Latvia
Technology
Closes Jan 10, 2019 23:59
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Blue Shock Race

Positive Energy Accelerates Here with outstanding electric racing kart technology!

107 600 € (108%)

of 100 000 - 300 000 € goal funded

The capital is raised through SPV. Read more.
100 € minimum investment
Invest

Quick Pitch

We believe we have created a key to a new generation of go kart for the future.  Being more powerful, eco-friendly, and more effective are just the physical properties of our products.

Our vision and the goal we are heading to are of the utmost importance – the most efficient racing platform on the  planet from energy, ecology and business perspective. 

Blue Shock Race describes 4 bullet points:

 

Problem & Solution

Problem: Severization of the requirements for CO2 emissions in the European Union (additional investments shall be made in ventilation and its maintenance).

Solution: Replacement of combustion engine go-karts with electric go-karts, a technology that does not produce CO2 emissions; lower operating costs; no need for additional investments in ventilation.

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Problem: Big investments in purchase of electric go-karts as additional 1 or even 2 racing lines with electric go-karts are required: one that has been charged and is ready for the race, the second and sometimes the third one that is being charged and prepared for the next race.

Solution: The Blue Shock Race (BSR) battery fast-replacement system reduces the upfront investments by up to 30%, ensures continuous operation of go-karts and higher efficiency of each go-kart.

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Problem: To ensure higher safety on indoor race tracks, there is a need for several race track supervisors who organise tournaments and contribute to safety during tournaments (address the problems on the race track); thus one of the highest cost items is employees and their salaries.

Solution: Thanks to electrical technology and BSR, in the near future go-kart halls will be equipped with fully automated race track system that solves the problems on the race track and ensures safety, thus reducing personnel costs and related tax costs. Automation of the system.

Product/Service Details

Rental go-kart:

  • Rapid swap-battery technology
  • Unique body design (with possibility to personalize within the framework of the project)
  • Adjusting power for each customer centrally
  • No noise, no emissions and no vibration.

Racing kart:

  • One of the fastest karts in the world (from 2,2 sec 100km/h) 
  • Able to perform a full racing mode with one charge
  • Rapid swap-battery technology
  • Over a year tested in real world competitions – first national electric go-kart championship. 

Karting halls:

  • Possibility to integrate into any premises (without additional investment)
  • Lower start-up investment for realization of the project (till 30% less)
  • Modular and automated track system

Business model

We use direct sales to the client approaching them with the final product and present it on the site, demonstrating all the strengths of the product and, as appropriate, improving the aspects important for the customer (power, charging times, track solutions, mileage distances and other topical issues). We pay attention to every customer's need and nuance, solving local or regional problems that big players do not do.

Revenues are generated by 4 main sources:

Market

Electric go-karts will become the leading kart technology in the next 3-5 years, as the e-formula has already been in place for 3 years now, and the 2020 World Rallycross will take place with electric cars, and many other motor racing records are broken by  electric vehicles, and the entire car industry is shifting towards electric cars in the next 10 years. It is driven by global ecological requirements and is able to provide technological solutions. Articles that prove it:

E-Formula FIAhttps://e-racing365.com/formula-e/massa-electric-karting-very-important-for-future/

Electric karts in Youth Olympic games: https://www.fia.com/news/fia-and-ioc-align-bring-mobility-and-sport-olym...

Market growth drivers:

  • Cheaper and more available technology for masses.
  • Technology more suitable for urban places and indoors
  • Global pushing to reduce CO2 in transports
  • High end sports like e-formula, World RX electric rally, and others
  • Electric car industry with flagship Tesla, Nissan, Renault and others

Traction & Accomplishments

The world’s first National Electric Kart Championship has been staged.

The company has been presented as the 2018 biggest achievement of Latvia at the International Transport Forum Summit held in Germany.

FIA president Joan Todt congratulates Latvia about electric kart Championship. 

In 2015, the Investment and Development Agency of Latvia awarded the company with the Export and Innovation Award for the most innovative product.

The company has received the Golden Ratio award for the contribution to industrial design (design of a go-kart).

MOUs on totally over 300 go-karts have been signed in Canada and Europe within 3 months, and are currently being negotiated also in Dubai.

2 publications about the contribution to technology and science in Forbes Magazine.

The invitation of the USA government to attend the Global Entrepreneurship Summit held in San Francisco, the USA, in 2016.

Blue Shock Race face of ERC winter Rally Liepaja 2016 (2 weeks in Europsort TV)

Latvian National President congratulates Blue Shock Race about achivment and do testdrive. 

21 rental kart test prototypes have been developed and all have been sold.

15 sports kart test prototypes have been developed and all have been sold.

3 go-kart halls have been established, 2 of which have been sold (one retained for tests).

