Blue Shock Race - 2
250 500 € (125%)
rahastatud 200 000 - 500 000 € eesmärgist
200 € min investeering
Lühitutvustus
In 2018 with Fundwise, BSR successfully secured a €212K investment valued at a pre-money valuation of €3.5 million. By 2022, BSR had raised a total of €1.2 million in investment and a current 2023 pre-money valuation of €18.0 million.
Today, the company exports go-karts to 37 countries worldwide, including Japan, Korea, Australia, Mexico, USA, Qatar, and Europe, producing €3 million worth of goods in 2022, with an export delivery value of €2.6 million.
In 2023, we aim to achieve a turnover of €5 million and have a presence in 40 countries with our products.
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As part of this campaign, a KPMG Due-Diligence has been prepared for Blue Shock Race for 2020, 2021, and 2022. The purpose of this material is to prepare BSR company for public audits so that they can launch an IPO by 2024.
- BSR Electric race karts are imminent future: InterestingEngineering.com
- The world's fastest electric race kart: Vroom.com
- Forbes Baltic has also featured our impressive growth from €150K to €15 million.
Join the story of BSR and expand the thrill of our electric race karts today!
More about products, distribution, and long-term strategy details are here Blue Shock Race
More videos from customers, tests championships, etc: Youtube/BSR
The information provided in the Fundwise campaign is concise. For those who want more detailed information, we invite you to explore the BSR website, where there is expanded information or other publicly available information online. You can also ask clarifying questions in the comments.
Probleem ja lahendus
Problem 1: Currently, around 8% of go-kart racing tracks worldwide have had to cease their operations due to noise and CO2 emission levels that exceed the required standards, especially when located close to residential areas. This trend is rapidly increasing due to new regulations around the world.
Solution: BSR electric racing go-karts can not only allow these tracks to continue their operations but also provide the opportunity to build new tracks that can be much more accessible in urban areas. For example, the Amey track in Belgium was closed for many years but has now been hosting races for two years thanks to BSR's go-kart technology.
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Problem 2: Rising energy costs, the need for high power connections, energy consumption, and efficiency - these are the challenges that karting centers face today.
Solution: Our battery system is the smallest and most powerful on the market, making our go-karts 20-50% lighter than our competitors' alternatives. This results in several advantages, such as 15-20% lower energy consumption, lower power connection requirements, and lower peak current, allowing you to save on power connections. Over a period of 1-3 years, this can save up to 20% of the energy consumed by go-karts, compared to our competitors' heavier and fixed-battery technology.
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Problem 3: More and more tracks in shopping centers, and other highly visited locations are being created. This model means a larger influx of natural visitors, but at the same time, it creates higher costs for each square meter of space.
Solution: With BSR's quick swap battery system, you can reduce the operating space by 50% in the Pit-Lane zone, which can save up to 10% of the total rental fee per year. You can also reduce the number of karts by up to 2 times since they do not have to wait for the next charge, thereby reducing investment costs by up to 30% compared to fixed battery kart technology.
BSR's technological solutions solve many regulatory problems and increase efficiency in several categories, making karting business models more possible and suitable for specific categories and projects, which is BSR's strongest niche in the karting industry.
Toote/teenuse kirjeldus
Racing karts and Power Units:
BSR 2.2 - 1.5kW (for children aged 4-6 years)
BSR 2.2 - 7kW (for children aged 7-10 years)
BSR 2.2 - 18kW (for juniors aged 11-15 years)
BSR 2.2 - 25kW (for athletes age 16 years and older)
BSR 2.2 - 25kW+ (professional model)
Power Units or ready-to-race karts are sold online upon customer demand, both for individual athletes and race organizers worldwide. More: www.blueshockrace.com
The biggest market advantage: The BSR Power Unit system can be installed on any existing racing chassis in 15-30 minutes without prior knowledge and start in the electric karting class. This allows for a quick transformation of the current industry into electric.
Entertainment Karting for Business:
BSR 2.2 - Adult (adult karting for heights between 1.4 - 2.10m)
BSR 2.2 - Junior (youth karting for heights between 1.1 - 1.5m)
Entertainment rental karts are sold to karting tracks worldwide by contacting sales agents and coordinating specifics such as location, terms, and other related matters.
More: www.blueshockrace.com
The biggest market advantage: The quick-change battery system allows for reduced investments in both karts and tracks, reduces energy consumption and power requirements, and increases efficiency or the number of rides per kart.
Franchise models for karting halls:
MINI - compact class model (1600 m2)
MIDI - medium class model (3200 m2)
MAXI - large class model (4800 m2)
The franchises are being developed, and their implementation will begin in 2024. The target markets are Western Europe and the US (regions with a high proportion of electric cars, such as karting halls, which solve electric mobility infrastructure and energy problems).
More: www.blueshockrace.com
The biggest market advantage: a multi-activity center, with karting entertainment as its main attraction out of 10 options. The center generates up to 10GW of alternative electric energy per year, which not only provides complete self-consumption of the hall but is also able to supply up to 200 electric car charges per day. Thus, the center serves as a future "electric car refueling station" with locally generated energy with a low impact on the local energy grid.
New BSR products for 2023:
Electric Motorcycle Power Unit - An electric motorcycle system that opens up the possibility for BSR to create around 80% of motorcycle models on this developed multifunctional platform.
Under development and test phase.
Renewable energy storage systems - Modular battery systems allow for energy storage and delivery, reducing energy costs and increasing independence. The unique feature is that it is highly modular and can serve functions from military applications to private homes and large industrial solutions.
Under development and test phase.
In addition to opening up new product lines, BSR can optimize production costs across all product categories, thus sharing market risks and increasing profit margins in each segment. BSR's product diversification allows for better competition and adaptation to technological growth.
Ärimudel
Blue Shock Race offers sales through three different models:
ONLINE SALES - BSR products are sold through the BSR web platform or by creating personalized offers through email. A 20% pre-payment is made on the platform, and then the delivery method, manufacturing time, and other details are agreed upon with an agent. The remaining payment is made before the product is shipped.
DIRECT SALES - By going to tracks, exhibitions, and races, customers can experience the product firsthand. Often, this step follows after becoming familiar with the product online for those who are ready to make a purchase but haven't yet had personal experience with electric technology.
DISTRIBUTION - BSR has 8 distributors worldwide, with 4 of them being exclusive. Anyone with a precise market acquisition plan can become a distributor by presenting it to BSR. However, to become an exclusive distributor in a particular region, an annual fee is required, determined by the market readiness and potential of that specific region. Exclusive distributors are protected from competition in their region and receive the best conditions from BSR, thus gaining advantages in developing a local business strategy.
BSR places a strong emphasis on online and direct sales, enabling the company to maximize its profit margin. However, there are regions where it is challenging to work directly, and therefore, BSR hands over those regions to distributors, supporting their goals and strategies with after-sales service and other needs.
Motorbike and battery products business models are under development, but they will differ. The Motorbikes sales model will be open-source local end assembly with comprehensive distribution options. Battery storage systems will be more with big B2B distribution partners who work in solar energy sectors. More will come soon (2023 Q2)
Turg
The global go-kart market is nearing 1 billion Euros in terms of go-kart manufacturing. The global market value is even greater if it includes go-kart amusement parks, totaling around 4.5 billion Euros. In the last five years, the go-kart market has grown by 3-6% annually, but specifically, the electric go-kart market has grown by 10-15% annually, which is currently being driven by increasing CO2 and noise level regulations. In 2021, electric go-karts made up less than 20% of the total go-kart market. Still, by 2030 it is estimated that it could reach around 40% of the total go-kart market, possibly even more, due to the increasing zero-emission policies and technological advancements.
The go-kart market is relatively small compared to the technology investment required to achieve maximum efficiency. Therefore, based on its developed technologies, BSR is opening two more markets by the end of 2023: the electric motorcycle market (which totals around 104 billion) and the battery energy storage market (which is expected to reach approximately 50 billion in the coming years).
Thanks to its investment in battery pack development and manufacturing, BSR can easily and effectively open these markets by creating specific niche products and competing with the big players. BSR has designed sports battery applications so that after their use in sports or transportation, they are prepared for energy storage from solar or wind power. In this way, BSR can offer B-class energy storage systems in the market at a competitive price and with a long remaining life cycle, as they are all based on Lithium-ion technology. Only then are going for recycling.
BSR has created a partial cycle battery operation model internally, combining it between specific industries to provide niche products with competitive prices and solutions. With this approach, BSR can obtain greater market advantages over other players in both the go-kart and other industries, capitalizing on them with the highest possible profit margin in the long term.
Some Source links: GB Finance, MarketWatch, and others.
Senised saavutused
Business growth:
Despite the C19 pandemic, which caused the entire entertainment industry to shut down and global silicon chip availability to be limited, according to KPMG's due diligence report (04/2023), BSR's revenue has shown steady growth, increasing from EUR 256,000 in FY 2020 to EUR 1 million in FY 2021, and almost tripling to EUR 2.7 million in FY 2022. The revenue is often project-based, where the client provides the initial go-kart fleet and other maintenance and parts for changes. Over the past three years, the growth rate has been 1016% (with BSR's growth in 2022 being 267%). This was primarily because the team had been investing in in-house manufacturing and development since 2018, which allowed them to adapt to changes faster than others who rely mainly on global outsourcing.
Racing technology breakthrough:
Thanks to BSR's in-house development achievements, the most impressive performance indicators for racing karting were achieved, allowing BSR to dominate the racing karting market and become the leading supplier of championship organizers worldwide. This rapidly promotes marketing and attracts the attention of high-level athletes, thereby creating trust in BSR technology.
Long Term Partnerhip:
Long-term strategic agreements such as with Birel ART, one of the world's largest karting manufacturers, choosing exclusively BSR Power Unit systems for their entertainment karts, allowing BSR to increase its power and strategically develop.
Worldwide publications:
Blue Shock Race karts and their technology are recognized as among the best or even the best in more than ten world top karting industry review blogs, magazines, or elsewhere. Thus, BSR has the opportunity to create an unprecedented future technology development, demonstrating it from a technology leader's perspective. VROOM, KartSportNews, InterestingEngeneering, TKART, and many more.
Manufacturing and Team:
Over the past two years, BSR has managed to build a powerful team, reflected in the achievements mentioned above, and at the same time, create an in-house manufacturing facility that meets practically all BSR requirements to achieve all planned goals by 2025.
Kuidas me eristume
Blue Shock Race has achieved three key strategic steps that are the main reason why BSR has a high valuation and characterizes its potential:
Creating the lightest and most powerful electric karting technology and establishing a solid foothold in the market by achieving profitable and volume indicators that meet market demands. The startup platform sets the foundation for the future development of lightweight electric transportation and battery solutions.
Building a team and in-house development and production platform that efficiently develops new products in lightweight applications and energy, thereby entering new markets with proven technology, streamlined production processes, and the ability to quickly adapt to market changes in transportation, energy, and more.
Creating new product groups that are significantly larger than the karting market, thus spreading risks, increasing revenue, and streamlining the production process, which, combined in multiple niches, allows BSR to achieve indicators that would not be possible if the company were to operate solely in karting.
Blue Shock Race is a technology company that develops electric mobility and energy solutions by choosing specific niche directions, addressing their challenges, and capitalizing on them as effectively as possible. Karting is the base and startup platform for improving technological solutions quickly and easily through the sports and entertainment industry. With contacts, distribution networks, after-sales support chains, and other advantages gained from the karting industry, BSR can easily enter the global market quickly and at a relatively low cost, as karting already operates in 37 countries.
Thanks to this strategy, BSR plans to become a public company in 2024 and reach a valuation of €1 billion by 2030, gaining significant market share in the karting industry, lightweight mobility, energy segments, motorsports, and entertainment industries.
Rahakasutus ja ajakava
In 2023, BSR Investments are planned in three main categories:
- Establishment of operational production warehouses, which will reduce product manufacturing time, lower transportation and logistics costs, and reduce delivery risks. Establishing warehouses will reduce product costs by approximately 4% and improve manufacturing time by around 50%.
Funds will be used: 250-300K Eur.
- Purchase of automated manufacturing equipment, which will increase production volume and quality while reducing costs by approximately 8% and reducing lead times by 20-55% compared to current indicators without increasing human resources.
Funds will be used: 80-100K Eur.
- Development, certification, testing, and launch of new products will open new markets, diversify income channels, and optimize production volumes and equipment loads. The introduction of new products is critical for long-term revenue and profit growth.
Funds will be used: 80-100K Eur.
In 2023, it is planned to attract up to 1.3 million euros in investment from angel and institutional investors. Up to 500,000 euros is planned to be raised with the help of the Fundwise campaign, and up to 800,000 euros from large private investors who are already working with BSR.
