# Seedo Financial Model Seedo makes fully automated, AI-driven indoor grow devices and containerized commercial farms for cannabis and other crops. - Canonical: https://finamodel.com/startups/seedo - Excel download: https://finamodel.com/startup-models/seedo.xlsx - Category: Hardware/Deep-tech - Model type: SaaS ARR / Valuation - Funding round: Series A - Founded: 2019 - Geography: Israel (headquarters / commercial farms); shipping to U.S. and Europe (B2C) - Customer: B2C ## About the company Seedo builds automated AI-driven indoor grow devices and containerised commercial farms for cannabis and other crops. Its controlled-environment technology aims to make cultivation more predictable, linking physical equipment to software, installation, ongoing operations, and evidence of crop-performance improvement. The business requires customers to accept high upfront equipment and installation costs in return for automation and production benefits. Commercial success depends on crop yields, reliability, financing availability, and the ability to provide service after deployment; these factors matter before a hardware order becomes a repeatable sales model. Model units sold, ASP, installations, service revenue, crop capacity, utilisation, and expansion. Include hardware manufacturing, shipping, installation, field service, software, working capital, and financing costs. Yield proof, sales cycles, equipment margin, installation capacity, service attach, customer financing, and uptime should drive scenarios. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition Two product lines: **B2C - Seedo Home** - Fully automated countertop/home grow device; seed-to-harvest with no user intervention - AI + computer vision optimises growth cycles; data feeds central Agronomy Database - Sealed, pesticide-free environment; 24/7 growth regardless of climate or season - Claims customer ROI in under one year vs. buying cannabis **B2B - SeedoFarm** - Commercial-scale, multi-story containerised cannabis/vegetable farms - Yield advantage: 12,000 kg per 1,000 sqm/year at 5-floor configuration vs. 625 kg for a controlled greenhouse - Registered UN Vendor with access to $4B annual budget across 35 UN organisations - Revenue-share partner model on operational farms (Kibbutz Dan, Moshav Brosh) **Proprietary moat:** Agronomy Database - aggregated sensor/image data from all deployed units, driving continuous ML improvement. Projected 26,280,000 hours of data/year by end 2019. ## Market - Legal cannabis market today: $9.5B - Legal cannabis market in 2025: $55B - Overall cannabis market (legal + illegal) in 2025: $150B - Cannabis users aged 15–64 globally in 2016: ~192M - Global smart agriculture market 2017: $9.58B - Global smart agriculture market projected 2022: $23.15B - AgTech investment flow: $16.9B, +43% YoY ## Revenue model **B2C streams:** 1. Hardware sale - Seedo Home unit at $2,400 per unit 2. Recurring consumables - $300 per unit per year (filters, nutrients, etc.) **B2B streams:** 3. SeedoFarm equipment / project revenue - exact pricing not stated; farm partnerships structured as revenue-share (Seedo is "partner sharing in the project's revenue") 4. UN tender contracts - project-based; size not disclosed **Channels:** Direct (pre-order via website); shipping to U.S. and Europe; distributor / channel partner agreements in progress **Manufacturing:** Up to 2,000 home grow units/month current capacity ## Traction & metrics - Pre-orders: >3,000 Seedo Home units - Pre-order deposits received: $2.8M as of March 31, 2019 - Manufacturing capacity: up to 2,000 units/month - Now shipping to U.S. and Europe - Agronomy DB projection (end 2019): >3,000 units online, 72,000 hours data/day, 26.28M hours/year - Community: 300,000 subscribers; 50M+ Facebook views; 1M YouTube views; 85,000 Facebook followers; 43,000 Instagram followers - Strategic investment: Cannabics Pharmaceuticals invested $2M in Seedo - Kibbutz Dan commercial farm: est. 14 tons dry cannabis / 36 months → ~$24M estimated revenue - Moshav Brosh farm: 12 tons dry cannabis inflorescence/year by year 3 - Equity metrics (at time of deck): OTC SEDO; ~$2/share; ~$42M market cap; 20M shares outstanding; ~40% insider ownership; ~17,000 