Deviate Cycles Seeks Crowdfunding Investment

Mar 4, 2024 at 8:22
by Deviate Cycles  
TiLander Scotland Close Up

PRESS RELEASE: Deviate Cycles

We are offering the mountain bike community the opportunity to be part of our future by becoming a shareholder in the business.

We are seeking £1 million of investment in order to help fund the launch of the next phase of our business, specifically focused on delivering the key projects outlined below:

• Developing and launching the eMTB range (with the first in the range due to launch later this year)
• To continue the R&D into sustainable materials and manufacturing processes such as those showcased on our Titanium prototypes
• Ambition to bring production to Scotland

We have already secured £500K of private investment towards this goal in addition to grants from Scottish Enterprise and Innovate UK. The minimum buy-in requirement is £10,000 and is open to interested investors worldwide.

bigquotesWe intend to keep growing Deviate Cycles and keep driving innovation in mountain bikes. It's been an incredible journey to get to where we are today after our first release, the Guide, in 2018. We are now a business with a track record of developing innovative bikes and we intend to keep growing Deviate Cycles and driving innovation in the sector. Ultimately, our growth plans require up-front investment. Due to the costs of an exercise like this, we have a minimum buy-in requirement of £10,000. We of course understand that it’s this is not for everyone, but if owning a part of Deviate Cycles is of interest – we would be delighted to hear from you.Ben Jones, Deviate Co-Owner

Highlander II PRO Build in Islay Sand on yellow background

As well as the highly successful Claymore and Highlander models, we have been at the forefront of mountain bike innovation, including the recent development of our titanium prototypes the Tilander and Lowlander-Ti. At the head of the engineering team is co-owner Chris Deverson, who draws on his varied background into the development of future designs.

bigquotesWhen developing new designs, our guiding principles are to create the best performing mountain bikes possible whilst also minimising maintenance and ensuring reliability. Deviate was fundamentally born out of the first-hand experience Ben and I had after years guiding in the Alps and ultimately having to regularly replace bikes due to one failure or another. Within the engineering team, we pull on our experience across different sectors including motorsport, submarine and even nuclear, in order to develop bikes that are made to last - whilst also providing the optimum riding characteristics. The eMTB will be the first project to move into production following this investment round with design and prototype stages already complete.Chris Deverson, Deviate Co-Owner & Lead Engineer

Anybody interested in investing should go to deviatecycles.com/become-part-deviate to find out more.

Author Info:
deviatecycles avatar

Member since Nov 22, 2017
18 articles

219 Comments
  • 152 6
 Seems like crowdfunded projects really took a dive after Covid. Maybe because many of us realized we are relatively poor and no government is going to help us more than some scraps when the real hand outs go to corporations and their shell games. Nice bikes though.
  • 66 1
 Sadly too many horror stories of actually well meaning projects that were mismanaged as well as many smaller outright scams. Not too different from investing way too much in shaky stocks. I'm hoping their linked page has a good pitch with good info but... Asking for low level investors in this cycling market is so painfully red flaggy to me hate to say. Minimum buy in is the cost of a top end bike/ebike. Is one of the perks of investing a shiny new bike?
  • 79 2
 @lepigpen: actually yes, depending on the level of investment - perks include a shiny new bike. Our pitch deck will be presented to interested parties along with financials etc. We have anchor investors, but would much rather bring on board individuals who know and love our industry, rather than pure VC funding.
  • 11 7
 @deviatecycles: I'm thoroughly intrigued by this.
I've been hassling my local Deviate dealer monthly for any possible info on the reality of a Lowlander-Ti. Maybe the only way to get one, is to invest in the company that wants to make it.

Request for info submitted
  • 10 2
 So, help me here ... how does crowdfunding/private money and governmental support correlate? The gov in the US is the way it is because we keep voting for people who in turn vote for that unethical support. This could all change if folks would do their due diligence with choices and not check a box based solely on how they "feel" at the moment.

