Kapsul

About the offering

“The solution to air conditioners we’ve all been waiting for” – Tech Insider. Kapsul is building one of the first premium home-climate brands in the world with high-design products that are smart, connected, and better for the planet. Our first product, the Kapsul W5, is a connected air conditioner that Tech Insider called “The solution to air conditioners we’ve all been waiting for” and that has pre-sold over 9,000 units. The Kapsul W5 is a 5,000 BTU connected window air conditioner that’s half the height and quieter than traditional units. The W5 is safe, easy to install, Wi-Fi enabled, connects to a mobile app for iOS and Android, and integrates with Alexa, Nest, and Google Home. As an early mover in this category, we have a robust patent portfolio with eight patents filed, and three granted to date. In terms of market traction, we have $3.3M in pre-sales direct to consumer plus purchase order interest for 2019 of $2M from leading retailers like Home Depot, PC Richard, and Bed Bath & Beyond, to name a few. Our revenue model is hardware with recurring software sales, and we project that we will recognize $7M in revenue in 2019 with margins of over 50%. We are ready to manufacture. We have developed prototypes, a final manufacturable design, and both mature firmware and software, and our supply chain is established from sourcing through to stateside distribution. We have deep customer knowledge, a repeatable customer acquisition process, and a blended return on ad spend of over 13X – meaning we earn $13 in revenue for every advertising dollar spent.

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