Our Offer to Investors

Investment Overview

We are seeking €500,000 in pre-seed capital to fund the launch and early scaling of Banan.

We propose this investment at a €2,500,000 pre-money valuation, resulting in 16.67% equity for the investor through the issuance of new shares.

Investor Profile

We are open to both passive and strategic investors, depending on the preferred level of involvement. I welcome strategic input and collaboration; however, final operational and strategic decisions remain under my authority as founder and CEO.

Equity Protection

To protect early investors, we propose an anti-dilution protection structure for the next one to two funding rounds (to be defined in negotiation). The intention is to preserve the investor’s effective stake during early scaling until the company reaches the next agreed milestone or valuation threshold.

Use of Funds

The capital will be used to execute the initial go-to-market and operational rollout. Detailed allocations are provided in the financial model.

Profit Distribution & Reinvestment

In the early stages, we propose to allocate 30% of net profits to dividends (if net profit is achieved) and 70% to reinvestment to fuel further growth. This model will apply until we reach €1 million in annual revenue, after which we will review and adjust the strategy together with our investors.

Dividend payments will begin only after the company achieves either a €100,000 cash reserve or a 15% Return on Sales (ROS), whichever comes first.

Long-Term Value Creation

We view this as a long-term partnership aimed at maximizing company valuation and delivering significant returns through equity growth and future exit opportunities.

While dividends provide ongoing value, the greatest return potential lies in long-term equity appreciation as the business scales and captures market share. We encourage investors to view dividends as part of a larger, multi-year growth journey.

How We Will Grow Together

Reinvested profits will be focused on:

• Expanding product development with new categories and improved collections.
• Scaling marketing to accelerate customer acquisition and brand awareness.
• Enhancing operational capacity in production, logistics, and customer service.
• Building a high-performing leadership and operational team.
• Strengthening financial reserves for long-term stability and resilience.

Exit and Future Funding Strategy

Target Return Horizon

Our goal is to approach operational profitability within the first 12–18 months after launch, driven by capital-efficient growth and disciplined cost management. Given the dynamics of the fashion industry, reaching sustainable long-term profitability may require a 3–5 year horizon, depending on CAC, repeat purchase rate, market conditions, and the pace of growth.

Future Rounds & Investor Protection

We plan to reserve additional equity for future investors, while offering anti-dilution protection to early investors through the first rounds of capital raising.

We are open to negotiating:

• Exit scenarios and return expectations.
• Participation in future rounds.
• Board seats or advisory roles for strategic investors.
  

Contact

If you’re interested, please write:

Leo Spektor

Founder & CEO, Banan
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