That said, if I had $10Kish to put towards supporting these folks I'd give it laldy!
  • 4 0
 @tipsword: it's not unusual in Australia for the government to match the investment of an organisation to promote innovation - this could be for something like that
  • 2 0
 @russthedog: You're following what I'm saying. @tipsword lots of examples of poor investments by government (local and federal). Check of the DeLorean documentary for one. It isn't just private money and it isn't always skewed by elections or specific people. It's much more complicated than that. Overall though, the common small business is a forgettable rounding error compared to the money moving through corporate interests. They are equivalent to a single atom of the oil in the economic machine.
  • 8 17
flag joedave (Mar 4, 2024 at 19:35) (Below Threshold)
 Unless your Ukraine
  • 3 1
 Kickstarter should have set a threshold where, when met, a PM or rep for the backers was assigned to keep the project on task and budget. A lot of KS projects were started by artistic/visionary types who have no ability to stay on track and fall victim to scope creep, which is bad when combined with that type of funding. In a traditional corporate environment, they'd have a PM or manager keeping them in line and on budget, but without that they could go on and blow it all without ever producing a final product due to scope creep, which happened to a lot of multi-million dollar failed projects. I think their failure to do this led to the long term decline of crowdfunding.

Deviate is different, though, it sounds like they are selling equity ownership, which KS and most crowdfunding setups don't do. It also sounds like they want to do something meaningful with it, like bring production to their home country, which is a good goal and they may get some local investors to buy into the idea and they get ownership out of it. Personally, after the Kitsbow situation and the state of the cycling market, I'd be hesitant, but I can see why it'd be of interest to some.
  • 5 1
 @deviatecycles: I will sign up for the information pack - one question in advance - why a free eMTB? I don´t want that as I´m old school and want to self power my bike. Guess there is a reason for it, but honestly this is something that puts a off a little. Maybe the choice between bike and ebike would be of advantage for your pitch. Guess I´m not the only rather wanting a normal bike.
  • 15 1
 @listeryu: there are different perks depending on the level of investment.
At the highest level a free ebike is offered although we'd be happy to switch this for a analogue bike. The reason we offer an ebike is because this is the project that a majority of raised funds is going towards. However, it's important to note this is not really about a free bike, this is like a nice perk - it is about investment in the business and if the interest is in the bike then it'll be FAR more cost efficient to be a Deviate customer rather than a shareholder.
  • 4 2
 @lepigpen: Yep, not sure why they would be asking money from individuals. If they have a solid business plan and it looks profitiable, many venture capitalists and banks would help them out with funding or loans.
  • 17 1
 @tacklingdummy: We would much rather invite the mountain bike community to be part of Deviate than faceless VC's which would push Deviate to move in a direction of short term top line growth potentially compromising the long term ambitions of the business.

Bank funding is not appropriate for this kind of investment as ultimately the payback timescales don't work for the long lead time of investment into new product lines.

The popularity of platforms such as Crowdcube and Seedr's show this "crowdfunding" approach is a standard route for businesses to take nowadays.
  • 1 0
 @shinook: happens a lot to multi billion dollar projects too.
  • 4 1
 @shinook: The only time I ever did any sort of crowdfunding was on KS for a guy who was making rechargeable heated handlebar inserts for winter riding. He had a slick video and the price point wasn't too crazy, about $100 bucks I think. His project got fully backed, but he kept updating with supply chain issues and delay after delay. Eventually, he ghosted all of the "investors" and none of us got the product or our money back. That was the first and last time I'll ever do crowdfunding.
  • 2 0
 @matmattmatthew: most of these projects go in with the best of intentions. Making physical product in quantity is very hard!

Anyone investing in deviate (or any other early/small company) needs to do so with a) no real expectation of any kind of fast return b) being prepared to write the investment off.
  • 4 0
 @deviatecycles: then thre investment, depending on the full term sheet, is most likely not for me. My personal opinion is that this not a market with a lot of space for development. During the last couple of years the industry didn´t do much to grow it into a healthy segment.

Looking forward to receive the full termsheet and see all details - signed up for it today.
  • 1 0
 leveyate
  • 2 1
 except loads of small businesses (or totally made-up-on-the-spot businesses) got PPP loans that were forgiven. They bough lambos, vacations, bling and crab dinners.
  • 150 43
 Lost me at eMTB.
  • 46 12
 you lost me at e
  • 14 0
 Thoughts and prayers
  • 30 17
 If they wanted to be a successful they would go all in on emtb's, long travel full power and mid travel SL models. That's what's selling in bike shops and online. Producing another long travel Enduro bike in a saturated market not so much.
  • 23 8
 Its the only growth market at the moment though, so as a business it would be silly to ignore.

Plus in Europe there is much less ‘hate’ towards mopeds
  • 12 5
 @rich-2000: absolutely. Go back and re-read the the Pinkbike article from a year or two ago about brands that weren't making eMTBs. The ones that said they wouldn't or didn't have the resources to pull one off are the ones that are hurting.
  • 13 2
 Ya because otherwise you were ready to jump in! Bahahaha
  • 15 21
flag HeatedRotor FL (Mar 4, 2024 at 20:03) (Below Threshold)
 youll lose certain brands altogether if they dont get on the EMTB train. you wouldnt have the sick sports cars without all the boring stuff they sell like SUV's. besides, EMTB is the future of Pedal MTB. hate away old timers.
  • 3 5
 They lost me at "analog" bike: snip.ink/XjMqIyb5 and snip.ink/N2dIvovZ
  • 1 0
 @HeatedRotor: lol. First time anyone has ever called me old, I'm 17 and will never own an e bike
  • 1 1
 @diamondback1x9: I wasnt calling you out, i was calling out all the 20 downvoters, i knew it was coming Pinkbike users have a serious hate for people wanting to have fun.
  • 75 0
 Investors? Possibly you!
  • 6 0
 Thank you for this.
  • 12 0
 Sounds Prestigious.
  • 38 1
 - The first word in entertainment. - First word. - Managements. - Financial portfolios. - Insurance. - Computers. - Black leather gloves. - Research and development. - Putting in the man-hours to study the science of what you need. - Last week we put Liquid Paper on a bee and it died. - Security
  • 5 0
 @artistformlyknowasdan: this has some how gotten completely under my skin and I can't stop chuckling.
  • 8 0
 @artistformlyknowasdan: the f*cking Catalina Wine Mixer!!
  • 1 0
 boats and woes!
  • 62 0
 Whenever there's a plea for investors directed to a company's expected consumer it makes me wonder how good an investment it could be considering they can't get a professional investor to give them the money. Oftentimes, the percentage ownership of these share offerings is quite low compared to what would be offered to professional investors. In other words, it's probably a poor return on investment even if the company does succeed with its plans. It's often best to consider these sorts of appeal as a donation with a slight chance of return, and probably zero chance of resale.
  • 76 0
 there is literally hundreds of dollars to be made in the bike industry....
  • 5 0
 @Fill-Freakin Read the thing Fill, they want cool biker dudes to invest, not rich investor types. That said, you might be into something here. Also something to consider, I believe Atherton Bikes did the same thing.
  • 6 0
 Professional investors are expensive and demanding - a lot of small investors much less so. So it makes sense for them to do it. Like any investment, you just have to decide if you want to do it.
  • 3 1
 @Superboost: they did - however the opening for it didn’t last long
  • 2 2
 @artistformlyknowasdan: I’m not sure why you’re kind of insinuating they failed or gave up on it? They raised approximately $2 million dollars in 17 days which exceeded their original funding target of approximately $700000. The opening for it didn’t last long because they reached and exceeded their goal. Does that make sense?
  • 2 1
 Especially right now. There is a big oversupply of bike inventories and people's disposable incomes are not great with super high inflation. People are just not buying bikes right now.
  • 2 0
 The dead giveaway that this consumer level pitch will be a poor investment compared to primary investors is if the prospectus on the shares they offer says these are a different class of shares than what the current owners have. They likely will be non-voting shares, and will have lower asset priority than the other classes. Read the fine print people! And if you don't understand it all, talk about it with someone who does, like a lawyer, an accountant, or maybe a financial advisor.
  • 2 0
 @Fill-Freakin: that's good advice, although a different class of shares doesn't make it a bad imvestment
  • 41 1
 How to become a millionaire in the bike industry:

1. Have 2 million dollars in the bank
2. Invest 1 million in the bike industry
3. Wait for investment to do to zero, be happy you only invested 1 million so are still a millionaire

Next week's lesson, " How to get clients to pay full retail for their new bike this spring"
  • 26 0
 A variant on; how do you make a small fortune in the bike industry?…….Start with a large one.
  • 49 8
 Just sent it to me instead. I'll invest it in hookers and fentanyl.
  • 5 0
 I'm in. I'd probably just waste it anyway.
  • 5 0
 Your hookers are going to need to be kept in the style they are accustomed to after all
  • 29 2
 "I'll invest it in hookers and fentanyl."

