2021 Founder's Letter

2021 Founder's Letter
Newell Kuvalis and team design the new packaging for dark chocolate by Undercover.

Dear Stakeholders,

A new year is upon us! I hope everyone had a nice holidays and a happy new year. While most of us have been quarantining for the past 8-9 months or so, the world outside has been changing rapidly.

In the past year, Mav Farm has surpassed several milestones and set itself up for a successful2021 - a year that will nonetheless be fraught with challenges and risks we are prepared to navigate.

In 2020, we launched our business model by charging brands a dynamic commission fee and sharing a portion with publishers and content creators. We have activated 17 new businesses and seen a surge in qualified inbound leads and will be mulling over the applicants diligently to maintain the quality of our network for the long-term and peg us in contrast to self-serving platforms and marketplaces like Amazon, Facebook, Google, et al.

We are proud of the products we have built in 2020, and we hope that those we create in the future will have an even greater positive impact on the world.

FY 2020

Key Performance Indicators (KPIs):

  • 119% MAU Growth YoY
  • 115% Customer Growth YoY
  • 25.83% Customer CMGR3
  • 18.83% MAU are Core Users (MAU with 7+ Sessions)
  • 51.35% of New Users become Customers
  • 18.28% d1 User Retention
  • 13.08% d7 User Retention
  • 12.54% d30 User Retention
  • 58.33% d7 Customer Retention
  • 75% d30 Customer Retention
  • 2053 Units Sold

Summary Financials:

  • $1.81M Cash Balance
  • $(611,880) Free Cashflow
  • $2,579,000 Cash from Financing
  • OPEX 3 mo trailing avg.: $124,041 (-$40k Δ since Q3)
  • 13 mo Runway

Product Highlights:

  • MFE2 launched and now serves over 20 businesses with digital media, commerce, andbusiness intelligence needs
  • .show has a new shopping experience and shoppable embeddable web experienceused by publishers like Hypebeast, Office Magazine, PAPER, and 6 more.
  • Revenue with dynamic pricing model has launched along with referral bonuses

Customer Testimonials:

  • "Creating and embedding a shoppable video from Mav Farm to our website was supereasy. Looking forward to the new rev streams.” - Simon Rasmussen, Editor-in-Chief atOffice Magazine
  • "We’re ready to make Mav Farm a part of every release.” - David Norris, Founder atKito Wares

Human Resources:

  • Headcount: 15
  • Payroll: $956,972
  • Contract Labor: $813,816
  • Employee Satisfaction Index: 8.75

Conclusion

We founded Mav Farm because we believed we could provide artists and creators an important service. Serving art is at the heart of what we do and remains our number one priority. There are many ways to center a business. You can be competitor focused; you can be technology focused; you can be pricing focused; and, there are more. But in Mav Farm’s viewby far the most protective of our vitality is obsessive design focus. We will continue to experiment patiently, accept failures, plant seeds, protect saplings, and double down when we see delight. A design-obsessed culture best creates the conditions where all of that can happen.

We are proud of the products we have built in 2020, and we hope that those we create in the future will have an even greater positive impact on the world. Our business environment changes rapidly and needs long term investment. We will not hesitate to place major bets on promising new opportunities.

Mav Farm isn’t just a company. We are enthusiastic about the potential for Mav Farm to disrupt existing solutions with a consumer-like product that has resonated with customers and enabled the company to demonstrate strong organic growth. Further, uptake of the App Store—by both third-party developers and customers—provides differentiation and a path to break away from the pack. We will optimize for the long term rather than trying to produce smooth earnings for each quarter. We will support selected high-risk, high-reward projects and manage our portfolio of projects. We will run the company collaboratively with our employees, customers and stakeholders. We are conscious of our duty as fiduciaries for our shareholders, and we will fulfill those responsibilities. We will continue to strive to attract creative, committed new employees, and we will welcome support from new shareholders. We will live up to our“serving art” principle by advocating for artistic freedom and not accepting payment advertising. We have a goal to have investors who invest for the long term and our desire is to create an ideal working environment that will ultimately drive the success of Mav Farm by retaining and attracting talented mavericks and farmers.

From the entire Mav Farm team, thank you so much for your ongoing support. As always, please feel free to contact me with any questions or comments. Wishing you all and your loved ones stay safe, happy and healthy!

Sincerely,

Derek Siegel

Co-Founder & CEO