Proceeds will go towards funding national distribution and field marketing initiatives to ensure sustainable velocity in both growth and sales. 

SAFE (Simple Agreement for Future Equity) securities are a type of financial instrument commonly used in early-stage startup financing rounds. Unlike traditional equity or debt securities, SAFEs represent a promise of future equity in the company. Here's a description of the ownership structure and rights associated with SAFE securities, all of which are negotiable according to the investment level and partnership intent:

1. Ownership Structure:

   • SAFEs do not represent immediate ownership in the company. Instead, they represent a contractual right to obtain shares of stock in the future, typically upon the occurrence of a specified trigger event, such as a subsequent equity financing round.

2. Rights of SAFE Securities:

   • Future Equity Conversion: The primary right associated with SAFEs is the right to convert the SAFE into equity shares of the company at a future date or upon the occurrence of a specified event, such as a qualified financing round.

   • Valuation Cap: Many SAFEs include a valuation cap, which is the maximum valuation at which the SAFE will convert into equity. If the company's valuation at the time of conversion exceeds the cap, the SAFE holder will receive shares based on the lower, capped valuation.

   • Discount Rate: SAFEs may also include a discount rate, which entitles the holder to purchase shares at a discount to the price paid by investors in the subsequent equity financing round.

   • No Voting Rights or Dividends: Typically, SAFE holders do not have voting rights or the right to receive dividends until the SAFE converts into equity.

   • Subordination: In the event of liquidation or bankruptcy, SAFE holders may be subordinated to debt holders and other creditors, meaning they may receive repayment only after other obligations are satisfied.

   • No Maturity Date: Unlike debt securities, SAFEs do not have a maturity date by which they must be repaid by the company if a conversion event does not occur. However, the company may choose to redeem SAFEs under certain circumstances outlined in the SAFE agreement.

Investing in SAFE (Simple Agreement for Future Equity) securities carries various risks, and it's essential for investors to understand these risks and disclosures before making an investment. Here are some common risks and disclosures associated with SAFE securities:

1. No Guaranteed Return: Investing in SAFEs does not guarantee any return on investment. The success of the investment depends on the future performance and valuation of the company issuing the SAFE.

2. High Risk of Loss: Startups, especially early-stage companies, are inherently risky investments. Many startups fail, and investors may lose their entire investment in the event of a company's failure or bankruptcy.

3. Lack of Liquidity: Unlike publicly traded securities, SAFE investments are illiquid. Investors may not be able to sell their SAFE securities easily or at all, especially in the absence of a secondary market for these securities.

4. Dilution: Future equity rounds may result in dilution of ownership for SAFE investors. As the company raises additional capital and issues new shares, the ownership percentage represented by the SAFEs may decrease.

5. Valuation Uncertainty: The valuation of the company at the time of conversion is uncertain. If the company's valuation exceeds the valuation cap specified in the SAFE, investors may receive a smaller ownership stake than anticipated.

6. No Control or Voting Rights: SAFE investors typically do not have voting rights or control over company decisions. They rely on the company's management and board of directors to make decisions that affect the company's operations and direction.

7. Limited Information Disclosure: Early-stage companies may have limited financial history and may not disclose comprehensive financial information to investors. Lack of transparency can make it challenging for investors to assess the company's financial health and prospects accurately.

8. Regulatory Risks: Investing in SAFEs may involve regulatory risks, including compliance with securities laws and regulations. Investors should be aware of the legal requirements and restrictions governing the issuance and sale of securities in their jurisdiction.

9. Potential for Downside Protection: While SAFEs may include features such as valuation caps and discount rates to protect investors, these features may not fully mitigate the risks associated with startup investments.

10. Legal and Tax Implications: Investors should consider the legal and tax implications of investing in SAFEs, including potential tax liabilities and regulatory compliance requirements.

$125k in initial investments from founders. 

Key Performance Indicators (KPIs) for a distilled spirits company seeking to raise $1.5 million for funding national distribution and field marketing initiatives to ensure sustainable velocity in growth and sales can include:

1. Revenue Growth Rate: Measure the percentage increase in revenue over specific periods to track the company's growth trajectory.

2. Customer Acquisition Cost (CAC): Calculate the cost incurred to acquire each new customer. Lowering CAC can indicate improved efficiency in marketing and sales efforts.

3. Customer Lifetime Value (CLV): Determine the total revenue expected from a customer throughout their relationship with the company. Increasing CLV signifies better customer retention and value.

4. Gross Margin: Monitor the percentage of revenue remaining after deducting the cost of goods sold. Improving gross margin indicates better profitability and cost management.

5. Distribution Reach: Track the number of new distribution channels and geographic locations where the company's products are available. Increasing distribution reach can expand market access and sales potential.

6. Market Penetration: Assess the company's market share within its target segments or regions. Increasing market penetration demonstrates growth and competitive strength.

7. Brand Awareness: Measure the level of recognition and familiarity consumers have with the company's brand. Enhancing brand awareness can drive consumer preference and loyalty.

8. Sales Velocity: Evaluate the speed at which products move through the distribution channel and generate revenue. Higher sales velocity indicates strong demand and market acceptance.

9. Return on Investment (ROI): Calculate the financial return generated from marketing and promotional activities compared to the investment made. Positive ROI demonstrates the effectiveness of marketing initiatives.

10. Cash Burn Rate: Monitor the rate at which the company is spending its available cash. Maintaining a manageable cash burn rate ensures sustainable operations and financial stability.

11. Funding Progress: Track the progress in securing the $1.5 million funding target. Milestones could include investor commitments, funding rounds closed, and capital raised.

12. Operational Efficiency: Evaluate key operational metrics such as production efficiency, inventory turnover, and supply chain management. Improving operational efficiency reduces costs and enhances productivity.

Jeff Quint

Jeff Quint, a certified public accountant from Eastern Iowa, and his wife Laurie launched Cedar Ridge, which has become one of the region’s largest wineries and craft distilleries, specializing in family-farmed grain-to-glass whiskey.

Murphy Quint

Born in Minnesota and raised in Iowa, Murphy Quint began distilling spirits at age 15, assisting his family in opening Cedar Ridge. He has since helped develop award-winning Iowa spirits and aims to leave a whiskey legacy in the Midwest.

Jamie Siefken

With extensive work experience in the hospitality and beverage industry, Jamie Siefken currently serves as the General Manager/Executive Vice President at Cedar Ridge Winery & Distillery, holding the position since January 2020. Previously, they were the General Manager at Cedar Ridge Vineyards starting in May 2010.

Kenneth Breneman

Former financial leader within Goldman Sachs, specializing in Alternative Investments, corporate restructuring, financial/decision modeling, and strategic implementation. Army Veteran, Founder and CEO of Mainstreet Bonds.

Ken Vennera

Ken Vennera, Chief of Staff of Warrior Rising, holds a Bachelor’s degree in Economics with concentrations in Finance and Marketing from the Wharton School of the University of Pennsylvania, a Juris Doctor degree from Widener University School of Law Delaware, and a Master’s in Law degree from Villanova University School of Law.

Mike "Mac" Crumblin

After military service, Mac earned his MBA from Harvard Business School, co-founding the Armed Forces Alumni Association. In a career spanning over 25 years, he’s served as an E-staff leader for sales, marketing, business development, and CEO of three start-ups, including a green energy company in Jakarta, Indonesia and Timor-Leste. His early career involved software development, M&A, product management, marketing, and strategic alliances.

Stan Teaderman

Stan Teaderman, a Napa Valley native, established his propane gas business in 1967, expanding operations across Northern California, Nevada, and internationally. In 1978, he and his wife Patty purchased a 14-acre Oakville property, founding Teaderman Vineyards, known for its Sauvignon Blanc and Cabernet Sauvignon wines. Active in the Napa Valley community, Stan supports various causes while enjoying hobbies like fishing, classic cars, and travel, exploring destinations from the Yukon to the Amazon.

Jason Van Camp

Jason, a Washington D.C. native raised in Springfield, Virginia, graduated from the United States Military Academy at West Point in 1995. He played linebacker for the Army Black Knights football team, served a two-year LDS-Mormon mission to Russia, and won the General Loeffke Award for Excellence in Foreign Languages. Following his graduation, Jason earned his Ranger tab at U.S. Army Ranger School and later became a Green Beret, serving as a Detachment Commander with 10th Special Forces Group. He received numerous awards, including the Bronze Star with V device for Valor. After completing his MBA from Brigham Young University in 2013, he developed a passion for entrepreneurship, leading him to found Warrior Rising and serve as CEO of Mission 6 Zero. Jason values servant leadership, determination, and the power of storytelling. He is the current Executive Director of Warrior Rising.

Nick Lavery

Nick is the founder and CEO of Precision Components LLC where he and Team MACHINE train, advise, enable, and inspire organizations and individuals to unlock capacity and increase capability. He is also the best-selling author of Objective Secure—the battle-tested guide to goal achievement. Nick is a warrior, leader, teammate, and most importantly a proud husband and father of two young boys. Nick enjoys reading, writing, lifting weights, Brazilian Jiu Jitsu, and shooting. Most significantly, he enjoys building forts, Legos, getting dirty, drawing, and reading with his sons and traveling, eating dinner, and watching movies with his wife.

Earl Plumlee

Earl D. Plumlee, born on April 6, 1980, is a Master Sergeant in the United States Army. He was awarded the Silver Star for his courageous actions in Afghanistan on August 28, 2013. President Joe Biden presented him with the Medal of Honor on December 16, 2021, during the same ceremony where Alwyn Cashe and Christopher Celiz were posthumously awarded the honor.

1. Cedar Ridge Distillery
2. AAFES (Military Exchanges/retail)
3. MSS (Military Sales and Services)
4. HyVee
5. Fareway
6. Walbergs
7. RNDC
8. LibDib
9. Dragon Spirits
10. Warrior Rising
11. The Green Beret Foundation
12. The Medal of Honor Association
13. Total Wine and Liqour

"Working on this project with the Cold Zero team is an incredible honor. Blending whiskey is always fun, but doing it alongside national heroes takes it to a whole new level. The quality of the whiskey matches the caliber of the people behind it."

Murphy Quint, Head Distiller, Cedar Ridge Distillery