Torch

Idea

Introduction

Torch Apparel focuses on the safety and style of today’s keen cyclists, featuring our hugely-successful Kickstarter hit T1 helmet and upcoming FLUX backpack. Torch has already set itself apart from many cycling brands. By focusing on riders' actual needs – we’re all enthusiastic cyclists ourselves – and using intelligent design to deliver versatile and original products, Torch will continue to set the standard for cyclist-focused products. As a cyclist himself, Nathan Wills created Torch Apparel from his own experiences as an urban rider using his design skills from his automotive design background. Through discussions with fellow cyclists and local shop owners, he quickly found interest from other riders for this new gear. After several iterations and extensive testing he launched his idea of a bicycle helmet with integrated LED lights that project onto impact resistant polycarbonate lenses, and rechargeable batteries (the first on the market) on Kickstarter.

After surpassing his funding goal by one third in 45 days with orders nearing 1,000, it was clear he was not the only rider looking for stylish and active safety apparel. Now with production under way, Torch is extending its line of products, and looking to increase its routes to market across the world.

Intended impact

Torch Apparel will positively affect the cycling market by raising the level of quality and function that is expected in cycling apparel, ultimately making cycling safer and saving lives.

Substantial accomplishments to date

Torch has won“Gear of the Show” which was awarded by Outside Magazine at Interbike 2012.

We’ve also been extensively reported on since launching Kickstarter including “100 Brilliant Companies”, by Entrepreneur Magazine, Men’s Journal Style Edition, “10 Awesome Pieces of Bike Tech” by PC Magazine and many more.

Secured first round Angel investment from Hugh Roper, who used an existing company vehicle to invest in Torch Apparel.

UK Dragons Den appearance, including positive feedback from all Dragons on product, brand and design.

CE approval for Torch T1 helmet, allowing for sales across international markets.

Patented design and trademarked branding. Sales to consumers in more than 34 countries.

Manufacturing agreements and logistics agreement in place.

Approximately 2,000 helmets sold around the world, with limited brand awareness or points of sale.

Torch has won“Gear of the Show” which was awarded by Outside Magazine at Interbike 2012.

We’ve also been extensively reported on since launching Kickstarter including “100 Brilliant Companies”, by Entrepreneur Magazine, Men’s Journal Style Edition, “10 Awesome Pieces of Bike Tech” by PC Magazine and many more.

Monetisation strategy

Torch is a product development and retail business. The business model is based upon the supply of Torch products directly to consumers via the Torch Apparel websites, through partnership with selected retailers and top distributors.

The business is expanding in Europe to take advantage of the huge addressable European market.

Torch Apparel Ltd is a UK registered business with rights to all Torch Apparel LLC products at cost for the duration of the companies existence.

The UK company has two shareholders, Hugh Roper and Nathan Wills (80/20).

The UK company owns 38.1% of the original USA company as a result of equity investment to date. We believe this relationship with the US company will be of significant value to our investors.

The business is also set to benefit from the repayment of a $100,000 loan to the US business, and would also benefit from the supply of pre-paid products ordered on the US business. These vehicles have been used as means for funding the original US company.

The European business has been supported by Hugh Roper's contacts. This allows for Torch Apparel's UK costs to be minimised. This will continue to be the case, until such time the business is on a stable footing, and can afford to absorb such costs in the future. Examples being financial control, supply chain management, administration and customer relationship management.

The plan is to build a long term sustainable brand, with a wide product portfolio, providing good margin.

Use of proceeds

Proceeds will be used for the following:

1. Working Capital - ordering on suppliers requires advance financing with our Chinese manufacturing partners. We will also look to extend credit to certain reselling partners in the future.

2. People - the European business will recruit dedicated sales people to engage relevant channel partners across the European region.

3. Marketing - attendance at relevant exhibitions, advertising in relevant media and generating appropriate web traffic will involve a fully targeted marketing campaign for the European business. Local language websites allowing for multi-currency transactions, the development of additional web-stores on platforms like Amazon.

4. Offices – Torch Europe may secure a low cost office environment on favorable commercial terms.

5. Product Development - Torch Europe will assist the US business in the development of new Torch products.