Cool announcement about my startup
- Thread starter LTLHOMER
- Start date
LTLHOMER
Club Sponsor
We got invited to audition for the show back in July. But as you guys that watch the show know, you don't want to go on there without any sales history or a not quite ready to go product. The sharks will eat you for lunch. We talked with the producer a few times and ultimately passed. He said to stay in touch to keep the possibility open for a later date. The catch is the show gets the option of a 3% royalty or a 5% equity stake even if you don't get a deal on the show but then raise money within 2 years of the show's air date. So you have to determine if the huge exposure and potential deal is worth that much. For it to be worth that much, you will want to have product ready to ship by the time the show airs. Plenty of examples where the company didn't get a deal but then ended up selling a ton of product because of the exposure. Also a lot of companies that didn't get deals that ended up raising money afterwards because both potential customers and investors watch the show.
LTLHOMER
Club Sponsor
If a company ended up going public (very rare these days), they probably would have had to raise money a few times along the way to scale up which would dilute that 6-10% down to something quite a bit smaller.
A good example is Peter Thiel's investment in Facebook. He invested $500k on a $5mm valuation so he owned 10%. When Facebook went public, Peter's stake had been diluted to 2.5% because of multiple equity financing rounds. But 2.5% of 100B was a lot more $$$ than 10% of 5mm.
WhiteHawk
Club Member
It is funny that they get a cut even if you don't get a shark as a partner. Most of the stuff that gets turned down probably never makes any money though.
-Geoff
LTLHOMER
Club Sponsor
Anyone on here have twitter?
We are trying to get on stage to win $100k live.
http://bostinno.com/2012/10/09/70-s...on-angel-shark-tank-which-do-you-want-to-see/
We are trying to get on stage to win $100k live.
http://bostinno.com/2012/10/09/70-s...on-angel-shark-tank-which-do-you-want-to-see/
An inventor in Michigan had a product to cook pasta in a microwave, he was aiming it toward travelers in motorhomes. Not only did the Chinese steal his product, but they even left the photo of his Asian wife on the box they sold their product in!
LTLHOMER
Club Sponsor
The shifting system is really the value-add and it was designed and sourced here in Michigan. We basically get a normal looking bike in a box from Taiwan and then integrate our system.
The real question is more general. How do we stop anybody from stealing our idea? The answer is we can't. We just have to kick ass more than them. Even our patent portfolio is pretty much worthless (they do look cool on our wall) because the average cost of litigating a patent is over $3M. But I will tell you this, whoever wants to copy us is going to need a group of BAMFs to do it because there was nothing easy about it and we've gotten real lucky with the team and set of advisers that we've been able to recruit.
Our life would actually be easier if someone copied it because we could use that as proof that there's a market out there. That sounds stupid but it's actually true. Raising $ is easier when you have direct competitors in your space AND you can convince someone why you are going to kick their ass. We just talk in circles and draw hockey stick growth curves and hope no one notices that it's all story-telling (like everybody else that claims to be able to predict the future).
LTLHOMER
Club Sponsor
For sure. When is the next one? We are finishing our first 10 production bikes right now. Just got the first production printed circuit boards in this week (built in Rochester Hills, MI).
I'll post a picture once I've seen it for myself. I have only been in Michigan a couple days total over the last two months.
Thanks for keeping us up to date.
I'm looking at a road bike this weekend to go with my mountain bike & hybrid bike.
My neighbor thought I was a little crazy for riding 2 1/2 miles to & from the gas station to get fuel for the lawn mower, but I enjoy a nice summer ride. Plus, how much longer does it take to make a 5 mile round trip by car compared to a bike?
I'm looking at a road bike this weekend to go with my mountain bike & hybrid bike.
My neighbor thought I was a little crazy for riding 2 1/2 miles to & from the gas station to get fuel for the lawn mower, but I enjoy a nice summer ride. Plus, how much longer does it take to make a 5 mile round trip by car compared to a bike?
LTLHOMER
Club Sponsor
I might put together a Giant Seek 0 with our system this weekend if I get a chance. That would be a tight combo. By the end of next year, we want to have three styles for sale (cruiser, mountain, and road).
It's already got the 135 mm spacing since it's using an Alfine 8-speed IGH.
It's already got the 135 mm spacing since it's using an Alfine 8-speed IGH.
That all makes sense. I hope to see your product on the market soon, I know I'll be purchasing one.
WhiteHawk
Club Member
I was look at the hashtag for #bostonsharks and there were very few in there. If Motown made a big push we could probably put Sean on the show.
-Geoff
LTLHOMER
Club Sponsor
I probably should have! And if I didn't make it, someone would probably have volunteered to go whoop some ass! lol
Just got word late last night that we didn't make it as one of the final 6.
The biggest problem and why we didn't try to force the issue was that none of those "sharks" invest in physical technology companies. They are almost exclusively internet/software/mobile app investors.
But we actually have a competition lined up in Colorado that U of M sponsored us to go to so we'll be there hoping to take down $20k for first place or $10k for second place (out of 10 teams that they selected from all the applicants). We would have had to split up the team to attend both events (which wouldn't be the end of the world but obviously not ideal).
Last edited:
