SOLD OUT
GET A PIECE OF ARTLY
Your Friendly Neighborhood Robot Barista.
Artly uses cutting-edge AI technology to create authentic specialty coffee experiences with robot baristas. We’ve raised over $10M, have launched 9 locations in WA, OR, CA, and NY, served over 350,000 cups of coffee, and plans to expand through franchisees.
$1,234,839.17 Raised
REASONS TO INVEST
The company has a rapidly growing customer base, with revenue increasing by 900% from $100,000 in 2021 to $910,000 in 2022.* The growth figures provided are based on historical data and should not be construed as indicative of the company's future performance or financial success.
Artly robotic baristas have served over 350,000 cups of specialty coffee. This proprietary AI technology can be readily applied to other beverage and food categories, as well as other industries.
The team is composed of experienced entrepreneurs and experts in AI and coffee.
the pitch
Bringing the fine craft of coffee to every corner of the world.
Artly is the future of coffee: combining the finesse of skilled baristas with the precision of AI, Artly is revolutionizing the specialty coffee experience. The company’s patent-pending AI barista mimics human skills to craft the perfect cup of coffee, consistently, and efficiently. With over 350,000 cups served, revenue growth from $100,000 to $910,000 within a year, and an experienced team of entrepreneurs at the helm, Artly is set to redefine the coffee industry.
Artly is a coffee company that is obsessed with quality. The company sources, hand-picks, and roasts high-quality, specialty-grade beans. Artly’s in-house smart roasting machine makes small batches, which allows them to produce a final product which highlights all of the effort and care put in by the coffee bean farmers. This is in contrast to large chain coffee shops such as Starbucks, which use a centralized large-batch dark-roast coffee process that is designed to achieve uniformity and to mask the defects of lower-grade coffee beans. Artly's accolades in the coffee industry underscore their relentless pursuit of unparalleled coffee quality. To allow people to enjoy a truly authentic artisan coffee experience, Artly uses proprietary AI algorithms to teach the robots to use equipment and tools in the same way as the most skilled baristas.
Led by experienced entrepreneurs and seasoned domain experts, CEO Meng Wang founded Orbeus Inc, which was acquired by Amazon in 2015. COO & CPO Yushan Chen, a seasoned product manager, led the product team at Orbeus, Alexa, and Amazon Robotics. Artly’s Chief Coffee Officer, Joe Yang, has 15+ years of coffee industry experience and is the 2023 US National Coffee Champ. VP of Retail Daniel Lee, former Starbucks Regional Director, has planned, launched, and operated over 200 Starbucks retail locations.
The Problem & Our solution
Why Choose Between Cost And Quality?
Fast food is often cited as an example of businesses that have chosen to sacrifice quality for the sake of low costs. This is exemplified by the widespread use of assembly lines, preservatives, and the masking of coffee flavor with sugar and cream at Starbucks. While consumers may prefer the higher quality of coffee from local specialty coffee shops, they are often frustrated by the higher price tags and limited availability. Labor shortages, high turnover rates, and rising wages also impact the profitability of traditional specialty coffee stores and even big chains like Starbucks, hindering their ability to meet the growing demand for better coffee.
(Source | Source | Source | Source)
Let robots work like humans, not vice versa!
Artly Coffee uses AI to create robots which mimic the actions of human baristas to produce the ultra-premium quality drinks at the same price point as our large-chain competitors. Unlike other automated coffee machinery, Artly Coffee robots are taught to use the same industry-leading craft coffee equipment and tools that the best human baristas depend on in specialty coffee shops. Motion-capture technology is used to precisely record the actions of our championship-winning baristas, and the robots adapt and replay the exact motion by leveraging our proprietary imitation learning, computer vision, robotic control, and large language models. Our robot baristas can replicate even the most complex recipes with the same precision and passion.
