Knightscope Crowdfunds ~$22 Million At $447 Million Valuation
Knightscope raised $21.9 million USD in its most recent Regulation A+ offering round, citing a $447 million valuation. However, Knightscope has struggled to grow, raising concerns about whether the company is a worthwhile investment.
In this report, IPVM examines the financial and ethical implications of this most recent round, including:
- $22 million equity fundraising at $447 million valuation
- Extremely high valuation of about 149x relative to sales
- 2018-2020 slow revenue growth
- Valuation grows despite stagnant growth
- Risks to average Knightscope unaccredited investor
- Missed performance projections by 98%
- Fundraising capital use
- 2020 financials to be released soon
Valuation *** *******
***********'***** ****** *********** *********** ** ***** **, ****, ******* $21.9 ******* ***. *********** *** * pre-money ********* ** $*** *******, ******* only ********* ~$* ******* ** ****** revenue ** ****. *********** *** *** released *** **** **** ********** ***, although *** ****** ** ****** ***** to $* ******* ** *********** ******** lower ******* ** *** * ****** ended **** **, ****, ******** ** the **** ****** ** ****. *** 6 *****'* ******* *** ******** ** Knightscope's******** ********:
*** **** ****** ***** ** *********** was ********* *************, ** ****** ************ ********. ** July ****, *********** **** ********* ~$** ********* *********** ** * $*** ******* valuation. ***** *** **** ****** *****, Knightscope *** ****** ****** $*** ******* in *** **** *** *****.
Slow ****** ****-****
****** *** *** ***** *** ** the **** *** *****, ******* ************ tens ** ******** ** ******* ***** on**********, **** ** ***** ******. ****** revenue** ******* **** ***** ~$* ******* ***, pointing ** ******** ****** ******* **** and ****.
**** ******** *** *********** ****** ****-**-****, so ** ** ********** **** *********** has ****** ****** $*** ******* ** this *****, *** *** ****** ******* to **** *** **.
~150x ********* ******** ** *****
******* ***********'* ****** ******, *** ******* has ** ********** ~**** ***-***** ********* relative ** *****. ***** ** *** most ****** ******** ***** *********** ******* it *** "$**+ ******* ** ******** revenue", ********** *** **** ******* ******** for **** *****. *** ** * stagnant ~$* ******* ** ****** *******, this ** * ****** ***** ****** for * $*** ******* *********.
Increased ********* ******* ******* *****
***********'* ********* **** **% **** $*** million ** **** ** *** ******* $447 ******* ********* ******* ******* *****, as **** ******* **** ***********'* ************ shows:
**** ** ******** ***** *** *********** arrived ** *** ******* *********, *** William ******* ** *********:
*** ***** ** ** ******* ** getting **** ** $** *** ***** or * $*** ******* ***-***** *********. This ******** ********* ** ****** **** all *** ***** ** *** ********** space (** *******, ** *********, ** revenue) ** $*** ******* - $* billion *****. ** ** * ******* competitor ****** ** *******, ****** ********, whose **** ***** *** **** ** $200M ***-***** ********* *** *** **** in ***** ***** **** * ******* of *********.
*******, ****** ******** ******** ***********'* ****************, telling **** **** ****** *** ******** deployments **** **** ****** **** **** strong ******* ******.
**** ***** ** ** ******** *** valuation ********* ******* ******** ***** ** sales *** ********* **** ** ******** effect ** *******, ** ********** *** point ** **** **** ****** ***** is "** **** *** ******" *** that *********** "***'* ******** ******** ******* additional *******":
*** ****** **** ***** ** * growth ******* ***** - ** ** fund *** ******. ***'* ******** ******** without ********** ******* - ***** **** led ** * ******* ** ****** which ** **** **** ******** **.
