A New Low For Knightscope - Just $3! (And Now A T-Shirt)

Author: John Honovich, Published on Apr 13, 2017

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 - a superstitious 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:

Get Video Surveillance News In Your Inbox
Get Video Surveillance News In Your Inbox

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.

More:

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.

4 reports cite this report:

Knightscope Raises $10 Million With $3,320 Average Per Investor on Aug 17, 2017
Congrats to Knightscope. And condolences to their legion of little investors. Knightscope has disclosed they have raised $10+ million from their...
Knightscope Laughs off Robot Drowning on Jul 18, 2017
A day after a Knightscope robot drowned, Knightscope has issued an 'official statement' making fun of the issue: The implied message is that...
'Suicidal' Knightscope Robot Drowns on Jul 17, 2017
Knightscope continues its hyper growth, at least when it comes to controversy, this time with a 'suicidal' robot in Washington DC. And here is...
A Marketing Home Run For Knightscope - Man Attacks Robot on Apr 27, 2017
We criticize Knightscope regularly - their lack of revenue, their trying to fool mom 'n pop investors, their associating themselves with a clueless...
Comments (33) : PRO Members only. Login. or Join.

Related Reports

Knightscope Winning Investors, Struggling With Growth on Oct 16, 2018
While Knightscope's new financials show the company only winning 11 new customers in the past 12 months, the company continues to win new...
Huawei Admits AI "Bubble" on Oct 16, 2018
A fascinating article from the Chinese government's Global Times: Huawei’s AI ambition to reshape industries. While the Global Times talks about...
Amazon Touts Home Security Market Disruption on Oct 15, 2018
Amazon is coming for ADT and all of home security. Indeed, Amazon is advertising this as, in their own words, calling home security a: Inside...
Fall 2018 New Products Directory on Oct 03, 2018
Fall 2018 New Products Directory We have compiled a directory of new products released fall 2018, or at least since our Spring 2018 Directory. The...
ASIS GSX 2018 Mixed Manufacturer Reviews With Declining Overall Attendance on Oct 02, 2018
ASIS GSX 2018 show drew 9% fewer total registrants, however, it gained 15% more paid registrations, according to ASIS. In this note, we look...
The Robolliance is Dead on Oct 01, 2018
The Robolliance has died. Formed 2 years ago to fanfare, the robots-focused marketing machine is no more, having slipped quietly away sometime...
ASIS GSX 2018 Show Report on Sep 25, 2018
In the first major US show since the US government ban of Dahua and Hikvision was passed into law, the mega Chinese companies were in retreat and...
Genetec Takes Aim At 'Untrustworthy' 'Foreign Government-Owned Vendors' on Sep 24, 2018
Genetec is taking aim at 'untrustworthy' 'foreign government-owned vendors'. This is not a new theme for Genetec as nearly 2 years ago, Genetec...
Dell Launches IoT for Surveillance on Sep 05, 2018
Historically, Dell has been a PC and server provider (e.g., "Dude, you're getting a Dell") and widely used for surveillance storage. However, in...
Hikvision FIPS 140-2 Cybersecurity Certification Examined on Aug 27, 2018
A week after the US government passed a law banning Hikvision, Hikvision announced it had obtained a FIPS 140-2 certification from the US...

Most Recent Industry Reports

Startup SafePass Profile on Oct 19, 2018
A major problem with visitor management is that the systems mostly require adhesive printed paper labels and paper logs, creating waste and an...
China Is Not A Security Megatrend, Says SIA on Oct 19, 2018
The US Security Industry Association has released its 10 "Security Megatrends" for 2019. SIA declares that these megatrends, such as "Advanced...
Hanwha Dual Imager Dome Camera Tested (PNM-7000VD) on Oct 18, 2018
Hanwha has introduced their first dual-imager model, the PNM-7000VD, a twin 1080p model featuring independently positionable sensors and a snap-in...
Camera Height / Blind Spot Added to IPVM Camera Calculator on Oct 18, 2018
IPVM has added camera height and blind spot estimation to the Camera Calculator. This is especially helpful for those who need to mount cameras up...
Axis Strong US Growth, Flat EMEA - Q3 2018 Financials on Oct 18, 2018
This spring, Axis had its best financials in many years (see Axis Strong Q2 2018 Results). However, over the summer, Axis had many products sold...
Best Alternatives to Banned Dahua and Hikvision on Oct 17, 2018
With the US government ban and a growing number of users banning Dahua and Hikvision, one key question is what to use for low cost? While Dahua and...
Video Quality / Compression Tutorial on Oct 17, 2018
While CODECs, like H.264, H.265, and MJPEG, get a lot of attention, a camera's 'quality' or compression setting has a big impact on overall...
Knightscope Winning Investors, Struggling With Growth on Oct 16, 2018
While Knightscope's new financials show the company only winning 11 new customers in the past 12 months, the company continues to win new...
Integrator Laptop Guide on Oct 16, 2018
This 18-page guide provides guidance and statistics about integrator laptop use. 150 integrators explained to IPVM in detail about their laptops,...
Huawei Admits AI "Bubble" on Oct 16, 2018
A fascinating article from the Chinese government's Global Times: Huawei’s AI ambition to reshape industries. While the Global Times talks about...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact