Award winner offers 11% yearly interest
"Update: Our lending campaign has now successfully closed, but in case you would like to subscribe to our equity round please send an email to [email protected]"
We've invented the world-leading mobility seated device "AddSeat" that already has buyers in Norway, Holland, Denmark and Sweden. Help us add new markets i.e. in Canada, USA, Australia plus rest of EU
The problem we are solving
AddSeat is designed for people who want to get a more mobile and unrestricted life and who want a different vehicle than today's electric wheelchair or scooter. Customers range from those with walking difficulties to people who have a paralysis or injury just below chest level.
The age range is from young to old. This product is aimed now primarily for the private client capable of this significant purchase. During 2016, we will have a Medical CE version which will allow subsidisation by the state healthcare services.
AddSeat is a stylish and thoughtful technical mobility solution mounted on a Segway. The AddSeat is covered in regular wheelchair upholstery that can be changed with ease. A removable steering column allows the user to move over from another chair fixed or wheelchair without getting caught in the handlebars.
The seat is available in 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.
People with disabilities need different types of devices, especially in mechanical and motorised transport.
In Europe, there is a total of 5 million wheelchair users and that includes both manual and powered wheelchairs. More 15% of the EU population have some form of disability.
In Sweden there are approximately 270 000 users of wheelchairs (manual and electric), of which 240 000 are manual wheelchair users and approximately 250,000 people are expected to use the walker (figures from the Swedish Handicapped Institute -Handikappinstitutet and Nysam).
Outside of Sweden, there is already significant experience and market for the Segway product, which has resulted in many inquiries from around the globe from customers and dealers.
Our supply chain and network
AddMovement is a small team working with the best partners we could find. The manufacturer that puts the Segway and AddSeat together has nearly fifty years of experience in the Mobility Market. They are winners of The European Business Award for Environmental & Corporate Sustainability, which fits closely with our core values. They have a purpose built factory, just 15Kms from our HQ in Hackås Sweden, which means we have a “tight” relationship and easy access to the factory. The HQ is based at a modern timber building with access to 10Gb of Internet bandwidth making international sales support much easier. The development team lead by Marit Sundin has now agreed a partnership with Gävle University world leading Robotics experts to work with our product development.
The drive is based on a Segway, regarded as the market leader in Gyro based vehicles. We can provide AddSeats for most models of Segway current and past. The manufacturing of the AddSeat and linking to the Segway unit is done at our factory for the European Market (EU) or via our dealers (Non-EU). With Non-EU Countries, we can reduce import costs where there are duties by final fitting the seat at destination. The dealers we are using have technical competencies for Pre- and Post-Sales (servicing).
In the three years since launch AddSeat has become recognised as a market leader and on a regular basis potential international distributors contact us plus customers looking to buy AddSeat.
The Business Model is based on Direct Sales for Sweden where as the rest of the world is via a Dealer Network. This is due to the fact we will mount the AddSeat in the destination country. So sales will be excluding the Segway drive unit allowing for certain markets the opportunity to fit non-Segway power plants. For some EU countries, we will supply AddSeat only and Fitted AddSeat depending on market demand.
How the Loan Funds will help AddMovement develop
- To give stability to cash flow due as new dealers are appointed in different international markets allowing stock levels to expand.
- To build a stock level that satisfies the various markets, for Europe complete finished units and Non EU e.g. US and Australia AddSeats only.
- Pre-purchase parts for production. Significant savings can be made if components are bought in batches rather than single units, change from built to order but still maintaining a controlled stock level. (Our manufacturers have professional component buyers giving us a real benefit that we share in reducing manufacturing costs.)
- Support development of improvements to the product during late 2015 early 2016 whilst cash flow builds from new markets.
- An investment in events during the autumn of 2015 in Europe e.g. ReahCare in Dusseldorf. - This is where we have met most of our current dealers in Holland, Norway, Denmark and potential dealers in USA & Australia.
- Build demo machines for events.
Awards and previous funding
Awards Marit Sundin of AddMovement Female Innovator of the Year 2014 with AddSeat - This prestigious award is presented by the Svenska Uppfinnareföreningen (The Swedish Inventors Association) at an annual ceremony held at the Engineering and Technical Museum
Previous funding/grants So far, the company has been financed 850 000 SEK by the Regional Funds, ALMI and Jimmy Dahlstens fund. Capital has been used for product development, marketing, and travel. We have also received a Seed loan (Såddlån) of 232K SEK from ALMI with 197K SEK outstanding.
About Marit Sundin and AddSeat in Swedish media
Articles have been published in Dagens Nyheter, Dagens Industri, Göteborgsposten, Tidningen LIV, Swedish Handicap magazine (Svensk handikapptidskrift) - Reflex.
The future plans
AddMovement is now focused on improving the design of AddSeat plus an increase in dealerships across the world. By the end of 2015 we expect to have one or multiple dealers in the USA, Canada, and Australia. From a manufacturing perspective, we can scale up with no issue.
With success in increased dealerships and sales, it may be necessary to raise additional capital, which we plan to do via an equity raising round in early 2016.
During 2016, we will launch a new Model plus introduce a Medical CE registered vehicle opening up the state subsided market.
We expect from Autumn 2015 – Summer 2016 to sell 100 units and this is based on existing dealer expectations. An increase in dealers will by definition increase sales. The US Dealer we have under negotiation already sells a similar product and expects to sell between 25-50 in year one alone.
The loan is based on a three-year repayment scheme supported by steady and sustainable planned growth of the existing dealers in Norway, Denmark, and Holland.
With the expansion of new dealers in The US, Canada and Australia, where we are already close to an agreement, this will allow significant growth and possibly allow options for earlier repayment though unlikely within the first 12 months.
This is still an early phase in the development of AddMovement and it's initial product AddSeat and the loan will be used to support capital expenditure and working capital where necessary. In addition to allowing a high-profile participation at events to bring in more dealers. This controlled spend minimises the risk and ensures that repayments of principal and interest follow the schedule.
Are you a lender/investor and want to know more? Feel free to call Marit Sundin on +46 70-491 77 42 or email [email protected] to schedule a meeting.