** ***** ********, ***********'* *** ******** the ********* ****** **** *** ****** they **** ****** ***** ** ** a **** *****:
** *** ****** ********* **** ****** would *** **** *** ********* ** investors **** *** ****.
Unaccredited ********* ******* *** ***********
******* *** ******* ********** ** *** most ****** ***** *** ****** $*,***,**** *********** ********* *** ****** ************/*** and *** ********* (*********** ****** ~$** million **** **,*** *********.) * ****** of ******** ** ***********'* *********** **** show **** ****** *** ******* ** just *** ******* ********** ($***) ** adding * *** ******* ******* ** their **********, * **** ***** *** not *********** ************* *********:
***** * *** *** ******* **********, a *** ***** ** ** ******* app ****** **** *********** **** $*** like ** ****** *** ** **, it **** "*********", **** **** ** other *****. **** ********** ***** **** it *** * ********* *******, *'* wondering *** ** **** ********* ** it. * ******* *********** **** ** far, *** * ***'* ****** $*** every ****. ** *** *** *** back ** ** ** ****, **** will ** *****. ***** ***.
* **** *** [***] * ******* investment *** *** ******** ** *** Startengine **** ** ** **? ** this *******?
* ******* *** ** ** *** 1000.00. *** ** * ** ** additional ***.**?
** ***** ** ******* *** ********** and ******** ********* ** ***** * few ******** ******* **** ***********'* ********, indicating ***** *****-****** *********** *** ****** coming **** **** ************* *********.
StartEngine/Town **** ******** **** ********* *************
******** ******** **** **** ***************** **** **** *** ***************, **** of **** *** ********** *** ** investing *** **** *** *** ***** savings **** * ****-**** *******. *** example:
** ***** ********** ****. **** ** be **** ** **** *******.
***** **** * **** **** ******** in * ***** ** *** ***** is ** ********* *** ** ** part **....
*** ******** **** ** **** ******* about ************/*** * ********* ** **** (recently):
*'** **** ******* ***** ** / Reg * ********* ** ****** ** 2019.
****** **** ****** ** ***** ****** members ** **** ********** ** *** buying ****** ** * **** *** family:
** ****, * ** **** ******* to ***, ****** **** ******* *****, I **** * ********** ********** ** Knightscope, ** ****** ** ******, ** mum, *** ** ***. ** *** believe ** **** ******, **** ****-**** ambition ** **** **** "****" *** safest ******* ** *** *****, *********** IceLAND *** *** *******. ***'* ** KSCP!!
** * ******** ******** **** * would **** ** *** ****** *** my *******, *** ***** * ** this ** *** ****? ** *** both *** ****!
******* *** ******** ***** *** **** investment ************* ******:
**, ******* *** **** * **** a ****** **** **** * ***.** dollar **********? **** **** ** ****** could **** *****?
***** ****** ***** *** **** ****** out ***** ***********'* ********** **** *******:
*****, ***** *** * **** **** financials?
** ******* ****** ***** **** **** ****, ** ******** ******** *** ** liked *** ******* ******* ** ******** him ** **** ****:
*'* **** ** ** **** ** your *******. *'* **** **** *******. So ** ******, ** **** **** droids.
Investors ********* ***** *** ****** **** **********
***********'* **** ****** **** **** **** did *** ******* ******* *******. *******, attendees ***** ******** ***** ****/** *** company ***** ***. *** *******, ** the **** **** *** ** *** StartEngine ********, ******** ********* ***** ** commented:
*** **** ** ******** *** **** you **** ** **** ** ** yet?
*** ** ** ********* *** ********* waiting *** **** ***.
**** ****** **** * ***** ******** of **** *** ****** ***** *** a ****** ******, *** ***** ****** would **** **** **?
****** ******** **** * ****** ** ask, ** *** **** ***** ** go *** *** ** *** *** of **** ************ *****?
** * **** *** ********* ** go ****** **** ** ***
**** *** ****** **** ** ******. Been ** ******** ***** **** *** still ******* ** **** *** **.
***********'* *** **** ************ *** ****** of *** ********* ** ****, ********** on *** *********** *********** ****:
*** *'* **** ******* **** *** me ***** ***** * ****** ******* in *** **** ** *******. **, 9, * ..... π
*******, *********** ********** ******* *** *** long **** ** *** **** ****** StartEngine ******
Long-Term **** - whatever happens, keep your shares in Knightscope for the long-term in your trusty hands - our mission is *****-******** ****** *** **β** **** *** ongoing ******* **** *** *********!