avg daily trading volume ## Unit economics - ASP (hardware): $2,400 - Annual recurring (consumables): $300/unit/year - Claimed customer ROI: <1 year (from avoided cannabis purchases - not modelled) ## Competition / moat - Deck does not name direct competitors explicitly - Moat claims: - First-mover in fully automated home grow (no user intervention) - Proprietary Agronomy Database with network effects as unit count scales - AI/computer vision plant models continuously improving - Sealed/pesticide-free system differentiates on quality - Yield superiority vs. greenhouse / indoor at scale (5-floor SeedoFarm: 19x a controlled greenhouse) - Registered UN Vendor status - Patent/IP position: Not mentioned in deck ## Team & funding ask / use of funds **Leadership (slide 28):** - Zohar Levy - CEO & Chairman - Daniel Birnbaum - Director (then-CEO of SodaStream) - Attorney Pninat Yanay - Director - Dr. Jendayi Frazer - Director (former U.S. Assistant Secretary of State for African Affairs) - Michael Maman - CTO & Director - Yaakov Hai - Head of Agronomy - Uri Birenberg - CFO - Sagi Peled - COO --- ## Recommended financial model - **Archetype + why:** Dual-segment hardware + recurring revenue model with a B2B project P&L overlay. - B2C segment: hardware unit economics model (cohort-based: units sold × ASP + installed base × consumable ARPU). Mirrors a DTC hardware company with a razor/razor-blade dynamic. - B2B segment: project-level P&L for each SeedoFarm (revenue-share % × farm revenue, or equipment sale + service). Pipeline-driven, lumpy. - Not a SaaS ARR model (no software subscription). Not a marketplace or usage-based model. Not an M&A or SPAC deck. - **Forecast horizon & granularity:** 3 years (2019–2021), quarterly for B2C (to track backlog conversion and consumables ramp); annual for B2B project pipeline. - **Key drivers & assumptions:** - B2C - Units shipped per quarter: start with 3,000 pre-order backlog to ship in H2 2019; ramp thereafter; capacity ceiling 2,000/month → utilise ~60% in Y1 ramp, scaling to ~90% by Y2 - B2C - ASP: $2,400/unit - B2C - Consumable attach rate: 70% of installed base purchasing consumables annually (some churn, some grow-own nutrients) - B2C - Consumable ARPU: $300/unit/year - B2C - Gross margin on hardware: 30–40%; hardware-first consumer AgTech typically 25–45% at low-volume production - B2C - Gross margin on consumables: 60–70%; closer to consumables/SaaS economics - B2B - Active farms: Kibbutz Dan (est. $24M over 36 months ≈ ~$8M/yr at plateau); Moshav Brosh 12 tons/yr by year 3; revenue-share % not disclosed → Seedo captures 15–25% of farm revenue - B2B - Cannabis price/kg: ~$3,000–5,000/kg medical-grade Israel (Seedo-quality pesticide-free); not in deck - UN/institutional - pipeline value: 1–2 contracts/year in Y2–Y3; individual contract size unknown; treat as upside scenario only - OpEx: team ~15–20 FTE at deck date; R&D-heavy; cash burn not disclosed - FX: Israeli ops in ILS, B2C revenue in USD/EUR; stable FX for base case - **Scenarios (Base / Bull / Bear - which variables flex):** - Base: Ship 3,000 pre-orders by Q3 2019; add ~500 new units/quarter; 2 SeedoFarm projects at plateau revenue share - Bull: Manufacturing runs at full 2,000/month by Q4 2019; 3+ commercial farm projects; UN contract awarded Y2 - Bear: Pre-order fulfillment delayed (common in hardware); consumable attach rate <50%; commercial farms delayed past 36-month ramp - **Required sheets / outputs:** 1. Assumptions - all drivers, toggleable by scenario (Base/Bull/Bear) 2. B2C Revenue - unit shipment schedule, installed base, hardware + consumable revenue, COGS, gross profit 3. B2B Revenue - project-by-project P&L, revenue-share waterfall, timeline to cash 4. Consolidated P&L - combined revenue, gross profit, OpEx, EBITDA 5. Cash Flow - operating cash flow, capex (manufacturing tooling), funding requirement 6. Equity / Cap Table - shares outstanding (20M), insider ownership (~40%), any dilution from raise 7. Dashboard - KPI summary: units shipped, installed base, ARR (consumables), B2B pipeline value, cash runway ## Frequently asked questions ### Is the Seedo financial model free? Yes. The Seedo model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.