Eaze Pitch Deck Breakdown (2020 Deck, 15 Slides)

Executive Summary: The Vertical Pivot

Eaze’s 2020 pitch deck represents a critical moment in the company’s history. After establishing itself as the 'Uber of Weed' in California, the company faced the structural challenges inherent in high-volume, low-margin delivery marketplaces. This deck is not about introducing a new concept; it is about proving that an existing giant can become profitable through vertical integration. By the time this deck was circulated, Eaze had already completed over 5.7 million deliveries (Slide 2) and was projecting over $125 million in revenue for the year.

Slide 1: Title Slide

The deck opens with a minimalist title slide featuring the Eaze logo and the tagline 'Cannabis On Demand.' The background image of a consumer with a branded bag reinforces the lifestyle aspect of the brand, while a small 'Confidential' watermark in the corner signals the later-stage nature of the presentation.

Slide 2: The California Powerhouse

Slide 2 establishes Eaze's market dominance. It claims Eaze is the 'largest direct-to-consumer cannabis retailer in California.' Key metrics include 5.7M+ deliveries completed, 725k+ customers served, and a projected $190M+ in 2020 Transaction Value. Notably, it mentions that 85% of the California population in active territories is serviced by Eaze, highlighting the depth of their penetration in their home state.

Slide 3: 2019 Growth Momentum

This slide provides historical context to justify the 2020 projections. Eaze shows a 78% increase in Gross Transaction Value (GTV) to $176M and a 71% increase in Gross Merchandise Value (GMV) to $133M. The charts show a steady upward trend in monthly deliveries, with a clear distinction between 'Return Deliveries' and 'First Deliveries,' emphasizing that the bulk of their volume comes from a loyal, recurring user base.

Slide 4: The Strategic Shift

This is arguably the most important slide in the deck. It outlines the transition from a 'Marketplace' to a 'Vertical Retailer.' Eaze identifies the weaknesses of the marketplace model: poor liquidity, inconsistent supply chains, and no direct access to consumer payments. The 'Vertical Retailer' model promises positive working capital, house brands to maximize profit, and ownership of the last-mile distribution network. This slide sets the stage for the operational changes described in the following pages.

Slide 5: Execution Steps

Slide 5 breaks down the transition into two actionable steps: Depot Consolidation and Private-Label Brand Launches. Under depot consolidation, Eaze aims for a $75M to $120M+ increase in cash collections by centralizing operations. For private labels, they provide a formula: $125M (Est. 2020 Revenue) x 40% (Target Menu Share) x 15% (Margin Improvement) = $7.5M in cost savings. This slide effectively quantifies the 'why' behind their strategic pivot.

Slide 6: Progress in Depot Consolidation

Eaze uses Slide 6 to prove they are already executing. A weekly chart for the first 16 weeks of 2020 shows the percentage of GTV controlled by Eaze-owned depots rising from near zero to over 60%. This rapid shift demonstrates operational agility and provides evidence that the transition is not just theoretical.

Slide 7: The Private Label Advantage

This slide focuses on unit economics. It compares 'House Brand' margins (75%) to '3rd Party' margins (60%). By capturing an additional 15% margin, Eaze significantly improves its path to profitability. The slide also includes a chart showing private label penetration growing to ~12% of GTV by the end of the period shown, suggesting strong consumer appetite for Eaze’s own products.

Slide 8: Category Penetration

To further validate their private label strategy, Slide 8 shows the performance of their 'Circles' brand in the vaporizer and flower categories. In both cases, the brand achieved ~25% category penetration within 14 days of launch. This data point is intended to convince investors that Eaze can successfully steer its massive customer base toward its higher-margin internal brands.

Slide 9: Unit Economics and Contribution Margin

Slide 9 provides a detailed waterfall chart of a single transaction. Starting with a $71.00 product value, it subtracts taxes, cost of goods, promotions, and delivery costs to arrive at a $21.45 contribution margin (25%+). A callout box highlights a 'Historic low of $11.51' for cost per delivery, a key efficiency metric for any delivery-based business.

Slide 10: The Path to EBITDA Positive

Building on the unit economics, Slide 10 shows the total monthly waterfall required to reach EBITDA positivity. The company identifies a target of ~$20M in monthly GTV to cover all expenses, including corporate overhead. At this level, they project a modest but significant profit of $31,633, proving the model can scale to break even.

Slide 11: Forecasting the Future

Slide 11 maps out the timeline for reaching that $20M GTV milestone. The forecast shows Eaze hitting the breakeven line in Q4 2020. This slide is crucial for setting investor expectations regarding the timing of their return to profitability following the heavy investment in depot acquisitions.

Slide 12: National Expansion: 'Lift and Shift'

Once the California model is proven, Eaze plans to 'lift and shift' to other states. A map of the US highlights several 'green' states (WA, NV, AZ, NM, CO, IL, MI, OH, PA, NY, MA, FL) as potential targets. This slide shifts the narrative from 'fixing California' to 'dominating the US,' providing the 'venture scale' story investors look for.

Slide 13: The Competitive Moat

Slide 13 identifies three pillars of Eaze's competitive advantage: Differentiated Tech, a Recognizable Brand (citing a 75 Net Promoter Score), and Data-Driven Marketing. They claim to have the 'largest customer database' in the industry, which provides a significant advantage when entering new, regulated markets.

Slide 14: Management Team

The team slide features a heavy-hitting roster of executives with experience at major tech firms. CEO Ro Choy (BitTorrent, eBay), COO Megan Miller (Loggly, DocuSign), and CLO Andrea Lobato (Lyft) provide the 'adult supervision' and scale-up experience necessary for a later-stage company navigating a complex regulatory environment.

Slide 15: Closing

The deck concludes with a repeat of the title slide, maintaining brand consistency and ending on a visual of the consumer experience.

What Works in This Deck

Clear Strategic Pivot: The transition from marketplace to vertical retailer is explained with brutal honesty regarding the flaws of the previous model. · Data-Backed Claims: Almost every strategic claim is supported by a chart showing real-world progress (e.g., the rapid rise in owned GTV on Slide 6). · Granular Unit Economics: Slide 9’s waterfall chart is a model for how to present contribution margin. It doesn't hide the 'red' bars (costs), which builds trust with sophisticated investors. · Focus on Profitability: For a later-stage round in 2020, the focus on EBITDA breakeven was exactly what the market demanded.

What is Missing

The Ask: There is no slide detailing how much money is being raised, the valuation, or the specific use of proceeds. · Competitive Landscape: While Eaze claims to be the largest, there is no direct comparison to other California or national players like Weedmaps or Curaleaf. · Regulatory Risk: In a highly regulated industry like cannabis, a slide addressing legal hurdles or the impact of potential federal legalization (or lack thereof) is a notable omission. · Board of Directors: While the management team is strong, later-stage decks often benefit from showing the institutional investors already on the board.

What a Founder Should Copy

The 'Marketplace vs. Vertical' Comparison: If you are pivoting your business model, use Slide 4’s side-by-side format. It clearly identifies the pain points of the old way and the benefits of the new way. · The Breakeven Waterfall: Slide 10 is an excellent way to show investors exactly how much volume you need to stop burning cash. It turns a complex financial statement into a simple, visual goal. · Execution Proof: Don't just say you are going to do something; show a chart of you already doing it. Slide 6, showing the weekly increase in owned GTV, is the most persuasive slide in the deck because it proves the strategy is already in motion.