RACERX

Enabling consumer product companies to build lasting relationships with their customers

  • Canton, MA
  • Technology
Every year there are over 3 billion purchases of consumer durables, and the brands that sell them have no idea who is using them.  We help these brands overcome the customer data gap created when products are sold through resellers like Amazon, Best Buy, Target, and Home Depot so they can develop better relationships with actual customers.

$18,022

Raised from investors
Equity
Offering Type
$0.5161
Price per Share
$4.16M
Pre-Money Valuation
$10,000
Offering Minimum
Common Stock
Security
$200
Min. Investment
Reg CF
Offering placeholder here
$605,000
Offering Maximum

This Reg CF Offering is made available through TycoonoInvest Portal LLC


Why Invest in RacerX?


 

        • Transforming manufacturers’ paper documentation, warranty, and registration process through mobile app automation and integration, resulting in stronger customer relationships and brand loyalty, as well as a significant reduction in operating costs.

 

        • Enormous global market of consumer brands that are becoming increasingly reliant on large-scale resellers like Amazon, Target, and Walmart to reach billions of end-consumers.

           

        • Positive environmental impact through material reduction of the 41.9 million tons of waste produced every year by paper and packaging, including leading the transition for delivery of all in-box documentation via the QR code to which consumers have become very accustomed throughout the pandemic.

           

        • We strongly believe it is only a matter of time before all in-box documentation is presented via QR code. We will lead that transition.

 

        • Strong team founded by a group of ex-Bose colleagues with extensive experience delivering significant long-term business value through direct customer communication.

 

        • Multiple revenue stream business model with estimated year 3 net operating income of $4.8 million on total revenue of $8.3 million.


Value Proposition


 

consumer electronics quote

THE PROBLEMS WE SOLVE

 

For Brands

    • They spend a fortune acquiring customers but have no idea who they are.

    • They rely on paper for communication when the world has gone digital.

    • They look to reduce customer service costs while improving customer experience.

brand slideFor Consumers

 

    • Paper manuals can’t be updated and video is king!

    • You never have the information you need, when you need it.

    • Google returns a haystack when you’re searching for a needle.

snap4that paper manuals and mobile app

value proposition


Market Potential


 

 

 

Market Potential2

 

 

market share

 


Business Model


 

Snap4that is free to the consumer. We envision a 2 part approach to generating revenue from the brand:

 

  • Monthly per SKU maintenance fee. This allows RacerX can ensure that all links will link to labeled content.

    • For example, A link to “parts and accessories” points to parts and accessories for that product and not a 404 (site not found) or to accessories for a different product.

 

  • A per-transaction fee.  A “transaction” is defined as each entry the consumer generates with the Snap4that app into their inventory.

 

  • Customer retention. We anticipate the service will be very “Sticky”. For a brand to leave RacerX, it will have to determine how to move customers to another platform.  As more brands join the platform, a movement away will generate confusion and negative sentiment among consumers.  We’ve often considered our model to be very similar to OpenTable’s.  Imagine how you’d feel if the reservations you always made through them were now on a different platform?


Competition


 

Competition

competition table


Management Team


 

 

RacerX Founder Bios

RacerX was founded by a group of three ex-Bose product management leaders.  At Bose, which had a very large D2C business, they learned the incredible value of having actual customer data. They also developed a passion for creating simple solutions that solve real problems.  As durable goods product managers, they also have extensive knowledge of the timelines, processes, and costs involved in developing and deploying in-box product literature and product labeling.

 

Avrum Mayman, President and CEO

Since graduating from the MIT Sloan School of Management, Avrum has held a number of product management, program management, and strategy roles in companies ranging from startups to multi-billion-dollar B2B and B2C global corporations.  Avrum brings a passion for bringing 1st to market concepts to life.  The majority of his post-Sloan career has been spent at Bose, where he was responsible for the Lifestyle Home Theater product line.  Perhaps his most significant accomplishment at Bose was the development of the Unify Intelligent Integration System.  This technology greatly simplified the setup and use of Lifestyle Home Theater Systems and reduced customer returns and calls to Tech Support by 90%.

In addition to his Sloan degree, Avrum has a Physics degree from Vassar College and a Masters in Aerospace Engineering from the University of Michigan.  Avrum spent 5 years working on the Space Shuttle’s Orbital Propulsion systems helping to return the Shuttle to flight post-Challenger.

 

Bill Allen, Customer Success

As an engineer, project manager, product manager, and consultant, Bill has driven alignment on the ‘what’, ‘why’, & ‘how’ for more than a hundred consumer-electronics products – all aimed at delivering both performance and simplicity. He has shaped industry-leading products such as the Bose Wave Radio, ten generations of Lifestyle home-theater systems, and the underlying processes to deliver them. In his last role at Bose, Bill led the Bose Mobile App Product Management team, where he was responsible for understanding and translating market needs into product requirements.

Bill holds two engineering degrees from Dartmouth and has been awarded five US patents.

 

Steve Jungmann, Operations and Development

Steve has been leading product definition and launches in consumer, health, and data for over twenty years. Many of these products have been based on new technologies into new markets and he has worked as closely with the development of the product as he has with customers and the market.

Earlier in his career, Steve worked in product roles in Silicon Valley for a number of consumer electronics startups. He spent several years at Apple where he was on the Macintosh team as well as introducing new technologies such as video conferencing and a direct-to-consumer channel well before the Apple Store. More recently, Steve led the product team at Quanttus, which created a watch that captured blood pressure at a clinical level and headed up the product development and design at Cure Forward, a SaaS matching service for cancer patients and clinical trials.

Steve is an active mentor for consumer, data, and healthcare startups in the Boston area. He has an engineering degree from Stanford and a business degree from San Jose State.


Financials


 

Financials chart

 

 


Use of Funds


 

Use of proceeds table

 


Milestones


 

 

milestones chart2

 

 

 


Offering Summary

Company: RACERX, INC.

Address: 55 Knob Hill Circle, Canton, MA 02021

Minimum Investment: $200

Offering Minimum: $10,000

Offering Maximum: $605,000

 

Terms

Offering Type: Equity

Security: Common Shares

Price per Share: $0.5161

Minimum Number of Shares Offered: 19,376

Maximum Number of Shares Offered: 1,172,208

Pre-Money Valuation: $4,158,296

Risks

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.

Updates

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