Misses *********** *********** **** **** ** **%
***** *********** ********* ****** *,*** ********-**-******* for ****, **** **** ******** ***** 50. ** ******** ****, *********** ********* it ***** **** **** ***** *,*** machines-in-network *** **** $*** ******* *** in ******* ** *** *** ** 2021. *******, ***********'* ******* ******** *********** is *** ***** ***** *********** **** just** ********-**-******* ** ** **** **, 2020, *** **** ****** ********** ********* number ******** ** ***********.
** *** ****** **** ****, ** said *********** ********* *** ** ******** "under ********". *** ******* *** *** clarify **** "***** ********" *****, *** it ** ******* ********* **** "********-**-*******", or ******** **** *** ********* ******** with *********. **** ** ** ********** counted ***** ** ******** ** *** "in-network", **** ****** **** *** **** break *** **** ********** *********** *** made *** ******.
*********** ** ****** ***** ******** *********** based ** *** "****** ** ***** counsel" ** ******** ******** **** ** Li ** ***********'* *********** **** ****:
Funds ****** ** ** ****** ******** ******** *** **&*
*** ******** ** *** ***** ****** from **** ******** **** ** ** manufacturing ***********'* ****** *** ** **&* costs, *** ***********'* *** ******.
Full **** **** ********** ******** ** "*** ** ***** ****"
*********** ****** *** *********** ***** ***** a **** ****** **** **** **** financials *** ** ** ********. ** responded ** ** ********:
********** **** *** ********** ************ ** will **** *** **** *-* ****** report *** ***** **** **** *** U.S. *** ***** **** ******* *** audited ********** *** ****. ** **** be ****** **** *** *** ****** at ***.***********.***/*********.
**** ********** ****** ******* *********** **** the **** ** **** ******* ********* fundraising.
No ******** **** ***********
**** ******* *** ** *********** *** comment ** ***** ******** ****** *** received ** ********
**********
*********** *** ****** * *********** $** million ** * **** *********, ***** that *** *******'* ****** *** **** essentially ******** ** *** **** * years, ******* ******* **** ** ******** of ******* ** *******. *******, *********** delivered ***** **** *** **-******* ********, nowhere ***** ** *** *********** ** had *** *** ****** ** ****, which *** * **** ** *,*** machines **-******* ** *** *** ** 2021. ***** ***, *********** *** ********* a ****** ** ************* *** ************ investors ***** ******** ** ** **** the ******* ** ***. *** ***** inexperienced *********, *********** ***** **** *** to ** * ********* **********.
*********** ** * ******** **** ** why *** ******* ** ********** ********* was *******.
*** ** ****** ***** ** *** way?
*** ** *** ** ****/***** ***** for **** **** ***** ********* ********?
*********, ***********, *** ****/******** *********** **** for *********** ***** **************:
* ** ***** ***** **** **** people *** ****** *********** ****** *********** with ***** ****** *****.
* ** ***** ***** **** **** people *** ****** *********** ****** *********** with ***** ****** *****.
*'* *** ** *** *****, ** you *** "*********" ** *********** *** obviously ** *** ********** ******** ** investing.
* ***'* *** ******** **** ***** make ** ***** **** **** ******* will ** **********. ** **** *** only ***** **** **** ** **** is ******** ****** ** **** **** money. ***** **** ****** **** ***** to **** ******* ** ******** ****** to ***** * *******.
*** **** ***** ***** *** ** and **** ** **** ******* ****'* money?
***, *** ***** * ******* ***** we **** *********** ** **** ****** the *********** ******** *********** *** ***+ Facebook *** *******.
**** *** *********** ****, *********** ** running ** *** ***.
** ** * *** ****** *** their ****** ********** **** ** **** focused ** ******* ********* ******* ********* any **** ** ****** **** ** meet ***** ***********.
