Torch
Torch creates stylish safety gear for cyclists looking to be seen after dark.
- Location
- Poole, United Kingdom
Categories: Clothing & Accessories Non-Digital B2C
-
Investment
sought: - £50,000
-
Equity
offered: - 10.00%
-
Investment
amount: - £127,940
-
Valuation
(pre-money): - £450,000
Team
-
Torch Europe - President -
Torch Apparel Founder | CEO -
Accountant -
COO -
CFO
Idea
Introduction
Torch Apparel focuses on the safety and style of today’s keen cyclists, featuring our hugely-successful Kickstarter hit T1 helmet and upcoming FLUX backpack. Torch has already set itself apart from many cycling brands. By focusing on riders' actual needs – we’re all enthusiastic cyclists ourselves – and using intelligent design to deliver versatile and original products, Torch will continue to set the standard for cyclist-focused products. As a cyclist himself, Nathan Wills created Torch Apparel from his own experiences as an urban rider using his design skills from his automotive design background. Through discussions with fellow cyclists and local shop owners, he quickly found interest from other riders for this new gear. After several iterations and extensive testing he launched his idea of a bicycle helmet with integrated LED lights that project onto impact resistant polycarbonate lenses, and rechargeable batteries (the first on the market) on Kickstarter.
After surpassing his funding goal by one third in 45 days with orders nearing 1,000, it was clear he was not the only rider looking for stylish and active safety apparel. Now with production under way, Torch is extending its line of products, and looking to increase its routes to market across the world.
Intended impact
Torch Apparel will positively affect the cycling market by raising the level of quality and function that is expected in cycling apparel, ultimately making cycling safer and saving lives.
Substantial accomplishments to date
Torch has won“Gear of the Show” which was awarded by Outside Magazine at Interbike 2012.
We’ve also been extensively reported on since launching Kickstarter including “100 Brilliant Companies”, by Entrepreneur Magazine, Men’s Journal Style Edition, “10 Awesome Pieces of Bike Tech” by PC Magazine and many more.
Secured first round Angel investment from Hugh Roper, who used an existing company vehicle to invest in Torch Apparel.
UK Dragons Den appearance, including positive feedback from all Dragons on product, brand and design.
CE approval for Torch T1 helmet, allowing for sales across international markets.
Patented design and trademarked branding. Sales to consumers in more than 34 countries.
Manufacturing agreements and logistics agreement in place.
Approximately 2,000 helmets sold around the world, with limited brand awareness or points of sale.
Torch has won“Gear of the Show” which was awarded by Outside Magazine at Interbike 2012.
We’ve also been extensively reported on since launching Kickstarter including “100 Brilliant Companies”, by Entrepreneur Magazine, Men’s Journal Style Edition, “10 Awesome Pieces of Bike Tech” by PC Magazine and many more.
Monetisation strategy
Torch is a product development and retail business. The business model is based upon the supply of Torch products directly to consumers via the Torch Apparel websites, through partnership with selected retailers and top distributors.
The business is expanding in Europe to take advantage of the huge addressable European market.
Torch Apparel Ltd is a UK registered business with rights to all Torch Apparel LLC products at cost for the duration of the companies existence.
The UK company has two shareholders, Hugh Roper and Nathan Wills (80/20).
The UK company owns 38.1% of the original USA company as a result of equity investment to date. We believe this relationship with the US company will be of significant value to our investors.
The business is also set to benefit from the repayment of a $100,000 loan to the US business, and would also benefit from the supply of pre-paid products ordered on the US business. These vehicles have been used as means for funding the original US company.
The European business has been supported by Hugh Roper's contacts. This allows for Torch Apparel's UK costs to be minimised. This will continue to be the case, until such time the business is on a stable footing, and can afford to absorb such costs in the future. Examples being financial control, supply chain management, administration and customer relationship management.
The plan is to build a long term sustainable brand, with a wide product portfolio, providing good margin.
Use of proceeds
Proceeds will be used for the following:
1. Working Capital - ordering on suppliers requires advance financing with our Chinese manufacturing partners. We will also look to extend credit to certain reselling partners in the future.
2. People - the European business will recruit dedicated sales people to engage relevant channel partners across the European region.
3. Marketing - attendance at relevant exhibitions, advertising in relevant media and generating appropriate web traffic will involve a fully targeted marketing campaign for the European business. Local language websites allowing for multi-currency transactions, the development of additional web-stores on platforms like Amazon.
4. Offices – Torch Europe may secure a low cost office environment on favorable commercial terms.
5. Product Development - Torch Europe will assist the US business in the development of new Torch products.
Market
Target market
With cycling popularity on the rise across the globe Torch’s products will be set to meet the demands of all types of riders.
Whether they commute to work, or down-hill race for sport, Torch’s Urban, Mountain, and Road products are desinged to exceed their expectations.
The first product, the T1, pre-sold to 34 countries.
Demographically, our Target Market is currently split at 51% Male and 49% Female with the key age group being 18-45, although we have seen interest from 10-65 years old customers.
Our typical customer is health conscious, fit, and socially active. As our Torch Bearers, they will be our biggest support team in spreading the Torch brand.
We plan to extend Torch products to other sports areas that require high visibility safety gear. Examples include kids who ride scooters, skiers in the Nordics etc.
Characteristics of target market
According to NPD Group, cycling is now the biggest sporting goods market in the world. With global sales set to exceed $77 Billion by 2015 (GIA). $2.8 Billion of that is cycling accessories and apparel.
With Europeans buying more bicycles than cars (Bike Europe, European Automobile Manufacturers Association) we think Torch Europe sits in a great position to become a market leading company with our lit apparel and accessories for cycling.
Marketing strategy
We expect direct sales via the Torch Apparel websites to generate significant sales volume and maximum margin.
US, EU and South American sites are all fully operational and allow Torch to sell products in multiple currencies on all continents. Our Torch social media efforts include an active Facebook and Twitter community. Torch aims to generate significant on-going PR and media coverage through our innovative product launches, our fresh approach to fund raising, and the participation of our crowd investors and customers in our on-going growth and development.
Channel partners - these would take the form of cycling retailers, cycling distributors, third party websites, and sporting goods stores.
Torch has had numerous requests from international partners to resell our products. The appointment of the right distribution and retail partners would enable to Torch to maximise our market access across Europe.
Competition strategy
The patented Torch T1 helmet and the FLUX backpack are fantastic, crowd-validated products, giving us an important head start on our larger, slower competitors.
Torch aims to maintain our position as a defiant competitor by continuing to make product innovation our main focus. We plan to achieve this by keeping overheads low, outsourcing manufacturing and logistics management, whilst devoting the majority of focus to design, engineering, and communicating with our customers.
Our ability to scale our business will be the key to our future success in creating value for our shareholders. We believe Torch's current and future product portfolio and our approach to supply chain management provide an opportunity to scale.
Larger competitors have higher fixed costs and greater overheads, they take longer to introduce new product. Whilst they have economies of scale on certain product lines, Torch is able to be disruptive. We believe our unique product design, active direct customer engagement, and selective manufacturing relationships will provide Torch an opportunity to take market share.
Idea
Introduction
Torch Apparel focuses on the safety and style of today’s keen cyclists, featuring our hugely-successful Kickstarter hit T1 helmet and upcoming FLUX backpack. Torch has already set itself apart from many cycling brands. By focusing on riders' actual needs – we’re all enthusiastic cyclists ourselves – and using intelligent design to deliver versatile and original products, Torch will continue to set the standard for cyclist-focused products. As a cyclist himself, Nathan Wills created Torch Apparel from his own experiences as an urban rider using his design skills from his automotive design background. Through discussions with fellow cyclists and local shop owners, he quickly found interest from other riders for this new gear. After several iterations and extensive testing he launched his idea of a bicycle helmet with integrated LED lights that project onto impact resistant polycarbonate lenses, and rechargeable batteries (the first on the market) on Kickstarter.
After surpassing his funding goal by one third in 45 days with orders nearing 1,000, it was clear he was not the only rider looking for stylish and active safety apparel. Now with production under way, Torch is extending its line of products, and looking to increase its routes to market across the world.
Intended impact
Torch Apparel will positively affect the cycling market by raising the level of quality and function that is expected in cycling apparel, ultimately making cycling safer and saving lives.
Substantial accomplishments to date
Torch has won“Gear of the Show” which was awarded by Outside Magazine at Interbike 2012.
We’ve also been extensively reported on since launching Kickstarter including “100 Brilliant Companies”, by Entrepreneur Magazine, Men’s Journal Style Edition, “10 Awesome Pieces of Bike Tech” by PC Magazine and many more.
Secured first round Angel investment from Hugh Roper, who used an existing company vehicle to invest in Torch Apparel.
UK Dragons Den appearance, including positive feedback from all Dragons on product, brand and design.
CE approval for Torch T1 helmet, allowing for sales across international markets.
Patented design and trademarked branding. Sales to consumers in more than 34 countries.
Manufacturing agreements and logistics agreement in place.
Approximately 2,000 helmets sold around the world, with limited brand awareness or points of sale.
Torch has won“Gear of the Show” which was awarded by Outside Magazine at Interbike 2012.
We’ve also been extensively reported on since launching Kickstarter including “100 Brilliant Companies”, by Entrepreneur Magazine, Men’s Journal Style Edition, “10 Awesome Pieces of Bike Tech” by PC Magazine and many more.
Monetisation strategy
Torch is a product development and retail business. The business model is based upon the supply of Torch products directly to consumers via the Torch Apparel websites, through partnership with selected retailers and top distributors.
The business is expanding in Europe to take advantage of the huge addressable European market.
Torch Apparel Ltd is a UK registered business with rights to all Torch Apparel LLC products at cost for the duration of the companies existence.
The UK company has two shareholders, Hugh Roper and Nathan Wills (80/20).
The UK company owns 38.1% of the original USA company as a result of equity investment to date. We believe this relationship with the US company will be of significant value to our investors.
The business is also set to benefit from the repayment of a $100,000 loan to the US business, and would also benefit from the supply of pre-paid products ordered on the US business. These vehicles have been used as means for funding the original US company.
The European business has been supported by Hugh Roper's contacts. This allows for Torch Apparel's UK costs to be minimised. This will continue to be the case, until such time the business is on a stable footing, and can afford to absorb such costs in the future. Examples being financial control, supply chain management, administration and customer relationship management.
The plan is to build a long term sustainable brand, with a wide product portfolio, providing good margin.
Use of proceeds
Proceeds will be used for the following:
1. Working Capital - ordering on suppliers requires advance financing with our Chinese manufacturing partners. We will also look to extend credit to certain reselling partners in the future.
2. People - the European business will recruit dedicated sales people to engage relevant channel partners across the European region.
3. Marketing - attendance at relevant exhibitions, advertising in relevant media and generating appropriate web traffic will involve a fully targeted marketing campaign for the European business. Local language websites allowing for multi-currency transactions, the development of additional web-stores on platforms like Amazon.
4. Offices – Torch Europe may secure a low cost office environment on favorable commercial terms.
5. Product Development - Torch Europe will assist the US business in the development of new Torch products.
Market
Target market
With cycling popularity on the rise across the globe Torch’s products will be set to meet the demands of all types of riders.
Whether they commute to work, or down-hill race for sport, Torch’s Urban, Mountain, and Road products are desinged to exceed their expectations.
The first product, the T1, pre-sold to 34 countries.
Demographically, our Target Market is currently split at 51% Male and 49% Female with the key age group being 18-45, although we have seen interest from 10-65 years old customers.
Our typical customer is health conscious, fit, and socially active. As our Torch Bearers, they will be our biggest support team in spreading the Torch brand.
We plan to extend Torch products to other sports areas that require high visibility safety gear. Examples include kids who ride scooters, skiers in the Nordics etc.
Characteristics of target market
According to NPD Group, cycling is now the biggest sporting goods market in the world. With global sales set to exceed $77 Billion by 2015 (GIA). $2.8 Billion of that is cycling accessories and apparel.
With Europeans buying more bicycles than cars (Bike Europe, European Automobile Manufacturers Association) we think Torch Europe sits in a great position to become a market leading company with our lit apparel and accessories for cycling.
Marketing strategy
We expect direct sales via the Torch Apparel websites to generate significant sales volume and maximum margin.
US, EU and South American sites are all fully operational and allow Torch to sell products in multiple currencies on all continents. Our Torch social media efforts include an active Facebook and Twitter community. Torch aims to generate significant on-going PR and media coverage through our innovative product launches, our fresh approach to fund raising, and the participation of our crowd investors and customers in our on-going growth and development.
Channel partners - these would take the form of cycling retailers, cycling distributors, third party websites, and sporting goods stores.
Torch has had numerous requests from international partners to resell our products. The appointment of the right distribution and retail partners would enable to Torch to maximise our market access across Europe.
Competition strategy
The patented Torch T1 helmet and the FLUX backpack are fantastic, crowd-validated products, giving us an important head start on our larger, slower competitors.
Torch aims to maintain our position as a defiant competitor by continuing to make product innovation our main focus. We plan to achieve this by keeping overheads low, outsourcing manufacturing and logistics management, whilst devoting the majority of focus to design, engineering, and communicating with our customers.
Our ability to scale our business will be the key to our future success in creating value for our shareholders. We believe Torch's current and future product portfolio and our approach to supply chain management provide an opportunity to scale.
Larger competitors have higher fixed costs and greater overheads, they take longer to introduce new product. Whilst they have economies of scale on certain product lines, Torch is able to be disruptive. We believe our unique product design, active direct customer engagement, and selective manufacturing relationships will provide Torch an opportunity to take market share.
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