Q1: Based on the material covered in this chapter, what questions would you ask the firms founders before making your funding decision? What answers would satisfy you?

Q2. If you had to make your decision on just the information provided in the pitch and on the companys website, would you fund this company? Why or why not?

Business idea: Launch a monthly subscription service that delivers healthy snacks to subscribers at their doorsteps for a low monthly fee.

Pitch: Snacking is a part of everyday life. As Americans become more health conscious, they are continually looking for healthier snacks. natureBox provides a subscription service where it delivers a box of healthy snacks to its subscribers on a monthly basis. The boxes come in three sizes: individual, family, and office. The individual box contains five snacks, the family box 10 snacks, and the office box 15 snacks. The boxes contain packages of snack items such as dried fruit strips, harvest nut mix, cranberry almond bits, and roasted kettle kernels. Each package is a natureBox-branded product that is formulated in-house by natureBoxs nutritional specialists. With a mission of Discover a Healthier You, natureBoxs selling proposition is that it provides consumers with a variety of healthy snacks without having to go to the store, walk the aisles, and read the labels on snack selections to make sure they are nutritious. Since snacks are consumed, they need to be regularly replenished, which is facilitated by natureBoxs monthly deliveries. The company also sells full-sized versions of the snacks that it includes in its monthly subscription boxes on its website. A customer can customize his or her monthly subscription box or let natureBox surprise them. For those that allow natureBox to surprise them, the service contains an element of anticipation and fun as customers await their monthly box and then discovers whats inside. All of natureBoxs snacks are sourced from local growers and independent food suppliers across the United States. Every natureBox snack is guaranteed nutritious and is free from high-fructose corn syrup, hydrogenated oils, trans fats, and artificial sweeteners, flavors, and colors. While natureBox views the subscription model as a powerful form of distribution, it realizes that not all consumers want to subscribe to a product or service. As a result, the companys goal is to build a brand of nutritious snack foods that can be sold both within and outside the subscription framework. The companys intentions are to continue to sell online. Only 2 percent of all food products are currently sold online. natureBox believes that as people become increasingly comfortable conducting the majority of their purchases online, that 2 percent number will increase and consumers will be drawn to brands that sell predominately online and are distinctive and unique, such as natureBoxs tasty, nutritious snacks. natureBox is spreading the word about its subscription service and products primarily via social media. It currently has more than 786,000 Facebook likes and says that many of its sales come from pass-alongs and wordof-mouth referrals.