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TechShop Investment Opportunity
Multi-Billion Dollar Intersection
Maker Movement
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Education
Collaborative Economy
Retail
Exciting Times for TechShop
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TechShop a Globally Recognized Leader in the Maker Movement
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Valua%ons • Collaborative Economy:
• Uber: $41 Billion • AirBNB: $13 Billion • WeWork: $5 Billion
• Retail: • Kinko’s $3.2 Billion exit
• Maker Movement: • MakerBot: $600 Million exit • Etsy $3.5 Billion
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The Problems TechShop Solves • People need access to tools, knowledge
and community to make things.
• Cities, corporations, high schools, universities and libraries need help setting up and running maker spaces.
• Startups need design and manufacturing services.
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• Membership-Based • Open Access • DIY Machine Shop
and Fabrication Studio (Maker Space)
• The worlds first, largest and most advanced, multiunit maker space
TechShop
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• 15,000 - 20,000 Sq. Ft. • Every tool needed • $125 a month • 100’s of Classes • Corporate Events • 24/7 • Know good expansion process • Global reach
TechShop
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TechShop’s Spheres of Engagement
On Site
Local Community
National Market
Training/Mentoring Member Activities Showcase/ Retail
Special Events
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TechShop’s Spheres of Engagement
On Site
Local Community
National Market
Training/Mentoring Member Activities Showcase/ Retail
Special Events
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Community Events
Special Promotions
Maker Faires
Pop-Ups/Shows/Displays
Community Outreach
Prizes/Scholarships
Mentoring/Training
TechShop’s Spheres of Engagement
On Site
Local Community
National Market
Training/Mentoring Member Activities Showcase/ Retail
Special Events
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Community Events
Special Promotions
Maker Fairs
Pop-Ups/Shows/Displays
Community Outreach
Prizes/Scholarships
Mentoring/Training
Prizes/National Promotions
Expert Help
Pop-Ups/Garages
Short-Run Manufacturing
Training & Resources
Open Innovation Platform
Tours/Shows
Online/Digital Community
TV/Video Programming
Machine Tools
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Machine Tools - CNC
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3D Printing
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Laser Lab
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Sheet Metal
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Welding
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Water Jet
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Wood Working
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Plastics
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Software and Electronics
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Textiles
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Large Project Bay
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Team and Group Events
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Community
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TechShop’s Mission
Drive Global Innovation by Engaging, Enabling and Empowering The “Creative Class” to Build Their Dreams
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Become the leading platform in the market focused on the creative/maker class.
TechShop’s Goal
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TechShop IP
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Custom built and fully integrated CRM, ERP, Class Management, and RFID enabled tool and access management system.
TechShop Maker Space SaaS Platform
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Platform TECHSHOP STORE Memberships ✔ Classes ✔ Events ✔ Retail ✔ Design services (‘15) Manufacturing (‘15)
RETAIL EXPANSION Branded merchandise (’15) 3D Printers (‘15)
REAL ESTATE Innovation centers Co-working spaces
ONLINE Online Training (‘15) Member project store Maker space licensed SaaS (‘15)
TECHSHOP INVESTING Hardware incubator Seed fund Fast Follow Fund
EDUCATION Certificates / Badges (‘15) Degree program (with ASU) ✔ Human centered design ✔
TECHSHOP CONSULTING Learning journeys ✔ Innovation Strategy Maker Spaces
TECHSHOP MEDIA TV Show (Mike Rowe) YouTube Channel Publishing
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Platform and Use of Funds TECHSHOP STORE Memberships ✔ Classes ✔ Events ✔ Retail ✔ Design services (‘15) Manufacturing (‘15)
RETAIL EXPANSION Branded merchandise (’15) 3D Printers (‘15)
REAL ESTATE Innovation centers Co-working spaces
ONLINE Online Training (‘15) Member project store Maker space SaaS (‘15)
TECHSHOP INVESTING Hardware incubator Seed fund Fast Follow Fund
EDUCATION Certificates / Badges (‘15) Degree program (with ASU) ✔ Human centered design ✔
TECHSHOP CONSULTING Learning journeys ✔ Innovation Strategy Maker Spaces
TECHSHOP MEDIA TV Show (Mike Rowe) YouTube Channel Publishing
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Leadership Team
Dan Woods COO
Jim Newton Chairman and Founder
Carrie Motamedi Vice President of Marketing
Mike Hilberman CFO
Mythbusters | Battle Bots
Mark Hatch CEO
Avery Dennison | Kinko’s
Make | O’Reilly
Early Growth | Levi’s AT&T | Booz Allen
Sun Microsystems | Burson-Marsteller
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Board/Advisors Doug Busch COO Care Innovations | Former Intel CIO
Carl Bass (Observer) CEO Autodesk
Jim Newton TechShop
Mark Hatch TechShop
Dan Woods TechShop
BOARD
ADVISORS
Chris Anderson DIY Drones | Wired Guy Kawasaki Author, Thought LeaderNolan Bushnell Atari | Chuck e Cheese Eric Von Hippel MIT Open Innovation expert Joe Pine Author, Mass Customization, The Experience Economy, business guruJerry Gramaglia P&G, Sprint, Nestle, Pepsi, EtradeBruce Wonnacott Sonic Wall Todd Ordal Co-Founder Kinko’s Russ Stanphill Motorola Phoenix Wang Startl, Hewlett Foundation, MacArthur Foundation
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Partners
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Press
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Fastest Growing Private Companies
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TechShop A membership-based center offering equipment such as laser cutters, welding stations and water jet cutters and training for fabrication and prototyping.