The rest you'll just squander...
  • 30 9
 I really hope that today's rampant mentions of fentanyl (there are 3 from you today) are made out of ignorance.

Don't normalize that stuff, it's killing a lot of people. This is an mtb website not redit, there is no need to be mentioning it at all.
  • 10 16
flag lukemech (Mar 4, 2024 at 16:50) (Below Threshold)
 @Antwoord: its killed 3 of my friends already. It's definitely trending and a part of our current culture. Normalizing amd not stigmatizing is the way forward. Do better.
  • 1 2
 Probably a similar return to you’d get buying into the bike company, but more fun
  • 12 1
 @lukemech: nomalising it and making jokes about misery is not the same as talking about it and approaching the subject with confidence.

Having said that i like jokes as much as the next person, just gotta remember and read your audience .
  • 4 4
 Wow, your response is really ignorant and stupid. It got me really mad; good job. But, since you cajoled me into doing better, I will not say all the easy, hurtful things that I was going to.

I hope you're having a good day and can find it in your heart to stop heartlessly using your deceased friends as excuses for your reckless behavior and bring meaningful awareness to the problem they had and you have instead of glorifying it.
  • 3 5
 @Antwoord: try to calm down dude
  • 1 6
flag lukemech (Mar 5, 2024 at 13:06) (Below Threshold)
 Oh, and I don't use Drugs or Alchohol. Straight edge life, Ethical Vegan, Buddhist, #nofap
  • 5 1
 @lukemech: That explains so much. Have a good day buddy.
  • 1 5
flag lukemech (Mar 5, 2024 at 18:29) (Below Threshold)
 @Antwoord: calmer than you are Dude. CHUCH!
  • 2 0
 You wouldn't be the first businessman to invest seed money in hookers. The competition is stiff.
  • 33 0
 I have $3.
  • 61 0
 Hey man, you don't have to flaunt your wealth like that. It just makes the rest of us feel broke.
  • 5 1
 I've got about $3.50...
  • 5 1
 @RusMan: “What do you want from us Monster? And the monster bent down and said ‘I need about tree fiddy.’”
  • 5 0
 @Wolfman7: i sad "Damnit monster. Get off my lawn!"
  • 28 0
 Seeing how many companies have closed up shop, or downsized staff to make ends meet, makes them seem more like tech companies. Some of these companies had a geniune love of the sport (and sadly had to fold) and others were just big corps looking to maximize the bottom line and protect shareholder value. The one commonality was that the people that were laid off were working class folks who likely had a passion for the sport. And what F*cked them in the end was corporate competition, SOP and greed. As an avid mountain biker, I have love/hate relationship with the industry players, but one thing is for sure, I do not want to work in this industry that seems a bit cutthroat and cold.

I love bikes, not so much the industry.

and for that reason: I'm out

P.s. Panhandling for the profit margins on 10 bikes does not give me confidence that the company believes it can sell 10 bikes. Just go out and sell 10 bikes.
  • 4 7
 No one cares
  • 11 0
 @Rexuis-Twin:

"P.s. Panhandling for the profit margins on 10 bikes does not give me confidence that the company believes it can sell 10 bikes. Just go out and sell 10 bikes."

To go out and sell "10 bikes" we need to develop, manufacture (often with factory payment terms far in advance), market and distribute said bikes. This is an expensive process with most of these funds required before any profit margin is realised. With analogue bikes we have track record in achieving this with modest means, however, the costs of doing this with ebikes require investment - hence the pitch.
  • 24 1
 Dunno if the crowd that complains about the Advent Calendar, free fantasy leagues, and paying for WC DH is the right target. But I’m sure they’ll give their opinion on what the perks should be.
  • 8 1
 Hah ya this is the wrong crowd, as evidenced by all the "do I get a free bike" comments.
  • 1 2
 @venturavin: what do you think they should get for a minimum 10k investment into an industry that (other than for a few brands- of which most are still doing massive discounts/sales) is going down the toilet and brands going to the wall, seemingly by the week?

This is no dig at you or deviate but what should they get? Or should they or we just give 10k away for f*ck all.
  • 10 1
 @WkDayWarrior: I think there is some confusion over what is on offer - this is not a kickstarter campaign to launch a product. It is an investment into a bicycle manufacture whereby the funds committed will lead to an equity stake in the business. The "perks" are just that - we want our investors to represent our brand by using our products and therefore we are offering some incentives to our investors. The purpose of investing should not be to acquire a product - it would be far more cost efficient to simply buy what you are after.

Yes, the industry is in a tough spot at the moment. However, Deviate has grown quickly and is profitable and as the industry rebounds Deviate will be in a strong position to keep growing. We are raising funds specifically to grow the business and move into ebikes (amongst other ambitions) and therefore shareholders funds will be used towards this growth. The share purchase is the same as owning a stake in any other business - shareholders will have a stake in future profits and any liquidity events (i.e. selling the business down the line).
  • 4 1
 @WkDayWarrior: Your comment really solidified that this is the wrong crowd. The fact that so many people on PB are so confused by this concept that they think a free bike should be involved is comical. If you buy $2k in apple stock do you show up at the apple store asking for your free iphone?
  • 5 0
 @venturavin: Haha - yes there is certainly some misunderstanding about what an equity investment is! However, from what we've seen in our inbox (thanks everyone that has got in touch) the wrong crowd are in the comments section! The fact is that the bike industry enjoys as customers an awful lot of financially switched on people who are able to understand what we are offering and make an informed investment decision.
  • 2 2
 @venturavin: I never mentioned a free bike as it goes. And I'm not confused in th3 slightest.

But asking people for 10k on a crowd funder and giving little away for that
. Is ridiculous.

And if this was actual stock. Which it isn't. That would be completely different.
  • 3 0
 @WkDayWarrior: I'm sorry, but you are clearly confused about what is on offer here. They are seeking people to invest in their company in exchange for equity. No investor would ever WANT them to give out freebies as part of the deal. You invest in a company in hopes that they are as profitable as possible. So wanting freebie products from the company you just invested in would be shooting yourself in the foot.

You only need to read the first sentence of this article to find this information. The company has also reiterated this in the post directly above you and in many other comments.
  • 3 0
 @WkDayWarrior:

"And if this was actual stock. Which it isn't. That would be completely different."

It is stock! We are literally offering shares in the business in return for an investment.
  • 2 0
 @deviatecycles: I shouldn’t worry too much about the bottom half of the internet guys, the folks you are appealing to won’t feel the need to be dwelling down here.
  • 1 0
 @PB-J: You shouldn't, but they probably should. I doubt they expect to convert these people into investors, but I think it's smart for them to be involved and course-correct some of the misconceptions.
  • 2 0
 @venturavin: You’re right of course. My tongue was firmly in my cheek when I typed that. Ben & Chris are cool guys who I’m quite sure know what they are doing.
  • 21 0
 I can't fathom investing in any bike company in this current industry downturn.
  • 22 0
 Buy low, sell high.
  • 6 2
 Just out of curiosity when do you think the best time to invest in a company is?
Is that when their value is highest, and the cost of ownership is also high, or in a depressed market, when the cost of ownership is lower, with room to grow?

I'm not trying to insinuate that this is either the right time to buy in, or that this is the right investment at all. Youd want to do your research, make sure their financials are in order (the current sales on their bikes will likely bolster their profits, show low inventory, etc so keep that in mind), but there might actually be an ROI in there somewhere if you can play the game well, and wait it out.
  • 15 2
 buy high, sell low
  • 4 2
 @onawalk: it’s not about when is the best time, it’s about what is a good investment.

Bike companies are not a good investment.
  • 4 0
 @sanchofula: well, its both, and it depends on how long you plan on holding onto that investment, and what you want for an ROI.
A good investment at a bad time, is essentially not a good investment.

