PANGEA Movement on Wefunder 2022



PANGEA Movement bears moderately low risk. This impact-driven business sets aside its funds to create river barriers to catch trash. Although being impact driven is beneficial to the company in the long run, it might delay the company’s growth. If its revenue were utilized elsewhere, such as to finance its business operations and product development, PANGEA could boost its scaling ability. This creates some funding and financial risk. 

Delaying growth means PANGEA would have to keep raising capital in the near future to sustain its own operations, and this could further dilute early investors’ equity. Moreover, PANGEA apparently plans to create a Kickstarter campaign for each of its outdoor products. These campaigns are designed to market its initial product launch as well as reduce risk by covering manufacturing costs. While it makes sense from a capital efficiency standpoint, these campaigns tend to take a long time to complete, and it costs quite a bit to market the campaign. This process could hinder the company’s scalability, as it means the product life cycle takes longer. 

Additionally, PANGEA is in the process of moving its holding company, or parent company, from Singapore to the United States. According to PANGEA COO William DiRicco, this is necessary to ease the process of eventually selling the company. The founders believe that the market for buying and selling companies is in the United States. He also mentioned that the legal fee is around $5,000 to $10,000. While this process seems like a smart move, it could take capital away from where it’s needed the most, such as the company’s product development, team expansion, and marketing efforts.