Woolies Jeans

Hello Everyone,

We are extremely thrilled with how our PledgeMe crowdfunding campaign has gone so far! We have raised over 5 times our minimum target, so are very appreciative of all of the support!

We look forward to being able to share all of our business success with our new investors in Woolies Jeans as we embark on this incredible journey.

With there now bbeing only 24 hours left of our crowdfund, this will be your last chance to purchase additional shares, before the crowdfund closes once and for all. 

Here is a link to the PledgeMe Campaign - 

https://www.pledgeme.co.nz/investments/491-woolies-jeans

Thank you everyone,

Woolies Team

Update to our Investors on our Valuation

To our investors,

Part 1: Introduction

We have been asked to provide more information in regards to our post-raise company valuation of $5,000,000 using the Berkus Method.

We would like to take this opportunity to explain how we have used the original Berkus Method (invented in 1995) and have adjusted it for inflation and USD to NZD exchange rates.

Outlined below is how we have applied the Berkus Method including the assumptions made and how value has been assigned to each of the ‘key drivers’ of the model to arrive at our company valuation.

Part 2: Opportunity to exit investment

If you would like to cancel your pledge and withdraw from the equity crowdfunding campaign you may do so by sending an email to [email protected]

If anyone has a problem with our use of the Berkus Method or valuation, we would like to take this opportunity to give everyone the option to cancel their Pledge. 

Part 3: Our explanation of valuation and use of the Berkus Methodology

The maximum valuation a pre-revenue company can have using the Berkus Method is $2M USD.

The maximum assigned value to each value driver is $500K USD.

We have adjusted this to take into account inflation from when the method was created in 1995.

We have also adjusted this to take into account currency conversion between USD to NZD.

This can be seen below resulting in a final equation of 5,317,278.33 NZD as of 1st December, 2021.

3.1 Break down of our use of the Berkus Method


For the purposes of keeping the Share Price at $1.00 we have rounded this figure down to $5M NZD.

3.2. What is the Berkus Method?

The Berkus Method is a way to value early-stage companies, especially those in technology, developed by American angel investor Dave Berkus in the mid-1990s.

Source: https://www.ilab.ceu.edu/articles/4-best-ways-to-calculate-valuation-of-a-startup

3.3 Why was the Berkus Method used for the valuation of Woolies?

The Berkus valuation method is a straightforward model to value a  pre-revenue company. The Berkus method gives entrepreneurs and early-stage investors a simple tool to value a pre-revenue startup by focusing on risk factors instead of financial projections.

The Berkus method offers budding entrepreneurs and early-stage investors a straightforward framework that allows them to focus on the risk factors rather than final projections to estimate a pre-revenue startup. However, this method’s integrity is not a replacement for the startup’s need to conduct comprehensive due diligence.

3.4. How does the Berkus Method work?

The Berkus Method assigns a number, a financial valuation, to each major elements of risk faced by all young companies – after crediting the entrepreneur some basic value for the quality and potential of the idea itself. 

Below is each of the major elements and assignment values sourced from Berkonomics.com.

Source: https://berkonomics.com/?p=1214

Below is an assessment of how we have used the Berkus Method in relation to our current business position.

Please note: These value drivers have been updated on 02/12/21.

✅ Sound idea ~ NZ $1,326,030.10 (Inflation Adjusted / Currency Adjusted)

Non Inflation / Non-Currency Adjusted = $500K USD 

We feel we have created a product which can improve the quality and comfort of work wear.

✅ Prototype ~  NZ $1,326,030.10  (Inflation Adjusted / Currency Adjusted)

Non Inflation / Non-Currency Adjusted = $500K USD

We have developed a prototype which is ready for sale to customers.

✅ Quality Management Team ~  NZ $1,326,030.10 (Inflation Adjusted / Currency Adjusted)

Non Inflation / Non-Currency Adjusted = $500K USD

A balanced management team with success in previous business endeavours.

✅ Strategic Relationships ~ NZ $1,326,030.10 (Inflation Adjusted / Currency Adjusted)

Non Inflation / Non-Currency Adjusted = $500K USD

Established relationships with a network of NZ farmers.

Note: We have rounded down our post-raise valuation of $5,317,278.33 NZD to $5,000,000 NZD to allow for a Share Price of $1.00.

3.5 How has Woolies arrived at our post-raise valuation of $5,000,000 NZD using exchange rate and inflation adjustments?

As outlined above in the Berkus Method, the maximum pre-revenue valuation for a start-up using the Berkus Method allows for a valuation of up to $2 million.

We have adjusted this maximum to include inflation adjustments and USD to NZD currency conversion as follows:

$2,000,000 USD inflation adjusted from 1995 – Present Day = $3,629,776.90 USD


Source: https://www.usinflationcalculator.com

$3,629,776.90 USD exchange rate adjusted from USD to NZD = $5,317,278.33 NZD

Source: https://www.google.com/search?q=3%2C629%2C776.90+usd+to+nzd

We would like to send this message to say thank you so much to all of our new investors for your support.

