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Halo (f/k/a iZZapper)

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Multifunctional, stylish accessory targeting 1bn+ smartphone users worldwide. You need one!

100%
 - 
Funded
£35,000 target
£35,000 from 97 investors
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Business overview

Location London, United Kingdom
Social media
Website -
Sectors Programming & Security Mixed Digital/Non-Digital B2C
Company number 08498658
Incorporation date 24 Mar 2013
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Investment summary

Type Equity
Valuation (pre-money) £198.3K
Equity offered 15.00%
Tax relief

SEIS

  • Idea
  • Market
  • Team
  • Updates
  • Investors 97
  • Discussion
  • Documents

Idea

Introduction

Apples's iPhone redefined handset aesthetics as well as functionality, starting a trend of monolithic slab design. A thing of beauty - even if designed on the basis that we all have flat hands.

iZZapper's design brings functionality that physically can't be accommodated in a "slab", and encapsulates it within a sleek, comfortable and ergonomic sleeve for either iOS or Android devices.

More tactile and secure to hold, and better protected when dropped, iZZapper will be positioned as a "must-have", fashionable add-on across age and gender boundaries.

Intended impact

We believe that our theft alarm will encourage thieves to discard the handset quickly so that it can be recovered.

We believe that our attack alarm will disorientate, alarm and deter attackers.

We believe that our social listening capability will encourage social listening.

We believe that our battery boost feature will add usability and convenience to the handset generally.

We believe that the physical form of the iZZapper will make it more comfortable to hold, and that the desk stand will make it easier to use during video calls.

Substantial accomplishments to date

We have:

Instructed a UK patent attorney who has conducted searches for the relevant prior art and has identified innovations which will form the basis of UK patent applications and subsequently world-wide applications (these innovations cannot be disclosed prior to patent filing);.

Registered the domain names iZZapper.com;

Engaged with a number of design consultancy candidates (under NDA) and determined a short list of two, including the US designer responsible for an existing accessory whose styling will provide some design cues (http://www.kickstarter.com/projects/hern/waldok... and

Developed the (indicative only) budget which is the basis of this fundraising, for patent filing and development of a working prototype which is required before we are able to secure the second funding round (non-dilutive) through Kickstarter.com (see below) which is expected to underpin production tooling and a first production run.

Monetisation strategy

The company plans to contractually own all of the intellectual property in the designs that will be executed by our selected consultancy. Manufacture is planned to take place either in China (Shenzen) or Taiwan. The bill of parts - the components required - and the manufacture cost will vary depending on scale of production and these factors will need to be given further consideration following the preliminary validation and marketing exercise that we expect to conduct on Kickstarter.com.

Additionally the price point can only be established in conjunction with the distributor, who will likely be appointed only following the validation exercise. Our operational target will be a net margin per unit of US$20. Our gross revenue will depend largely upon the success of our nominated distributor in reaching each of our market segments.

Use of proceeds

We are raising £35,000 in this round and we do not currently expect a second dilutive funding round.

Proceeds will be spent with the objective of creating a prototype product within three months which can be actively promoted on Kickstarter.com. To accomplish this objective we would first need to file patent applications in the UK to protect the innovations that will be disclosed publicly for the first time on the Kickstarter website;

We then need to finalise a prototype design for the minimum viable product with our selected design consultancy; and

We will need to work with their software developers to build a basic iOS app to control the iZZapper, and we will need to work with their manufacturers to build the prototype.

Market

Target market

Our basic premise is that handset designers set out to accommodate the majority of target users and in some cases, this means they have had to sacrifice the "long tail" whose specific needs can't be addressed.

An opportunity arises for iZZapper because amongst handset makers, the general preference for a compact design has trumped the desire for speakers that deliver high volume and performance. Speaker performance is dictated by the laws of physics: louder sound means bigger size. The result is that most smartphones on the market today deliver only modest volume.

Our target market is the long tail, comprising handset users who want better speaker performance for a variety of applications, as an integral part of their handset rather than as an occasional accessory.

These applications include:
- Music playout. Performance will still be limited, but we believe that the teen audience in particular will enthuse over the facility of ad-hoc social listening.

- Theft alarm. Currently available products can alert the owner that the phone is missing, but don't sound an alarm on the handset itself. We have sought advice from a German specialist audio engineer to define a speaker technology to deliver 115dB which can be benchmarked against: 83dB is a phone ringing; 115dB is like a power saw; 125 begins to be painful; 130dB is jet engine starting.

- Personal attack/security alarm. Parents of teenage daughters will understand the challenge of making sure that the chosen device is with her, accessible, and charged; whilst app-based attack alarms function by sending a panic message by SMS: response may be too late. Conversely, the iZZapper would always be there, always be accessible, always be charged and at 115dB would a real deterrent. The multi-functional nature of the unit reduces any risk that it might be seen as "uncool".

- Battery booster

- Silent, LED based alert to incoming messages

- integrated security grip to prevent snatch theft and desk stand.

Characteristics of target market

The number of activated smartphones globally passed the 1,000,000,000 mark in the third quarter of 2012. It is expected to grow to ten times that number (exceeding the population) by 2016. As such we believe that the market comprises all geographies and demographics but there are particular features of certain markets which make certain features of the iZZapper more relevant than others, we believe. For example, we anticipate strong demand in India underpinned by the personal attack feature given the recent rape cases; whilst amongst professinals/executives, silent colour-coded alerts for incoming messages will be a popular feature; and urban users generally will find the theft alarm feature attractive.

Marketing strategy

Once our prototype is complete we intend to promote the product and raise new funding via the US-based site, Kickstarter (www.kickstarter.com).

Kickstarter is not an equity funding site. Rather, it works on the basis of allowing early adopters to acquire new innovations early on ("rewards") at a discounted price. This brings significant benefits - production scale, idea & market validation, and cash flow without equity dilution for the early investors.

We believe that product validation through Kickstarter will be instrumental in capturing the interest of significant distributors in the mobile/accessory sector, leading amongst which is 20:20 (www.2020mobile.co.uk). Combining the iZZapper core functionality with the creative and imaginative output of third party developers who we allow to access the software development kit (SDK), together with the marketing reach of a leading distributor could, we believe, create a market of perhaps 1 in 1,000 or 1 in 500 smartphone users, globally.

Competition strategy

Functional innovation, a free of charge SDK so that third party developers can write apps for the iZZapper thereby increasing the value of the iZZapper ecosystem, leading-edge design, and intellectual property protection are all expected to combine with the forging of powerful marketing relationships to keep iZZapper in a market leading position.

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Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This campaign for Halo (f/k/a iZZapper) has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 4 May 2013 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £198,333

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

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Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

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