Due Diligence For

CROWDFUNDING

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.

 

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Harry Alford
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Harry Alford

CoFounder at Humble Ventures
Harry is responsible for growing humble ventures network of investors and originating deal opportunities that fit humble's investment criteria. Harry, a 4x founder, brings transferable skills and experiences in managing an accelerator, venture capital and early-stage startup operations.
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