Learn more about convertible campaigns.
Light switches and plug sockets have been around for over 100 years, yet regardless of the huge progression in technology in the recent years, they haven't changed. They haven't taken advantage of modern tech, and are consequently extremely dated.
At Den, we're reinventing the light switch and plug socket, and aim to wipe out the existing standard of switches around the world, by offering a more convenient, safer, and more efficient product.
As you can see below, our products look identical to ordinary switches. You can continue to control them by hand, just like you would an ordinary switch. However, they can also be remotely controlled via our remote, sensor, and smartphone application - in ways that reduce energy consumption, add convenience, and create a safer environment. See examples of uses below (intended impact).
They key terms that apply to the Den convertible are as follows:
• Valuation cap - £10m
• Discount - conversion at a 20% discount to the valuation set by a Trigger Event.
• Conversion is triggered by ("Trigger Events"):
o An Equity Fundraise – defined as the Company raising investment capital of at least £1m from one transaction or a series of transactions, in exchange for the issue of Ordinary Shares. The Seedrs fund raise does not count as a transaction;
o A Change of Control of the company (transfer of more than 50% of the share capital); or
o An IPO – being a listing of the company’s shares on a recognised stock market or secondary market.
• If conversion has not been triggered by the longstop date (5th April 2017) shares will be issued based on the lower of a minimum pre-money company valuation of £1.7m or the price for a share issued during the period.
• At conversion, the investment agreement governing an Equity Fundraise (in particular) shall contain the standard Seedrs investor protections including pre-emption rights, tag & drag rights and information rights.
Leaving appliances on standby amounts for up to 16% of our energy bill. In the UK alone, we're wasting £1.3b in energy every year, which is enough to power almost 2.5 million homes.
- Turn off all your lights and appliances from the touch of a button, before leaving your home to go to work in the morning, or before going to sleep.
- Connect up a sensor to our switches within seconds, without the need of an electrician; meaning your lights will only be on when they need to be.
- You could turn off your light switch from your bed from your smartphone.
- You could monitor the amount of energy your home is consuming, in teal time, making sure no energy is being wasted.
- You could limit the number of hours a game console will be powered via our plug sockets, by setting cut off times (e.g. 9pm), or daily usage (e.g. 2 hours per day).
- Next time your child stumbles out of bed in the middle of the night on their way to the toilet, Den’s occupancy sensor will automatically activate your lights to keep them safe.
- Next time you accidentally leave your hair straighteners or iron on, we can send you a notification to let you know something might be wrong.
- Next time your smart smoke alarm detects smoke in the middle of the night, your lights will automatically turn on to guide you out of your home in safety.
- Your lights can automatically flick themselves on and off when you're away, giving off the impression your home is occupied to help prevent burglaries.
- You can cut off power of low-level plug sockets to prevent the little ones getting shocks if they stick objects inside (we’re working on this).
- Elderly/disabled could control their light switches and plug sockets remotely, consequently reducing the amount of movement required.
- Until now its been hard to generate data relating to how and when consumers are using certain electrical appliances, however now our smart sockets can generate this information. E.g. a (appliance) was used for (x minutes) on (day & time) in locations), (consuming y watts of energy) of energy. This is useful for the consumer and for us as a business, and valuable for manufacturers’ of the appliances. *Please note at Den we take privacy extremely seriously and will ensure all users personal information is not compromised*
Substantial accomplishments to date
- We're currently in talks with some of the biggest energy companies, homebuilders, and retailers in the UK including British Gas & Berkeley Homes.
- We've built a great team of 6 engineers and designers who've worked at companies like Google. Product development has been underway over the past few months with several key milestones achieved.
- Back in 2015 we raised just under £500K on Seedrs, with the most overfunded campaign to have ever funded on Seedrs, and making our founder Yasser Khattak the youngest to ever raise funds on Seedrs.
- We currently have a patent pending in 10 countries for our switching mechanism.
- We have received international publicity from the likes of Financial Times, Bloomberg TV, Sky News, BBC Radio, TechCrunch, The Guardian, The Times, Mirror, and lots more platforms.
- We were nominated for Product Of The Year by London Innovator Awards, making it into the top 5.