Publication in Estonian DELFI

How We’re Different

Blue Shock Race is a company with a very young team who is entirely sure that electric transport is already the transport of today, and our team is seeking solutions based directly on this technology without any compromise. We do not make transitions from internal combustion engines to electric engines; we develop new solutions from zero so that they reach the maximum result.

Our goal is not simply to develop an outstanding electric go-kart, but to develop sustainable transport and energy solutions using a go-kart as a business platform, and as a result in the future to develop solutions for production and storage of cheaper renewable energy as well as unique transport solutions on the basis of electric go-karts, including training with the use of an artificial intellect automatic pilot and data acquisition.

We address the future challenges today educating and adapting the society through the lens of motor transport and entertainment in order to enable it to use our solutions effectively with the aim of meeting the day-today needs.

www.blueshockrace.com

Uses of Funds & Timeline

We have been able to reach a positive cash flow break-even point without any investments in marketing, and already now the interest in our products is expressed all over the world. To ensure fast manufacture of go-karts and their components, it is currently necessary to develop a small manufacturing facility where up to 70% of the BSR go-kart components and solutions are produced. To ensure safe and successful delivery of the product to the market, it is necessary to patent and license a number of solutions as well as to prepare other documentation for various market peculiarities.

The manufacturing is currently being prepared slowly, and we are planning to complete the stage 1 by March 2019 in order to be able to ensure higher (500+ karts per year) production capacity before the new season.

Further plans include the development of the BSR Franchise in Europe and all over the world that will be financed by operating revenue and additional investments, creating new cash flow sites based on our technologies.

More details: BSR_financial_forecast

BSR Racing Centre in Tallinn

Blue Shock Race is also planning to open a go-kart centre in one of the shopping centres in Tallinn. The track is planned to be the biggest indoor electric go-kart track in Estonia, offering the most powerful Blue Shock Race rental electric go-kart models, which are suitable for both children and adults. Blue Shock Race go-kart track includes also other activities, thus making a modern motorsport entertainment platform for all age groups.

Obligations to Investors, Profit Distribution

The founder and CEO of Blue Shock Race Artis Daugins offers to re-purchase the shares within 3‒5 years at the share price valid at that time, but no less than the purchase price. In this way, investors receive the guarantee from the company’s management that their investment will not reduce; on the contrary, the value of the investment may increase several-fold upon the implementation of the plan. If someone, nevertheless, is willing to remain a member of the company in the long-term, the member can generate revenue from the distribution of annual profit, but no sooner than in 3 years (during the first 3 years all profits are re-invested or invested in the development).

Investors from other regions of the world with experience in electric transport, motorsports, wholesale or entertainment industry have the opportunity to acquire exclusive distribution rights and earn additionally by selling the BSR products and services.

Added bonuses for investors

Investors that invest at least € 5'000 receive VIP invitation for free test drive with BSR fastest electric sports kart (max speed till 176km/h) pluss full BSR Racing Suit. Video here!

Investors that invest at least € 2'500 receive VIP invitation for free test drive with BSR fastest electric sports kart (max speed till 176km/h). Video here!

Investors that invest at least € 1'000 receive limited edition BSR investor jacket

Investors that invest at least € 500 receive limited edition BSR investor t-shirt

All investors will be added to the BSR VP list and receive invitations to various BSR events (championships, opening of new halls, BSR team events and other events). It's not just about investment it's about partnership for better future. 

SPV Investment Model

Investment with Fundwise is made using the SPV (Special Purpose Vehicle) model. Investors first make an investment in an Estonian enterprise, and afterwards this enterprise obtains parts of a manufacturing enterprise based in Latvia. Interests of all Fundwise investors are represented by Fundwise and the elected Lead Investor, who actively supervises the enterprise based in Latvia and informs others.

Risks and Mitigation

Risks: The advent of a new, much superior technology and a limited approach to it demonstrated by the permanent market participants (battery technology, engine technology, etc.).

Solution: To proceed with continuous improvement of our technology based on the data obtained as well as to follow the results and tests at various laboratories all over the world, and to find opportunities to implement them in the BSR technologies.

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Risks: Aggressive strangling of the market by the existing big market players (exerting pressure on new market players and blocking them).

Solution: To continue demonstrating the technological superiority as the best result and the associated technique win in sport. To secure aggressive direct sales and solutions for each customer’s needs with long-term contracts. To develop a common market strategy with other market players whose products do not compete with the BSR product. To enter the market sections the existing players have not investigated yet or cover a very small share due to technological restrictions.

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Risks: Plagiarism of the product and service (replication and copying, development of new alternatives).

Solution: To focus on the customer service in the long-term. The development, improvement and enhancement of our franchise, thus creating solutions that are closed for other competitors. Strong product protection documentation, protection of patents and copyright all over the world.

Big thanks to our partners: