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Rinse

Rinse

Rinse is making trips to the dry cleaner and the washer/dryer obsolete while building the first national brand in dry cleaning and laundry.

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Deal Type

Convertible Note

Funding Goal

$5,000,000

Current Reservations

$4,785,000

Minimum Reservation

$10,000

Deal Stage

Other

Interest (% per year)

8.00%

Term Length (Months)

18 months

Valuation Cap

$60,000,000

Conversion Discount (%)

20%

Warrant Coverage (%)

N/A

Open Date

03/15/2019

Maximum Reservation

$1,500,000

Closing Date

08/15/2019

Elevator Pitch

Rinse is making the washer / dryer obsolete while building the dominant national brand in clothing care. Rinse is the market leader and is raising this round to prepare for rapid national expansion.

KPIs

$17,000,000 Sales

Company Overview

Rinse (www.rinse.com) is making the washer / dryer obsolete while building the first national brand in dry cleaning and laundry. We provide a service that has removed all the pain points that come with clothing care. We are taking on a massive consumer problem and creating a significantly better (and more standardized) customer experience through the combination of "smart scheduling" and best-in-class quality, all supported by a strong technology backbone that allows us to effectively manage the operational complexity that comes with scale. We currently provide service in San Francisco (and the surrounding Bay Area, including Oakland and San Jose), Los Angeles, Washington DC, Chicago, and Boston. Ajay Prakash started the company with James Joun, one of his closest friends from college who also grew up in a Dry Cleaning family.

Traction

  • Rinse completes its best quarter ever: currently $17mm revenue-run rate; NPS of +50; best-in-class retention + profitability. Market leader.

    July, 2019
  • Rinse Subscriber Revenue (revenue from active Rinse Repeat and Rinse Go customers) crosses $2.5mm ARR only six months after launch.

    July, 2019
  • Rinse for Business thrives. Several leading companies are customers (including Eventbrite and BuzzFeed) only a few months after launch.

    July, 2019
  • Rinse achieves city-level profitability in San Francisco, Los Angeles, and Washington DC (it's three largest markets).

    April, 2019
  • Rinse's competitor, Cleanly, shuts down its San Francisco operations. Rinse acquires its customer list and starts serving them in Jan 2019.

    December, 2018
  • Inc. magazine names Rinse's re-brand as one of the best new logos of 2018.

    December, 2018
  • Rinse unleashes Rapid Regional expansion, launching service in San Jose, Oakland, and surrounding areas, tripling it's Bay Area footprint.

    July, 2018
  • Rinse launches service in Boston, its fifth major market.

    November, 2017
  • Rinse launches service in Chicago, its fourth major market.

    August, 2017
  • Rinse closes its $15mm Series B, led by Partech Ventures.

    June, 2017
  • Rinse launches service in Washington, DC, its third major market.

    November, 2016
  • Rinse's competitor, Washio, shuts down. Rinse acquires its entire customer list in SF, LA, DC, Chicago, and Boston, along with other assets.

    September, 2016
  • Rinse launches service in Los Angeles, its second major market.

    April, 2015

Press Mentions

Key Customers & Partners

Banana Republic Eventbrite Twilio WeWork BuzzFeed

Testimonials

C.J.
C.J.
"After trying a few Rinse wash and fold loads & dry cleaning, I bought the annual Rinse Repeat service. Maybe it has literally saved my life as I feel unsteady carrying laundry down four flights of stairs, heck, I felt that way when I was a lot younger. Their price for dry cleaning a down comforter is the same I paid at the nearest shop."
Bobbie C.
Bobbie C.
"This is truly a service. Just having a reliable service that saves me from the awesome chore of going out to do laundry is great. Love the pick up and quick turn-around service is fabulous."
Karen P.
Karen P.
"This is the best wash and fold service I've used and I love it because I do not have to do laundry anymore. Their prices are reasonable except for blankets and comforters. Thank you rinse for the great service!"
Veronica C.
Veronica C.
"Rinse is a lifesaver! I started using it a year ago when I had surgery & loved it so much that I kept it after I was back on my feet. I tell everyone about it & have a friend that plans on signing up too. The staff is always friendly & professional. I can't recommend Rinse strong enough."
Tara H.
Tara H.
"Rinse is fantastic. They are full service and their customer service is beyond. Just text them if you need anything. They pick up at your door and return to your door in 3 days with freshly cleaned and perfectly folded clothes. Worth every penny! I'm a Rinse Repeat subscription member and it is one of the best decisions I've made! "

Previous Funding

  • $15,000,000 Equity
  • Raise Source: Investors
  • June 2017
  • $6,000,000 Equity
  • Raise Source: Investors
  • November 2015
  • $2,500,000 Equity
  • Raise Source: Investors
  • December 2014
  • $1,000,000 Convertible Note
  • Raise Source: Friends
  • August 2013

Risks & Disclosures

Rinse is a startup, and is therefore risky. The vast majority of startups fail and lose investors' money entirely - and this is no exception. You should not invest more money than you can afford to lose, and this investment should only be made as part of a diversified portfolio. Additional specific risks:

+ Rinse may not be able to raise the next round of funding successfully.

+ Rinse may never achieve profitability.

+ Rinse might not maintain their rate of growth.

This is by no means an exhaustive list. There are endless reasons that startups fail.

Rinse is very well positioned to be the dominant national brand in clothing care, but this is a space that has been around forever, many have tried and failed to scale nationally, and there are plenty of challenges ahead that Rinse will have to overcome. Rinse has the team and model to do it, but there are no guarantees.

Crowdfunder Index Fund, an affiliate of Crowdfunder, is an investor in Rinse.com.

Documents

Confidential

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