- Achieved in-market growth by increasing deliveries 48% on average per month (September 2020 to March 2021) since launching in Pasadena, CA in July 2020
- Vehicles have logged over 8,600 miles of in-market use and our autonomy projects to provide triple the deliveries per hour per person versus traditional human-delivery
- Vehicles have delivered over 5,000 orders since launching, with an average gross order value of over $62
- An Idealab company co-founded by Bill Gross and Ryan McLean, Ph.D., with deep experience scaling startups and profitably bringing advanced technology to market
- Key investors include Idealab Studio, Idealab X, Neotribe, and Ubiquity Ventures
- Total Amount Raised: US $297,754
- Total Round Size: US $5,000,000
- Series A :
- Minimum Investment: US $999 per investor
- : Tiered Preferred Equity
- US $20,164,146 :
- Side by Side Offering
- Purchase Price: US $1.00 before Jul 10, 2021
- Pricing Discount: 9.9% discount before Jul 10, 2021
- Pricing Schedule: See Full Schedule
Rollo achieves one of the lowest costs in the market for fulfillment of local deliveries by using a fleet of light-weight vehicles that can be operated in a variety of modes. Our custom-designed vehicles can be ridden by a delivery driver, operated remotely, or they can even complete deliveries fully autonomously.
Traditional car-based delivery providers are fundamentally limited by labor costs, and increasingly face regulatory headwinds as the nascent 'gig-economy' grows around the world. Others who use fully-robotic solutions face a wide range of technical challenges including range at low-speeds, maneuverability, and navigating complex situations beyond the capabilities of today's technology (e.g. entering a door code, or opening a gate).
Rollo's unique hybrid fleet allocates staff as needed in an efficient manner while enjoying the benefits of lower-cost autonomy on deliveries that don't require a person at the endpoint. As a result, our overall operational costs are lower than others in the local delivery space, which allows us to provide greater value to our restaurant partners and customers alike.
Today, Rollo's delivery fleet is made up of a single vehicle design that is optimized for in-person (human-ridden) usage, and is also capable of low-speed remote operation and fully-autonomous motion. Rollo is now adapting the core of our vehicle to create a configuration optimized for autonomous motion which increases its operational speed, safety, and range.
A Side by Side offering refers to a deal that is raising capital under two offering types. Investments made through the SeedInvest platform are offered via Regulation CF and subject to investment limitations further described in the Form C and/or subscription documents. Investments made outside of the SeedInvest platform are offered via Regulation D and requires one to be a verified accredited investor in order to be eligible to invest.
US $247,730 (under Reg CF only)
US $1.00 no later than Jul 9, 2021 (9.9% discount)
US $1.11 Final
Investors who invest less than $222,500 will have their securities held in trust with a Custodian that will serve as a single shareholder of record. These investors will be subject to the Custodian’s Account Agreement, including the electronic delivery of all required information.
The graph below illustrates theor the of Rollo Motion's prior rounds by year.
Restaurants are a driving force in the national economy with food sales in 2020 of over $650 billion. Those sales were 25% below expectation and in 2021 the recovery will likely continue to favor off-premise sales, which were $300 billion in 2019.
Full-service restaurants, most of which operate a single location, claim 22% of the off-premise market, which used to mean just carryout. Delivery is changing that and is increasingly replacing carryout. Growth in delivery continues to outpace other categories and that has certainly been helped by the efforts of delivery apps like DoorDash and Uber Eats to aggregate consumers and restaurants into a single marketplace.
The app marketplace currently supports delivery through high commissions to restaurants and high markups to consumers. The delivery apps provide 'shadow' customers who are difficult to convert to the restaurant's own channel for future orders.
Restaurants need modern tools that allow them to own and grow the online relationship already started with their on-premise customers. There are many platform tools for website hosting, order management, and POS integration. Delivery services are not typically offered by any of the companies building platform solutions. At best, the platforms integrate to delivery services that may be operated by the app companies (DoorDash, Uber Eats and others).
Delivery will continue to grow with delivery app revenue anticipated to grow at 10% per year over the next five years. Restaurants are desperate to find affordable delivery options and will encourage their customers to place direct orders with the restaurant so as to capture the margin lost to services with persistent issues.
Rollo aims to build off delivery growth, while providing a better experience and solution for restaurants and consumers alike.
