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Harry Alford

BLAZnTECH

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Company Overview –

BLAZnTECH is the world’s first motorized weapons cleaning system. A pocket-sized tool that manages to effectively clean most commonly used rifles and handguns.
*Souce: Wefunder

Company Investment
Name: BLAZnTECH Minimum Raise: $50K
CEO: Benjamin Bondar Maximum Raise: $1M
Company Founded: 2014 Structure of Raise: Future Equity (SAFE)
Location: Res Triangle Park, NC Valuation: $10M Valuation Cap
Crowdfunding Portal: Wefunder Minimum Investment: $100
Crowdfunding Link: https://wefunder.com/blazntech  
Website: https://blazntech.com  

Review Overview

Positives Risks and Reservations
First movers advantage of being the first motorized cleaning tool Currently oversold and ill prepared for commercial growth
Early bird bonus: $9.5M valuation cap Government and regulatory agencies could influence decision making
R&D conducted in Iraq by military servicemen Saturated market
Projected to sell $50,000 units by December 2017  

Business Model

BLAZnTech has two primary revenue streams. The first is from the sale of their MWCS kits. The MWCS kit boxes have a suggested retail price of $200 with the current cost of production being $55. They predict the production cost the decrease to $30 in 2017. The second revenues stream comes from proprietary consumables such as nylon brushes, cotton brush socks, and weapons high-value CLP gel. The weapon cleaning consumables retail between $3.95-$5.95 and make up over half of their gross revenue. Each revenue stream has gross margins more than a 200% markup.

Traction

  • Sold over 1,000 units to date and this is just in the R&D stage.
  • Patent pending in the U.S. and internationally
  • Manufacturing partner with PRIDE Industries
  • Partnered with FrogLube; providing cleaning, lubricant, and protectant in every BLAZnTECH kit
  • Developed international circuit board to reduce labor time and increase production capability
    *Source: Company provided on crowdfunding campaign website

Senior Management Team

 

Benjamin Bondar William H Tate

Michael Penny

Position: CEO & Founder CFO CMO & Chief Evangelist
Ownership Percent: 78% N/A N/A
Linkedin: https://www.linkedin.com/in/benjaminbondar https://www.linkedin.com/in/william-h-tate-8a23237 https://www.linkedin.com/in/michaeljpenney

Summary:
Founder and CEO, Benjamin Bondar, is a former stock market analyst – managing over 2.3MM with his own trading floor. He is a veteran of Iraq, FAA certified pilot, and inventor of the Motorized Weapons Cleaning System. The CFO, William H. Tate, and the remaining management team all have military experience.

Market Analysis

Industry:
BLAZnTECH is targeting gun & sporting enthusiasts, military, and police.

Market Size:
There are over 270 million guns in the US. The firearms and accessories industry has a market opportunity of $6B. Weapon owners spend $13B annually on accessories.

Industry Opinion:
The firearms manufactured by year in the US is increasing every year. This ramp-up in spending includes rifles, handguns, revolvers, shotguns and other miscellaneous firearms. I’ve personally been approached by veterans pitching they’ve created the next best innovative tech for firearms. The hesitancy investing in this space is the heavy regulating hacking one must do to make any sort of headway. BLAZnTECH is different because their products are complimentary to firearms and don’t compromise the integrity or intend to replace the firearms. This product is replacing an out of date cleaning tool and has already demonstrated quality traction in the market.

Competition

 

Main Competitors

  Otis Technology RamRodz
Funds Raised N/A N/A
Website http://www.otistec.com/ http://ramrodz.com/

Financials

Revenue to date: $0

Previous Funds Raised: $20,838 on Indiegogo

Use of Funds

  • Ramp-up production
  • Fulfill growing demand
  • Supply chain management

Exit Opportunities

They have developed future concepts with Ranier Arms which could be a potential exit opportunity as well as other incumbents in the space.

