Knightscope has taken an 'untraditional' fundraising approach that continues to get riskier for their 'investors'. Recall - Knightscope Raises $10 Million With $3,320 Average Per Investor. Yet the company has struggled, e.g., Knightscope $420,425 2016 Revenue, $5+ Million Loss Seeks $20 Million Investment and Knightscope Adds Just 2 Total Customers In Past Year, Yet Raising Money at $300 Million Valuation.
Now, Knightscope is marketing specifically to put IRA retirement funds into their stock:
This is dangerous.
Their most recent federally filed July 18, 2019 offering statement says:
As of June 30, 2019, the Company had cash on hand of approximately $0.4 million. The Company has projected operating losses and negative cash flows of approximately $1 million per month for the next several months.
Startups have inherent risks but a company who may literally run out of cash at any moment has much higher ones. Professional investors understand the risks and how to analyze financial statements.
Marketing this to unaccredited investors who are encouraged to put their retirement into this high-risk venture is dangerous.