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**** * *** ** ***** ***** list. * ******* **** **** ** it *** * **** ********** * saw *******
*** *** **** ***** ** ******* the **** **** ** *** *****.
***********'* **** ************* *** ********, **** **** $** million **** **** ***** ********** ******* just $***,***:
***** ****** ******** **** **** **** over **** ** **:
** ** ******** **, ****, ** had ** ******* *** ** ********-**-*******. As ** ******** **, ****, *** Client **** **** ** *% **** 2019 ** ** ******* **** ** machines-in-network.******* *** ****** ** *****-** ** our ******** ****** **** ****** ****, causing **** ********* ** ** ****** on **** ***** ***** ********** *** safely ******, *** ******* *** **** to ****** **** ********* ****** **** the ******** ** *** ******* ** 2020 *** ******** ******* **** ****.
**** *** ** **** ****** *** now *******:
** ** *** **** ** **** report, *** ******* *** * ******* of ****** ** ****** ** ****, representing ** ********* ****** ************ ***** of ************* $*.* *******.
** / **** **** *** ******** remains ** ** ****.
**** ***** **** ******* $**.* *******, Knightscope **** **** *** **** **** than $** ******* ** *** **** with **** **** $* ******* ** be ********* **** *** ****** ***********:
** ** ***** **, ****, *** Companyβs **** ******* *** ************* $**.* million.
...
**** ********* ********** ******** *** ** approximately $*.* *******, *** ** ******** costs, ***** **** ******* ************ ** termination.
** ** ******, *********** ********* **** will ** *** ** **** *****:
*** ******* *** ********* ********* ****** and ******** **** ***** ** ************* $1.5 ******* *** ***** *** *** next ******* ******. ******* ********** ***********, typically *** ************ ********* ** * rolling ***** *****, *** ******* **** not ** ******* ***** *** ***** quarter ** ****
*********** **** **** ** ********* ****** revenue ****** ** *** **** ****.... or **** ** **** ************ ** CNBC *** ********.....
*** ***** **** ********** * ***** cash ************ ***** ** $***,*** ***** revenue ********* **** $***,***, ******* **** vs ****:
** *** *** **** (********) **** a ***** **** ***** ****. **** $800,000 ******* *** *** ** ****, not ** ******* *** ***** ******** the ******* ****** ****** *** ****.
***** ***** *********** ** *** ****** crowdfunding ******** ** **** **** $**, Li *** ***** *** ****** **% of **** ***** *** *** ***** for **********, ***** **** **** ** they **** ********** ****** ** ******* raise.
***** ***** *********** ** *** ****** crowdfunding ******** ** **** **** $**
** *******, **** *** ****** ** way **** **** $* ******* ** the ****** ************. *** *** * read *** ******** ** **** *** portion ***** *** *** ******* / been ********* *** ***** *** ************ just *****.
*******, *** ******* ***** ** *** much *********** ** ******** ** *********** to ***** **** *****. **'* ****** millions ** *******, ****** * ** not **** ** **** **** ***** a *** ******* ** ** ** was $* ******* ** $** ******* in *** ** ***** **** $**.* million. *** ***** ***********, ***** **** raised ** ** ****** * **** billion, ***** ******** * **** **** for **** *** *** ****** ** money **** ******** *** *** **** their ******** ** ****** ************* **** than *** $**.* ******* (**** ***** factoring ** ***********'* *** ******* ** how **** *** ***** ** ***).
** *** *** ********** ****** ***** to ***** *** ***** **** * much ****** ********* ***** **** * Ponzi ******. ** ** *******, **** will *** *** ****...
*** ****** ********?
** * ****** *** *** **** in *** *********** ******** ****** ***** to **** * ******* * ******** that ****** *** * ***** *** the **** ** ******** *** **** it ********* ******. ****** ****** **** the ************ *** ****** ** *** the **** ***. * **** ******* their *************** ****** *** *** * think *** **** *** ***** ***** guys *** *** ** *** ********* security ***** - ****** **** *** in *** ******** ** ******* ****** to **** **** *****. * ****** what *** ********* ********** **** ****. And * ****** ** **** *** showing *** **** ********** *** ********* their *** ***** ** ***** *****.
