customer service is the top priority Live agent customer service is available 24 hours per day We will work with each customer to make sure any problems are solved to customer satisfaction CLIENT RETENTION Public: VIP Loyalty Program Celebrity: Customer Referral Program
  19. 19. • TheRealReal: Founded 2011. Valuation $9.1B (2021) Luxury Consignment. Full service sales. • Poshmark: Founded 2011. Valuation $7B (1/2021) Secondhand Consignment. Peer to Peer Platform. • StockX: Founded 2015. Valuation $3.8 Billion (4/2021) Consigned Luxury Sneakers. Peer to peer platform. • GOAT (includes Flightclub): Founded 2009. $3.7B (6/2021) Consigned Luxury Sneakers. Blend peer to peer and full service. • Depop: Sold to Etsy for $1.6B (6/2021) Started as a social platform, transformed into secondhand consignment. • Fashionphile: Founded 1999. Valuation $1.4B (5/2019) Consigned clothing and accessories. • ThredUp: Founded 2009. Valuation $1.3B (3/2021). Lower-end secondhand consignment. Full service sales. • Tradesy: Founded in 2012. Valuation $1.1B (2/2021) Secondhand Consignment. Peer to Peer Platform. • Vestiaire Collective: Founded 2009 $1.1 Valuation (3/2021) Luxury Consignment. Full service sales. • Rebag: Founded 2014. Valuation $1.11B (5/2021) Luxury handbag consignment. Full service sales. • FarFetch: Founded 2009. $6.2B Valuation (2018) New and used boutique marketplace • 1stdibs.com: Founded 2001. Valuation $500 M (2019) Competitive Analysis More than 10 of the top resale E-commerce companies are worth over $1 Billion within 10 years.
  20. 20. SWOT ANALYSIS STRENGTH As celebrities continue to wield influence over the public, the allure of celebrity-owned items creates a new marketplace opportunity. Brands continuously gift celebrities apparel in hopes of receiving exposure. As we establish the CelSell brand and grow our celebrity reach, we anticipate the brands will partner with us directly to reach the celebrities and associate their brands with us. WEAKNESS The downside to our niche distinction is that we are limited by the number of sellers in our marketplace. We only allow celebrities and their entourage to sell with us; therefore CelSell can only grow so much vertically. However, we can continue to expand horizontally and move into the other marketplace items such as home furnishings, artwork, and more. OPPORTUNITY Among all of the re-commerce companies, no one has started to push the celebrity closet angle. As this is a difficult challenge for other companies, CelSell’s opportunity is to capitalize on its relationships and "know-how" to achieve the celebrity closet component and receive a piece of this fast-growing industry. THREAT There is the potential that an industry leader with capital such as TheRealReal spends upfront money for celebrity access and endorsements.
  21. 21. FUTURE GROWTH The resell marketplace average boasts a company growth of 23% year-to-year for the past ten years. We have estimated a sales growth of 20% for these time periods in our standard operations. As previously mentioned as a potential weakness, our vertical growth of acquiring new celebrity apparel has a threshold. CelSell has identified numerous opportunities to expand growth within our core product structure. CURRENT EXPANSION / VIP LEVEL CelSell is currently focused on acquiring more product. We have soft launched in November 2021 with 500 pieces and hope to formally launch in Late Spring / Early Summer with 3000-5000 pieces. Our primary focus is customer service and offering the best products and services to consumers. To begin, we will offer complimentary styling services. As we grow our customer based, we plan to offer our “Sellebrity VIP Membership” that grants members first access to new products a day early and continued complimentary wardrobe styling. PRODUCT EXPANSION Once established, CelSell can grow into a marketplace for all celebrity items, including home furnishings, artwork, and more. For example, many actors purchase all new furnishings while filming on location in another city and just abandon these items because it is easiest for them. CelSell can work with this talent to list the items for sale or donate to local charities in need.
  22. 22. FUTURE GROWTH TECHNOLOGY DEVELOPMENT SALES APP In the company’s immediate technology development roadmap, we plan to develop and launch the CelSell App available on both apple and android platforms. Based on our Friends and Family trial and industry leader stats, we expect 70% of our customers to access the store via mobile. As we continue to assess the company, client, and customer needs, we plan to move into cutting- edge technology that includes AR shopping, authentication, and tracking practices. ORGANIZATION APP We are currently in the final stages of a custom app development that organizes all of our inventory. This app will be made available for celebrity use to organize their personal products as a perk for their partnership. There has already been outside interest to license and white label the organization app. SHOWROOM EXPANSION The showroom works with brands and designers to feature articles in our virtual showroom for celebrity-only access to borrow. With a proven track record, this showroom should continue to expand and diversify. We anticipate multi-tiered brand partnerships that would continue inclusion in the showroom, promotion through the sales channel, and celebrity placement. To launch, we are currently offering up-and-coming designers free placement of one item, and a low fee of $100 per additional item. For established brands, this begins at $250. As we grow our relationship rolodex, we anticipate this to attract large-scale brands that pay between $10,000 - $50,000 per month for celebrity product placement.
  23. 23. $10M Approximate CelSell Valuation GROWTH TIMELINE 2020 •April - CelSell Idea Conceptualized •August - First Celebrity Items Placed with CelSell •October - Founding Members Organized •November - Warehouse Space Leased in California 2021 •June - First Community Closet Donations •July - Beta Website Testing for Friends and Family with 300 Items •September - First employee hired •November - Begin Celebrity Outreach Soft Website Launch with 500 Items •December - Organization App Developed for Celebrity and In-house usage 2022 •January - Seed Round Opening •March - Acquire Larger Warehouse Space •May - Formal Website Launch with 3000 Items Launch Event hosted by Ashley Greene •Summer - Hire Key Executives Beta Testing of Celebrity Showroom 2023 •January - Average of 10,000 items with DSI of 60 Launch Mobile App Formally Launch Celebrity Showroom •July - Average of 20,000 Items with DSI of 45 2024 •January - Average of 50,000 Items with DSI of Industry Avg 30 Days Acquire East Coast Warehouse Space 5-10 Retainer Brand Clients for Celebrity Showroom
  25. 25. All facets of CelSell’s social media and public relations campaigns work together to present a cohesive, upscale, and philanthropic brand message. To launch, CelSell will focus on Community Closet initiatives paired with celebrity participation to generate a "feel-good" buzz that will garner traditional press and be shared throughout social media channels. In addition, CelSell plans to host regular fashion shows, clothing drives, and makeovers for those in need, partnered with our celebrity ambassadors. CelSell is building both celebrity and celebrity stylist advising boards. Both of these groups will provide the company with credibility, expertise, and relationships. Additionally, CelSell will utilize these two groups in conjunction with using other celebrity relationships for photoshoots and social media exposure. With our in-house event team, CelSell will regularly host the Empoweress Luncheon, a celebrity networking lunch that highlights entrepreneurial initiatives with industry leaders. This event provides regular pop culture coverage and continued association with additional celebrities. Marketing
  26. 26. All facets of CelSell’s social media and public relations campaigns work together to present a cohesive, upscale, and philanthropic brand message. To launch, CelSell will focus on Community Closet initiatives paired with celebrity participation to generate a "feel-good" buzz that will garner traditional press and be shared throughout social media channels. In addition, CelSell plans to host regular fashion shows, clothing drives, and makeovers for those in need, partnered with our celebrity ambassadors. CelSell is building both celebrity and celebrity stylist advising boards. Both of these groups will provide the company with credibility, expertise, and relationships. Additionally, CelSell will utilize these two groups in conjunction with using other celebrity relationships for photoshoots and social media exposure. With our in-house event team, CelSell will regularly host the Empoweress Luncheon, a celebrity networking lunch that highlights entrepreneurial initiatives with industry leaders. This event provides regular pop culture coverage and continued association with additional celebrities. Marketing
  27. 27. Instagram: 1.38B Users / Largest Age Group: 25 - 34 (33.1%) TikTok: 748M / Largest Age Demographic 18-24, 59% Female Snapchat: 514M / Largest Age Demographic 18-34 (75%) Pinterest: 478M / Largest Age Group 30-49, 78% Female Facebook: 2.85B / Largest Age Group: 24-34 (26.3%) YouTube: 2.29B Users Twitter: 430M / Largest Age Group: 30-49 (44%) Reddit: 397M LinkedIn: 738M / Largest Age Group: 46-55 Teens' Favorite Social Platform: Snapchat 34%, TikTok 29%, Instagram 25% Via Statista 7/2021 Social Media Strategy Social media platforms are transforming the way consumers shop. 52% of socially engaged consumers have purchased products directly through social platforms. As the shopping landscape continues to evolve, brands with innovative platforms will emerge to thrive. As TikTok has proven, any brand or personality can break through. One creative TikTok can revolutionize a small business. CelSell management has extensive experience in digital marketing, social media strategy, and influencer campaigns. The brand is actively planned across all platforms to maximize outreach, with specialized focus on Instagram, TikTok, Snapchat, and Pinterest. Overall Active Monthly Social Media Platform Users
  28. 28. Overview CelSell uses an integrated communications approach, aligning marketing, social media, and public relations efforts. The following items are public relations specific activities; however, CelSell's social media strategy will promote specific communication components. Marketing activities primarily focus on promoting CelSell products or product lines. However, all marketing components must align with the key messaging and overall use of CelSell's brand voice, as noted in its communication plans. Public Relations Strategy Communication Goals (2021-2022) • Build brand awareness of CelSell with target demographics • Acquire new celebrity partners • Attain placements in pop culture trade magazines (digital) • Expand industry awareness of the benefits of celebrity consignment • Increase donations towards The Community Closet and nonprofit contributions Strategy & Tactics (Paid, Earned, Shared, Owned Media) Internal • Explanation of top-level goals and timeline of plans to all members from founders • Monthly business updates to all partners and investors External Traditional Press Releases (Owned/Earned Media) 1. Launch 2. Community Closet Success Story (first major success) 3. Launch of a new partnership for named celebrity collections 4. Announcement of new nonprofit donations (large donation) CelSell Blog Page (Owned/Shared/Earned Media) • Blogs about Community Closet Success Stories • Fashion Tips blogs • Seasonal Trend blogs • Guest Blog Post from named celebrities Publications (Paid Media/Shared Media) • Interview with CelSell founders or a celebrity • Digital publications such as Just Jared or US Weekly • Seasonal Fashion Reviews • Publications like People Magazine
  29. 29. “This is the first time I’ve felt like myself in years” -Mykel, Clothing recipient for a job interview, and subsequent new job. Recently brought on board to the CelSell Team The Community Closet The Community Closet is the cornerstone of the community relationship initiatives. This non-profit arm of CelSell works directly with other specialized non-profits and organizations to provide immediate clothing to individuals in need. Clothes submitted to CelSell go through a thorough inspection process and some items are automatically donated to The Community Closet. In addition, 5% of all proceeds from CelSell go directly to The Community Closet.
  30. 30. MANAGEMENT
  31. 31. Management Team Rhiannon is an established entertainment and sports executive equipped with 20+ years of diverse experience managing high-profile talent and brands. She has a successful track record of developing ground-breaking ideas and leading teams to effectively implement activations for clients across a multitude of needs. Rhiannon is the CEO of CelSell overseeing all facets of relationships, development, and operations. She attended Harvard University for a Master’s in Business Management earning Dean’s List honors. Rhiannon Rae ELLIS CEO Augie Lasseter is an entrepreneur born and raised in Miami, FL. He is the founder and owner of FRONT Management, a modeling agency based in Miami Beach which has been providing fashion models for major brands since 2006. He has launched several successful startups and has worked in Public Relations and Event Planning prior to his current ventures. Augie acts as the COO of CelSell, overseeing operations as well as providing valuable input for branding and logistical business operations. Augie LASSETER COO Julia is a 15-year veteran of the high-end luxury retail industry with an extensive background working with celebrity and high net worth clientele, delivering an extraordinary luxury shopping experience. During that time, she developed strategies to grow several of the top boutiques in Southern California by increasing repeat business from high-value customers. She began her professional career as a personal assistant to high-profile celebrities. Julia Anderson Durst Product & Talent Yadia Suarez has worked on various sides of the advertising and digital marketing industries both in-house and with agencies. Her experience ranges across multiple verticals including: Yadia SUAREZ Social Media and Influencer Marketing To successfully execute the ideas set forth by CelSell requires a truly specialized set of relationships and network. The management team assembled is uniquely qualified to deliver these attributes.
