BikeNow Inc. Seeks 2 Million
The Pitch: BikeNow is seeking funding to buy and install its technology, pay its staff and market its product.
PITCHING THE TECHNOLOGY
BikeNow’s product is an automated bicycle-share program for the Boston area, which it positions as a Zipcar Inc.-style service for bikes.
Users would swipe a card at a solar-powered station and ride off on one of the company’s bikes.
The company says it was formed in response to a city of Boston request for proposals for bike-sharing programs and is modeled on Paris’ Velib bike-share program. The startup plans to roll out 1,500 bikes at 150 locations, translating to 9,000 rides a day.
BikeNow plans to generate revenue through subscriptions, helmet sales, rental fees, sponsorships and advertising on bikes and stations.
PITCHING THE PEOPLE
Who is on the management team? Amy Trus, Jeff Dang and James Sinclair, co-founders.
Have executives been involved in a cashout prior to this venture? No.
Who is on the board of advisers? Erik Molander, entrepreneurship professor at Boston University and former director of CSX Transportation Inc.; Ben Morris, owner, Boston Pedicab Inc.; Cambridge city councilman Craig Kelley; and Mark Williams, finance professor at BU.
PITCHING THE BUSINESS
How much money is being sought? BikeNow is seeking $2 million.
What partnerships, collaborations or affiliations are already in place? The startup says it’s partnered with B-cycle LLC — which supplies its technology — Trek Bicycle Corp., health insurance company Humana Inc., and advertising agency Crispin Porter + Bogusky.
List any federal or state grants, contracts or awards received: BikeNow was a finalist in the BU $50K Business Plan Competition.
What’s the market size being pursued? BikeNow says it expects to attract about 2.4 percent of the 900,000 people living in Boston, Brookline and Cambridge — 22,000 people — and 200,000 tourists in its first year.
Who are the likely competitors, direct or indirect? BikeNow competes with corporate bike share programs, bicycle ownership, public transportation and car ownership.
Is the company profitable? No.