Cubbo — 1st investor update

Our first month of operation — originally sent in January 2021

The cover to the original Cubbo pitch deck

I’m excited to release the first business update since recently starting the company. Below you’ll find a short summary of highlights, lowlights, and short term goals.

Highlights

• With our fundamental belief that city space will be transforming away from traditional industries (e.g., office space, strip mall, brick-and-mortar) and into new emerging industries — we tested doing valet self-storage services in Bogotá in December 2020 and quickly iterated the business to micro-fulfillment for retailers using the same urban warehousing space. I wrote a full story of why I started Cubbo and why we quickly pivoted here.
• I partnered with Josu Gurtubay to be the other co-founder of Cubbo. We met through investors in Cubbo and Josu previously built one of the largest urban fulfillment for e-commerce inventory in Mexico City. The plan is to keep it just Josu and I as co-founders.
• We acquired Josu’s past fulfillment company Wicore for $10k USD. This allowed us to launch operations in Mexico City this month with 35 customers, $100k of gross revenue, 22% margins, and positive $13k of EBITDA. Josu negotiated a phenomenal acquisition deal for Cubbo! The plan is to focus on the Mexico operations for the next 6 months, even though we’re a Colombian company. We’ll look to launch Bogotá operations later this year.
• We brought on 30+ new investors over the past month from VCs across the globe and strategic angel investors. We closed our Pre-Seed round and now continue to fundraise on a new SAFE that has a small discount to the priced Seed equity round we plan to raise in Q2.

Lowlights

• We made the incorrect choice to initially set up the holding company, Cubbo Inc. in the U.S., in Delaware. For tax purposes, it’s more strategic to have our holding company in the Cayman Islands. Here’s a recent article that was published on the matter which elaborates on the situation — here. We’re working with our legal counsel now, Gunderson Dettmer, to fix the situation. This has been a distraction and caused extra legal fees we weren’t planning for, but ultimately this fix will be significantly better for the company.

Q1 goals

1. Double gross revenue to $200k by April
2. Build out team to 10 (2 senior devs, 4 ops, 2 sales, 1 admin, 1 customer support) — mostly Mexico City based (I remain full-time in Bogotá)
3. Lock down new urban warehouse in Mexico City in next 30 days

I’m happy to grab a 1:1 video call if you’d like to discuss this update further. Thank you for your support!

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