kulaBrands, Inc.

Own part of the kula movement

Minimum target reached

Closed on 05/02/20

$97,279

amount committed

$40,000

target amount

$535,000

max amount

Regulation CF

exemption used

$17,507,365

pre money valuation

$213.84

min investment

192

investors

Security Type

Shares of Common Stock

$17.82 per Share

Pitch

Who are we

kulaBrands is dedicated to building the community, locating unique talent, inventions, and supporting the community of members to bring these to market successfully. As a patent-pending business opportunity, kulaBrands sells memberships to those interested in joining the kulaBrands community. Members, in turn, receive royalties for products they choose to crowdfund, brand, and or sell. Members also receive royalties on members’ activity referred by them.

kulaBrands™ Inc is a new, innovative company inspired by the idea of creating a company for the people that radically changes the home-based business model. kulaBrands is the brainchild of Inventor and Businessman, Peter Gantner. kulaBrands has evolved over the last 3 years to a functioning business through the collaboration and committed efforts of our dynamic team and the kulaBrands community, including Doug Kyle, Yaan Gulledge, and Cory Moran who have brought it all together. Also, the successful businessman, Mr. Jeff Hoffman (co-founder Priceline.com), is a co-founder and applauds it. Mr. Hoffman is quoted as saying, “kulaBrands is one of the first business models I have ever seen designed right from the ground up.”

Company Overview

kulaBrands™, Inc. (the “Company”), a Delaware corporation, is a community-based, patent-pending business model in the home-based business space that perpetually rewards its members for supporting inventors and project creators. The patent is based on Dynamic Reverse Royalty Allocation Systems and Methods, U.S. Pat. App. No.: 15/441,735, which are paid by an inventor or an artist to kulaBrands for supporting them in the three critical areas needed to build a successful brand/company.

The three areas are social sourcing (reward-based crowdfunding), social branding/marketing, and social selling (direct sales). These activities are accomplished using proprietary software, internet, crowdfunding platforms, social media sites, brand ambassadors, and collaborative community activities. The Company operates kulaBrands.com, kulafunded.com, shopkula.com, and kulaforum.org websites and facilitates activities performed by the community members (the “Community”).

The Community membership is governed by member-specific agreements to explain the rights, obligations, and terms of membership with kulaBrands. As a community-driven company, the Company aims to include the members in the management and operational decisions of kulaBrands and welcomes their thoughts and suggestions regarding their agreement. Members joining the Community agree to the terms and conditions of the signed member agreement (including the Compensation Plan). In addition to receiving reverse royalties, mentioned above, Currently, the lifetime membership fee is $299.

From February 28, 2016, to June 30, 2019, the Company signed contracts engaging 42 inventors and with the power of the Community launched 43 products with the current membership count of 6,205.

Problem

We are solving a two-fold problem. First, the need for individual people to develope additional income streams due to the economic future of automation and longer life expectancy. Second, the difficulty that entrepreneurs have in successfully launching products, brands, and services into the marketplace. As well as the low success rate of startup businesses.

Solution

How kulaBrands Helps Inventors Succeed

The kulaBrands patent-pending business model provides entrepreneurs with the three main elements of success. kulaBrands provides a ready-made, active Community that supports the inventor with funding, sales, and branding and marketing. Funding is achieved via reward-based crowdfunding.

Our process starts with what is known as pre-pledging, where kulaBrands Community members vote on every project. Pre-pledging determines how many members are interested in backing a project once it is posted on a crowdfunding website. Not every member will be involved in every project.

Having enough votes in favor of the project ensures the business owner or inventor that they have enough backing (“social capital”) to reach their funding goal, within 24 hours of going live on the crowdfunding platform. Now the inventor has money and the continued support of the kulaBrands Community once the project leaves the crowdfunding platform and launches into the mass marketplace.

Once the funding is accomplished, the Community begins to focus on sales, branding and marketing the products and or services.

Achievement & Traction

Brands Teamed with kulaBrands

Currently, the Community backs 42 brands in various stages of development. Each of these brands has successfully reached or succeeded in the funding goal on Kickstarter, Indiegogo, or kulaFunded.

Two projects, Drop It Baby and World Art by Jason Juranek, are presently active campaigns on Kickstarter. Drop It Baby has more than surpassed its goal of $20,000. The World Art campaign has exceeded its $25,000 goal with over $29,000 in pledges.

kulaBrands has a 100% track record with reward-based crowdfunding. We have currently raised more than $2,000,000 for over 40 projects.

Future Products and Services

Future projects and brands for kulaBrands are open to technology, publishing, food and spices, design, automotive, music and film, services, and many others. kulaBrands uses the collective intelligence of the community to decide which projects are launched. The kulaBrands community represents a cross-section of the global retail community. Currently, we have over 20 products in different stages of development, which we will be presenting to the community.

