With our proven technology, market demand, and distribution channels we expect investments in Neckmike to generate high ROI within a few years.
We intend to soon finalize some major deals with international distributors and customers, such as Amazon and one of the world's largest military organizations, inducing a compounded annual growth rate of 109% for 2015-2018. We also expect these partnerships to create shareholder exit opportunities in the form of a future acquisition.
For an amount of €220.000, we offer 10% of our shares at a share price of €22. The minimum investment is €220 and the maximum investment €110.000.
The problem this product solves
For most people, it's not hard to recollect a moment when surrounding noise made it hard to hear and be heard over the mobile phone. For some, it's the occasional call received in the loud office or restaurant, or when driving a convertible or motorcycle. For others, working in noisy surroundings like airports and factories, it's an everyday problem.
Our idea formed when we some years ago sold communication headsets to be mounted inside helmets, and realized there is a large number of users that need a small headset for both soft and high noise environments, with or without helmets.
How the product solves it
Thanks to the user-friendly Neckmike Headset, the problem is solved!
The solution is a unique and thoroughly patented idea of combining noise-isolating In-Ear speakers with a neckband that also has the voice pick-up directly from the neckskin.
Thanks to the cleverly patented function the Neckmike Headset can be used with any kind of communication device, such as a mobile phone, in all types of noisy situations, from working in a loud factory, mowing lawn, driving a convertible car, a really noisy motorcycle, riding a bike in the wind, or just walking along a crowded noisy street without the person on the other side of the communication line even notices it.
One example of users today is the Swedish Airforce Rescue personnel, using the Neckmike while standing next to running jet engines.
Product use cases
The Neckmike headset improves noisy environment communication mainly in two ways:
- Neckband with voice pick-up directly from the neckskin.
- Hearing protecting In-Ear headphones (soon-to-be CE approved according to EN352-2 and EN 352-8).
Apart from the mobile phone market the Neckmike fits many kinds of communication devices. Two examples are:
- Motorcycle bluetooth intercoms, that have already been sold in the millions all over the world with both normal and noise-neutralizing microphones.
- Two-way radios for professionals like hunters, first responders, policemen, military personnel etc.
Bo Franzén Owner, CEO
58 years old electronics engineer with some 30 years experience as sales man and developer of different types of electronic products. Some examples are car stereos, hunter radios, and home alarms. Father of 6 kids, takes long morning walks every morning, rides motorcycles, and old cool cars when off work.
Annhelen Franzén Sales person
54 years old, with some 30 years experience from business development within electronic component production. Has been working within the company for many years. Married with Bo, mother of 6, a very good mother and sales person working proactively from the office.
Dag Hultqvist Sales person
Dag joined the company 2010. Prior to that, he has gathered extensive experience from sales, logistics, and accounting in large organizations. At Neckmike he is managing and executing incoming orders and taking care of the normal day-to-day activities.
Neckmike has a great market potential. Basically, we figure that where there's a mobile device for voice communication, there's a need for our product.
Although accurate market size estimations are hard to generate, some figures are worth mentioning:
- More than 60% of the world population owns a mobile phone (Statista).
- About a third of all Swedes work in environments requiring hearing protection. Corresponding to just the EU market, that represents some 66 million people (SCB).
- There are 5,3 million motorcycles in the EU (Eurostat).
The types of headsets available on the global market are made in a traditional way, without any real solutions for problems with hearing through surrounding noise.
Neckmike's patented ideas were challenged by a leading international company some years ago, claiming that the simplicity of our ideas should not be patentable. However, they were wrong and Neckmike won the fight!
Unique differentiator from competitors
Standard headset microphones pick up the user's voice from the air, and is hence affected by surrounding sounds. However, the Neckmike microphone picks up the user's voice directly from the neckskin. This method blocks out surrounding sounds in a very effective way.
In addition to the unique microphone, the Neckmike headset also provides hearing protection in the form of noise-isolating In-Ear headphones. These also let users enjoy music in HiFi quality.
Company revenue streams
The revenues are exclusively derived from the sales of our physical products. During the development years we have been selling directly to end-users, in part to be able to capture the full profits, but also to be able to receive important feedback from our users first-hand.
During the development years the main sales channels have been our webshop and the dedicated tradeshows we participate in. As the development process of the new version of Neckmike has recently been finalized, it's time to expand sales to distributors and retail chains in multiple countries.
Although the Neckmike is a cost-efficient product from the end user's perspective, it generates high margins for both dealers and distributors. In part due to selectively chosen manufacturers ensuring world class quality and high quantity capacities.
- Sold more than 18.000 Neckmike units to date
- Revenue of 1,6, 4,7, and 2,3 MSEK, in 2013, 2014, and 2015, respectively (the 2014 jump was due to a giant one-time deal)
- Has secured more than 10 patents in multiple countries for the Neckmike technology and functions
- Amazon and one of the world's largest military organizations both recently expressed interest in ordering large-scale quantities of the new Neckmike headset
- A selection of client deals closed:
- The Swedish Airforce Rescue: www.fmv.se
- The Swedish Navy: www.fmv.se
- The Norwegian Sea Rescue: www.rs.no
- The French Training Center for Nuclear Firefighters: www.ifopse.fr
Next key objectives
In the near future, Neckmike's main priorities will be explosive sales growth and product development:
- Sales growth: We intend to gain volume by expanding sales to international distributors, retail chains, and telecom operators.
- Product development: The list of potential product variations is a long one. In fact, the development process for many of them has already come a long way. Two examples close to market are the CE-approved hearing protection for mobile phones and Harley-Davidson original intercom systems.
- Profitability: We expect to achieve a pre-tax profit margin of 23% in 2018.
As of yet, we have not gathered any external funding. The main reason for this is that we have wanted to wait for the optimal moment to ramp up, and be able to maximize the potential use of new capital. The moment has finally arrived!
Use of funds
The funds raised will be used both for product development and sales growth. Perhaps most importantly, they will enable more extensive sales efforts, including visiting and sharing samples with potential distributors in Scandinavia, EU, and the US.
Neckmike's product has a big and growing market demand and is firmly patented in several markets. We have established relationships with big and reliable suppliers and customers, as well as international distributors that have been waiting patiently for the new Neckmike version to be ready for sales in their systems.