JIVR
The folding, electric and chainless bike.
- Location
- London, United Kingdom
Categories: Automotive & Transport Non-Digital Mixed B2B/B2C
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Investment
sought: - €850,000
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Discount
offered: - 10.00%
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Investment
amount: - €954,520
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Valuation
(pre-money): - Convertible
Learn more about convertible campaigns.
Idea
Introduction
JIVR - The folding, electric and chainless bike. Combining these three features in one beautifully designed premium bike makes JIVR an innovative solution.
Intended impact
We want to expand the market by attracting non-cyclists to the benefits of e-bikes.
JIVR started as an award-winning dissertation on the subject of solving urban congestion at the London Business School and University College London and has since grown into a team of craftsmen, engineers and industry specialists.
In the course of developing the dissertation, we learned that many millions of Europeans commute to work each day but less than ten percent use a bike of any kind. This portion is set to dramatically increase as the challenges of urban transport become more difficult and more commuters begin to consider alternatives.
We believe JIVR is positioned as the ideal way to both avoid and reduce the problem of congestion in urban environments. When our target market reaches the point of considering bikes as an alternative form of transport, many may have objections to cycling.
Common reasons include:
Substantial accomplishments to date
Monetisation strategy
JIVR currently achieves a gross profit margin (GPM) of 47.5% per bike sold.
We currently sell through the following channels:
JIVR B2C
We sell direct to customers via our website and through the work of field sales agents and brand ambassadors. Also, our first retail location in Frankfurt has a planned opening in 2019.
JIVR B2B2C
We are in the process of establishing partnerships with a number of retail distributors and resellers across Europe. Our Premium Reseller Programme offers marketing cooperation that drives sales for our partners and brand visibility for JIVR.
JIVR B2B
Bulk sales can be arranged for employers who encourage or subsidise ownership of e-bikes. Corporate partnerships that use fleet sales to make JIVRs available to their customers are in development.
Use of proceeds
We want to direct new funding to key areas that will hopefully drive rapid expansion and boost sales while lowering per unit costs:
1. Establishing a comprehensive sales channel mix of B2C, B2B and e-commerce tools to allow JIVR to reach a larger share of the market.
2. Funding the research and development of 4 new products based on modular elements which will enable us to compete in different markets, at different price points.
3. JIVR | Senses - New functionalities and accessories that will enhance safety and the rider experience, enabling JIVR to appeal to demographics with reservations about e-bikes as a transport option.
Please also review the Key Information document attached to this campaign, which contains details of share classes and outstanding convertible loans of the company.
Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company and listed above. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.
Convertible Terms
This investment round is being raised by way of a convertible. The key terms of the convertible are set out in the separate document attached to the campaign.
In summary, conversion of the deferred subscription agreement will take place:
• On a Qualifying Equity Fundraise of €2,000,000 or more, at the lower of (i) a 10% discount to the share price paid by investors in the Qualifying Equity Fundraise, or (ii) the share price based on a valuation cap of €10,800,000 (no discount does not apply to this valuation cap).
• If no Qualifying Equity Fundraise has occurred, on the “Longstop Date”, (which will be the date 12 months from the date the deferred subscription agreement is signed), or a winding up. Conversion on the Longstop Date or on a winding up will occur at the previous share price of €92, or if lower the price per share issued after the date of the deferred subscription agreement.
• If a change of control or IPO occurs prior to the above events, conversion will automatically trigger at a price per share which is the lower of (i) the lowest price per share issued or sold as apart of an IPO or change of control, discounted by 10%, or (ii) the share price based on a valuation cap of €10,800,000.
Please read the attached terms in full.
Market
Target market
The last decade has seen e-bikes move from a niche market to the mainstream. Approximately 40,000,000 units are sold annually around the world, and the European market has maintained 20% CAGR for the last five years and is forecast to sustain this rate over at least the coming five years.
E-bikes are by far the fastest growing segment of the overall bike market. While sales of conventional bikes have stagnated, the number of e-bikes sold in Europe has increased by 80% in four years.
As impressive as these figures are, we believe there is still massive potential for further market penetration. In 2018, more than two million e-bikes will be sold in a market where a hundred million people commute to work daily. We intend to target commuters looking for alternatives to their current options and frustrated by traffic gridlock and public transport.
JIVR also plans to establish a presence in the North American market as it matures. It is currently a small market, with just 263,000 e-bikes sold in 2017, but that figure represents a 25% increase over the previous year. We expect opportunities there to materialise as the same trends that are already underway in Western Europe gain momentum. There are already encouraging signs as some U.S. jurisdictions have begun to address the legal aspects of e-bike use.
Characteristics of target market
Our primary goal is to convert non-cyclist urban commuters to into e-bike customers. The typical customer we target is over the age of 28, living in large cities and working in a professional environment.
They are mid to high-income earners and more likely to place a higher value on their time and lost productivity while commuting.
In addition to this commuter market, JIVR has the flexibility to appeal to other existing segments of the e-bike market like tech enthusiasts, recreational bikers and those with physical mobility issues. These markets are already well represented among current e-bikes sales and show strong promise for the future.
We believe that the market is now set for a massive increase in the coming years as millions of urban commuters join traditional e-bike market segments. We believe these customers will skip conventional bikes and go straight to electric options that satisfy their lifestyle needs.
Marketing strategy
JIVR is primarily positioned to be an attractive option for urban commuters looking for a convenient alternative to the costs and restrictions of their current mode of transport. We emphasise the freedom and mobility that can be gained without lifestyle compromises demanded by conventional bikes.
We want to make city life easier by removing the hassles associated with navigating overcrowded urban areas. This idea is reflected in our brand messaging and marketing approach.
Our brand speaks to the needs of customers through desired use-cases in a simple, clean and attractive way. On this basis we constantly create high-quality and engaging pieces of content (white papers, lifehacks, PR, videos, picture) consistent with our brand.
We use a multi-channel strategy to generate and warm-up quality leads within a defined conversion path. To help organise our marketing efforts, we use a complete set of advanced IT marketing tools to maximise the use of available traffic, and to trigger automated actions in the sales funnel.
Competition strategy
JIVR did not invent the electric bike and consumers have lots of options but we believe we are nonetheless uniquely situated in a crowded, and very large, global market.
The JIVR’s folding system is patented and our combination of compact design, light weight, quality components puts us among the most attractive options.
The price advantage gained from offshoring comes at a noticeable cost in build quality and has been significantly reduced by recent tariffs imposed by both the U.S and EU. JIVR is manufactured and assembled in EU.
Our ability to ship directly to customers and distributors from within the European Union instead of waiting for shipments from China allows us to quickly fill orders, which extends the selling season of retailers. It also lets us better respond to changing market conditions and control inventory.
As previously stated, our target is on the large market of commuters who currently do not use bikes at all. We want to convert them directly to e-bikes. To our knowledge, our competition is typically focused on converting conventional bike commuters to e-bikes. We feel that there is an opportunity to benefit from the first mover advantage and establish JIVR as the e-bike for urban commuters.
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