Like I said, I don't know all the details. Way too many factors to be sure it will end well, especially without knowing precise details of their contract. There are a lot of ways they could end up completely fucked and a small chance they get huge. For example, what happens if part of the deal is that their investor has distribution clauses? Should the investor decide they want a bigger piece of the pie, they tie up the distribution channels and destroy NS, buy the stock back with another company and BOOM they own 100%. They can do the same sort of thing with patents and developing new products.
From an investment standpoint, it doesn't make sense to value a new company with no USP that high. Hit ratio for most VCs is around 1 in 10, maybe the guys on tv are better but maybe not. Is NS gonna be worth around $4mil in the next few years? I doubt it (10% chance I guess), maybe the sport really blows up and they drive it.
Good luck to them but I remain cynical (and mostly uninformed).
Like I said, I don't know all the details. Way too many factors to be sure it will end well, especially without knowing precise details of their contract. There are a lot of ways they could end up completely fucked and a small chance they get huge. For example, what happens if part of the deal is that their investor has distribution clauses? Should the investor decide they want a bigger piece of the pie, they tie up the distribution channels and destroy NS, buy the stock back with another company and BOOM they own 100%. They can do the same sort of thing with patents and developing new products.
From an investment standpoint, it doesn't make sense to value a new company with no USP that high. Hit ratio for most VCs is around 1 in 10, maybe the guys on tv are better but maybe not. Is NS gonna be worth around $4mil in the next few years? I doubt it (10% chance I guess), maybe the sport really blows up and they drive it.
Good luck to them but I remain cynical (and mostly uninformed).