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It's just kickstarter except that instead of a shitty gopro mount, you get some mostly worthless shares. I guess in his head it's:
Investor money = marketing = more orders = .... = .... = sale to the Walton brothers/LVMH
In honesty, it's nothing we've not seen a thousand things before. Rather than being satisfied with a good business making quality things to a small number of people, some small business owners want to franchise/take over the world/disrupt something. I know; it's human nature. In honesty the problem last time was invested money with no plan, just "more" I think. I'm sure he's not a horrible human being but investment needs a goal, as you say, otherwise you're investing in hubris.
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Yep I agree with this.
I do think it was probably a wise idea to scale back the accessory lines and the only real sign of focus. If they are sticking with pre orders, you'd think reducing the time between order and delivery would increase orders, you might expect a slight improvement in profitability due to scale. Beyond that it seems difficult to see much further scope.
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atz
GoatandTricycle
@Velocio
I own a Frahm jacket, I think the product is good, I think pre orders de-risk things enough to make this a solid lifestyle business.
My question would be simple, what's his intended path to exit and providing investors with a return on their money with profit?
To me the pitch hasn't made that clear. I believe he's learned a lot, but the error he may be making again is to take investment without a clear goal to get an exit. What is his exit strategy? Dividends are going to change his finances if they're to be the meaningful return for investors, and being acquired won't yield much of anything to the investors, and if he's aiming for going public then as a luxury clothing brand his chances are slim as this market is small and very competitive by established luxury brands.
His current products can't continue like they are, it all must change to find the growth and margin to reach a market to provide a return.
That's what concerns me here... That he's reached for investment without a clear reason why and a clear path after. Yet what he was doing was already sufficient to grow as a solid lifestyle business that could be niche but provide a very stable and secure life.
So why the gamble, and what's in it for the investors beyond paper shares?