The company is a spin-off of a space company that has been developing and selling hardware for satellites using state of the art technology. The new spin-off has already launched a product conceived for the B2C health market, and is now developing next generation smartglasses using a disruptive technology. We will sell our product via established sports retail chains.
We already have an early stage prototype and we are now seeking $9 million for releasing a beta version of our product. The investment will be used for miniaturization of some of the electronics, optimization of the configuration of the smartglasses and initiate the commercialization of the product.
Competitive advantage: This is the only system in the world that combines elegance and wide field view.
Lead investor: SDIC Chinese investor already committed to invest $3 million.
About Management Team
CEO: Three times start-up entrepreneur and one-time business angel, all in high tech products. Already led the launch of an augmented reality product in the B2C market.
CMO: 10 years as sales director in B2C and already negotiated a $6 million contract.
About Our Product
The product provides augmented reality information in the user field of view using custom holograms and a custom transparent display. The displayed image has a size of 70ºx50º and provides biometrics information (e.g. beat per minute), sportive performances (e.g. average speed, distance to finish) and any kind of other information coming from the user smartphone (e.g. SMS, music list). The commands will be done though voice recognition and though the touch screen of the smartphone.
The sports weareables market is going to rise from 125 million device in 2017 to 240 million in 2021 (FORBES source: https://www.forbes.com/sites/paullamkin/2017/06/22/wearable-tech-market-to-double-by-2021/#3d3d76b5d8f3 ). Smartwatches sales in 2017 has been of 43 million units and will grow to 86 million units in 2021 (CCS source: http://www.ccsinsight.com/press/company-news/2968-ccs-insight-forecast-reveals-steady-growth-in-smartwatch-market )
Smartglasses is the new generation of wearable and they will replace smartphones.
We already invested $4.1 million without any external investor (only with grants and own investment). We have now an additional $1,5 million grant and are seeking $9 million for the beta product launch. We forecast the first sale in 2 years from now at a selling price of $600. In the first year, we expect to sell 60 000 units and in the third year one million units which represents an EBIT of $276 million.
There are several competitors positioned in several markets. MagicLeap raised $1,39_billion but is trying to enter directly in the large consumer market. For the sports market, Recon has a product for cyclist and runner (https://www.reconinstruments.com/products/jet/) and has been buy by Intel for (https://www.engadget.com/2015/06/17/intel-buys-recon/) $175 million. Solos (http://www.solos-wearables.com/) and Garmin (https://buy.garmin.com/en-US/US/p/530536) have launched a product for cyclist.
All those products have very small field of view (typically 15º) which limits the amount of information. As an example, it is not possible to present a map in their device. In our solution, this is possible.
On the other hand, all those products are not elegant because they need some bulky optics around the main glasses. In our product, everything is inside the lens allowing truly elegant glasses.
Preferentially though IPO.
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