- Investment sought:
- Equity offered:
Bike HUD is a heads-up display (HUD) system that shows motorcycle riders key information such as speed, engine revs and gear selection via a helmet-mounted display.
Bike HUD aims to make riding safer by increasing road awareness. It would reduce the need to look down at instruments and helps ensure correct gear selection for overtaking/pulling away from junctions – in short, it lets motorcyclists concentrate on the road rather than their instruments, making riding safer and more fun.
The system communicates speed, RPM, gear, revs and turn indicators using text, graphics, colour and sound, all without distracting the rider from the traffic conditions and riding environment.
Bike HUD comprises a motorcycle-mounted computer, handle mounted switchgear and helmet audiovisual display, which we expect can be installed in over 90% of helmets.
Bike HUD has been designed to be portable between helmets – when the helmet is damaged or a new helmet is purchased, Bike HUD could be moved by the user from the old to the new helmet in minutes.
In our experience, the need to check behind in rear-view mirrors and check instrumentation means that motorcyclists may only spend one third of their attention on the road ahead. With Bike HUD there is the potential to significantly increase the time spent focussed on the road.
The computer at the heart of Bike HUD aims to offer a flexible platform for further product development and additional accessories that could be sold as add-on extras to the core product.
When Bike HUD has been fitted to a motorcycle rider's helmet we believe it will increase safety and enhance the riding experience.
Having tested an early Bike HUD prototype, commuter/leisure motorcyclist, Simon Shirley said: “I've just completed an evening 70 mile ride. I've never ridden so well or hit bends so right. My attention was completely uninterrupted. I don't think I've enjoyed riding so much in a long time.”
Our own market research shows that 71% of people would find it advantageous to have key information relayed to their helmet both audio and visually. We believe our products can increase motorcyclist safety by allowing the user to remain focused on the road ahead for more of the time.
Having tried an early Bike HUD prototype, ROSPA instructor, Mike Moloney commented: “I like to look up. Move my head to see where I'm going. By not having to reference back to my instruments, the unit encourages me to do just that.”
We also believe that Bike HUD will be attractive to riders for track days (and potentially for racing). Anthony Park, a BSB Pirelli National Superstock 1000 Rider used a Bike HUD prototype and said: "As a racer I'm constantly looking through the bend. I can clearly see my speed, what revs without having to look back at the instruments. All this while still in the corner."
Substantial accomplishments to date
1. Two studies were undertaken to see if it was feasible to place an audio-visual device into a standard motorcycle helmet.
2. Two prototypes have been completed:
The initial Alpha development was an R&D version.
The Beta version was a “Proof of Concept”, which used the data collected from the Alpha stage to provide a more advanced design. The Beta has undergone testing approaching 7,000 miles.
3. A web-site and associated social media presence has been created around www.bike-hud.com
4. There is a patent pending
5. Successfully won funding from:
• MAS (Manufacturing Advisory Board)
• Derby Enterprise Growth Fund (DEGF)
6. Application to a number of industry award/competitions including:
• The Prince Michael International Road Safety Award competition
• Elektra Design Team of the Year
• Institution of Engineering and Technology Innovation Awards
We plan to manufacture, design and distribute the products in the UK.
Initially the sales focus will be directed to the UK market, via the product website, www.bike-hud.com.
We also plan to attend industry trade shows to market the product - the two main ones being:
• Birmingham NEC
• London Motorcycle Show.
In years two and three we plan to add new product features and enter new market segments namely Europe and the US.
In the future, we plan to offer third parties limited access to some parts of the computer that drives Bike HUD through an API (Application Programming Interface). This would allow third parties to provide enhanced functionality and integrate their products with the Bike HUD system. Licensing access to the API could provide an additional revenue channel.
Use of proceeds
Operational expenses for the first quarter of 2014, inclusive of stock purchase for the next batch ordering of product, sales and marketing and salaries.
The market is the people who use motorcycles (industry term is powered two-wheel or PTW vehicles) worldwide. The UK motorcycle industry generates over £5.2bn in annual sales and there were 1,224,800 powered two-wheel vehicles registered 2012 in the UK.
The primary target market for this product is a user group between the ages of 40-50 years old, who have medium to high disposable income. This group has been highlighted by the Bauer group, which owns much of the UK motorcycling press.
The Bauer group has shown that the average reader of their top three selling publications is 48 years old, and has an average salary between £42K-£54K.
The readers of Bauer Group magazines (e.g. Motorcycle News) spent between £49.9m to £125.3m in 2012 on motorcycle accessories.
Our own research shows that 34% of riders are between 40 -50 years old and 71% of riders would find it advantageous to have key information relayed to their helmet both audio and visually.
Wearable technology has become more prominent in 2013, with the rise of products such as Google Glass. However, as riding a motorcycle requires the rider's full attention at all times, we believe that multifunction devices such as Google Glass, Recon Jet or Telepathy One are unsuitable (or at worst, potentially distracting and therefore dangerous) for motorcyclists. In contrast, Bike HUD is specifically designed to meet the needs of motorcyclists through audiovisual cues that convey the right information when it is needed - ultimately this would make riding safer and more fun.
Characteristics of target market
Top selling publications Bike, Ride and Motorcycle News indicate that their readers spent £64.8m, £49.9m and £125.3m respectively on bike accessories.
Pre-launch marketing will be through the website (www.bike-hud.com).
A leaflet/brochure campaign is underway - planned to run at key motorcycle events such as Festival of 1000 Bikes, Manx GP and Moto GP at Silverstone.
Post launch marketing will begin with making the product available for invited motorcycle journalists from Bauer Media Group who we expect would provide a series of editorials that will feature in their publications from October up to Christmas 2013.
A number of products would also be passed to the motorcycle press and installed on their own motorcycles by us for continued editorials throughout February, March and April 2014.
This is planned to coincide with 1⁄2 page advertisements in both Motorcycle News and Bike magazine, which we expect will run for three months from January 2014, then drop back to permanent smaller advertisements on an ongoing basis.
Website promotion would be achieved through good positioning on search engines, as well as the proactive use of Social Media. Motorcycling enthusiasts are active online and there are a number of forums for bikers - we will seek to promote Bike HUD on these forums. Throughout 2014 we plan an aggressive schedule of promoting the product at every major UK motorcycling event. We also expect to expand sales by working through distributors/installers.
We currently see no other product of a similar nature on the market and therefore the company will be looking to gain a first-mover advantage over future competitors, which we believe will come onto the market in the next 2/3 years. Once the new competitor(s) enter the market we anticipate countering the threat using the following strategy:
• Develop our accessory range of quality add-on products.
• Enter international market segments = Europe & US
• Develop relationships with manufacturers allied to the PTW industry (such as Motorcycle Manufacturers, Motorcycle Helmet Manufacturers, Satellite Navigation Companies & Communications organisations) to provide plug and play options for the future product range.
• Adding flanker products (i.e. Products of different sizes, colours, branding, to protect the main product)
• Increasing distribution coverage in the UK & Europe
• Reacting promptly to market concerns and suggestions for improvements
• Migrate our advertising slant from product-awareness to product-preference
• Review and develop our product range and pricing policy to attract the next layer of price-sensitive buyers.
Riding a motorcycle requires the rider's full attention at all times and so we believe that multi-function devices such as Google Glass, Recon Jet or Telepathy One are unsuitable (or at worst, potentially distracting and dangerous) for motorcyclists. In contrast, Bike HUD is specifically designed to meet the needs of mototcyclists through audio-visual cues that convey the right information when it is needed - ultimately this would make riding safer and more fun.