- We've built an experienced group of investors and advisors, including Julian Nebreda CEO of The AES Corporation Brazil, Francesco Cesarini the Founder of Erlang Solutions, and Darach Ennis Founder and CEO of ThingK.
- We're currently in talks with various manufacturing partners in preparation for mass production.
1) As a manufacturing business we would generate revenues by selling our hardware (physical products).
We aim to supply our products at the prices shown below, however we are currently working with manufacturing partners to confirm these - please note, we will be selling the products direct to homebuilders at much cheaper prices.
– 1 gang light switch - £19.99
– Single plug socket - £19.99
– Double plug socket - £24.99
– Occupancy Sensors - £24.99
– Remotes – £19.99
– WiFi Hub - £59.99. Required for our app to work with our switches.
– iOS & Android Application – FREE (however we are also currently exploring the opportunities to receive a reoccurring revenue via monthly app subscriptions. E.g. £1 a month).
2) Long term; we plan to generate additional revenues by monetising the data that our products will be capturing via our App. (Google acquired Nest, the smart thermostat for $3.2b; one of the main reasons for this was due to the data that could be captured from their thermostat).
Use of proceeds
April to June 2016
- Confirm manufacturing strategy & partners
- Continue product development & design new website, product catalogue, and packaging ready to demo V1 to B2B customers from June onwards
- Continue arranging meetings with retailers, homebuilders, and other IoT ecosystem providers ready to demo our product at the end of June.
July to December 2016
- Demoing V1 of our products to B2B customers to receive pre-orders/letters of intent
- Complete the product development of V1 ready to manufacture by December
- Raising our Series A round of funding after successfully building a great team, completing product development, arranging manufacturing, and receiving orders/letters of intent.
January to June 2017
- Begin manufacturing process
- Recruit a sales team, support team, and relocate offices
- Ship products!
1) New homes and other new buildings being built every year, globally.
- Every year, millions of new homes and other buildings are built, all which require light switches and plug sockets in order to be habitable.
2) Existing homes and buildings seeking smart/efficient light switches and plug sockets, globally.
- Existing homes, businesses, office blocks, care homes, schools/universities, and other buildings seeking smarter and more efficient light switches and plug sockets, to benefit from, a reduction in energy consumption, a safer environment, and other benefits. This is already a proven market with a large and growing demand for connected/automated technology.
Characteristics of target market
1) New homes and buildings, globally.
- Millions of new homes are being built every year around the world.
2) Existing demand for connected/automated systems.
- This is already a proven market, which is growing rapidly - The global market is predicted to generate around $61b in revenue this year, which is expected to grow to around $460b by 2019, meaning there's a huge opportunity.
Routes to market:
1) Supplying directly to the major homebuilders (e.g. Taylor Wimpey, Berkeley Homes, Crest Nicholson, Red Row).
2) Supplying directly to distributors, wholesalers and retailers (e.g Maplin, Screwfix, B&Q, Homebase, Apple, Currys, TLC).
3) Working with strategic partners (E.g. British Gas, EON Energy, Nest, Carphone Dixons, O2) who have existing customers bases along with the infrastructure already in place to market and instal the products.
^ We are already in talks with some of the companies mentioned above.
4) Supplying directly to consumers via our own e-commerce website.
There no doubt that there are many wireless light switches and plug sockets that already exist on the market. However we feel that they're all really complicated and expensive products that no one really understands how to use. Here's why we believe that we're better:
The wireless products currently on the market have taken away the rocker switch that we're familiar with, which have been replaced with the likes of touch pads and buttons, which we believe seems unsuitable for new builds/mass market due to unfamiliarity. At Den we've retained the rocker switch, meaning users can continue flicking our switches just like they would an ordinary switch.
Rather than replacing the existing standard of light switches and plug sockets, the wireless products that are currently on the market seem simply luxury alternatives. Consequently, most new homes are still being kitted out with standard non-wireless light switches. At Den we're not designing just another luxury alternative, but instead we're replacing the existing standard of light switches and plug sockets.
We offer a wide range of features that many of our competitors do not.
Our products won’t require any complicated installation, you could have swapped your switch, synced with your smartphone, and be controlling in just a few minutes.