Due Diligence For

CROWDFUNDING

Aido (InGen Dynamics, Inc.)

By February 7, 2017Due Diligence

Company Overview –

Aido is an interactive personal home robot. He’s an all-in-one package that comes with the best of home automation, security, assistance, entertainment and much more.
*Souce: Start Engine

Company Investment
Name: Ingen Dynamics inc. Minimum Raise: $50K
CEO: Arshad Hisham Maximum Raise: $1M
Company Founded: July 2015 Structure of Raise: Common Stock
Location: Palo Alto, CA Valuation: $12M Pre-Money Valuation
Crowdfunding Portal: Start Engine Minimum Investment: $141
Crowdfunding Link: https://www.startengine.com/startup/aido  
Website: http://www.aidorobot.com/  

Review Overview

Positives Risks and Reservations
$900k in pre-orders Ingen Dynamics does not currently have a working prototype of Aido.
Common stock in this offering includes voting rights InGen Dynamics has repeatedly pushed the shipping date of the product
Company has established a 20% employee option pool Outstanding SAFE issued for $10,000 with a valuation cap of $2.5M and 20% discount that has yet to be converted and will cause further dilution upon conversion.
Aidohas received multiple press acknowledgements Ingen Dynamics has yet to file for provisional patents but claims they are in the process of filing.
Ingen Dynamics received payment from the indegogo campaign and has yet to fill the orders. As 2016 financials were not disclosed with this offering it is unknown if the capital has been spent leaving a liability for unfilled orders.

Problem

Currently, home robots are expensive and aren’t able to do all the tasks consumers want them to do.

Solution

Current:
InGen Dynamics will build a useful, affordable and advanced home robot, Aido. Aido can do everything from keeping your home secure to recognizing each family member and adjusting to their preferences.

Business Model

InGen Dynamics charges $1,499 for an Aido robot.

Traction

  • $800,000+ in pre-orders
  • Recipient of multiple awards including T3 Gamechanger of 2016
  • $900,000+ raised on Indiegogo & ranked #2 of the most successful home robot campaigns of all time
  • Invited by Walt Disney to be showcased at their global innovation campus
  • Recognized by major industry associations including IEEE, Boston Consulting Group, and Robo-Business
  • Three functional prototypes complete and a functional SDK released to early developers
  • Featured in major global research reports on Security and Home Robotics
    *Source: Company provided on crowdfunding campaign website

Senior Management Team

  Arshad Hisham Anurag Pal
Position: CEO & Founder CFO
Ownership Percent: 98.5% N/A
Linkedin: https://www.linkedin.com/in/arshadhisham https://www.linkedin.com/in/anurag-pal-067aa

Summary:
Arshad is a frequent presenter on the topic of robotics and has previously held senior roles at IBM, the Government of Australia, and Toyota. CFO Anurag Pal is currently the CEO of Escalon as well as CEO of Accelcia Business Services according to his LinkedIn profile. Along with the two core members, Ingen also lists 3 other engineers as team members on their portal page.

Market Analysis

Industry: Consumer & Business Robots

TAM (Total Addressable Market): $1.5B by 2019
*Souce: Portal Page

Driving Trends: Service robotics market growth from $5.6B in 2014 to $22.5B in 2021 at an 18.8% CAGR

Industry Opinion:
Along with the boom of the IoT industry, the technology advancements in robotics are just starting to scratch the surface of the potential. With the recent success of the Amazon Echo and Google Home Assistant, consumers have expressed a desire to adopt home automation. If done correctly and Aido performs as well as promised, they could have a success. One thing to consider would be if the consumers are actually wanting a physical robot in their home vs. a bookshelf sized speaker that can accomplish many of the same features that are currently avaialble from Amazon or Google.

Competition

Differentiator:
Aido offers additional features at a substantially lower price point than its competitors.

Main Competitor

  Jibo Buddy Pepper Amazon Echo
Funds Raised $70.4M $658,102 (Indiegogo) $236M N/A
Website https://www.jibo.com http://www.bluefrogrobotics.com/en/home/ https://www.meetpepper.com https://www.amazon.com/dp/B00X4WHP5E

Company Financials

Revenue to date: $0

Revenue Last Fiscal Year: $0

Previous Funds Raised: $900,000+ from Indiegogo

Use of Funds

  • Commercialize Aido
  • Fulfill crowdfunding product orders
  • Continue ecosystem engagement
  • Hire & grow the Aido team

Exit Opportunities

As the home robotics industries is just starting to evolve, numerous companies could be interested in acquiring the Aido technology if successful. A major key for Ingen Dynamics will hinder on the ability to patent their technology. As Ingen is still in the process of filing for provisional patents the only current company value is the promotion they have been able to generate for the brand Aido along with the development team.

Recent Acquisitions in the Field

Date Company Acquired Acquired By Amount
June 25, 2015 Universal Robots Teradyne $285M
Dec. 4, 2013 Redwood Robotics Google Unknown
Dec. 2, 2013 Schaft Google $20M

Expert Opinion Summary

Accomplishing $900k in preorders on indegogo is certainly an impressive feat. Ingen Dynamics has included many deal terms that are common in VC rounds but often lack in Crowdfunding rounds like voting rights, liquidation preferences and an established employee options pool.

My main concern is that Aido is still very much a concept and the company does not have a working prototype. The company claims to be shipping current preorders by late 2017 but that has already been pushed back from earlier promised dates to their indegogo backers. With Ingen only publishing financials from 2015 it is unknown if the capital raised from the indegogo campaign has already been spent on R&D. If this capital has already been spent, it could create a large liability for the company. The liability concern is validated by a handful of unhappy indegogo backers that have voiced growing impatience due to the shipping date being pushed back. Although the concept video is certainly impressive, there are multiple concerns that should be considered prior to investing in Ingen Dynamics.

AngelList: N/A
Crunchbase: N/A

Disclaimer

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Jake Fisher

Entrepreneur and Angel Investor. Along with founding Crowdfund Research, Jake is the Managing Partner at Venture Formations.
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