BMJ Score: 3.7
Quick Summary81 crypto investors read this
CommentaryeHarvestHub wants to make fresh food affordable and more available by connecting small farmers, grocers, and truckers directly without the need of middlemen. Consumers would pay less, and farmers and truckers would make more. That’s a legitimate logistics use case for the blockchain’s inherent efficiencies, which could get even more compelling if and when the company platform goes global. Then again, think about your local farmer’s market. Who are those folks? They’re small, decidedly non-tech types, who may be too far down the adoption curve for eHarvestHub to obtain traction at all, let alone traction quickly enough to be viable.
- How to invest: To participate in the eHarvestHub’s crowd campaign, fill in the form for the white list.
- Discount: First 12 hours: 30%, Day 1-7: 20%, Day 8-14: 15%.
- Eligibility: US-based contributors must provide proof of accreditation. Investors from the following countries are prohibited: Afghanistan, Bosnia and Herzegovina, Central African Republic, Cuba, the Democratic Republic of the Congo, Eritrea, Ethiopia, Guinea-Bissau, Iran, Iraq, Libya, Lebanon, Somalia, South Sudan, Sudan, Syria, Uganda, Vanuatu, and Yemen.
- Jurisdiction: Based in northern California, eHarvestHub falls under the jurisdiction of U.S. regulators.
- Minimum to participate: 0.166667 ETH.
- Problem addressed/solved: Fresh food is expensive because it zigzags seven to 10 times before it reaching the grocery store. Prices go up each time it exchanges hands. Middlemen leave little profits for the farmers and truckers who produce and transport our food.
- Target customers/customer/ segments/verticals: Target customers are small farmers who want to compete with larger “corporate” farm suppliers.
- Value creation: eHarvestHub software helps farmers manage their product logistics from harvest to shipping.
- Competition: eHarvestHub faces heavy competition, most of which may come in the form of resistance from fresh food’s existing supply chain. There are also other similar ag logistics players out there. We’ve reviewed two.
- Market size/potential: eHarvestHub claims small farmers grow between 60 and 70% of the food we eat, and independent owner/operator truckers move 90% of it; yet, they make the least profits. Some 480 million small farmers represent 9.6 million transactions and a US $1.2 trillion-dollar hunk of the economy.
- Regulatory risks: eHarvestHub operates in a conventional industry. Because their HQ resides in California, however, they could face stiffer regs down the road.
- Investor value: The company exists in a sure market with a long-term future. Fresh food won’t go away any time soon. Plus it may help to sustain small farmers and truckers, not just in the U.S. but also in developing countries where efficiencies could matter even more.
- Disclosures: Raised a $1.2 million round led by Tim Draper’s VenturesLab Fund and Kaiwu Capital to build their technology. Completed their full set of products in 2017.
- Token distribution: 60% ICO sales, 14% for company use, 9.5% reserves, 6% customer reward program, 5% for advisors, 4% marketing, 1.5% bounty.
- Use of proceeds: 35% sales and marketing, 30% operational cost, 30% development.
- Soft cap: $2 million USD
- Hard cap: $15 million USD
- Track record: CEO Alvaro Ramirez has a 20-year history of founding and building companies from the ground up.
- Integrity: Each team member has years of experience in their respective fields. Many have been at start-ups. However, the team lacks experience in the agricultural field. They don’t have the up-close-and-personal view of how the day-to-day operations in their target market really work.
- Alvaro Ramirez, Chief Executive Officer/Founder (LinkedIn)
- Francisco Rojas, Chief Operating Officer (LinkedIn)
- Moisés Aburto, Full Stack & Blockchain Engineer (LinkedIn)
- MVP: Traceability MVP soft launch Q1, 2014, Version 2 released Q3, 2014
- Token use case: Customers will not only be able to pay for eHarvestHub services with the cryptocurrency but can transact directly with others.
- Value-added: EHH token supports supply and demand. It will always be more cost-effective on the customer’s end to pay eHarvestHub via EHH token rather than fiat, thanks to a discount to the total cost of a service when payment is done via EHH. The company whitepaper says this token can also be used to settle funds more quickly than banks do.
- Decentralization: Fully decentralized.
- Token Supply: Total supply of 125 million EHH.
- Technical difficulty/investment expertise needed: Details behind the eHarvestHub project are simple and to the point. The average investor can tell where and how the blockchain helps this business.
- Halo effect: eHarvestHub lists its angel investors, and some are indeed notable. There is no sign of significant partnerships.
- Buzz: Below average online buzz according to buzzsumo. Having said that, eHarvestHub has been featured on CBSS, Sacramento Business Journal, Global Crypto Press News.