Esker Cycles has launched an equity crowdfunding campaign on the StartEngine platform, selling company shares to support prospective growth.
Esker is a small Montana-based company that sells both direct-to-consumer and through dealers. The brand launched in 2018 and pre-sold 300 bikes, bringing in $300k in revenue that first year. The brand expects to sell 550 bikes by the end of 2021, earning $1.7M in revenue, and plans to keep pace with the rapid growth by selling a projected 2000 bikes in 2024. To do so, however, requires more capital than Esker can source on its own.
It remains to be seen whether this move is solely for the sake of expansion or if it's related to component access. Bike parts are scarce, and some component suppliers have tightened their terms. Sourcing components has become more difficult for small companies that don't have the same cash reserves as the bigger players, but whose inventory nonetheless relies on access to parts.
Demand for bikes has spiked throughout the pandemic, with sales of mountain bikes with front suspension (rear suspension unspecified) rising 150% in April 2020
alone. Esker says it cannot keep up with inventory and its sales channels consistently request more product than the brand has available, but that it will meet demand through an ambitious period of "hypergrowth."
Esker currently makes four mountain bikes, with four new ones scheduled for release in 2022 and an additional six bikes planned for 2023 and 2024.
More information is available on Esker's StartEngine campaign page, here