Hard to say if bike companies as a whole are a bad investment. Investing in Santa Cruz in early 00's, not a bad investment.
investing in spesh in hte 90's, not a bad investment.
Investing in Sick bikes, bad investment
  • 3 0
 @sanchofula: trek, Spesh, transition, Santa Cruz, would all disagree with you.
  • 8 0
 Get high, lay low
  • 3 0
 @rich-2000: Sell low pivot, buy high pivot.
  • 3 0
 Buy the news, sell the rumor.
  • 1 0
 Technically, if you would ever invest in a bike company, the time of greatest risk (and therefore, greatest potential profit) would be now. You might either make back, or go bust.

Diversify - buy all the bike companies
  • 35 16
 R&D into sustainability is awesome, but zero interest in supporting Emtb development.
  • 14 2
 Bit of an oxymoron
  • 3 3
 You should double down on that. That really cuts down on the number of bicycle manufacturers left not making emtb's though
  • 16 0
 So I could pull an Aaron Gwinn and announce I bought into the company?
  • 1 0
 AG was given an equity stake in the company for riding for them and help run the business.

"Aaron: No, so I'm not buying in. Basically, the goal there is to be an equal parts partner with Troydon and Mark, the other two owners. So we'll each own a third of the company as the goal moving forward and there's a clear path for me to basically get there. "
  • 15 0
 Where are the push owners at?
  • 15 2
 The Scots need to get the f out of the UK so businesses like Deviate actually have a shot. Brexit can't make things easy over there.
  • 6 3
 Block Grant funding for the Scottish Government is the highest since devolution began at around £41 billion a year for 2022-2025. This means that for every £100 per person the UK Government spends in England on matters devolved to Scotland, the Scottish Government will receive around £126 per person in Scotland.

Scotland receives far more from the UK than it contributes. Brexit has been shit for all of us, but if Scotland left the UK they'd be in even worse shape.
  • 6 2
 @commental: Depends how much of the oil fields they take with them.
  • 3 1
 @jayacheess: Nah, oil revenue doesn't even cover half of what's paid out in pensions and social security benefits up there.
  • 2 2
 @commental: It doesn't have to cover half. Although...

There are currently just over 1 million people 65 years or older in Scotland. The average payout for pension in the UK is 18,000 pounds per year. This works out to 18 billion pounds per year.

The UK's oil and gas revenue in 2022-2023 was 9 billion pounds - most of which is produced off of Scottish waters.

hmm
  • 1 1
 @jayacheess: Yes, you did a good job of ignoring what the state pays out in other benefits there.
Ultimately I don't really care if they end up leaving or not, but I think it would be bad for them.
Membership of the EU isn't a forgone conclusion, Spain would likely veto it as the situation is too similar to the one in Catalonia and they wouldn't want to see that precedent set.
Without the EU I think they'd struggle. Even with membership it would be difficult as England and the rest of the UK is their largest trading partner by far, if a border goes up then all those businesses have to find new customers which doesn't happen overnight. Also pretty tough when they don't have a ferry service to Europe, makes importing and exporting things a little tricky.
  • 3 1
 @commental: "Yes, you did a good job of ignoring what the state pays out in other benefits there." - I wasn't ignoring it. I was just making the point that oil and gas revenue would account for a large chunk of one of the largest parts of government spending. Other parts of the economy would cover the rest. They could also benefit significantly from trade and business opportunities with the EU that may make up shortfalls.

All of that said, I understand there are fundamental difficulties with leaving the UK and joining the EU, even before dealing with EU membership. This is all pretty hypothetical.

