A New Low For Knightscope - Just $3! (And Now A T-Shirt)By John Honovich, Published Apr 13, 2017, 02:08pm EDT
Take a look:
Did you think, even for a fraction of a second, "$3 per share, could be a good deal"? If so, you should not invest in anything. Simply put your money underneath your mattress and save yourself.
The price per share is irrelevant, a trick to make the naive think they are getting a good deal.
Minimally, one needs to know the number of shares and the effective market valuation.
Here are the shares - 6,666,666:
What rights do those shares get? Not much:
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.
But that is just for the Series m stock being offered here. One also needs to know the market valuation one is buying in at, which is:
So $80 million valuation?
Ok, but how much revenue does Knightscope have? As the company disclosed itself, not much:
That's a hefty valuation for a company with such low revenue.
And Knightscope lost millions last year with only a handful of robots contracted.
They are a startup. Losing lots of money is normal.
What is also normal is raising money from professional investors, not showing up at ISC West with a sign soliciting attendees to buy $3 shares.
Investing in early stage companies is high risk. After a Knightscope robot ran over the child, surely it became harder to raise money from professionals. But this is exactly the time when professionals should be the ones taking the risk and taking control of the board.
So, Knightscope, please stop. Potential small Knightscope investors, be careful. You may win here but you may also win the Lotto.
- Knightscope $420,425 2016 Revenue, $5+ Million Loss Seeks $20 Million Investment
- What The Run Over Child Means For The Future of Security Robots
- Knightscope Security Robot Examined
Update: June 2017, now a video with the lead on-screen pitch $3 per share:
Update August 2017:
Now, Knightscope investors are guaranteed not to lose everything. Knightscope has added 'investor perks' where investors at least get a t-shirt:
Whomever this potentially appeals to, it will not be to many sophisticated investors. But kudos to Knightscope for embracing their entertainment angle and targeting people who think robots are fun.
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