  32. 32. Management Team Brian McAleer has worked for decades across the US at iHeartRadio Inc, currently VP of Branding. He is also CEO of Gent Life, a lifestyle publication focused on travel, fashion, mindfulness and leisure. His experience has been primarily in brand development & influencer strategy working with talents & digital content creators. Brian is a graduate of Cornell University where he achieved recognition and status with the National Society of Collegiate Scholars BRIAN MCALEER Bronwen Peach has a vast background of professional experience. She spent 5 years managing talent in the entertainment sector with a specialty in balancing the demands of both client and talent needs. She is an organizational savant with experience managing high-end retail and hospitality properties. She is well researched across all re-commerce sites as one of their top buyers. BRONWEN PEACH Troy Senkiewicz has over 20 years of experience developing technology solutions for major motion picture studios, tech startups and various military and government agencies. He is founder and President of DigiMax Productions, LLC, a system integration company based in Los Angeles, CA. Clients include DARPA, The NRO, Boeing, DreamWorks Studios, MLB and Lollapalooza. Troy has held C-Level positions at multiple tech startups and has expertise in operations, logistics, R&D, data analytics. security, augmented reality and virtual reality. Troy SENKIEWICZ Matt Gilhooly is a creator and communicator. He has worked in higher education and start-up organizations in a variety of management roles. In all professional experiences, Matt relies on his ability to communicate with various audiences in ways that cater to the needs and desires of everyone. He believes that we must take time to support the people around us to achieve success. Matt is a Public Relations graduate student at the University of Florida and earned his MBA from the University of Central Florida in 2004. Matt Gilhooly Digital Marketing and Brand Strategy Operations and Branding Corporate Communications Security and Technology
  34. 34. Financial Analysis More than 10 of the top resale E-commerce companies are worth over $1 billion within ten years of launch. Competitors have seen an average growth of 45% in 2021 and 56% in 2020. Our projections are based on our 5-week- soft launch numbers and ability to manage growth at a reasonable rate. CelSell is estimated to be profitable with a foundation for exponential growth beginning in year three.
  35. 35. Financial Analysis
  36. 36. Cost Management CelSell's cost management procedures include planning, estimating, budgeting, financing, funding, managing, controlling, and benchmarking costs so that each department works within the approved budget and improves performance over time. We have incentivized a team of experts with equity partnerships who manage and execute the company vision effectively. Industry leaders in branding, finance, operations, public relations, digital marketing, and fashion who have unmatched networks and experience will keep our costs well below market average. Each division is tasked with researching the most efficient methods to maximize output while managing cost control. In addition to exploiting the knowledge and relationships of our board of industry experts, we have stringent inventory management protocols and systems to restrict the overhead and warehouse costs.
  37. 37. $10M Approximate CelSell Valuation Financial Analysis There are many different methods of reaching a proper valuation. Due to the relative infancy of this marketplace, it is difficult to find comparable financials. However, we used TheRealReal as the closest comp because it is a publicly- traded company, and we could access its financials. We based our valuation on TheRealReal's public IPO due to open litigation, which is currently hurting its stock price. TheRealReal had an IPO valuation at $1.6B at $20 per share price. Its assumption was a 23% CAGR. We have chosen a more conservative growth rate of 20% in our financials. TheRealReal at IPO was based on an 8X multiplier based on gross profit. Therefore taking the gross profit for 2023 and using an 8X multiplier arrives at a valuation of approximately $10 Million for CelSell. We have projected that a seed raise round investment of $1M is needed for startup and working capital for year one. We envision all future expansion initiatives to be funded through our own free cash flow. $100,000 investment in the seed raise equals 1% of company equity in Class B shares. Dilution will be a board decision. Valuation
  38. 38. USE of Funds
  39. 39. TESTIMONIALS Celebrity Feedback: “CelSell is a life saver and game changer! You make my life so much easier and organized!” “This is such a great idea! It saves me time and space while making extra money and helping others.” Customer Feedback: “The website looked great, and checkout was really easy.” “The order arrived quickly, and the packaging was just so nice and pretty.” “Let me know when you get more product; I wanted to buy even more.”
  40. 40. Approximate CelSell Valuation REFERENCES “Luxury Resale: How Blockchain Helps Fight Counterfeit.” Luxe Digital, 11 Aug. 2020, https://luxe.digital/business/digital-luxury-trends/luxury-resale- blockchain/ Markets, R. A. (2021, April 7). Outlook on the Luxury Resale Global Market to 2025 - Increasing Middle Class Population and Spending is Driving Growth. PR Newswire. https://www.prnewswire.com/news- releases/outlook-on-the-luxury-resale-global-market-to-2025--- increasing-middle-class-population-and-spending-is-driving-growth- 301264158.html Statista. (2022, January 13). Value of the secondhand market worldwide from 2012 to 2025. https://www.statista.com/statistics/826162/apparel- resale-market-value-worldwide The RealReal Resale Report (2021) https://www.therealreal.com/resalereport2021 “The Rise of the Resale Market: The Landscape inside the Fashion Industry's New Mindset.” ELLE Education, https://elle.education/business/the-rise-of-the- resale-market-the-landscape-inside-the-fashion-industrys-new-mindset/ ThredUp Resale Report (2021). https://www.thredup.com/resale/#resale-industry
  41. 41. CONTACT RHIANNON RAE ELLIS Co-Founder and CEO rhiannon@celsell.com 786-282-5959