The Cup eXchange Ltd (TCX), a sustainable, technology-enabled coffee cup subscription service launches its first equity crowdfunding campaign to raise between $500,000 – $1.2 million dollars via OnMarket’s platform.
The early stage Melbourne based scale-up has raised $350k to date. TCX plans to use the new funds to increase awareness of TCX through promotion and education, to increase the speed of the network rollout to cafes and precincts around Australia, and to expand the IT system capacity whilst maintaining reliability.
TCX is looking for investments between $250 – $10,000 from retail investors and $10,000+ from wholesale/private investors – who require s708 sophisticated investor status. Investors will receive shares in the company and any investor that invests $500 or more via the OnMarket campaign will receive a free 24 month TCX subscription with two cup credits, commencing upon first use at a TCX enabled cafe.
“Inclusivity is a core belief at TCX and we know that making a significant difference requires the support of a crowd. That’s why we’re excited to be offering an equity crowdfunding campaign through OnMarket,” said Marty Rowell, co-founder & CEO of TCX.
“TCX makes it easy for anyone to be part of the solution. Australians can now have a better take-away coffee experience whilst avoiding the negative impact on the environment. Through the crowdfunding everyone has an opportunity to own a part of the company and increase the speed of network rollout to make an even bigger difference,” added Marty Rowell.
If the full $1.2 million is raised, this will give the company a post-money valuation of $5.7m.
Founded in September 2017 by brothers Marty and Jeremy Rowell TCX was created to provide a convenient and sustainable alternative to single-use paper cups that benefits all stakeholders – customers, cafes, government/councils and the environment.
“My brother and I were inspired to come up with a better solution for the mass market after watching War on Waste last year which resulted in us founding The Cup eXchange together,” said Jeremy Rowell, co-founder & CIO of TCX.
TCX Cups were intentionally designed to replicate the form of the iconic paper cup for familiarity but are made using 100% Tritan from Eastman(a next generation glass replacement material). The cups are durable, with high shatter and chemical resistance and have been tested to wash over 4,000 times in an industrial glass washer without cracking, warping or discoloration. TCX Cups are odour free providing a superior taste experience for consumers. They are FDA approved and BPA & BPS free.
With 1.2 billion paper coffee cups used in Australia every year and 90% of those ending up in landfill, TCX’s model means that none of their cups go to landfill. TCX was intentionally designed as a circular economy business from the ground up.
“TCX takes responsibility for their cups when they reach end-of-life. We remove them from circulation, crush them down, and use 100% of the material to make another TCX Cup” – said Jeremy Rowell.
TCX is already working with major precincts, facility managers and select cafes, in its initial rollout.
As a platinum sponsor of the Melbourne International Coffee Expo (MICE) being held at Melbourne Convention and Exhibition Center (MCEC) in February 2019, TCX is set to officially launch at the expo. MICE exhibitors and attendees will be able to experience the TCX Cups first hand and see them being used in the Australian Speciality Coffee Association (ASCA)National Cup Tasters Championship.
“The Australian Senate inquiry published in June 2018 proposes to ban single-use items such as coffee cups with plastic linings by 2023 but we have the solution to change things now, not in another five years,” said Marty Rowell.
“We’re excited to offer the TCX equity crowdfunding opportunity to Australians who want to be part of the solution to a global problem.”
To invest, head to tcx.org and then click the “Invest” button, or go to onmarket.com.au and click “Invest Crowdfunding” button.