Photo - FOROS
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FOROS

C2B2B Marketplace for forestry and wood professionals

Lithuania
Market: Woodworking, Logging, Logistics and warehouses, Trade
Stage of the project: Operating business

Date of last change: 15.04.2020
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Idea

FOROS helps people and companies buy and sell forests or timber in the easiest and most convenient way possible.

Current Status

Second-year in Lithuanian market. 4x growth YoY. 9.6 Mio GMV in 2020.

Market

Our target markets are EEA and USA. EEA forest total available market (TAM) is 6B EUR plus 17B EUR timber TAM. USA forest TAM is 16B USD plus 23B USD timber TAM.

As you can see total available market is more that 64B USD.

Problem or Opportunity

The biggest problem is the price and here's why.

The seller wants to sell for the highest price and does not have the necessary information nor skills to do that. The buyer thought does not want to overpay but his options are limited: dealing directly with sellers fr om classified ads takes a lot of time and effort, and hiring a purchasing manager or advertise on the internet is expensive, plus he needs a constant flow of offers.

Both sides want to close the deal for the best price looking from their perspective. That’s wh ere we come in. We realized that an auction is the best way to determine the market’s price.

The real example – the auction started at 6000 EUR but we receive big engagement and participants of the auction drove the price to 23 800 EUR. After the acquisition, the winner said that it was still a good deal for him as he was desperate to find this type of forest in the area.

Solution (product or service)

Solution - FOROS, the first managed auction to sell forest and timber online.

We evaluate and set price. Buyers compete transparently. Seller get biggest possible price. We do paperwork.

Competitors

Our competitors are either have a hidden agenda or bad monetization or both.

Examples: https://mezabirza.lv/ bad monetization.

https://www.medziobirza.lt/lt/ hidden agenda (The founder’s father owns a sawmill and some forests) and bad monetization.

In global markets, there is no competitors with such idea and functionality.

Advantages or differentiators

In global markets, there is no competitors with such idea and functionality.

Finance


2020 in total: 3 countries, 2.5K users, €2.5M Gross Revenue, €36M GMV.

2021 in total: 10 countries, 6K users, €7M Gross Revenue, €116M GMV.

Business model

This model already works for 2 years now.

The auction starts - supplier signs a contract, provides property details, FOROS evaluates and starts the auction.

The auctions ends - FOROS prepares the auction and puts it online. The highest bidder wins.

The buyer’s premium - The winner pays the buyer’s premium. This is the one and only fee we are charging. Average buyer’s premium is 7%.

The agreement - The seller and the buyer sign the agreement. FOROS helps with documents.This model already works for 2 years now.

The auction starts - supplier signs a contract, provides property details, FOROS evaluates and starts the auction.

The auctions ends - FOROS prepares the auction and puts it online. The highest bidder wins.

The buyer’s premium - The winner pays the buyer’s premium. This is the one and only fee we are charging. Average buyer’s premium is 7%.

The agreement - The seller and the buyer sign the agreement.

Money will be spent on

๏ Hire: CMO, UI/UX designer, developers
๏ Expansion in LV and LT
๏ Launch: PL, SE, DE
๏ Develop ML based forest calculations
๏ Launch renowned timber trade model
๏ Develop a forestry management system for locking in buyers
๏ Cover marketing expenses

Offer for investor

We offer to invest at 10 000 000 pre-money valuation.

Team or Management

Risks

The biggest risk is not to scale fast enough and to be outrun by newfound companies with better funding.

Product Video

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video