Achieved and Projected Milestones

Launch first crowdfunding project: Completed September 2016
Reach community size of 2000: Completed January 2017
Reached community size of 5000: Completed July 2018
First kulaBrands supported product at mass retailer: Tuck Visor was shipped to TA and Petro truck stops May 2018
Launched kula Marketing System to hit growth projections: June 2019
Reach community size of 10,000: Projected December 2019
Attendance of 1000 members at kulaParty 4: Projected September 2020
Reach community size of 50,000 plus: July 2021
Achieve cash flow positive: January 2020

Market

Market Size

Entrepreneurs launching new projects needing help – Estimated 20,000 plus each year
Projects unsuccessfully crowdfunded on top platforms – Estimated 281,800 in last 10 years
People in home-based business – Worldwide Market Estimated at 50,000,000 plus people in 2006
Global retail marketplace – Estimated at $26,000,000,000,000
People who dream and desire to earn residual income – Just about everyone

Target Market

Full-time/Part-time employees, entrepreneurs, and retirees who are looking to develop additional residual income working from home on a part-time basis.
Entrepreneurs that love to sell to independent retailers, fundraisers and at fairs and festivals
Inventors who are looking to bring their product to the market who need help in the development, funding, and all other aspects of building a successful company.

Competition

Currently, due to the nature of our patent-pending business model, we have no competition.

Business Model

Our revenue sources come from the following:

Memberships ($299)
kulaBrands' portion of retained royalties (10-20%)
Revenue from all sales on ShopKula
Profits from companies in which kulaBrands has acquired equity

We are also developing other future revenue sources.

Team

See the kulaBrands Business Plan for full bio information.

Peter Gantner, Founder and CEO

Doug Kyle, CTO/COO

Yaan Gulledge, Co-Founder; Chief Alliance Officer

Cory Moran, Chief Field Officer; Corporate Trainer

Steve Kanelos, Advisor

Morgan Gantner, Executive Assistant to CEO

Dodie Long, Accountant; International Shipping; Inventor

Deborah Caswell, Executive Production Manager; Corporate Trainer

Dawn Clifton, VP of Software Systems Development; Applications Engineer

Michelle Shore, VP of Software Systems Development; Application Engineer; CIW Certified Web Developer

Dolly Hiller, Director of Public Relations

Rhonda Benbo, Business Development Catalyst

Marc Harper, Retail Marketing Liaison

Karen D. Clair, COO HealXNutrition; Sales and Marketing Director

Heather Carr, Customer Support Staff

Orenda Dadkhah, Customer Support Staff

Sharona LaBrosse, Customer Support Staff

Dawn McIntyre, Customer Support Staff; HealX Nutrition

Carolyn Smith, Customer Support Staff; HealX Nutrition

Vickie Terry, Special Projects Coordinator; Technical Editor

Use of Funds

Updates

No updates, yet. Stay tuned.

Q&A

Unfortunately, this securities offering is closed. For questions, please email support@trucrowd.com. Thanks!

Lynn Tasich - Investor4 years ago

In the Risk Notation, it says, "There is no ready market for the sale of the securities acquired from this offering; it may be difficult or impossible for an investor to sell or otherwise dispose of this investment. An investor may be required to hold and bear the financial risks of this investment indefinitely.

The securities have not been registered under federal or state securities laws and, therefore, cannot be resold unless the securities are registered or qualify for an exemption from registration under federal and state law."

So if this statement is true, can you explain how an investor would make money if they cannot sell the shares eventually?

Lynn Tasich - Investor

I got my answer after re-watching Peter's video. Payouts in dividends. So thank you! :)

4 years ago

Alan Jacobson - Investor4 years ago

Hi, I am fascinated but not completely clear on the model. How do members actually earn "residual royalty" - what is the amount of that royalty based on (the calculation of how much they get)? Also, as far as the the company's overall value, how is it determined which companies you will take equity in? That would seem to be one of the biggest draws for investors here. How will investors here make money - is the exit strategy to be acquired for a multiple of the valuation, or do you anticipate paying dividends? Finally, I am assuming that the financials you provided are actual through 7/1/19? Thanks - I'm very interested but trying to make sure I understand correctly.

Documents

Business Plan Development Download

Start-up Valuation Download

Offering Statement Download

Business Plan Download

Other Disclosures

Read the Form C filed with the SEC for other important disclosures, like financial statements, Directors, Officers, shareholders with more than 20% of voting rights, and more.

Special Note Regarding Forward-Looking Statements

This offering contains forward-looking statements within the meaning of the federal securities laws. We caution investors that any forward-looking statements presented in this offering, or which management may make orally or in writing from time to time, are based on the Company’s beliefs and assumptions made by, and information currently available to, the Company. When used, the words “anticipate,” “believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “would,” “result” and similar expressions, which do not relate solely to historical matters, are intended to identify forward-looking statements. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties and factors that are beyond the Company’s control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. While forward-looking statements reflect the Company’s good faith belief when made, they are not guarantees of future performance. The Company expressly disclaims any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this offering may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We undertake no obligation to revise or publically release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements.