The company is developing a foldable bicycle helmet from dilatant fluid, a material that hardens upon impact. Its high shock absorption with other properties make the helmet light, fashionable, flexible, and even safer than the regular plastic helmet. For those, who care about their look as much as their safety.
The solution to 80% of daily cyclists as young adults in Denmark not wearing a helmet.
The company creates vegan leather from residual mangos.
At the same time, the startup creates steady jobs for citizens in Colombia and reduces food waste from an industry that suffers from oversupply.
The reason why the entrepreneurs established the startup is due to the amount of mango waste and the high unemployment rate in Colombia.
Furthermore, two of the employees’ South American roots and firsthand knowledge of the situation con- tribute to the brand's ambition
For this SPRINGBOARD®, panel participants with competencies within the following three topics or questions are sought (priority order):
Case 1:
The company and ideas - what is unique?
Start-up develops bicycle helmet from new material that hardens upon impact, currently used in hel-mets for american football and military buletproof vests. Haven’t been introduced to mass market, nor cycling equipment yet.
Product / service - what problem does it solve?
Majority of young adults refuse to wear bicycle helmets due to the embarrassing look, inconvenience to carry and to store it. New helmet being developed focuses mainly on the design issues whilst using the dilatant fluid as protective layer ensures not only better impact absorption (higher safety) but also foldability and easy storage.
Business model
Focusing on B2C market - online store in early stage of market development, later switch main focus on B2B - retailers and bicycle equipment stores. Revenue is made from the sales and main expenses are raw materials and assembly of the product.
Customers
Target group currently - daily cyclists in the age of 20-29 years old living in urban cities in Denmark.
Plan is to expand to other categories and different age groups within skateboarders and roller-skaters as well as into markets in Belgium and Netherlands
The market
B2C market as a proof of concept and initial revenue for the company. Great selling point for develop-ment B2B market as already sold product in B2C are a lower risk for other business to take in.
Competitors
No direct competitors providing a helmet with foldable fuction, company’s design intention and such a high impact absorption.
Indirect competitors - høvding cykelhjelm and other regular plastic helmet providers.
Growth potential / goals / ambition
Main potential is making the product personalizable by option of buying and switching different style of caps as the outer layer of the helmet.
Opportunity in targeting not only urban cyclist who care about the look, but skaters and bmx riders in Denmark as well as expanding into 2 other great markets as Belgium and Netherlands.
Management and team
Team consists of 2 co-founders.
Peter - from Slovakia, background in marketing and sales. Eperienced in new business development. Currently finishing a bachelor in Innovation and entrepreneurship.
Marie-Rose - from Belgium, background in international business management with focus on foreign trade. Experienced in market development. Currently finishing bachelor in Innovation and entrepre-neurship.
Finance / financing
The company is in the process of applying for different sources of finance such as MicroGrant and In-novationGrant. Funds are needed mainly for safety certification of the helmet.
Status - how far in
Company has spent 3 months collecting the insights and understanding the problem in order to be able to provide sufficient solution. Supplies need have been found and contacted and currently first final products (wthout safety certification) are being made to be tested and used for dimensional and designal improvements.
Case 2:
The company and ideas - what is unique?
Idea of the company is based on the Tripple bottom line model as it fights climate change, pro- vides job opportunities in 3rd world country and at the same time generates revenue
Product / service - what problem does it solve?
- 1. Mango waste – 77mio kg wasted every year
- 2. Leather industry pollution – 17kg of CO2 per m2 of leather production 3. Unemployment rate in Co-lombia (3,6mio people)
Which solution
- 1. Developing next gen leather alternative material by upcycling mango waste
- 2. Creating steady work positions for Colombian citizens (UN goal 8)
- 3. Reducing food waste from an industry that suffers from oversupply (UN goal 12).
Business model
- 1. Value proposition – 40x40cm leather sheet
- 2. Customer – B2B leather wholesaler
- 3. Channels – direct sales, webshop
- 4. Relations – SoMe, newsletter, online marketing
- 5. Partners – Farmers, transportation, Danish Tech. Institute
- 6. Key activities – collecting mango waste, mango leather production and development of formula, packaging, delivery
- 7. Key resources – mango waste, additives, machinery, formula, production workers, chemist, sales-men
Customers
The company focuses in the B2B market. The main industries are related with leather wholesal- ers, fashion, design and furtniture companies.
The market
Total leather industry capitalisation is $407bln, out of which the alternative leather is $42bln. The EU market is 30% which accounts for $12,5bln.
Competitors
The company’s main competitors are developing leather made of different fruits/plants. How- ever, all of them are using different chemicals and plastics. That is why, the company’s ad- vantage is that is aiming to be 100% sustainable.
Main competitors:
- 1. Beyond Leather
- 2. Rotterdam Leather
- 3. Desserto
- 4. Pinatex
- 5. Tomtex
Growth potential / goals / ambition
- 1. Once the development of the formula is completed in Denmark, the production of the Leather
- will start in Colombia - developing in larger scale for B2B customers related with the fashion in-
- dustry in Europe.
- 2. The next goal after being recognized internationally is to have production facilities in Asia and
- India where the mango waste and unemployment is really high as well.
Management and team
LeatheRE consists of a multicultural team with different backgrounds creating diverse set of skills and competencies. South American roots and firsthand knowledge of the situation contribute to the brand’s ambition.
CEO – From Colombia, Hospitality & Tourism Management education, experience in marketing CTO – From Venezuela, Engineering and Culinary education, experience in owning and managing a restaurant
CSMO – From Vietnam and Denmark, Marketing and Branding education, experience in project man-agement, owning and running small businesses in beauty and fashion industry
CFO – From Slovakia, Architecture and Technology management education, experience in Build- ing information modeling
Finance / financing
- 1. Cost per unit (40x40cm sheet) – 25.07dkk
- 2. Break even – 351pcs
- 3. Pricing – to B2B wholesaler 100dkk (38x38cm) 4. Capacity – 70 sheets per day with 3 employees
Status - how far in
- 1. Developing formula
- 2. Own machinery
- 3. Experimenting with different additives
- 4. Testing desirability (incl colors, texture, pattern..)
- 5. Proof of concept - Promised pending order from B2B
