Milwaukee smart packaging startup PAXAFE Inc. is working to raise $400,000 from investors, according to a new SEC filing.
The equity and debt round is expected to close by mid-March, said Ilya Preston, co-founder and chief executive officer. PAXAFE estimates about $60,000 of the proceeds will be used to pay Preston and co-founder Ashok Seetharam.
But the majority of proceeds from this “pre-seed round” will be spent on bringing PAXAFE’s hardware product to market, with alpha testing, then paid beta pilots planned with clients this spring, Preston said.
“The major chunk of it is going to making sure we have a product at the right price point and delivering on the right value levers to the customer so we have a product that’s ready to come to the market,” he said.
PAXAFE graduated from the gener8tor startup accelerator’s fall 2018 Milwaukee cohort. It moved its headquarters from Minnesota to Milwaukee in November, upon completion of the accelerator, partly due to local investor interest.
gener8tor generally invests $100,000 in each of the startups that participate in its accelerator program.
PAXAFE (pronounced “pack safe”) makes smart packaging technology used for security and real-time tracking of high-value products. The company is currently focused on smart packaging technology for high-value jewelry and luxury watches, but plans to expand into packaging for diamonds, money, electronics, pharmaceuticals and other items that are shipped across the country.
In a presentation at gener8tor premiere night in November, Preston said the company’s addressable market is more than $1.5 billion in the U.S., just for jewelry and watches. He expected PAXAFE to have $85,000 in monthly recurring revenue by the end of 2019.
