- Largest most successful campaign in SeedInvest history
- Partnered with top 2 largest private security companies in the U.S. (Allied Universal and Securitas)
- The Company is presently deploying its technology with 36 clients in 10 states and 3 time zones.
- First to market in commercializing Autonomous Technology in real world application with clients at scale; $7 per hour Machine-as-a-Service vs. $25 per hour human guard
- Strategic investors include NTT DOCOMO, Konica Minolta, Flex Lab IX, and NetPosa
- Amount raised:
- Round Size: US $20,000,000
- Series m :
- Minimum Investment: US $1,000 per investor
- : Preferred Equity
- US $80,000,000 :
Crime has a $1+ trillion negative economic impact on the U.S. economy every year and Knightscope is on a mission to cut it in half. Imagine if we could make the United States of America the safest country in the world – it would change everything for everyone.
Founded in April 2013, Knightscope is an advanced physical security technology that produces Autonomous Data Machines (ADMs). Knightscope’s ADMs are fully autonomous and self-driving gathering significant amounts of data from the environment in real-time and puts the terabytes of data in a usable formula for a human to utilize via its state-of-the-art user interface, the Knightscope Security Operations Center (KSOC).
The Company is presently deploying its technology with 30 clients, in 10 states and 3 time zones. Knightscope’s clients include malls, hospitals, corporate campuses as well as a movie studio, a stadium, a food distribution facility, a pharmaceutical company, a warehouse and a property manager. Westfield Malls, Samsung, Juniper Networks, ForeScout, Dignity Health and the Sacramento Kings, are among many of their distinguished clients. Machines under contract are for California, Florida, Georgia, Kentucky, Massachusetts, New York, Texas, Washington and Washington D.C.
The Company has reached an all-time high in customer interest with now 170+ potential clients in the pipeline at various stages of the sales process and maturity.
Key strategic investors include NTT DOCOMO, Konica Minolta, Flex Lab IX, and NetPosa. Knightscope has grown its team to over 45 employees in Silicon Valley where it designs and builds the technology with 85% U.S. content. Each machine is marked with the words “Designed and Built in Silicon Valley.”
Securing Our Future
Knightscope has already had huge success in the field, predicting and preventing crime. This new ground-breaking technology has already been able to assist a law enforcement agency in issuing an arrest warrant, helped catch a thief, caught a vandal and stopped a fraudulent insurance claim to name a few successes.
Knightscope provides its technologies on a Machine-as-a-Service (MaaS) business model to clients needing to enhance their security operations. Knightscope believes that the technology reduces the cost, time, complexity and stress of deploying traditional security commodity solutions. Knightscope provides ongoing software, firmware, and hardware upgrades free-of-charge so that clients can keep up with the pace of innovation streaming out of Knightscope’s headquarters in Silicon Valley.
Autonomous Data Machines
Knightscope builds its autonomous data machines at Knightscope’s headquarters in the heart of Silicon Valley and deploys them nationwide. The vast majority of Knightscope’s product and software is proprietary. Both the Knightscope K5 machine (outdoors) and Knightscope K3 machine (indoors) operate autonomously and are utilized by authorized security personnel as a force multiplier providing unprecedented situational awareness capabilities.
Current K3 & K5 Features
- 360 degree video: The K3 and K5 ADMs capture video from all angles and streams high definition 360- degree video viewable by all authorized personnel.
- Two-way audio: ADMs are equipped with speakers and microphones that allow intercom conversations between the security operations center and a person near a robot. Additionally, users may broadcast pre-recorded and live audio (public address) messages through one or multiple robots from anywhere in the world.
- Thermal Imaging: ADMs run thermal imaging and can push an alert at a certain threshold but also captures data for historical analysis or pattern recognition.
- Data Collection: The ADMs generate over 90 terabytes of data per machine, per year, providing an unprecedented ability to understand an environment at all times. The goal is that over time, the ADMs will be able to “see, feel, hear and smell” enabling a unique approach to sensor fusion and analytics.
We have travelled over 100,000 miles and operated in excess of 180,000 hours!
Knightscope Security Operations Center
Knightscope gives each client a custom, KSOC user-interface to track activity in the field and data collected.
Data is accessible through the Knightscope Security Operations Center (KSOC), an intuitive, browser-based user interface. Both the K3 and K5 integrate the 90 terabytes of data generated each year per machine into one comprehensive browser-based and mobile-based user interface through the KSOC.
Clients can recall, review, and save the data for forensic or event documenting purposes. And with Knightscope's mobile apps, a security professional can have the power of the technology at their fingertips. The Company drops new software code every two weeks and new hardware every few months, and its clients enjoy unlimited free software, firmware and at times hardware upgrades.
New Product Entry and Capabilities
Knightscope has commenced development work on the all-new Knightscope K7 Autonomous Data Machine. This four-wheel version of Knightscope’s technology stack will be able to traverse more difficult terrain opening additional significant growth opportunities in addition to the K3 (indoor) and K5 (outdoor) machines.
Additionally, the Company is developing weapon detection capability to include in its platform providing security professional enhanced situational awareness.
Looking for the next big idea, Stacy Stephens was seeking advice and help from a seasoned entrepreneur shortly after 9/11. While researching startups, he reached out to a young CEO – William Santana Li. Bill and Stacy quickly learned that they shared a passion for technology, hardware, brands, design and service. The two have worked on a number of projects together for more than 15 years and have developed a collaborative shorthand that assists them in their ventures
We started Knightscope because we were horrified by the mass shooting at Sandy Hook and the impact of 9/11 on our country. And now the ongoing daily increase in violence globally has intensified our efforts. We want to build something great for our country and we believe down to our bones that we can use technology to help build safer, engaged communities while significantly reducing costs and reducing crime. That spark has turned into a grander vision to cut the annual $1 trillion negative economic impact of crime on the U.S. in half! Our team wakes up every morning with a singular focus and chance to do something about it - and we have and will continue to put our blood, sweat and tears into the effort of better protecting our country and keeping our communities safe. No matter what it takes.
- Custom t-shirt designed by Knightscope
All of the above plus:
- “K7 scale model” (deal toy)
- "Audio Robot Selfie" video clip of a machine announcing your custom broadcast message to share on social media and/or for private use
- Invitation to the K7 media event unveiling
All of the above plus:
- Limited edition Knightscope art print
- Ability to select the city & state for future on-site live demonstration (USA)
- Your custom designed K3, K5 or K7 digital wallpaper
All of the above plus:
- Paid airfare to Silicon Valley for a private tour of Knightscope’s HQ
- Dinner with the Knightscope management team
- Signature Series: your signature on a machine signed at production
- Professional "family photo shoot” with the K3, K5, and K7
It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.
Knightscope operates on a Machine-as-a-Service (MaaS) business model. Our all-inclusive $7 per hour per machine compares favorably to a human guard at $25 per hour while contributing more and consistently. We sign year long contracts running 24/7 which generate over $61,000 per annum in revenue per machine or $300,000+ over a 5-year period. We target to recover the variable costs of the machine within the 1st calendar year, and the 2nd, 3rd, 4th, 5th year are effectively pure profit. One of our strategic investors, Konica Minolta, has over 2,000 technicians across the U.S. and we have begun training them to service, maintain and support our machines-in-network to allow us to scale nationwide. Our growth plan is to focus on California for 2017 and then march across the rest of the U.S. during 2017 to 2019.
Globally the 200+ countries around the world spend over $500 billion per annum on security in the public and private sector with approximately $300 billion addressable by Knightscope's plans and aspirations. We believe it to be possible to build a $30 billion company focused on advanced physical security technologies with a portfolio of products around the world. As the global population grows from 7 billion to 9 billion people, we believe the worldwide security and law enforcement apparatus will not scale and will require new solutions.
In the U.S. there are 8,000+ private security firms and 17,985 law enforcement agencies - a fragmented marketplace which we believe offers numerous opportunities for disruption. There are 3 major private security firms in the U.S. and Knightscope is partnered with 2 of them: Allied Universal and Securitas. Knightscope can help our channel partners in the private security industry with margin expansion, competitive advantage in the marketplace and long-term employee and client retention by providing a 'sticky' technology set. Globally, G4S employs 600,000 people, Securitas 300,000 people and the new Allied Universal will employ a combined 140,000 people.