Recent Acquisitions in the Field

Date Company Acquired Acquired By Amount
Nov. 26, 2014 Battenfeld Technologies Smith & Wessen $130.5M

Expert Opinion Summary

Their production costs are currently really labor intensive. Their ability to scale will be important to their success. However, given they’ve already aligned with a non-profit, PRIDE Industries which employs 5,600 Americans, to conduct product assembly and distribution they may have a great chance to take a large slice of market share. BLAZnTECH also has established defensibility around the product and holds patents on the tech.

AngelList: N/A
Crunchbase: N/A

Disclaimer

Crowdfund Research and its authors do not offer investment advice, nor do we endorse or recommend investments in any company or the suitability of an investment for any particular investor. Crowdfund Research is not registered as a broker-dealer or financial or investment advisor and does not provide any services requiring such registration. The information in this report or on our website regarding any company is based on publicly available information or directly from the subject company.  Crowdfund Research makes no representation or warrant as to the adequacy, accuracy or completeness of such information. Any opinions or forecasts expressed herein are our own, are not intended as investment advice and are subject to change without notice. This report has been prepared solely for informative purposes and is not a solicitation of an offer to buy or an offer to sell any security.
This report or the posting of information on our website regarding any company, including any links to information on our website, should not be construed as an endorsement or recommendation of that company for any purpose whatsoever.  This report does not take into account the investment objectives, financial situation or needs of any particular investor, and each investor should consider whether any investment opportunity is appropriate given their investment objectives and current financial circumstances. Any person considering any investment in any equity crowdfunding investment whatsoever is encouraged to consult with their own investment or financial advisor, tax advisor and/or attorney beforehand.
All investments entail risk. The companies on our site are generally small or early stage companies and are subject to risks inherent in investing in any small or early stage company as well as other risks specific to their business and operations. In addition, securities of these companies may be highly illiquid, requiring that they be held for an indefinite period of time or have a limited market for resale. Therefore, no one should invest in any of these companies unless they have no need for liquidity of their investment and can sustain a total loss of their investment.  You should only invest an amount of money that you can afford to lose without changing your lifestyle.
You should thoroughly review the complete offering materials for any investment opportunity, particularly all risk factors, prior to investing in any offering and become familiar with the investor requirements, investment limits and your ability to resell the investment.

MobileSpike

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Company Overview –

MobileSpike helps police officers end high-speed pursuits from the safety of their vehicle. With a push of a button, a spiked strip shoots out and pops the fleeing car’s tires instantly.
*Souce: Wefunder

Company

Investment

Name: MobileSpike

Minimum Raise: $50K

CEO: Michael P. Moormeier

Maximum Raise: $388K

Company Founded: 2007

Structure of Raise: Future Equity (SAFE)

Location: Sacramento, CA

Valuation: $5M Valuation Cap

Crowdfunding Portal: Wefunder

Minimum Investment: $100

Crowdfunding Link: https://wefunder.com/mobilespike

 

Website: http://mobilespike.com/

 

Review Overview

Positives

Risks and Reservations

Noble cause that saves officers lives and prevents civilian casualties

Net income most recent fiscal year-end -$5,864.00

$25K+ investment for voting and pro-rata rights

Although a good deal of interest they are not customer funded and have limited working capital

Raised $1.2M from 1+ investors

Lack of visibility into how the small team will scale (training, sales, etc…)

Four years of testing with officers in the field

Government and regulatory agencies influence decision making

Problem:

Nearly every day, someone dies from a high-speed pursuit and nearly 50% of the time, it’s an innocent bystander. Currently officers have to get out of their vehicle to throw net spikes across the road.

Solution:

Current:
MobileSpike built the first automated tire-spiking system that allows law enforcers to stop high-speed pursuits from the safety of their vehicle.

Long Term:
Complete the Gen2 system which is lighter, stronger and half the cost.

