Company Overview –
ITFT, The Safe Driving System is a patented system designed to prevent drivers from speeding and driving recklessly.
*Souce: Start Engine
|Name: ITFT||Minimum Raise: $50K|
|CEO: Matthew Godley||Maximum Raise: $1M|
|Company Founded: 2013||Structure of Raise: Common Stock|
|Location: North Carolina||Valuation: $8.635 pre-money valuation|
|Crowdfunding Portal: Start Engine||Minimum Investment: $200|
|Crowdfunding Link: https://www.startengine.com/startup/itft|
|Positives||Risks and Reservations|
|Use of data connected devices in cars is becoming more commonplace and parents, insurance companies and fleet services are seeking ways to improve safety, reduce injuries and deaths and lower costs.||ITFT has no customers or sales and will require a great deal more money to finish its product development and sales and marketing efforts. It may not have enough money to be able to become profitable.|
|The patented technology appears to offer some advantages and features that its competitors lack.||There are many competitors, most of who are far larger than ITFT, have far greater financial and technological resources, as well as customers and revenue.|
|The advisory team has significant experience in startups, technology, and financial matters.||ITFT needs to continue its technology development, as well as protecting its intellectual property. If a competitor violated ITFT’s intellectual property or claimed that ITFT violated their intellectual property, ITFT likely would not have the resources to protect itself.|
|ITFT could be subject to significant regulatory or legal risks from people using their device, especially if the device provides incorrect information and leads to recalls or lawsuits.|
|Management has no experience with startups and little business experience in general. The CEO is also the only voting shareholder and board member.|
|Valuation is very high. If they raise $1,000,000, the crowdfunding investors will only own 10.8% of the Company, meaning that management is valuing the company at almost $10,000,000 post offering, which is extremely high for a company with no customers and no sales.|
In 2015, approximately 38,300 people lost their lives in car accidents while an additional 4.4 million people were injured and needed medical assistance. The Department of Transportation calculated that 94% of all accidents are a result of human error such as speeding, reckless driving, and distracted driving.
ITFT created a technology that limits access to distracting mobile apps, can program and allow remote control of selected vehicle functions, and communicates events and activity to the app user.
They plan to add more features to their product that are part of the patent. These features include a panic button that can alert police/emergency personnel and can begin recording video and audio of an incident. They also want to include a breathalyzer module.
ITFT will charge users a fee of $25/month.
- S. full utility patent granted
- Completed PRD and SRS specifications needed to start product development
*Source: Company provided on crowdfunding campaign website
Senior Management Team
|Matthew Godley||Walt Maclay||Cindy Godley|
|Position:||CEO & Founder||Interim CTO||Secretary|
- Amel Hill – Contract Patent Engineer with 25 years of experience in automotive technology applications
- Tom Steding – Served as CEO for 9 startups
- John Hondros – Senior VP managing director at SunTrust Private Wealth Management
While the CEO, Matthew Godley does not have any previous experience in the industry or in startups, the CTO and advisors do have relevant experience. The company will have to quickly hire experienced employees to realize their commercialization plans.
Industry: Mobile App
TAM (Total Addressable Market): Their initial target market is focused on parents of teenagers. In 2014 there were approximately 37.5M families in the U.S. with at least one child under 18. There are approximately 15M teenage drivers in the U.S.
*Souce: Portal Page
Driving Trends: 24% growth from 2015 to 2016
The total size of the market in dollars is unclear, as this market is still developing. However, there are a number of potential market segments, including teenagers, fleets, and car services like Uber and Lyft that are experiencing significant growth. The auto industry is increasing adding technology, including safety and data, to cars and this trend is likely to continue.
ITFT has a patented technology that allows it to monitor and control certain aspects of a car’s performance and driver’s mobile device as it relates to safety. Many of the unique product features are covered by the patent and could prove to be real competitive advantages.
|Automatic||Zubie||Hum by Verizon||
Audiovox Car Connection 2.0
Revenue to date: $0
Revenue Last Fiscal Year: $0
Previous Funds Raised: $0
Use of Funds
If minimum amount is raised:
- Development of prototype
If maximum amount is raised:
- Development of prototype
- Development of mobile app
- Government consulting
- Pay salaries
- Repayment of indebtedness
- Travel & meetings
- Working capital
Many of competitors are significantly larger than IFTF and may want to acquire IFTF to buy its patent and product features.
Recent Acquisitions in the Field
|Date||Company Acquired||Acquired By||Amount|
|March 28, 2016||Interactive Driving Systems||eDriving LLC||Unknown|
|March 10, 2016||OpenCar||INRIX||Unknown|
Expert Opinion Summary
While the CEO is young and inexperienced, the technology he has developed seems to offer promise in an expanding market. He has surrounded himself with an experienced advisory group but will need to hire employees and add to his board and management team to take the company to the next level to commercialize and/or sell it.
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