Company Overview –
Their mission is to create a uniquely attractive, fully electric motorbike for urban transport, that is simple to operate, fun to drive & desirable to own.
|Name: Monday Motorbikes||Minimum Raise: $50K|
|CEO: Josh Rasmussen||Maximum Raise: $1M|
|Company Founded: 2010||Structure of Raise: Common Stock|
|Location: Brisbane, CA||Valuation: $20M pre-money valuation|
|Crowdfunding Portal: Start Engine||Minimum Investment: $150|
|Crowdfunding Link: https://www.startengine.com/startup/monday-motorbikes|
|Positives||Risks and Reservations|
|No license required for operation in most U.S. States||High entry cost for consumers at $5,995, entry level traditional mopeds start around $3,500|
|Perks include significant credits towards the purchase of a motorbike||40-mile range in economy mode at 20 mph, sport mode allows the rider to reach upwards of 40mph but is recommended for off-road use only.|
|Battery prices have been declining rapidly over the last 4 years making electric vehicles more affordable||$20M valuation based off of previous SAFE notes issued, but less than $500k has been invested. Previous SAFEs issued included a 20% discount while this offering does not.|
|Patented battery and theft-deterrent system||$30,000 of the raise will go towards expenses incurred due to the crowdfund round.|
|No gears or clutch to operate, making an easy learning curve for new riders||Company is not currently generating revenue but has collected $240,987 in deposits|
Getting around in a city can be challenging. Cars are expensive, hard to park and cause traffic jams. Buses are slow, unreliable, and also get stuck in traffic. Motorcycles are heavy and require a special license. Bicycles are limited by human power and require effort.
Monday Motorbikes created the M1, an electric motorbike that people can ride virtually anywhere a bicycle or motorcycle can. The M1 is simple to use, doesn’t need a clutch or gears, and you don’t need a special license to ride it.
Over the next 5 years, they plan to utilize offshore manufacturing assistance to increase production to over 100,000 units and improve margins. They will also focus on enhancing global distribution while maximizing production output.
Monday Motorbikes sells their bikes direct to consumer, through a dealer network, and are working on developing a business to business channel. They expect the majority of the sales to be either direct to consumer or through a dealer network. The retail price for the M1 is $5995.
- Intel partnership established with loT groups
- #1 spot in GQ “Best Stuff of the Year” (2015)
- 330,000 website visitors from 5 continents, 146 countries
*Source: Company provided on crowdfunding campaign website
Senior Management Team
|Josh Rasmussen||Dr. Nathan Jauvtis||Sarah Rizk|
|Position:||CEO & Co-Founder||Co-Founder & Chief Scientist||COO|
Co-Founder Nathan Jauvtis has a significant tract record as a design engineer, along with a a PHD in Mechanical Engineering from Cornell University. CEO Josh Rasmussen has previous founder experience at his last venture ZipKick as well as previous roles in sales.
One interesting note is board member Zachary Levenberg is currently an Electronic Design Engineer for Tesla. The team seems to be well rounded and off to a great start with its board.
TAM (Total Addressable Market): $311B
*Souce: Portal Page
Driving Trends: The market for electric vehicles is growing at 60% a year
*Source: portal page
Urban commuters have shown a desire for additional transportation options and the recent trend has been towards electric options vs. gas. With the cost of batteries significantly becoming more affordable in recent years, the entry point for electric vehicles have now entered into an affordable range. Although the price of the Monday Motorbike is still significantly higher than a traditional gas moped, the continued decline in costs of battery technology will benefit the industry.
Although Monday Motorbikes states their total available market as $311B, that is the entire global transport industry. The $16B e-bike industry is a more accurate depiction of the total industry.
Monday Motorbikes has developed a patented battery and theft-deterrent system that addresses a previous major issue to e-bikes given the high value of the batteries. The sport mode on the M1 which allows the bike to reach upwards of 40 mph is also a major differentiator in the industry.
|Zero Motorcycles Inc||Brammo||Outrider USA||Voltbike|
Revenue Last Fiscal Year: $3,451 (2015)
Previous Funds Raised:
The company has raised money through a SAFE round. They raised $365,000 at a $15 million valuation cap and a 20% discount, $30,000 at a $16.5 million valuation cap and a 20% discount, and $50,000 at a $18.5 million valuation cap and a 20% discount.
Use of Funds
- Working capital
- Purchase inventory and material to produce motorbikes
The acquisition of Brammo Electric Motorcycle by Polaris in 2014, shows the major manufacturers have taken notice of the newly developing electric bike and motorcycle trend. Brammo had previously raised $50M+ in capital prior to being acquired with a majority coming from Polaris
Recent Acquisitions in the Field
|Date||Company Acquired||Acquired By||Amount|
|2014||Brammo Electric Motorcycle||Polaris||Unknown|
Expert Opinion Summary
Monday Motorbikes will be an interesting to watch as they evolve. Currently, the cost of entry is significantly higher than alternative options but as with many vehicle companies at similar stages the costs to produce tends to drop significantly as production increases. The valuation is certainly significant given the lack of revenue and it is disappointing that previous SAFES issued by the company included a 20% discount when this offering does not.
I would evaluate this company as being a hybrid of the traditional rewards based crowdfunding and equity crowdfunding. If your intent is to preorder an M1, this is an exciting deal with a $500 investment getting a $500 credit towards an M1 purchase. A $2,000 investment gets a $1,000 credit. By looking at this offering as more of a preorder with a bonus of receiving equity, there are a lot of appealing qualities. If evaluating this purely as an investment, concerns of valuation and offering terms could be more prominent.
Crowdfund Research is a publisher and does not offer investment advice to any specific individual. Crowdfund Research and its authors do not receive any compensation for the due diligence reports.
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.