BSR is effectively entering its Series A investment round with this funding round, combining VC funds and private investors.
Lubadused investorile, kasumi jaotamine
Investors participating in the BSR Fundwise campaign in 2018 have increased their investment 5x. This is how the BSR team and its CEO, Artis Daugins want to present their determination and ambition, taking the company's growth to the next level, an IPO, and reaching a $1B valuation by 2030, 50x today's valuation. It's a huge challenge and will require even more work than before.
Offer for Investors: Invest in BSR's equity through an SPV model and acquire shares in the company. Blue Shock Race's pre-money valuation is 18 million Euros during this campaign. After the investment round, BSR-1 and BSR-2 campaign investors will be transferred to the Ignium platform, where each investor can organize their own buying and selling of shares on the secondary market. Long-term investors can expect a BSR IPO in the near future and have the potential for a much greater exit within the next 3-5 years. BSR invites everyone to evaluate their own strategy and BSR's offer and decide on the best investment choice.
BSR has big ambitions, but this is the era of technological change, where the next 1000 Unicorns are expected to be in the electric transportation and energy sectors. BSR has accepted this global goal and is ready to achieve it with investor support. Larry Fink
In this campaign, Blue Shock Race does not provide any additional benefits to investors regarding the investment amount. We want to give all investors an equal opportunity to be a part of BSR and for each individual to determine their ambition as a larger or smaller shareholder of BSR.
SPV Investment Model
Investment with Fundwise is made using the SPV (Special Purpose Vehicle) model. Investors first invest in an Estonian enterprise, and afterward, this enterprise obtains parts of a manufacturing enterprise based in Latvia. Interests of all Fundwise investors are represented by the elected Lead Investor - Edijs Dauģelis, who actively supervises the enterprise based in Latvia and informs others.
Riskid ja maandamine
Risks: Our company faces potential risks from the emergence of superior technologies and limited adoption by established players in the market, such as in battery or engine technology.
Solution: We are committed to continuously improving our technology by gathering and analyzing data from various laboratories worldwide. We will actively seek opportunities to integrate new advancements into our products, allowing us to stay ahead of the curve.
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Risks: Our company faces challenges from established players in the market who may use their market dominance to pressure and block new entrants.
Solution: We will continue to demonstrate our technological superiority through our winning results in the sports industry. We will secure direct sales and create long-term contracts with customers, providing them with tailored solutions. We will collaborate with other market players whose products do not compete with ours, developing a common market strategy. Additionally, we will explore market segments that established players have not yet investigated due to technological limitations.
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Risks: Our company faces potential threats from competitors replicating and copying our product or developing new alternatives.
Solution: We will prioritize providing exceptional customer service to maintain long-term relationships with our customers. We will strengthen our franchise and develop exclusive solutions that are not accessible to our competitors. We will protect our product through solid patent and copyright documentation worldwide.
The investment campaign will be organized through an Estonian Special-Purpose Vehicle (SPV). The details of the investment proposal are below:
Estonian SPV: BSR Invest OÜ
Lead investor: Edijs Dauģelis, LinkedIn
Pre-money market value of Blue Shock Race SIA:
EUR 18 000 000
Minimum investment offered to all investors:
EUR 100 000
Maximum investment offered to all investors:
EUR 250 000
Minimum investment per investor:
EUR 100
Maximum investment per investor:
EUR 300 000
MEESKOND
Artis Daugins
Founder and CEO
Having received a designer's education, this individual has devoted their life to pursuing electric mobility and energy since 2010. In 2015, he embarked on a groundbreaking project in the form of an electric kart, which marked the first step in a new technological direction. And today, their efforts have led them to become the world's leading electric karting company, exporting to 37 countries worldwide.
Aigars Zviedris
Board member
With over 30 years of experience in the karting industry and a personal record of becoming a karting champion in Latvia twice. He has helped their son Valter achieve the remarkable results of becoming a five-time Latvian karting champion. He also spent many years in the entertainment industry.
Ģirts Celajs
Board member
He has worked in various industries in the global market, always approaching things with a broad and ambitious mindset. He takes risks and is willing to help StartUp companies grow. He has experience in finance and audit matters.
Ilze Jaunzeme
Head Office Manager
I know all I meant it!
Jānis Birznieks
Chief Engineer
What is the safety factor?