*'** **** ********* *** *** ***** fundraise *** *'** ***** **** * single ** *** ******** ********* *** of ***** ********.
**** ** *** **** ********* ******* in *** ********; ***** ******* ******** is ********* ****** ********* *** ** their **** ****** ****. *** ****** only ***** ** ********* *** ***** primary ********.
***** ****: ***** **** **** ** the ****** **** ** *** ******** are ******** *** **** ********* ** Chrome ** *******.
********* *** ** ** * ***/****** as ****, *** ** ******* *** page ** *** **.
* ***** *** **** ** ***** if * ******** *** *** ****** more *********** ** ****** **** ******** centers ** ******* ****, *** *β** actually *** ** *** ***. *** all * *** ** ***** ***** money *** ******/** ****** ******** ***** than *** ***** ******* **** * water ******** ***** ***.
**** ** ** **** ************* ****, and ***** *** **** ***** ******** because **** ** * *** ****.
*********** ****** ***** ******* ********** **** *** *** ******* ****** in *** ******* ** ***** ***********, including **** ***:
β*********** ** *** ********** *********** *** the *** ******* ****** ** *** history ** ***********,β **** *********** *** & **-************* *****. β**** *** *********, ***********β* ******* has **** ** **** ************* ******* their ******, *** * **** *** tremendous ******* ** ***********β* ****** ***** encourages **** ******** ** *** ****** crowdfunding *** **** ****** ****** **** their *** ***********.β
*********** ** ****** **** ** ******* money **** ***-********** *********. ******* **** is **** *** ***** ********* ** another ********.
**'* ******** *** ***** *********.
***** ********* *** ***% ********** ** go ** ****. **** ******* *** had ** ****** *** *** **** 4 *****, *** *** ********** *** themselves **** ********** **** ****** */* founders *** *** ******** ******* ******** and ****** (*** ***** **** ****).
*** ***, **** ** *** ****** side, ***** ******** ** ********* ***** is ***** **** **** ** *** SPACs **'** **** ********.
*****,
**** ** **** **** ** ***** in *******?
****, ***** ***** **** ****** ** much **** ******* ********, *** ******'* Knightscope ** **** ** * ******* vehicle *** **** * ******** ******?
** ** *** ****-******?
*** *** **** *******:******** ****** ****** ****** *.*., **** few ******** *******
*** ******* ******* ** *********** *** its ******* ********, **** *** ***** to **** *******, *** *********** ******** is ***** ********** ****, *** *********** robot ********* ******* ** ****** *********** Knightscope *****:
*** ****** ***'* ******* *** *****β* live ***** ** * ******** ***** because **** ***** β**** *******β *** 100 ********* ** **** **** *** agency *** ******** ** ** *** month, ******* ** * **** *** on * ******* ********* ****. ****** added **** *** ********** **** ****** Department **** **** *** *** *** license ***** ******, ******* ******** ** mobile ***** ******** ********, ** **** have *** **** ********** ********* ** the ****** ********** ***.
**** ***** ** **** ******** ** arrests **** **** **** ******* ** the ***** **** *** *** ***** since ** *** ********, ****** **** there *****β* **** ****.
β* **** ** *** **** **β* been ****** ** ***** ******* *** vandalism ******* *** ***** ******,β ** said, ****** **** **** *** **** occurred ***** ** *** *****.
******: *********** ********* ********* ** ***** public ** *** ******:
** *** ******* ********** **** *********** will ** ****** **** *** *.*. Securities & ******** **********, ** ******* an ******** ******* ** ** $** ******* ** connection **** ** ******** ****** ******* on ******.
***** '*****' ******** **** ****** ** **** ** the *** ** *** **** ****** it ** ***** ** *** '******* the ******' *****:
** **** ***** ** **** **********. Going ****** *** *****. ******** ** public *********, ********** ** *********** **** not ***** ******* ****** ***** ******, could ** * *******.