You may be subject to a different share price from other investors in this Offering. The Company has an evaluated pre-money valuation of approximately $20 million and a corresponding share price of $1.11. However, investors that invest earlier in the Offering may be rewarded with a discounted share price. Investors that have their subscription received no later than June 11, 2021 will be issued shares with a share price of $0.89. Investors that have their subscription received after June 11, 2021 but no later than July 9, 2021 will be issued shares with a share price of $1.00. Investors that have their subscription received after July 9, 2021 will be issued shares with the evaluated share price of $1.11. Investors that invest earlier in the Offering are rewarded with a lower share price. Investments made by SI Selections Fund I, L.P. (if applicable) and through the SeedInvest Auto Invest program will always be issued shares with a share price of $0.89, regardless of the date the subscription was received. Other than the differences in the share price described herein, there are no other differences between the shares for subscriptions received in these time periods.
The Company may be unable to maintain, promote, and grow its brand through marketing and communications strategies. It may prove difficult for the Company to dramatically increase the number of customers that it serves or to establish itself as a well-known brand. Additionally, the product may be in a market where customers will not have brand loyalty.
Failure to obtain new clients or renew client contracts on favorable terms could adversely affect results of operations. The Company may face pricing pressure in obtaining and retaining their clients. Their clients may be able to seek price reductions from them when they renew a contract, when a contract is extended, or when the client’s business has significant volume changes. Their clients may also reduce services if they decide to move services in-house. On some occasions, pricing pressure results in lower revenue from a client than the Company had anticipated based on their previous agreement with that client. This reduction in revenue could result in an adverse effect on their business and results of operations.
Further, failure to renew client contracts on favorable terms could adversely affect the Company's business. The Company's contracts with clients generally run for several years and include liquidated damage provisions that provide for early termination fees. Terms are generally renegotiated prior to the end of a contract’s term. If they are not successful in achieving a high rate of contract renewals on favorable terms, their business and results of operations could be adversely affected.
The development and commercialization of the Company’s products and services are highly competitive. It faces competition with respect to any products and services that it may seek to develop or commercialize in the future. Its competitors include major companies worldwide. The market is an emerging industry where new competitors are entering the market frequently. Many of the Company’s competitors have significantly greater financial, technical and human resources and may have superior expertise in research and development and marketing approved services and thus may be better equipped than the Company to develop and commercialize services. These competitors also compete with the Company in recruiting and retaining qualified personnel and acquiring technologies. Smaller or early stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. Accordingly, the Company’s competitors may commercialize products more rapidly or effectively than the Company is able to, which would adversely affect its competitive position, the likelihood that its services will achieve initial market acceptance and its ability to generate meaningful additional revenues from its products and services.
The Company's business could be negatively impacted by cybersecurity threats, attacks, and other disruptions. Like others in its industry, the Company may face advanced and persistent attacks on its information infrastructure where it manages and stores various proprietary information and sensitive/confidential data relating to its operations. These attacks may include sophisticated malware (viruses, worms, and other malicious software programs) and phishing emails that attack its products or otherwise exploit any security vulnerabilities. These intrusions sometimes may be zero-day malware that are difficult to identify because they are not included in the signature set of commercially available antivirus scanning programs. Experienced computer programmers and hackers may be able to penetrate the Company's network security and misappropriate or compromise its confidential information or that of its customers or other third-parties, create system disruptions, or cause shutdowns. Additionally, sophisticated software and applications that the Company produces or procure from third parties may contain defects in design or manufacture, including "bugs" and other problems that could unexpectedly interfere with the operation of the information infrastructure. A disruption, infiltration or failure of the Company's information infrastructure systems or any of its data centers as a result of software or hardware malfunctions, computer viruses, cyber attacks, employee theft or misuse, power disruptions, natural disasters or accidents could cause breaches of data security, loss of critical data and performance delays, which in turn could adversely affect the business.The Company’s expenses will significantly increase as they seek to execute their current business model. Although the Company estimates that it has enough runway until end of year, they will be ramping up cash burn to promote revenue growth, further develop R&D, and fund other Company operations after the raise. Doing so could require significant effort and expense or may not be feasible.
The Company’s business model is capital intensive. The amount of capital the Company is attempting to raise in this Offering is not enough to sustain the Company’s current business plan. In order to achieve near and long-term goals, the Company will need to procure funds in addition to the amount raised in the Offering. There is no guarantee the Company will be able to raise such funds on acceptable terms or at all. If the Company is not able to raise sufficient capital in the future, then it will not be able to execute its business plan, its continued operations will be in jeopardy and it may be forced to cease operations and sell or otherwise transfer all or substantially all of its remaining assets, which could cause a Purchaser to lose all or a portion of his or her investment.
The Company projects aggressive growth. If these assumptions are wrong and the projections regarding market penetration are too aggressive, then the financial forecast may overstate the Company's overall viability. In addition, the forward-looking statements are only predictions. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
The Company’s expenses will significantly increase as they seek to execute their current business model. Although the Company estimates that it has enough runway for 2 months, they will be ramping up cash burn to promote revenue growth, further develop R&D, and fund other Company operations after the raise. The Company believes that it is able to continue extracting cash from sales to sustain and extend its runway. Doing so could require significant effort and expense or may not be feasible.
The Company has not filed a Form D for its prior offering. The SEC rules require a Form D to be filed by companies within 15 days after the first sale of securities in the offering relying on Regulation D. Failing to register with the SEC or get an exemption may lead to fines, the right of investors to get their investments back, and even criminal charges. There is a risk that a late penalty could apply.
The Company’s cash position is relatively low. The Company currently has approximately $205,000 in cash balance as of May 31, 2021, equating to approximately 2 month(s) of runway. The Company believes that it is able to continue extracting cash from sales to extend its runway. The Company could be harmed if it is unable to meet its cash demands, and the Company may not be able to continue operations if they are not able to raise additional funds.
The Company has outstanding Convertible Notes. The Company has issued four Convertible Notes in April 2021 for a total principal of $180,000. These Notes accrue at an interest rate of 5% and have a maturity term of 6 months from the date of issuance. The Notes are convertible into the next series of Preferred Stock the company issues shares for a gross purchase price of at least $1,000,000 or at the time of maturity to Series Seed 4 Preferred Stock. The conversion price of these Notes is based on a valuation cap of approximately $7,000,000. Additionally, these Notes also carry Warrants in the amount of 7 warrants per $1 of principal, for a total of 1,260,000 Warrants. The Warrants give the purchaser the right for the later purchase of Series Seed 4 Preferred Stock at an exercise price of approximately $0.426, as defined in the Company’s Certificate of Incorporation.
The Company has an outstanding PPP loan. The Company currently owes Silicon Valley Bank for a Small Business Association Paycheck Protection Programs loan worth principal of $129,267. The loan was issued on February 4, 2021 and the loan carries 1% interest and is subject to forgiveness if certain conditions are met under CARES act. If the entire or part of the loan is not forgiven, the payments of principal and interest are deferred 16 months from the date of the borrowing date. The unforgiveness portion of the loan matures 60 days from the borrowing date.
The Company has not prepared any audited financial statements. Therefore, investors have no audited financial information regarding the Company’s capitalization or assets or liabilities on which to make investment decisions. If investors feel the information provided is insufficient, then they should not invest in the Company.
The reviewing CPA has included a “going concern” note in the reviewed financials. The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. The Company is still in the development stage and has not obtained enough revenues to support growing operations as of yet, among other factors, which raises substantial doubt about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon management's plans to raise additional capital from the issuance of debt or the sale of stock, its ability to commence profitable sales of its flagship product, and its ability to generate positive operational cash flow. The accompanying financial statements do not include any adjustments that might be required should the Company be unable to continue as a going concern.
The Company has not filed a Form D for its prior offerings. The SEC rules require a Form D to be filed by companies within 15 days after the first sale of securities in the offering relying on Regulation D. Failing to register with the SEC or get an exemption may lead to fines, the right of investors to get their investments back, and even criminal charges. There is a risk that a late penalty could apply.
The outbreak of the novel coronavirus, COVID-19, has adversely impacted global commercial activity and contributed to significant declines and volatility in financial markets. The coronavirus pandemic and government responses are creating disruption in global supply chains and adversely impacting many industries. The outbreak could have a continued material adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate material adverse impact of the novel coronavirus. Nevertheless, the novel coronavirus presents material uncertainty and risk with respect to the Funds, their performance, and their financial results.
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 theseshares 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 \u2014 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
A Side by Side offering refers to a deal that is raising capital under two offering types. This Side by Side offering is raising under Regulation CF and Rule 506(c) of Regulation D.
