Due Diligence For

CROWDFUNDING

Company Overview –

GoFish Cam is a wireless underwater camera that sits on a fishing line and works with a mobile app via WiFi so users can capture underwater action. Anglers can easily review their footage to help justify their decisions, cut out guessing time, and be more effective while fishing.
*Souce: seedinvest

Company

Investment

Name: GoFish Cam

Minimum Raise: $100K

CEO: Brandon Austin

Maximum Raise: $400K

Company Founded: 2015

Structure of Raise: Crowd Note

Location: Houston

Valuation: $3M Valuation Cap, 20% Discount

Crowdfunding Portal: SeedInvest

Minimum Investment: $500

Crowdfunding Link: https://www.seedinvest.com/gofish.cam/seed

 

Website: http://gofishcam.com/

 

Review Overview

Positives

Risks and Reservations

Almost $200,000 in preorder (1,200 + orders from 65 countries) shows some market validation

Small Management team, with a young CEO and sole board member

$3 million valuation cap with 20% discount

Growing competition

Multi-channel marketing approach with an international potential

Relevance and protection of intellectual property

Previous investment from Telluride Venture Accelerator

Lack of confirmed distribution partners

Problem

With most of the fishing experience taking place underwater, there is a lack of visibility. Currently, there is limited ability and technology to capture data and the fishing experience underwater.

Solution

Current:
GoFish Cam has created an underwater video camera that sits on the fishing line. With the ability to connect with the GoFish mobile app, you can capture, edit, and share data.

Long Term:
Their goal is to release accessory packs that will be compatible with all camera models. After the release of accessories, their plan is to launch GoFish Cam 2.0, a more enhanced and innovative fishing camera.

Business Model

GoFish Cam’s business model was initially built on the sale of the cameras. The camera sells for $184.95 with a gross margin of about 60%. They believe the gross margin will increase to over 70% at scale. Their long-term goal (after developing a significant user base) is to shift their business model from being built on camera sales to monetizing on data, content, and the mobile app.

Traction

  • $180,000+ from pre-orders
  • Pre-sold 1,200+ cameras through traditional crowdfunding
  • Over 20 distribution requests
  • Over 25K social media followers
  • Named one of the three most promising startups in Canada in 2015
    *Source: Company provided on crowdfunding campaign website in pitch deck

Senior Management Team

 

Brandon Austin

Kieran Howlett

Ryan Austin

Position:

CEO, Board Member & Co-Founder CTO

Co-Founder/Advisor

Ownership Percent:

32.75% 9.5%

32.75%

Linkedin:

https://www.linkedin.com/in/baustin1992 https://www.linkedin.com/in/kieran-howlett

https://www.linkedin.com/in/ryanaustin3

Summary:
Brandon Austin, the CEO, has minimal start-up company experience and is also the only board member.  Kieran Howlett, the CTO, has significant experience in relevant technology areas and Ryan Austin, co-founder, and advisor has significant start-up experience and education.  No team member has experience in the sport-fishing industry.  The co-founders founded the company based on their passion, often an important “x-factor” for success.

Market Analysis

Industry:
GoFish Cam targets anglers in the sport and recreational fishing industry. More specifically male anglers between 25-55 with a household income over $75K who fish at least once a week.

TAM (Total Addressable Market): $1.9B worldwide. They are targeting a near-term market of $91.9 million in the US and $154 globally.
*Source: Seedinvest

Industry Opinion:
The fishing industry and the technology sector within the fishing industry, in particular, has experienced strong growth in recent years.  Their target customers tend to have disposable income and per capita spend on their leisure activities such as fishing tends to be stable.  The target customer demographic also has a history of being comfortable using technology in the everyday lives.  While there are some regulatory pressures on fishing due to concerns about overfishing, sport-fishing has not been significantly impacted yet.

Competition:

Key Differentiator:
GoFish claims their key differentiator is their mobile app, which is expected to be able to provide customers data on fishing behavior, history and share videos and data with friends.  GoFish intends to monetize the data and videos in the future.

Main Competitors:

 

Water Wolf

Strike-Cam

Funds Raised Unknown Unknown
Company Website http://www.waterwolfhd.com/en/# http://www.strike-cam.com

Competitive Summary:
Competition in this market segment is increasing at a rapid rate.  Beyond the competitors listed above, competitors using both aerial and underwater drones, including PowerRay Submersible (launch at the 2017 CES), are emerging with similar technologies.  GoFish acknowledges that it does not rely on its intellectual property (Exhibit A to Form C, page 3), and as a result, GoFish must compete on the basis of its usability, price, and availability through distribution channels.

Company Financials

Revenue to Date: Pre-sale revenue of almost $200K

Revenue Last Fiscal Year: $0

Previous Funds Raised:

  • $30,000 from Telluride Venture Accelerator
  • $60,000 grand from Ontario Centres of Excellence SmartSeed Fund.
  • $101,041 pre-sale revenue from Kickstarter
  • $118,186 pre-sale revenue from Indiegogo

Use of Funds

  • General and administrative expenses and future marketing (41%)
  • Production of product (25%)
  • Product launch marketing (20%)
  • Offering fees and expenses (14%)

Exit Opportunities

Expert Opinion:
The most likely exit is an acquisition by a competitor in an effort to consolidate intellectual property, including user data and acquisition of GoFish’s customer base.

Recent Acquisitions in the Field

Date Company Acquired Acquired By Amount
July 2013 Hardy & Greys Limited Pure Fishing Unknown
May 2011 Backcountry.com TSG Consumer Partners Unknown

Expert Opinion Summary

GoFish has impressive traction on pre-sales through Kickstarter and Indegogo and solid backing from professional investors and advisors.  Their management team, most specifically their CEO, is short on expertise however and the lack of independent board members gives pause about their ability to address difficult challenges.  Their target market is large and growing, with a strong customer demographic that has demonstrated it is eager to adopt new technologies.  Competition is already strong and is growing, not just from direct competitors with similar products, but also from new product types, most specifically aerial and underwater drones.  GoFish will have to demonstrate strong customer growth through the rapid development of its sales channels, then use that large customer base to collect and monetize customer data in order to succeed.

AngelList: https://angel.co/gofish-cam
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.

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Todd Taylor

Todd Taylor

Senior Business Attorney at JUX Law Firm
Todd helps entrepreneurs with challenging legal issues facing their businesses. For almost 20 years, Todd has provided practice legal advice on business formation, angel and venture financing, contracts and buying and selling businesses. Todd enjoys working with technology companies, including those in cleantech, energy, food and agtech, IoT and manufacturing. Todd also represents investors in early stage companies and has been involved as a co-founder in a number of start up companies.
Todd Taylor

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