The robot that ran over a child, Knightscope, wants money and they need it.
Investors can invest as little as $1,000 to participate and Knightscope is hoping for a total of $20 million.
Knightscope's 1K filing lists their current financial situation:
- 2016 revenue at $420,425 ($0.42 million)
- 2016 expenses at $5.6 million, loss of $5+ million
- The company reports 9 total clients and 15 total machines / robots in operation
- Cash remaining was $4.5 million as of June 30, 2016
An $80 million pre-money valuation has been set, up from $45 million in their Series B round completed 6 weeks ago. Knightscope also has touted $60+ million 'investor interest' but that was an unvetted marketing stunt.
Also, these new investors will have less rights than existing shareholders as the filing explains:
The Series m Preferred Stock will also have no series-based votes or protections. Therefore, investors in this offering will not have the ability to control the board of directors and will not have significant ability to control any specific vote of stockholders.
Is that a good deal? If you think their robots are going to take off and see hockey stick growth, sure. And they are ambitious, aggressive marketers who have done a great job of getting people excited about the science fiction aspect of robots and their hope to cut crime by 50%.
On the other side, it is not clear how their robots are going to solve crime or even be more than just surveillance cameras on a scooter. And at ~$60,000 per year per robot, it is too expensive for most organizations to be a gimmick. The bet here is that Knightscope can transition from its media appearances to actual everyday business benefits for regular security operations.
For more on robots, see our coverage:
Update August 2017: SeedInvest reports that Knightscope has raised $10 million. That's an average of ~$3,333 per investor given the 3,000+ investors SeedInvest reports has participated.
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