What was the primary problem Cloosiv aimed to solve?

Cloosiv addressed the lack of mobile ordering infrastructure for independent coffee shops. While giants like Starbucks invested billions in proprietary apps to capture $5B in annual mobile volume, local shops were left behind. Cloosiv provided a 'point-of-sale agnostic' platform (Slide 12) that allowed small businesses to offer the same convenience as national chains without the massive R&D costs.

How does the company generate revenue?

The model is primarily transaction-based, charging coffee shops a commission that decreases as volume increases (from 12% down to 8%). They also generate revenue through a $499 merchant upgrade fee and a small $0.10 service fee per user swipe. This multi-pronged approach ensures they capture value from both the merchant and the end consumer.

What is the significance of the 'Mid-Market Chains' slide?

Slide 11 is a strategic roadmap. By listing specific targets like Philz Coffee (60 locations) and Blue Bottle (52 locations), Cloosiv demonstrates a sophisticated understanding of the market hierarchy. They aren't just chasing 'mom and pop' shops; they are targeting high-growth, venture-backed chains that have significant customer density but might not want to build their own tech stack.

Why are the Y-axis values on the growth slides marked with an 'X'?

In the appendix slides (19-22), the company uses 'X' as a placeholder for specific figures. This is a common practice in public-facing versions of pitch decks to protect sensitive financial data. However, the slope of the bars indicates consistent month-over-month growth, which is often more important to seed investors than the absolute starting number.

What was the intended use of the $1M seed funding?

According to Slide 16, the $1M was intended to increase 'velocity.' Specifically, the funds were allocated to product, sales, and marketing with the goal of adding over 800 new coffee shop locations and scaling the business to exceed $60,000 in monthly net revenue.

Odeko (Cloosiv) Pitch Deck: Slide-by-Slide Breakdown

The Cloosiv (now Odeko) seed deck is a study in focused market entry. In 2019, the startup raised $1M by identifying a specific $20B opportunity within independent coffee shops that lacked the technical infrastructure of giants like Starbucks. The deck relies heavily on growth velocity, showing a consistent +40% monthly GMV increase (Slide 5) and a clear, tiered commission model (Slide 6). While the deck uses 'X' placeholders for specific dollar amounts in the appendix, the trend lines are unmistakable. The narrative shifts from a simple mobile app to a 'ubiquitous experience' (Slide 12), aim…

Key takeaways

The deck identifies a $20B market for independent coffee shops, which is double the size of Starbucks at $10B (Slide 3).
Starbucks' mobile app growth from $.25B in 2011 to $5B in 2019 is used as a proxy for consumer demand for convenience (Slide 4).
Cloosiv reported a +40% monthly growth in Gross Merchandise Volume (GMV) leading up to August 2019 (Slide 5).
The business model uses a tiered commission structure: 12% for the first 50 orders, 10% for up to 150, and 8% for 151+ orders (Slide 6).
Secondary revenue streams include a $499 optional merchant service upgrade and a $.10 per-swipe user service fee (Slide 7).
The go-to-market strategy targets specific mid-market chains like Blue Bottle, La Colombe, and Philz Coffee for 2019-2023 (Slide 11).
The $1M raise was specifically earmarked for adding 800+ coffee shops and reaching $60K+ in monthly net revenue (Slide 16).
The deck includes a dedicated sources slide citing data from Statista, QSR Magazine, and the National Restaurant Association (Slide 17).

The Hook: Inevitability and Market Size

Slides 1-4: Setting the Stage

The deck opens with a bold claim on Slide 2 : "It’s inevitable that all coffee shops will offer a mobile app. Cloosiv will be that app." This sets a high-stakes tone immediately. Rather than starting with a feature list, they start with a market shift. Slide 3 provides the quantitative backing for this ambition, showing that while Starbucks is a $10B giant, independent coffee shops represent a $20B market. This is a crucial distinction; it tells investors that the "fragmented long tail" is actually twice as large as the market leader.

Slide 4 uses Starbucks as a proof of concept. By showing Starbucks' app gross volume growing from $.25B in 2011 to $5B in 2019, Cloosiv proves that coffee drinkers prioritize convenience . The logic is simple: the demand exists, the market is huge, but the technology is currently locked behind the walled gardens of major corporations.

Traction and Business Model

Slides 5-7: The Engine Room

Slide 5 is the "money slide" for a seed round. It claims +40% monthly GMV growth from July 2018 to August 2019. Even without absolute numbers on the Y-axis, the visual consistency of the bar chart suggests a predictable and scalable acquisition model. This is the primary evidence that their product-market fit is established.

The business model on Slide 6 is transparent and merchant-friendly. By using a tiered commission (12% for 1-50 orders, 10% for 51-150, and 8% for 151+), Cloosiv aligns its success with the shop's success. As a shop grows, Cloosiv becomes cheaper, which aids in retention. Slide 7 adds "multiple service revenue streams," including a $499 upgrade and a $0.10 per-swipe fee. This indicates that the founders are thinking about Average Revenue Per User (ARPU) and merchant LTV beyond just transaction clips.

Validation and Acquisition

Slides 8-10: Proof of Life

Slides 8 and 9 feature testimonials from "L. Burleson" (Not Just Coffee) and "A. Lemnes" (Piccolo Coffee). Interestingly, the data cards next to these quotes have placeholders (0 locations, 000 users, $00,000 volume). This suggests these might have been templates or that the specific shop data was redacted for the version of the deck that became public. Regardless, the quotes focus on "defying expectations" and employee satisfaction, which is a key barrier to entry in retail tech.