Start-up investing is risky. Investing in startups is very risky, highly speculative, and should not be made by anyone who cannot afford to lose their entire investment. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup or early-stage venture often relies on the development of a new product or service that may or may not find a market. Before investing, you should carefully consider the specific risks and disclosures related to both this offering type and the company which can be found in this company profile and the documents in the data room below.
Your shares are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for these shares and the company does not have any plans to list these shares on an exchange or other secondary market. At some point the company may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when the company either lists their shares on an exchange, is acquired, or goes bankrupt.
The Company may not pay dividends for the foreseeable future. Unless otherwise specified in the offering documents and subject to state law, you are not entitled to receive any dividends on your interest in the Company. Accordingly, any potential investor who anticipates the need for current dividends or income from an investment should not purchase any of the securities offered on the Site.
Valuation and capitalization. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment. In addition, there may be additional classes of equity with rights that are superior to the class of equity being sold.
You may only receive limited disclosure. While the company must disclose certain information, since the company is at an early-stage they may only be able to provide limited information about its business plan and operations because it does not have fully developed operations or a long history. The company may also only obligated to file information periodically regarding its business, including financial statements. A publicly listed company, in contrast, is required to file annual and quarterly reports and promptly disclose certain events — through continuing disclosure that you can use to evaluate the status of your investment.
Investment in personnel. An early-stage investment is also an investment in the entrepreneur or management of the company. Being able to execute on the business plan is often an important factor in whether the business is viable and successful. You should be aware that a portion of your investment may fund the compensation of the company’s employees, including its management. You should carefully review any disclosure regarding the company’s use of proceeds.
Possibility of fraud. In light of the relative ease with which early-stage companies can raise funds, it may be the case that certain opportunities turn out to be money-losing fraudulent schemes. As with other investments, there is no guarantee that investments will be immune from fraud.
Lack of professional guidance. Many successful companies partially attribute their early success to the guidance of professional early-stage investors (e.g., angel investors and venture capital firms). These investors often negotiate for seats on the company’s board of directors and play an important role through their resources, contacts and experience in assisting early-stage companies in executing on their business plans. An early-stage company may not have the benefit of such professional investors.
Frequently Asked Questions
"The SEC has qualified this offering" means the SEC has permitted Knightscope to offer for sale the securities described in the Offering Circular to investors such as you. The SEC is not judging the merits, accuracy, or completeness of the offering and information in the Offering Circular. Rather, the SEC is merely ensuring Knightscope has met all legal disclosure and regulatory requirements necessary to make these shares available to you.
When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by Knightscope. Once Knightscope accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to Knightscope in exchange for your shares. At that point, you will be a proud owner in Knightscope.
Preferred equity is usually issued to outside investors and carries rights and conditions that are different from that of common stock. For example, preferred equity may include rights that prevent or minimize the effects of dilution or grants special privileges in situations when the company is sold.
A convertible note is a unique form of debt that converts into equity, usually in conjunction with a future financing round. The investor effectively loans money to a startup with the expectation that they will receive equity in the company in the future at a discounted price per share when the company raises its next round of financing.
To learn more about startup investment types check out “How to Choose a Startup Investment” in our academy.
To make an investment, you will need the following information readily available:
- Personal information such as your current address and phone number
- Employment and employer information
- Net worth and income information
- Social Security Number or government-issued identification
- ABA bank routing number and checking account number (typically found on a personal check or bank statement)
Until a closing occurs, you may cancel your investment at any time, for any reason. You will receive an email when the closing occurs and your shares have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your portfolio page.
Currently there is no market or liquidity for these shares. Right now Knightscope does not plan to list these shares on a national exchange or another secondary market. At some point Knightscope may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when Knightscope either lists their shares on an exchange, is acquired, or goes bankrupt.
You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement.
This is Knightscope's fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity. You will also find a copy of the Knightscope's Offering Circular, which has been qualified by the SEC. The Offering Circular includes important details about Knightscope's fundraise that you should review before investing.
This investment is highly speculative and should not be made by anyone who cannot afford to risk the entire investment amount. In addition to these risks, you should carefully consider the specific information and risks disclosed in Knightscope’s profile and Offering Circular.