The Venture Codex

Participated · Equity · May 2019

MOD Pizza offers individual artisan-style pizzas and hand-tossed salads made on demand with any combination of over 30 toppings for a single price. The company emphasizes a people-first, purpose-driven culture and progressive hiring practices, including hiring individuals who face barriers to employment. MOD has grown rapidly — there are 433 locations system-wide across 28 states and the U.K., and it added 102 locations in 2018. Financially, MOD reported $398 million in system-wide sales and $312 million in company net revenue in 2018, with domestic system-wide same-store sales up 3.1% and 100% growth in digital orders year over year. MOD also invests in social impact and community efforts, contributing $1.8 million to causes in 2018 and planning to create additional meals for food banks. Going forward, the company plans to scale to roughly 1,000 locations over the next five years and to invest in off-premise, digital capabilities, loyalty (MOD Rewards), and personalized marketing. Mod Pizza makes individual artisan-style pizzas on demand, allowing customers to create their own pizzas and salads using fresh-pressed dough, sauces and over 30 toppings. Founded in 2008 by Scott Svenson and Ally Svensonand and based in Seattle, WA, the company operates more than 300 locations system-wide across 27 states and the United Kingdom. In October 2018 the company raised $73m, including $33m in equity and a $40m credit facility. Equity investors included PWP Growth Equity and Fidelity Management & Research Company, while Keybanc Capital Markets, SunTrust Robinson Humphrey and Raymond James provided the debt financing. The equity round brought total equity capital raised to date to more than $185m. Mod intends to use the funds to continue to grow in 2018 and bolster its presence in existing U.S. and U.K. markets. MOD Pizza, founded in Seattle in 2008, is a pioneer in the fast-casual pizza segment offering individual artisan-style pizzas and salads made on demand with any combination of over 30 toppings for one set price. The company emphasizes a purpose-led culture and social impact, positioning itself as both a place to eat and a place to work. MOD currently operates 177 locations across 19 U.S. states and the U.K. and was named the fastest-growing restaurant chain by Technomic in 2015. Financially, MOD has raised just under $150 million to date and announced an additional $42 million equity round this year. The new capital will support continued U.S. expansion within existing markets and entry into new U.S. markets (Florida, Alabama, Georgia, Utah) as well as further growth in the U.K. MOD Pizza, founded in 2008 by Scott and Ally Svenson, operates a fast-casual concept focused on individual artisan-style pizzas made on demand with fresh-pressed dough, signature sauces, and customizable toppings. Customers can build their own pizzas and salads from more than 30 featured toppings or choose from a menu of classics. The company operates 110 stores across 16 states. MOD intends to use new funding to support aggressive growth plans, including doubling its store base in 2016 and expanding within existing markets. It is also planning entry into new U.S. markets and its first international market in the United Kingdom. Financially, the company has raised approximately $106m to date. MOD Pizza operates a fast-casual concept where customers create their own pizzas and salads from any combination of 30 featured toppings or choose from menu classics; pizzas are hand-cooked in an 800-degree oven in under three minutes and salads are hand-tossed. Led by co-founder and CEO Scott Svenson, the chain also offers local draft beers, wine, handspun milkshakes and house-made lemonades and iced teas. The company currently operates 32 stores across Washington, Oregon, California, Arizona, Colorado and Texas and plans to double its store base by the end of June. MOD expects to open its 100th store before the end of 2015, including first locations in Illinois, Missouri, Michigan, Pennsylvania, Maryland, Washington DC, North Carolina and South Carolina. The business has been raising institutional capital to support rapid expansion and operational investment. The recent financing activity increased the company’s total equity raised to more than $70M.

Led · Series G · Jul 2018

The RealReal is a San Francisco–based provider of authenticated luxury consignment solutions led by CEO and Founder Julie Wainwright. The company operates an authenticated consignment service with 90+ in-house authenticators who inspect thousands of items daily to ensure authenticity. Consigning is supported by free in-home pickup, drop-off service and direct shipping, while retail locations allow customers to shop, meet with experts, and attend workshops. The RealReal also offers free jewelry, watch and handbag valuations at eight luxury consignment offices. The company intends to expand its brick-and-mortar presence into new markets and to support its supply of luxury goods with new e-commerce fulfillment centers. The RealReal operates an authenticated, high-end resale marketplace for women, men, and the home. The six-year-old, San Francisco–based company verifies and sells luxury items including fine jewelry and watches, and still predominantly sells women’s high-end apparel. It employs more than 800 people and is on track to sell $500 million in merchandise through the platform this year. Management has pushed out the timeline to profitability to prioritize brand awareness and expand its physical footprint. Over the last 18 months the company opened six valuation offices (San Francisco, New York, L.A., Chicago, and Washington, D.C.), and it is weighing a brick-and-mortar store strategy starting with a New York location. A prior pop-up in Soho generated more than $2 million in revenue and drew many new customers, informing the offline expansion plan. The RealReal operates an authenticated luxury consignment marketplace for clothing, accessories, watches, jewelry, and home goods, using trained authenticators (gemologists, horologists, art appraisers) to verify items. Sellers send items for the company to photograph and sell on their behalf; sellers typically earn 60–70% of the sale price. The site reports 4.5 million members and more than 2 million items sold to date. The company said it was poised to double its $100 million annual revenue in 2015 and is expecting to double revenue again. Services include in-home pickup in over 20 U.S. cities and valuation offices (initially New York and L.A., expanded to Chicago) for in-person appraisals. The RealReal is expanding both in the U.S. and internationally and placing funds toward strategic investments to outpace competitors. The RealReal operates a full‑service luxury consignment marketplace that vets and authenticates garments, bags, jewelry, art and other items before listing them for sale. It offers a white‑glove service in 18 U.S. cities where luxury managers consult with sellers and pick up items. The company pays consigners 60%–70% of the sale price and retains the remainder. The RealReal reported about $100 million in annual revenue and said it was poised to double that in 2015, though it was not yet profitable. Operating metrics in the article include 3.5 million members, 315 employees, shipments to 61 countries, and 1 million items sold to date. Fastest‑growing categories cited were menswear (225% growth 2013–2014, projected 125% growth in 2015) and fine jewelry and watches (about 250% growth). TheRealReal operates an online consignment marketplace focused exclusively on authenticated luxury and designer goods, including women’s and men’s fashion, fine jewelry and watches, and home decor such as fine art. The service authenticates items and lets consignors receive up to 70% of the sale price while customers buy brands like Chanel and Burberry at discounted prices. Each sale lasts 72 hours, and members can pay $5 per month to access sales 24 hours early. The company reports 2.4 million members, processes more than 40,000 luxury items per month, and has shipped over 450,000 items to date. The site expects to do about $125 million in revenue this year. Management, led by CEO and founder Julie Wainwright, is expanding into additional luxury verticals including fine art and plans more verticals in 2014.