Slide 10 outlines the user acquisition strategy. It’s a mix of physical and digital: in-store advertising, a $3 first-order discount, a $5 referral credit, and in-app rewards. This shows a full-funnel approach to growth, acknowledging that in the coffee world, the physical storefront is the best billboard.

Strategic Roadmap and Vision

Slides 11-14: The Expansion Plan

Slide 11 is perhaps the most impressive in the deck. It breaks down the U.S. coffee market by location count, identifying 14,000 potential targets. They categorize their targets into two waves: 2019-2020 (smaller chains like Blue Bottle and Gregory's) and 2021-2023 (larger mid-market players like Caribou and Peet's). This level of granularity gives investors confidence that the team isn't just "spraying and praying" but has a hit list.

Slide 12 defines their competitive moat: being point-of-sale agnostic . This is a massive technical advantage. If a startup requires a merchant to buy new hardware, the sales cycle is long and difficult. By being agnostic, Cloosiv can sit on top of any existing system. Slide 13 visualizes the goal: "building the largest coffee chain in America" without owning a single brick-and-mortar store. This is the classic "Uber for X" or "Airbnb for Y" narrative—aggregation of supply without the capital expenditure of ownership.

The Team and The Ask

Slides 15-16: Execution and Capital

The team slide ( Slide 15 ) uses illustrations rather than photos, featuring Tim Griffin (CEO), James Burkhardt (CTO), and Jessie Kolbenschlag (Sales). The descriptions are functional: Griffin handles Product/Sales/Marketing, Burkhardt handles Engineering/UX, and Kolbenschlag manages Business Development. While it lacks the "pedigree logos" (ex-Google, ex-Facebook) often seen in Silicon Valley decks, it presents a balanced trio capable of building, selling, and supporting the product.

Slide 16 is the "Ask." They were raising $1 million . The slide is refreshingly specific about what that money buys: adding 800+ coffee shops and reaching $60K+ in monthly net revenue. Many founders fail here by being too vague (e.g., "for hiring and growth"). Cloosiv ties the dollar amount directly to a milestone.

What Works in This Deck

Clear Market Sizing: They don't just say "coffee is big." They show that the independent segment is $20B, which is the specific segment they can actually win. · Growth Velocity: The +40% monthly GMV growth (Slide 5) is the strongest possible signal for a seed-stage company. · Phased GTM: The target list on Slide 11 shows they have done the homework on who their customers are and in what order they will acquire them. · Business Model Transparency: The tiered commission structure on Slide 6 is easy to understand and easy to model for an analyst.

What Is Missing

Unit Economics: While they show revenue streams, they don't show Customer Acquisition Cost (CAC) vs. Lifetime Value (LTV). For a transaction-heavy app, knowing how much it costs to acquire a coffee drinker is vital. · Churn Data: There is no mention of merchant or user retention. In the app world, growth is meaningless if the "bucket is leaky." · Competitive Landscape: Aside from mentioning Starbucks as a proxy, they don't address other aggregators (like Ritual or Joe Coffee App) that were active at the time.

Founder's Playbook: What to Copy

Use a Proxy for Success: If a giant in your industry has a successful digital product, use their growth (like the Starbucks data on Slide 4) to prove that your target customers want your solution. · Be Specific with the Ask: Don't just ask for money. Tell the investors exactly what metrics that money will move (e.g., "Add 800 shops"). · Cite Your Sources: Slide 17 is a great addition. It builds credibility by showing that your market data isn't just made up, but comes from reputable industry bodies. · Focus on the 'Why Now': The "Inevitability" slide (Slide 2) creates a sense of urgency. It suggests that the window for this technology is opening, and investors need to act to capture the leader.

Frequently asked questions

What was the primary problem Cloosiv aimed to solve?: Cloosiv addressed the lack of mobile ordering infrastructure for independent coffee shops. While giants like Starbucks invested billions in proprietary apps to capture $5B in annual mobile volume, local shops were left behind. Cloosiv provided a 'point-of-sale agnostic' platform (Slide 12) that allowed small businesses to offer the same convenience as national chains without the massive R&D costs.
How does the company generate revenue?: The model is primarily transaction-based, charging coffee shops a commission that decreases as volume increases (from 12% down to 8%). They also generate revenue through a $499 merchant upgrade fee and a small $0.10 service fee per user swipe. This multi-pronged approach ensures they capture value from both the merchant and the end consumer.
What is the significance of the 'Mid-Market Chains' slide?: Slide 11 is a strategic roadmap. By listing specific targets like Philz Coffee (60 locations) and Blue Bottle (52 locations), Cloosiv demonstrates a sophisticated understanding of the market hierarchy. They aren't just chasing 'mom and pop' shops; they are targeting high-growth, venture-backed chains that have significant customer density but might not want to build their own tech stack.
Why are the Y-axis values on the growth slides marked with an 'X'?: In the appendix slides (19-22), the company uses 'X' as a placeholder for specific figures. This is a common practice in public-facing versions of pitch decks to protect sensitive financial data. However, the slope of the bars indicates consistent month-over-month growth, which is often more important to seed investors than the absolute starting number.
What was the intended use of the $1M seed funding?: According to Slide 16, the $1M was intended to increase 'velocity.' Specifically, the funds were allocated to product, sales, and marketing with the goal of adding over 800 new coffee shop locations and scaling the business to exceed $60,000 in monthly net revenue.