The Form C is a document the company must file with the Securities and Exchange Commission (“SEC”) which includes basic information about the company and its offering and is a condition to making a Reg CF offering available to investors. It is important to note that the SEC does not review the Form C, and therefore is not recommending and/or approving any of the securities being offered.
Before making any investment decision, it is highly recommended that prospective investors review the Form C filed with the SEC (included in the company's profile) before making any investment decision.
Rule 506(c) under Regulation D is a type of offering with no limits on how much a company may raise. The company may generally solicit their offering, but the company must verify each investor’s status as an accredited investor prior to closing and accepting funds. To learn more about Rule 506(c) under Regulation D and other offering types check out our blog and academy.
Title III of the JOBS Act outlines Reg CF, a type of offering allowing private companies to raise up to $5 million from all Americans. Prior capital raising options limited private companies to raising money only from accredited investors, historically the wealthiest ~2% of Americans. Like a Kickstarter campaign, Reg CF allows companies to raise funds online from their early adopters and the crowd. However, instead of providing investors a reward such as a t-shirt or a card, investors receive securities, typically equity, in the startups they back. To learn more about Reg CF and other offering types check out our blog and academy.
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 Rollo Motion. Once Rollo Motion accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to Rollo Motion in exchange for your securities. At that point, you will be a proud owner in Rollo Motion.
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
- Your accredited investor status
- Social Security Number or passport
- ABA bank routing number and checking account number (typically found on a personal check or bank statement) or debit card information, unless paying via a Wire transfer.
Non-accredited investors are limited in the amount that he or she may invest in a Reg CF offering during any rolling 12-month period:
- If either the annual income or the net worth of the investor is less than $107,000, the investor is limited to the greater of $2,200 or 5% of the greater of his or her annual income or net worth.
- If the annual income and net worth of the investor are both greater than $107,000, the investor is limited to 10% of the greater of his or her annual income or net worth, to a maximum of $107,000.
Separately, Rollo Motion has set a minimum investment amount of US $999.
Accredited investors do not have any investment limits.
You are a partial owner of the company, you do own securities after all! But more importantly, companies which have raised money via Regulation CF must file information with the SEC and post it on their websites on an annual basis. Receiving regular company updates is important to keep shareholders educated and informed about the progress of the company and their investment. This annual report includes information similar to a company’s initial Reg CF filing and key information that a company will want to share with its investors to foster a dynamic and healthy relationship.
In certain circumstances a company may terminate its ongoing reporting requirement if:
- The company becomes a fully-reporting registrant with the SEC
- The company has filed at least one annual report, but has no more than 300 shareholders of record
- The company has filed at least three annual reports, and has no more than $10 million in assets
- The company or another party purchases or repurchases all the securities sold in reliance on Section 4(a)(6)
- The company ceases to do business
However, regardless of whether a company has terminated its ongoing reporting requirement per SEC rules, SeedInvest works with all companies on its platform to ensure that investors are provided quarterly updates. These quarterly reports will include information such as: (i) quarterly net sales, (ii) quarterly change in cash and cash on hand, (iii) material updates on the business, (iv) fundraising updates (any plans for next round, current round status, etc.), and (v) any notable press and news.
Currently there is no market or liquidity for these securities. Right now Rollo Motion does not plan to list these securities on a national exchange or another secondary market. At some point Rollo Motion 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 Rollo Motion either lists their securities 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. If invested under Regulation CF you may also receive periodic updates from the company about their business, in addition to monthly account statements.
This is Rollo Motion'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. If the company runs a side by side offering that includes an offering under Regulation CF, you may also find a copy of the Rollo Motion's Form C. The Form C includes important details about Rollo Motion's fundraise that you should review before investing.
For offerings made under Regulation CF, you may cancel your investment at any time up to 48 hours prior to the offering end date or an earlier date set by the company. You will be sent a notification at least five business days prior to a closing that is set to occur earlier than the original stated end date giving you an opportunity to cancel your investment if you have not already done so. Once a closing occurs, and if you have not canceled your investment, you will receive an email notifying you that your securities have been issued. If you have already funded your investment, your funds will be promptly refunded to you upon cancellation. To cancel your investment, you may go to your account's portfolio page by clicking your profile icon in the top right corner.
If you invest under any other offering type, you may cancel your investment at any time, for any reason until a closing occurs. You will receive an email when the closing occurs and your securities 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 account's portfolio page by clicking your profile icon in the top right corner.