There are now only 4 days left of the crowdfund so the opportunity to purchase shares is now coming to an end.

To purchase shares, simply click on 'Make a Pledge' on the Pledgeme website. If you have already invested, it is still possible to purchase more shares.

We are extremely excited about what the future will bring and how we can grow our incredible product.

During the crowdfund, we have been testing our protypes on some individuals, who have arthritis, that have indicated that their knee pain has been significantly reduced, due to the anti-inflammatory nature of our merino, in Woolies Jeans. 

We all look forward to seeing how we can continue research on this next year and how we can communicate this potential benefit to our future customers.

We also look forward to sending the first lines of our jeans to all of the investors, who have invested at least $2,500.

Have a fantastic day, and make sure to tell a friend about Woolies Jeans!

Kind Regards,

Woolies Team

Woolies Jeans, a startup company created by farmer Jovian Garcia-Cummins, has completed the first of a 2 month equity crowdfunding campaign via PledgeMe, generating $239,476 in new funds. The investors are not the typical private equity or angels, but rather 175 fans, who turned their enthusiasm into company shares.

Woolies are not your everyday jeans. They are designed to ‘keep you cool when you are hot and warm when it’s cold’ and utilize NZ Merino to do so. “They will be the most comfortable pair of jeans on the market - always made in NZ” says founder Jovian Garcia Cummins. The jeans are lined with a special type of merino so customers get a traditional jean exterior denim look, with a comfortable merino interior.

The crowd-funding campaign, which kicked off in early October, hit its minimum target of $50,000 within a few days. The average investment has been around $1,400 per person. New investors can still invest via Pledgeme.co.nz and clicking on the Woolies Jeans Campaign. Investors who have already invested are still able to invest more - should they decide to do so.

The company is aiming to take ‘NZ Made’ merino wool jeans worldwide and is planning on using the crowdfunding funds to do so.

“I want to give everyone the opportunity to invest into this company from day 1,” Jovian Garcia-Cummins says, of the brand’s decision to raise money via the crowdfunding route with PledgeMe.

“A friend of mine was extolling the crowd-funding space. It’s the ultimate smart money because you’re raising money from people who love your product and will evangelise and become advocates for your brand.”

“Not only will they invest and buy your product, but they will tell other people about and spread the word,” he adds. And just like that: Woolies Jeans has nearly 200 new brand ambassadors.

Still, Garcia-Cummins says, the crowd-funding bet wasn’t a sure thing. There are plenty of start-ups that fail to meet their goals. And there’s a lot of preparation before the launch, including investor videos, decks, and PledgeMe checks.

Now facing a waiting list and an increasing demand for his product, Garcia-Cummins says he’s very excited for what might unfold in 2022.

Following the successful fund raise, Woolies Jeans is planning on an expansion for the brand, including putting out a mens and women’s line of merino lined jeans and making available worldwide.

To find out more and check the progress of the crowdfunding campaign, go to https://www.pledgeme.co.nz/investments/491-woolies-jeans

Thank you! It's been a fantastic start to the campaign - more than 100 of you have joined us as owners and shareholders of Woolies Limited.

It's thanks to people like you that we're here, about to take NZ merino jeans to the world stage and help NZ so much!

We are extremely excited about producing these jeans on scale and to have so many happy customers, when they buy these jeans!!

It's so encouraging to read the comments our investors make when they pledge.

Thanks for your support!

Woolies Team

Thank you so much to everyone who has already backed this exciting company - let's all take these jeans WORLDWIDE!

We've hit the minimum investment we need to raise but we really want to achieve our maximum investment target of $500,000. We are very grateful for all of your support!

Here are the links of some of the media Woolies Jeans has been in -

Stuff.co.nz -
https://www.stuff.co.nz/life-style/fashion/126552894/shearers-plan-to-create-the-worlds-most-comfortable-pair-of-jeans

NZ Herald -
https://www.nzherald.co.nz/hawkes-bay-today/news/hawkes-bay-shearer-fed-up-with-uncomfortable-pants-launches-merino-jeans/SVANQYIZHC67OXJHQFNVC25ERU/

Otago Daily Times -
https://www.odt.co.nz/rural-life/rural-people/shearer-aiming-take-jeans-product-world-stage

We are thrilled to have you all onboard as investors! Please feel free to invest again or share the Woolies Jeans crowdfund with friends and family as we enter this amazing journey together.

Thanks so much and I hope you enjoy the audio of Jovian LIVE on the Jono and Ben Show linked below:

https://www.youtube.com/watch?v=MFfDkrzPlI8