The increase in the global dealer network in 2016 and into 2017 caused by the growing market demand, we expect investments in AddMovement to generate a high ROI in the next few years.
We will add new gyro platforms to the AddSeat family and increase the volume of distribution by adding new dealers in each country, therefore, significantly increasing revenue and of course make us attractive for a trade sale within 2-3 years.
For an amount of €160.000, we offer 2.5% of our shares at a share price of €124.80. The minimum investment is €249.60 and the maximum investment €160.000.
The problem this product solves
Marit Sundin, the innovator of AddSeat™ saw a chance in 2010 to change her life by adding a seat to a Segway. The idea for a “small footprint” powered wheelchair was born. This was combined with the market looking for something that removed the “handicapped” label to a cool and exciting transportation product. Marit herself saw how the question went from “what happened to you,” to cool where do I buy the AddSeat!
How the product solves it
AddSeat™ is a stylish and thoughtful technical mobility solution mounted on a gyro unit, currently a Segway™. By adding a seat to the market leading gyro platform, it allows those who need to be seated, the possibility to use this product in a diverse range of environments.
No impact on the underlying gyro product allowing the customer to convert back to a standard product maintaining an inbuilt value. The name “AddSeat” aims to communicate to customers the potential to change their lives with the market leading drive unit. Additional options for steering and seating have been added.
The AddSeat is covered in wheelchair upholstery that can be changed with ease. Removable steering column allows easier transfer from fixed seat or wheelchair. With two versions, fixed height and height adjustable, the latter with its own motor to allow easy height adjustment.
The footrest can also be adjusted for personal comfort. The seat is sprung and can be slid backwards in order to get the center of gravity further back and enable a more powerful braking effect. Also, two different steering column styles are available for those with or without lower limbs.
Product use cases
AddSeat has a diverse user base, from amputees to those who have MS, or those with a limited capability to walk any distance. Many traditional wheelchair users can now access areas that were previously physically exhausting to traverse; snow, sand, uneven roads such as cobblestones all are now less of a barrier. Plus joining others while they cycle, being on the grass touchline of a football match are just some examples that are normally taken for granted.
For the user, it creates a freedom that is profound and allows them and their family to have a less restricted life.
In Europe, there are 5 million wheelchair users including both manual and powered wheelchairs. The figures are similar in the USA.
In Sweden, there are approximately 270.000 users of wheelchairs, of which 240.000 are manual wheelchair users plus 250.000 people are expected to use a walking frame (ref Swedish Handicapped Institute and Nysam).
Taking 10% of the wheelchair/walking frame users as a market in Europe then 1 Million devices is a distinct possibility. We expect to sell 50 in Europe 50 rest of world in 2017.
The AddSeat has limited access to the subsidised medical market as we do not have a medically defined product so therefore we are a “Lifestyle” product. We have one main competitor that has a registered medical product “GennyMobility”.
All our other competitors operate in the “lifestyle” market. Price to end user is around 13000 Euro plus local taxes. We are around 1-2000 Euro’s lower than our main competitors.
Our plan is to also offer an ISO CE Medical Classed product in 2017 so we can compete in both segments of the market. Our sales predictions are based on “Lifestyle” only.
Unique differentiator from competitors
Currently, the AddSeat is unique with;¨
1. The variable height seat, this allows the wheelchair user to transfer easily from a wheelchair to the AddSeat and come up to the normal operating level.
2. Choice of steering solutions which means those without lower limbs can have a more controlled seating position. For those with lower limbs, the curved steering provides easier transfer.
3. Enhanced braking solution – this means that the angle and force needed to break are reduced, which is vital in locations where there is a gradient.
A similar braking movement is available on one of our competitors.
Company revenue streams
We operate through dealers, except for Sweden.
We sell a Segway with AddSeat fitted, except for the USA where we supply an AddSeat for fitting to a locally sourced Segway. Revenue comes from a margin on the Segway unit and the manufacture of the AddSeat.
Additional revenue comes from e.g. bespoke Alloy Wheels, Crutch Holders, lighting.
As AddSeat has now been on the market for over four years, servicing and spare parts for maintenance will start to add additional revenue. We will be looking to add a care package from 2017.
Commissions from Financial and insurance packages from 2017.
For 2016 we will focus on developing the dealer network across the globe, with a strategy of one dealer per country initially. Allowing us to time to resolve all regulatory issues, medical rules or road traffic acts in that given country.
Once we feel confident with the supply chain, it is then intended to expand the dealer network via a distributor/importer route.
Due to our requirement that the user should try the seat to check suitability first, we feel the dealer route to market is at the moment the most suitable. Online sales are not part of our strategy.
Milestones reached since the FundedByMe lending round:
- September 2015 -Closed FundedByMe lending round early. The largest and most successful crowdlending on FundedByMe.
- October 2015 -New Model 5.0 and 5.1 launched at Rehacare in Dusseldorf immediate sales and new dealer enquiries from around the world.
- December 2015 -New dealer appointed in Germany.
- April 2016 -New dealer appointed in the USA to help launch in North America. Exhibition in New York with immediate sales.
- June 2016 -Dealer appointed in Australia first exhibition July 2016.
- July 2016 -The UK adverts to build market awareness and find a launch dealer.
- Sept 2016 -Rehacare Dusseldorf.
Next key objectives
- We plan to break even by the end of 2016.
- Start on ISO13485 Medical Class 1 product development.
- Add one new European country, UK or France (possibly both due to number of enquiries)
- Stand at Rehacare in Dusseldorf with our German Dealer handling local sales.
- Groundwork with Business Sweden for Middle and the Far East.
- Improve safety for a user due to a power failure and improved stabilisation. Important for ISO13485.
- Finalise ISO13485 Class 1 product. Leading to FDA cleared device.
- 2012-2014 85K Euro by the Regional Funds and Jimmy Dahlstens fund.
- 2012 Seed loan (Såddlån) of 24K Euro from ALMI with 20K Euro outstanding.
– The above funds took the company from Ver 1 to Ver 4
- September 2015: 105K Euro Crowdlending, 36 months 90K Euro outstanding
– Allowed development of Ver 5.0 Ver 5.1
– Attract new International Dealers, from the USA, Germany and Australia with attendance at Rehacare.
– Visits to potential dealers in Switzerland and Canada
– Advertising in trade and consumer magazines.
We have a manufacturing partnership with Samhall AB – This partnership allows AddMovement to focus on business development, marketing, and product development with the professional manufacturing team at Svenstavik looking after the purchasing, manufacturing, and logistics to the end customer in Sweden or the dealers in the rest of world.
Samhall AB Svenstavik has been involved in manufacturing mobility solutions for nearly fifty years.
We have no agreement with any Gyro manufacturer as we wish to be able to offer a variety of solutions for different platforms now and in the future.
- Marit Sundin of AddMovement was awarded the Female Innovator of the Year 2014 with AddSeat – This prestigious award was presented by the Svenska Uppfinnareföreningen (The Swedish Inventors Association) at the annual ceremony held at the Engineering and Technical Museum.
- Winner of Åforsk entreprenörsstipendium in association Swedish Incubators & Science Parks – October 2015.
- AddSeat is now part of the Megamind’s exhibition at the Swedish Technical Museum
- Selected by STING as 1 of 9 innovative European MedTech companies for Global MedTech 2016 course. A six-month programme to help us meet key organisations and individuals in USA, Europe, and Asia.