Business Model

Each unit sells for approximately $3,111, mobile spike has a profit margin of approximately 54%

Traction

  • Multiple patents issued
  • Agencies in 22 states expressing interest
  • 100% of field testers have become customers
    *Source: Company provided on crowdfunding campaign website

Senior Management Team

 

Michael Moormeier

Todd O’Halloran

Gabe Terreson

Position:

CEO Director of R&D

COO

Ownership Percent:

31.1% 31.1%

N/A

Linkedin:

https://www.linkedin.com/in/michael-moormeier-b029aa93 N/A

https://www.linkedin.com/in/gabe-terreson-9a29072a

Summary:
CEO Michael Moormeier and Director of R&D Todd O’Halloran invented the first MobileSpike prototype. VP & Director of Law Enforcement Training Raymond Moss has a good deal of scar tissue and domain expertise. Moss served in the Washington State Patrol for 25 years as a police driving trainer.

Market Analysis

Industry: Mobile spike is available to police or government agencies

TAM (Total Addressable Market): 16,869 law enforcement agencies with approximately 400,000 active service vehicles
*Source: Wefunder

Industry Opinion:
I like where the automotive and transportation industry is heading with regards to self-autonomous cars and more investments towards more efficient infrastructure. However, I dislike the uncertainty of the role MobileSpike will play when autonomous cars become the preferred form of transportation in the future. Also, unclear on the police agencies adoption of advances in technology as most will be consumer facing.

Financials

Revenue to Date: $0

Revenue Last Fiscal Year: -$5,864.00

Previous Funds Raised: $1,267,593

Use of Funds

  • Start Manufacturing Gen 2 that will lower the cost of goods and increase their margins
  • Build Inventory
  • Sales and Operations

Exit Opportunities

Expert Opinion:
MobileSpike’s “business plan calls for a sale of the company in about four years.” I think some realistic exit opportunities may be to sell to one of three existing competitors in the space such as StopTech which has 90% of global sales. Other potential acquirers include Stinger Spike and Mobile Deployment Systems.

Recent Acquisitions in the Field

Date

Company Acquired Acquired By Amount

May 11, 2015

Taser International MediaSolv Solutions Corporation

$13M

Aug. 1, 2016 5.11 Tactical Compass Diversified Holdings

$400M

Expert Opinion Summary

This investment like most investments is risky as this is a pre-revenue venture. The team has generated early wins such as raising significant capital of $1.2M from one investor. Success will be heavily relied upon industry relationships and adaption to changing technologies on a timely basis. Their unfair advantage will be the team’s ability to enter and secure new markets being former officers themselves.

AngelList: N/A
Crunchbase: N/A

Disclaimer

Crowdfund Research and its authors do not offer investment advice, nor do we endorse or recommend investments in any company or the suitability of an investment for any particular investor. Crowdfund Research is not registered as a broker-dealer or financial or investment advisor and does not provide any services requiring such registration. The information in this report or on our website regarding any company is based on publicly available information or directly from the subject company.  Crowdfund Research makes no representation or warrant as to the adequacy, accuracy or completeness of such information. Any opinions or forecasts expressed herein are our own, are not intended as investment advice and are subject to change without notice. This report has been prepared solely for informative purposes and is not a solicitation of an offer to buy or an offer to sell any security.
This report or the posting of information on our website regarding any company, including any links to information on our website, should not be construed as an endorsement or recommendation of that company for any purpose whatsoever.  This report does not take into account the investment objectives, financial situation or needs of any particular investor, and each investor should consider whether any investment opportunity is appropriate given their investment objectives and current financial circumstances. Any person considering any investment in any equity crowdfunding investment whatsoever is encouraged to consult with their own investment or financial advisor, tax advisor and/or attorney beforehand.
All investments entail risk. The companies on our site are generally small or early stage companies and are subject to risks inherent in investing in any small or early stage company as well as other risks specific to their business and operations. In addition, securities of these companies may be highly illiquid, requiring that they be held for an indefinite period of time or have a limited market for resale. Therefore, no one should invest in any of these companies unless they have no need for liquidity of their investment and can sustain a total loss of their investment.  You should only invest an amount of money that you can afford to lose without changing your lifestyle.
You should thoroughly review the complete offering materials for any investment opportunity, particularly all risk factors, prior to investing in any offering and become familiar with the investor requirements, investment limits and your ability to resell the investment.