Meet the co-founders of Mellow
We’re Neil Tunbridge and James Storie-Pugh, the co-founders of mellow, a fully-managed, curated marketplace for global CBD brands.
What inspired you to launch your business and what is the end goal?
Neil: We identified a gap in a rapidly expanding wellness market and decided to create an eCommerce Marketplace for UK and EU customers to buy high-quality and reputable CBD (cannabidiol) brands and products. With our combined forty years’ of experience across retail, eCommerce, brand development, cross-border expansion, we knew we’d be able to capitalise on the increasing consumer interest and provide global CBD brands with the technology and support they need to reach more customers.
We see so much potential in the wellness sector, and we’ve built this marketplace to potentially expand into other (non-CBD) sectors that promote a healthy lifestyle.
How do you set yourselves apart from other businesses in your industry?
James: Operating within the CBD industry, we are extremely focused on legislation and regulation. With mellow we’re bringing legitimacy to the market. There is quite a bit of confusion around CBD so we want to educate consumers on the legality and potential benefits of CBD products, and only partner with brands that can guarantee us (and our customers) that every product meets our high-quality standards.
Also, there are very few businesses in our industry that have the experience in scaling B2C marketplaces that Neil and I do. And as a result, we’d like to think that this also sets us as a team and a brand apart.
What’s the biggest lesson you’ve learnt so far as entrepreneurs?
James: I think the biggest lesson I’ve learnt is that there is no such thing as a quick win and everything takes three or four times longer than you think. Also, you have to be prepared for the rollercoaster of emotions when it’s your own business, celebrate the highs but prepare for the lows.
With all the success stories in entrepreneurship and how innovative people have to be to take a leap, how do you think you’ve innovated in your sector and why?
Neil: We’ve created a marketplace model for the CBD and wellness industries. CBD is still relatively nascent in the UK and across Europe, so we’re helping brands cross borders, access new markets, find new audiences, and scale quicker than they’d be able to do alone.
What are your thoughts on failure?
Neil: You need to fail to value the wins. Only by failing and learning from your mistakes – quickly – can you bounce back and go on to achieve success. We know that mistakes have and will continue to be made, but what’s key is mitigating fallout, recognising that certain decision-making processes can improve and that we support the team to grow and mature.
What are your top tips for entrepreneurs wanting to get their business out there?
James: My top tip is to pick a good business partner. The key to launching a business is having someone who you can bounce ideas off, share the highs and lows, and exchange objective opinions. Also, surround yourself with key partners who offer invaluable insight into your industry. Early on we partnered with Nick Davis, Chief Executive of Memery Crystal, who is an expert in the European cannabis sector and an excellent sounding board.
What plans do you have for mellow over the next two years?
Neil: By the end of the year mellow will be home to up to 200 leading global CBD brands, and we’ve also got plans to expand into a number of new avenues. More details to come soon!
How did you conquer those moments of doubt that so often affect entrepreneurs or stop many with great ideas – what pushes you through?
Neil: I think this comes across as a slightly well-worn entrepreneur topic, but you have to try and keep believing that your original conviction, plans, thoughts and ideas were the right ones to keep going. For mellow, we believed that we saw an opportunity and we still believe that. I think the doubts come when other people and/or companies keep saying, ‘that can’t be done’, and you start to think, ‘what if they’re right’? This happened a lot with mellow, but that’s why it is so important to have a co-founder, the doubts become discussions, the discussions lead to decisions, and ultimately solutions.
How do you believe the evolution of tech will affect your industry over the next ten years?
James: Technology has already transformed retail and will continue to do so. The marketplace model offers a scalable solution for brands looking to connect with consumers and integrates all the tools necessary for merchants to list and sell, allowing them to grow their brand and revenues.
The two-sided marketplace model is also a fantastic way to bring together what is currently a very fragmented wellness market in the UK (and EU), for both brands and consumers. Combine the model, its network effects and commercial flywheel opportunities with the way in which mellow can help educate consumers and broaden the appeal for CBD and frontier wellness products, and it presents some fantastic opportunities.
How did you fund the launch of your business and what creative strategies did you use to execute a minimal cash flow?
Neil: We initially did an angel fundraise of £150,000 in December 2019 from our existing stakeholders and management, which allowed us to develop and launch the platform. We’ve recently commenced our seed fundraise, and are working with seed funds, high-net-worth individuals and family offices, ahead of planning for Series A fundraising in 2021.