THE MARKET & OUR TRACTION
A Fast-Growing Customer Base With Over 350,000 Cups Of Coffee Served
The global coffee market is expected to reach $497.89 billion by the end of 2028, with the US coffee shop market worth around $47.5 billion USD in 2019. (Source | Source) Starbucks is the largest coffee chain in the US, with around 15,000 stores, generating $3.3 billion in annual profit on a revenue of $28 billion. (Source | Source)
Artly coffee shops have seen a significant increase in business, with 19 robots deployed in 9 locations making thousands of cups of coffee each day and have made over 350,000 cups thus far. The company has experienced revenue growth from $100,000 in 2021 to $910,000 in 2022. This summer, Artly is opening four new stores: in California, New York, and Oregon. With its strong financial performance and expansion plans, Artly Coffee believes it is well-positioned for further growth.
The Artly coffee shop in San Francisco Premium Outlet generated $40,000 per month in 2022 and a 40% EBITDA margin due to its inherently low labor costs and unparalleled consistency in product quality and customer experience. The Artly coffee shop at Stewart 101 has achieved an average profit margin of 40% since it opened. And all 9 Artly coffee shops have a positive EBITDA margin.
Artly's standard robot module is a mere 20 square feet. A store with 2-3 robots averages between 100 to 400 square feet, just one-fifth of the square-footage required by a Starbucks coffee shop. The startup cost of one Artly coffee shop is just one-sixth of the construction cost of the Starbucks store. The compact footprint reduces upfront costs, and streamlined operations ensure more people can enjoy Artly's exceptional coffee.
WHY INVEST
The Future Of Coffee
Artly is the solution to artisan specialty coffee. We consistently deliver high-quality coffee and a great customer experience across our expanding national network. We have won national awards for our coffee roasting, brewing, and latte art. Artly's robotic system uses proprietary computer vision and robotics algorithms, as well as generative large language models to constantly learn and improve, recreating the authentic champion-grade specialty coffee experience.
We are building a new retail store network to bring artisan coffee to more places. We have already secured locations in retail, offices, tourism, and hotels. Additionally, we have a partnership with retailer MUJI in downtown Portland and Manhattan, New York. We plan to continue expanding our partnership opportunities in 2023.
Together, let's brew the future!
ABOUT
HEADQUARTERS
3131 Western Ave Suite 411
SEATTLE, WA 98121
WEBSITE
View Site
Artly uses cutting-edge AI technology to create authentic specialty coffee experiences with robot baristas. We’ve raised over $10M, have launched 9 locations in WA, OR, CA, and NY, served over 350,000 cups of coffee, and plans to expand through franchisees.
TEAM
Meng Wang
Co-Founder and CEO
Joe Yang
Chief Coffee Officer
Yushan Chen
Chief Operation Officer and Chief Product Officer
Daniel Lee
Vice President, Retail and Business Operations
Jun Li
Director
At SV Tech Ventures, Jun Li's primary responsibility involves identifying promising technology startups for investment. He evaluates potential opportunities based on their technological innovation, market potential, and the strength of their teams. His role is instrumental in shaping the investment portfolio and growth strategy of SV Tech Ventures.
Geraldine Pannu
Chief Financial Officer
Additionally, she holds board positions at Royal Business Bank and Processa, providing strategic guidance and oversight, particularly in financial matters. As a Managing Partner at GLTJ Pioneer Capital, she collaborates with equity investors and developers on land acquisition and development projects. Geraldine's extensive experience in financial management and investment strategy contributes significantly to Artly's financial health and strategic growth.
TERMS
Artly
Overview
PRICE PER SHARE
$9.48
DEADLINE
Jan. 10, 2024 at 7:59 AM UTC
VALUATION
$99.97M
FUNDING GOAL
$10k - $1.23M
Breakdown
MIN INVESTMENT
$492.96
MAX INVESTMENT
$1,234,978.56
MIN NUMBER OF SHARES OFFERED
1,054
MAX NUMBER OF SHARES OFFERED
130,272
OFFERING TYPE
Equity
SHARES OFFERED
Series CF Preferred Stock
Maximum Number of Shares Offered subject to adjustment for bonus shares
Voting Proxy. Each Subscriber shall appoint the Chief Executive Officer of the Company (the “CEO”), or his or her successor, as the Subscriber’s true and lawful proxy and attorney, with the power to act alone and with full power of substitution, to, consistent with this instrument and on behalf of the Subscriber, (i) vote all Securities, (ii) give and receive notices and communications, (iii) execute any instrument or document that the CEO determines is necessary or appropriate in the exercise of its authority under this instrument, and (iv) take all actions necessary or appropriate in the judgment of the CEO for the accomplishment of the foregoing. The proxy and power granted by the Subscriber pursuant to this Section are coupled with an interest. Such proxy and power will be irrevocable. The proxy and power, so long as the Subscriber is an individual, will survive the death, incompetency and disability of the Subscriber and, so long as the Subscriber is an entity, will survive the merger or reorganization of the Subscriber or any other entity holding the Securities. However, the Proxy will terminate upon the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933 covering the offer and sale of Common Stock or the effectiveness of a registration statement under the Securities Exchange Act of 1934 covering the Common Stock.
*Maximum number of shares offered subject to adjustment for bonus shares. See Bonus info below.
Investment Incentives & Bonuses*
Loyalty Bonus
5% Loyalty Bonus for Friends and Family
Combo/Avid Investor Perk
Invest $500+ within the first two weeks and receive 1% bonus shares
Invest $2,500+ within the first two weeks and receive 2% bonus shares
Invest $5,000+ within the first two weeks and receive 5% bonus shares
Invest $10,000+ within the first two weeks and receive 10% bonus shares
Volume Based Perk
Tier 1 Perk — Invest $2,500 + receive and receive an invitation to Private Investor Group
Tier 2 Perk — Invest $5,000+ and receive [Artly reward points worth $100 in the artly app account] + 1% bonus shares
Tier 3 Perk — Invest $10,000+ and receive [Artly reward points worth $200 in the artly app account] + 2% bonus shares + virtual call with executive team.
Tier 4 Perk — Invest $25,000+ and receive [Artly reward points worth $500 in the artly app account] + 5% bonus shares+ virtual call with executive team.
Tier 5 Perk — Invest $50,000+ and receive [Artly reward points worth $1000 in the artly app account] + 7% bonus shares + virtual call with executive team.
Tier 6 Perk — Invest $100,000+ and receive [Artly reward points worth $2000 in the artly app account] + 10% bonus shares + Priority queue for a limited partnership opportunity (10 in total for Series CF and selected areas only) + 1:1 virtual call with the executive team.
*In order to receive perks from an investment, one must submit a single investment in the same offering that meets the minimum perk requirement. Bonus shares from perks will not be granted if an investor submits multiple investments that, when combined, meet the perk requirement. All perks occur when the offering is completed.
Crowdfunding investments made through a self-directed IRA cannot receive non-bonus share perks due to tax laws. The Internal Revenue Service (IRS) prohibits self-dealing transactions in which the investor receives an immediate, personal financial gain on investments owned by their retirement account. As a result, an investor must refuse those non-bonus share perks because they would be receiving a benefit from their IRA account.
The 10% StartEngine Owners' Bonus
Blue Hill Tech Inc. (Artly) will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.
This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Series CF Preferred Stock at $9.48 / share, you will receive 110 shares of Series CF Preferred Stock, meaning you'll own 110 shares for $948. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.
This 10% Bonus is only valid during the investors' eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail.
Investors will receive the highest single bonus they are eligible for among the bonuses based on the amount invested and time of offering elapsed (if any). Eligible investors will also receive the Owner’s Bonus and the Loyalty Bonus in addition to the aforementioned bonus.
ALL UPDATES
REWARDS
10%
Stack Owner's Bonus & Rewards!
Members get an extra 10% shares in addition to rewards below!
Owner’s Bonus
Owner’s Bonus Members earn 10% bonus shares on top of this and all eligible investments for an entire year. Not a member? Sign up at checkout ($275/year).
$2,500
Tier 1 Perk
Invest $2,500 + receive and receive an invitation to Private Investor Group
$5,000
Tier 2 Perk
Invest $5,000+ and receive [Artly reward points worth $100 in the artly app account] + 1% bonus shares
$10,000
Tier 3 Perk
Invest $10,000+ and receive [Artly reward points worth $200 in the artly app account] + 2% bonus shares + virtual call with executive team.
$25,000
Tier 4 Perk
Invest $25,000+ and receive [Artly reward points worth $500 in the artly app account] + 5% bonus shares+ virtual call with executive team.
$50,000
Tier 5 Perk
Invest $50,000+ and receive [Artly reward points worth $1000 in the artly app account] + 7% bonus shares + virtual call with executive team.
$100,000
Tier 6 Perk
Invest $100,000+ and receive [Artly reward points worth $2000 in the artly app account] + 10% bonus shares + Priority queue for a limited partnership opportunity (10 in total for Series CF and selected areas only) + 1:1 virtual exec call
JOIN THE DISCUSSION
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Christopher Lill
2 months ago
I am a current investor and the ticker symbol for your company has changed on my portfolio to BHTPOP (Blue Hill Tech Inc) ? What’s going on?
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TARAKA SAI PAVAN GRANDHI
2 months ago
i was at MUJI Hudson Yards yesterday and got a chance to see the robot in action. Loved it fully. The robot kept running out of things and had to call the attendant to replace the items. One suggestion would be to make larger fridges that can store more of the items, so a replacement once per day would be good. The robot was slow yet thorough, please consider placing more robots in one location. It was good to order the drink and go shopping while the drink was made. Good job Artly. Excited for your future. I can see this in my office place one day, replacing the Starbucks. You can have Artly volunteers/bistro staff in offices if needed, to refill milk and such.
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Rajashekar Vasantha
2 months ago
The robots are fantastic and make great coffee too. I was curious to know your thinking behind opting to use a robotic arm over a conveyor belt based system where you set up a production line like setup for making coffee.
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Tonghong Chen
3 months ago
I am a manufacturer of kitchen equipment from China. Curious to know: 1) what's the average cost of each machine? 2) how does your supply chain look like. Do you outsource the manufacturing part to an OEM company, or you make it in house? 2) Beverage robot is not a new concept, and you can find quite a few examples even on Taobao (淘宝). How do you distinguish yourself with those products? e.g. https://www.taobao.com/list/product/%E8%87%AA%E5%8A%A8%E5%92%96%E5%95%A1%E6%9C%BA%E5%99%A8%E4%BA%BA.htm
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Michael Brandt
3 months ago
How much does each machine cost to produce? Related questions: 1) is the cost of the machine less or more than it was in previous years 2) what do you project the cost of a machine to be a few years out?
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Timothy Alvarez
3 months ago
Your company seems very interesting and can definitely help during those rushes. How soon do you expect to open up in new areas like Southern California? Do you also reward those who consistently invest in your company?
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Henry Zhang
3 months ago
It's great that you've partnered with MUJI, which is a great brand that both boosts Artly's own profile and whose minimalistically Zen and design- and quality-focused brand identity hopefully rubs off on Artly. Are you actively pursuing other partnerships and collaborations, and if so, what resources are you allocating to this pursuit? Is there a vision for the types of partnerships you hope to establish? Finally, not a question, but a suggestion: You should take advantage of your office location to place Jarvis on cruise ships--you'll have a captive audience of families who'll love it.
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Henry Zhang
3 months ago
Your offering circular names several competitors (and there are several more, such as Botbar, Crown Digital, OrionStar, and Truebird). Of course, no product, service, or technology need to be singularly unique to be successful. As both a food and beverage company and a technology company--which operate in very different ways--without necessarily going into too much detail, what is your strategy for staying ahead of, standing out from, (or avoiding) the competition?
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Henry Zhang
3 months ago
After discussing Artly with friends and family, it seems that coffee enthusiasts (or, I guess, coffee snobs) likely would dismiss robot-made coffee as gimmicky, soulless, or inauthentic compared to hand-crafted, artisanal coffee, which, beyond the finished product, also involve ritual and ambiance. On the other hand, more pedestrian coffee consumers likely have brand loyalty to chains like Starbucks, Duncan Donuts, Tim Hortons, or Peet's. What is your target demographic? What is your strategy for building visibility and appeal with your target demographic?
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Cody Heisinger
20 days ago
I'd like a Cortado. They are very popular here in NYC and increasing interest elsewhere. Basically, it's just a smaller amount of dairy to espresso which actually uses less inventory for a similar price. How easy is it to update your robots with new recipes? Can I get one soon? I'm considering increasing my investment if my tastebuds give a thumbs up!
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