RANK 3-YR-GROWTH 2013 REVENUE INDUSTRY
611 778% $1.1M Manufacturing
2014 INC. 5000 HONORS
Top Manufacturing Companies San Jose Metro Area
Ken Hawthorn Co-Inventor
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Tina Albin-Lax Entrepreneur
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Andy Filo Entrepreneur
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Aaron Cohen & Darryl LeVasseur TechEdSat
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Danny Fukuba Entrepreneur
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Chris Chalmers Artist
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Brandon Richardson Entrepreneur
AperiaTech Self Regulating Tire Inflator
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Espen Siversten Entrepreneur
Type- A Machines Award Winning 3D Printer
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Karen Snyders Entrepreneur
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Max Gunawan Entrepreneur
Lumio Innovative Lighting
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Anton Willis Entrepreneur
Oru Origami Kayak
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Roy Sandberg Entrepreneur
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Michael Pinneo Desktop Diamonds
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Patrick Buckley Entrepreneur
DODOcase for iPad
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James McKelvey Entrepreneur
Square Mobile Payments Device
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Phil Hughes Entrepreneur
World’s Most Efficient Server Cooling System
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Nick Koshnick Entrepreneur
Reduces Use of Fertilizers and Nitrogen Runoff
Solum, Inc. Agricultural Green Technology
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Jon Cedar & Alec Drummond BioLite Green Technology
Stove recharges batteries while cooking
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Trevor Boswell Entrepreneur
DripTech Low Cost Drip Irrigation System
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Jane Chen & Nagananad Murty Entrepreneurs
Embrace Portable Incubation blanket
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TechShop Financial Discussion
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Key Metrics/ Highlights • 7,000 current active members • $9.8 million revenue for 2013 • $12.0 million revenue for 2014 • 30x revenue growth in 6 years
Menlo Park
STORE OPENINGS/REVENUE
Pittsburgh, Chandler
San Francisco
San Jose, Raleigh
Detroit, Austin
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
DC-Arlington
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2014 EBITDA Performance
($000s)TechShop
San FranciscoTechShop
DetroitTechShop Chandler
Revenue 2,396 1,272 981Cost of Sales (291) (124) (182)Gross Margin 2,105 1,148 799
88% 90% 81%
Salaries and Benefits (808) (540) (510) Facilities (297) (143) (47) Other Operating Expenses (296) (235) (146)Total Operating Expenses (1,401) (918) (703)Net Ordinary Income (EBITDA) 704 230 96
29% 18% 10%
SAMPLE STORES
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Store Financing – A Major Pivot • Historically stores funded through small loans
– Raised millions through small lenders for TSMP, TSSJ, TSSF
• Now New stores are funded largely through institutions (city, education, commercial)
– Chandler: ASU & City of Chandler funded building, tenant improvements and equipment
– St. Louis: Cortex St. Louis Innovation Community facilitating $3 million in grants and 1,000 initial members with support from Washington University
– LA: REEF and City of Los Angeles providing $3.4 million in funding and 280 initial members
• Licensing deals: Leroy Merlin will own and operate 5 international stores for a multi-million dollar, 5 year licensing and support contract
New Offerings • TechShop in a Box: Cities, corporations,
high schools, universities and libraries need help setting up and running maker spaces. SaaS Cloud based OS
• Online/ Offline learning, digital badges, CNC training
• Design and manufacturing services. 62
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Business Model – Local Store Target
Store Opening $3 - 3.5 Million (Grant / Debt / TI’s / Equity)
Local Market Marketing
National Publicity & Promotion
Local Store Target: $2.7 million
annual revenue by year 5 25%+ EBITDA GOAL
Local Revenue Targets
Memberships: 45-50%
Education: 15-20%
Events: 8-12%
Services: 15-20%
Retail: 2-5%
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Locations OPEN (8) Mid-Peninsula (Redwood City) San Francisco San Jose Detroit Austin-Round Rock Pittsburgh Phoenix DC-Arlington
ACTIVE DISCUSSIONS (13) Austin Boston Brooklyn Calgary Cedar Valley, IA Chicago Denver Grand Rapids Montreal, CA Philadelphia Savannah Toronto, CA Vancouver, CA
DEVELOPMENT (11) Baltimore ($3m pledged) St. Louis Louisville ($1m pledged) Los Angeles Abu Dhabi Munich Paris (Leroy Merlin 1 of 5)
TARGETS (9) Atlanta Cincinnati Cleveland Miami Milwaukee Minneapolis Portland Salt Lake Seattle
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Phased Approach to Rollout
Launch Phase Rollout Phase 1
Rollout Phase 2
Rollout Phase 3 • Initial Launch • 1 Location • Prototype Stores • Core Team
• Refine Local Model • 8 Markets • Strategic Partners • Customized
to Location • National Footprint • Expansion of
Core Team
• Rapid Rollout • 30 - 200+ Markets • Multiple Models
in Market • Expansion of
Services
• Integrated Platform of Stores, Media & Related Services
2006-2010
2011 -2014
2015-2020 2021+
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Future Outlook • 20+ projects in development
• $150 to $250 million in pending commitments over 10 years with ½ in first year
• Two International joint venture and licensing signed
– Multi-million dollar deal with Leroy Merlin for five stores – Paris will be launched first.
– TechShop Abu Dhabi first Middle East location supported by Abu Dhabi government.
• Education segment expansion
• Design and make services
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TechShop Investment Discussion
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Two Ways To Invest In TechShop
• Seeking up to $10-20 million in additional equity.
• $50 million pre-money valuation. • 10% discount on the second
$5 million. • $2.54 / share (2.286 discounted). • $25k minimum. Rolling close.
Equity: Series B Preferred Stock Debt: 10 Year Loan
• Debt is primarily held and serviced by individual stores.
• 10 year notes at 8%. • 5 year interest only period plus
5 year interest and principle. • Annual payments. • $25k minimum loan.
….All investors receive a Lifetime Membership
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Investing In Private Companies • Part of the new JOBS Act
– Allows broader outreach to potential investors
• All investors in private companies must be “Accredited Investors” (SEC requirement)
– Requirements: Either $1m in asset or $200/$300k in income
– Forms now must be certified by a lawyer, CPA, advisor or broker.
– http://www.sec.gov/investor/alerts/ib_accreditedinvestors.pdf
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Steps to Invest
Receive full investment documentation and company financials, along with detailed funding instructions.
Contact [email protected] today!
Questions: [email protected] to reach Sesame Mish and team.
Make final decision to invest.
Fill in Accredited Investor Questionnaire (SEC requirement) and get it certified by a lawyer, CPA or broker.
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Conclusion • Were you able to invest in the early stages of AirBNB, WeWork or
Uber? Where are they now? – AirBNB: $13 Billion valuation – WeWork: $5 Billion valuation – Uber: $41 Billion valuation
• The market is begging for more TechShop locations, access to capital is our limitation on expansion opportunities.
• Here is your chance to get in early on a huge opportunity!
Thank You!
Mark Hatch CEO TechShop Twitter: @markhatch Linkedin: markhatch
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Steps to Invest
Receive full investment documentation and company financials, along with detailed funding instructions.
Contact [email protected] today!
Questions: [email protected] to reach Sesame Mish and team.
Make final decision to invest.
Fill in Accredited Investor Questionnaire (SEC requirement) and get it certified by a lawyer, CPA or broker.
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