Investing in Academy of Robotics

See the journey that started as a small team from Aberystwyth in Wales, grow to become a company now developing autonomous vehicle technologyu. Our journey started with us working on small robots in a Computer Science department.

Kar-go uses a combination of advanced robotics and driver-less vehicle technology, we remove up to 90% of the cost associated with the last mile of delivery

241

Current Investors

£ 5 000

Minimum

£ 2 500 000

Valuation

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Purchased securities are not currently tradable. Expect to hold your investment until the company lists on a national exchange or is acquired.

Highlights
  • Currently finalising their first full-size prototype for testing
  • Working with Pilgrim, a UK car manufacturer
  • In discussions with several of Europe's largest FMCG brands to secure
  • Seeking to address the £78b last-bile delivery market
Fundraise Highlights
  • Currently finalising their first full-size prototype for testing
  • Working with Pilgrim, a UK car manufacturer
  • In discussions with several of Europe's largest FMCG brands to secure
  • Seeking to address the £78b last-bile delivery market

Academy of Robotics is developing Kar-Go - one of the world's first AI controlled pod-shaped driverless vehicles to autonomously deliver multiple packages to residential areas, with the aim to remove the need for humans in last mile delivery. This allows customers to receive deliveries at almost any time, and at a fraction of the traditional cost.

Artificial Intelligence is used to navigate the vehicle as well as manage the entire delivery. On the Road to Innovaton: Falls within DfT's Center for Autonomous Vehicles Code of Practice to allow Kar-Go to be tested on UK roads. Currently finalising our first full-size prototype vehicle in preparation for our launch event. Working with UK car manufacturer Pilgrim, which has made custom cars for over 30 years and will be working with Kar-Go to develop its vehicles in the Pilgrim facility. Accepted into Nvidia's Inception AI Accelerator program for AI start-ups, allowing Kar-Go to leverage its GPU and AI resources for Driverless Cars (the same driverless technology as Tesla, Mercedes and Audi).

In early stage discussions with several of Europe's largest FMCG brands and is working to have on-the-road autonomous delivery trails later this year. Aims to develop two street-legal delivery vehicles to test on the road with retailers by the end of 2017, and will raise a Series-A investment round in 2018 for a larger roll-out and paid trails.

Artificial Intelligence is used to navigate the vehicle as well as manage the entire delivery. On the Road to Innovaton: Falls within DfT's Center for Autonomous Vehicles Code of Practice to allow Kar-Go to be tested on UK roads. Currently finalising our first full-size prototype vehicle in preparation for our launch event. Working with UK car manufacturer Pilgrim, which has made custom cars for over 30 years and will be working with Kar-Go to develop its vehicles in the Pilgrim facility. Accepted into Nvidia's Inception AI Accelerator program for AI start-ups, allowing Kar-Go to leverage its GPU and AI resources for Driverless Cars (the same driverless technology as Tesla, Mercedes and Audi).

In early stage discussions with several of Europe's largest FMCG brands and is working to have on-the-road autonomous delivery trails later this year. Aims to develop two street-legal delivery vehicles to test on the road with retailers by the end of 2017, and will raise a Series-A investment round in 2018 for a larger roll-out and paid trails.

Financials & Strategy

Kar-Go is targeting the last-mile delivery market - a market assessed by McKinsey as beig with around £78B globally. Our plan is to adopt two revenue models:

1) Produce autonomous vehicles and offer them as a white-label solution to retailers. We will charge an enterprise fee per-delivery as well as an integration fee, both of which will depend on the size of the rollout with each particular customer.

2) License our technology to other vehicle manufacturers supplying different countries, allowing us to quickly achieve a global rollout.

Use of Funds

Our main cost is building the prototype vehicles and the moulds that allow us to make vehicles quickly. Another large cost is the driverless infrastructure which allows vehicles to process large amounts of data in real time.

We have worked to de-risk our strategy by developing the technology in-house at Aberystwyth University, which has also given us a £10,000 prize ot further develop our product. Academy of Robotics is in discussions with one of the largest tech companies in the world, which is considering investing after the Crowdcube round.

The company has secured £6,000 from a private investor prior to launch which is represented on the progress bar. Some of these funds may be spent before the round closes. There is a directors loan of £30,000 in place.

Key market stats

Kar-Go is targeting the last-mile delivery market - a market assessed by McKinsey as beig with around £78B globally. Our plan is to adopt two revenue models:

Value of Autonomous Car Data £10 Trillion

Number of Autonomous Car Exists in 2018 43

Current Number of Deliveries Annually 372 Million

Value of Autonomous Car Data £10 Trillion

Number of Autonomous Car Exists in 2018 43

Current Number of Deliveries Annually 372 Million

Documents

Risks And Disclosures

Incumbent automakers maintain market presence and economies of scale not accessible for smaller players such as Car-go. Although the autonomous vehicle market is not an easy industry to enter, there are other last mile options including drones, humans delivering, etc. Further, existing companies that engage in the automotive business or are within the autonomous vehicle space could introduce new or enhance existing products. If a larger, better funded company markets or creates a comparable product at a lower price point, Car-go may have to reduce prices to remain competitive or could be priced out of the market. This could negatively impact the company’s growth.

The Company may not have accurately forecast demand for its product. The market for buying and utilizing driverless cars may not live up to Car-go’s expectations. Additionally, food delivery startups, which Car-go is looking to partner with, have recently seen a decline in funding and expansion.

Although Car-go claims it has built everything required to launch an autonomous vehicle, it is not a car or hardware manufacturer. It has developed relationships with Pilgrim Motor Sports (a contractor that will modify Car-go into a street legal robot) and Renault (provides pre-approved chassis modified from an existing electric car) but it is unclear at which stage they are in regarding negotiating pricing and terms and conditions.

Currently, autonomous vehicles are not legal in Car-go’s captive markets. The only markets the Company is currently able to address are Portugal and Finland (may legalize driverless cars by 2017 and allowing testing now) and UK (allowing testing now and working with the Department of Transportation which created the Center for Autonomous Vehicles).

The Company’s capital expenditures (factory, shipping, components, labor, equipment, etc.) and launch are dependent on funding. If the Company is unable to raise successfully, it may not be able to run production and hit milestones.

Car-go is targeting a new and unproven segment within the market, which introduces unknowns. If its technology does not appeal to consumers or if it is not able to deploy the technology in larger vehicles approved by regulators, its sales projections may not come to fruition. The Company may also not have accurately forecast demand for its product in this market segment. Car-go has not built any road legal prototypes to date. Even if the Company raises a successful round, it may struggle to execute and / or scale operations.

The Company has projected it could generate 50% margins from vehicle sales and £1 per delivery, assuming it will build 100 vehicles. These economics are based entirely on assumptions as the Company has no pre-orders or a pulse on potential contracts. Additionally, if the manufacturers can not build at Car-go’s projected volume, they could drive down Car-go’s margins if a smaller order is received or built.

The current board is very lean with the CEO as the only director. This allows for a select few people to make major decisions that may not resonate with all stakeholders of the Company.

Since the Company is based in England, Brexit and the period leading up to Brexit could have an impact on the proposed UK market. The extent of the impact will depend in part on the nature of the arrangements that are put in place between the UK and the EU following Brexit and the extent to which the UK continues to apply laws that are based on EU legislation. In addition, the macroeconomic effect of Brexit, and the period leading up to Brexit is unknown.