Ultimately, the point is that Brexit was an absolutely brain dead move, and it continues to hurt businesses in the UK.
  • 3 1
 @jayacheess: At least on your last point we are in wholehearted agreement.
  • 15 3
 Are they looking for investors or free money? Sustainable materials? Production in Scotland? How to be less competitive in a difficult market with just 2 buzzwords!
  • 2 0
 Equity is definitely not free, so they're looking for investors
  • 7 2
 Exactly!! Investors want to know is their money will make MORE money. This is a charity pitch, not an investor pitch. It reads like a pitch to a government organization for a grant.
  • 10 0
 For everyone freaking out in here: Atherton Bikes did it first. 4 years later they seem to still be in business. The pinkbike article had more or less the same comments, although no one told them to make an e-bike.
  • 2 1
 They should make an eBike. Their very own DyFi bike park is more fun on one because it's not very steep.
  • 10 1
 I'll preface this by stating I'm a huge cynic. I am always suspicious when large companies look to crowdfund rather than go down the VC route. They always state some warm, comfy twaddle about wanting 'enthusiastic' individuals to be part of the company. But the reality is that VC's would demand much more rigorous accountability from the company and they would set targets and penalties for not meeting those targets. By crowdfunding they don't have any of that. They are basically free to do whatever they want because there is no legal framework, and if the venture fails, it is the crowdfunders who pay the price. So this could be a very good opportunity, if the plan works, be be warned that the crowdfunder carries all the risk here.
  • 7 0
 I see lots of, “do I get a free bike for my 10k”. You all do realize that if you “invest” 10k and get a free bike, that’s just purchasing a bike, not investing.
  • 4 0
 Ya, like how a bike business works.
  • 4 0
 The gene pool here is quite shallow.
  • 7 0
 I thought with the price they sell their frames they would have been able to grow by themself.
  • 6 3
 We have grown extremely quickly over the last few years. Our financials and plans for the future will be disclosed to interested parties.
  • 4 1
 Super, ton nom d'usager ! Wink
  • 7 3
 When you read the spiel the last line does say “ Depending on the level of investment, lifetime discounts and a free eMTB will form part of the perks”

No mention of the actual investment level required to get your free ebike though.
  • 16 3
 This will be disclosed to interested parties as part of a presentation of our pitch deck, which we have chosen to keep from the public domain.
  • 5 13
flag Ryawesomerpm (Mar 4, 2024 at 15:20) (Below Threshold)
 @deviatecycles: if you’re trying to attract investors, don’t you think it would be pertinent info though?
  • 7 0
 "We are seeking £1 million of investment in order to help fund the launch of the next phase of their business"

we

their
  • 12 0
 Our press release was modified by PB editors. We submitted in 3rd person and it was modified (mainly) to 1st person. Smile
  • 16 0
 @deviatecycles: PB's trademark attention to detail.
  • 7 1
 @BenPea: haha, seriouslu
  • 15 8
 Lol so in other words, "we're broke".
  • 4 1
 Wish i could see cool companies like Deviate to keep making bikes but with the economy here not being the best in the US. Being able to afford a 6,000$ bike is real difficult thing to accomplish for a lot of people. Also the interest in mountain bike has been lost in a general sense for a lot of people.
  • 2 1
 Do what? The American economy is the best it’s ever been.
  • 2 0
 @burt-reynolds: No it is not. I am currently trying to get a mortgage for a house and it is around 3000$ when back in 2019 it was closer to 1200$ monthly.
  • 1 1
 @jd991998: That has nothing to do with how the economy is rated. Why are you comparing once in a lifetime rates due to a BAD economy to current times with with rates that are historically average? Houses skyrocketed in price 2019-2020. That’s a housing market issue. You are confusing high prices due to corporate greed with the economy.
  • 1 0
 @burt-reynolds: I simply disagree....
  • 7 4
 Raising a million at what valuation? How can you expect anyone to be interested with such little details? People with the $$ to throw at an opportunity like this don't want to have to fill out a form and work for details. Just provide the details up front.

The equivalent of "I'm selling my 2021 Enduro! DM me for the price!" No one is going to be interested because the assumption is they're way off on the value / price of their bike or they'd just be up front with it.
  • 27 6
 The information that would be required by an investor to do their due diligence is not appropriate to share publicly, such as detailed financials and business plans. We will share this information with interested parties. We want to bring on the right investors, so if filling in a quick form and participating in some back of forth is too much effort then we'll also pass.
  • 6 5
 @deviatecycles: He just asked for your approx. valuation, not your detailed business plans. I think it's a fair question.
  • 15 2
 @Snowytrail: smart idea in my opinion not to provide it, if anyone's interested they'll fill in the form. If not, then they're not really relevant to deviate are they?
  • 3 2
 @deviatecycles: do potential investors have to sign an NDA to view your financials?
  • 1 0
 @warmerdamj: this is correct.
  • 4 1
 Do investors get to see full accounts / a fairly detailed financial breakdown?

There isn’t a lot on companies house 2022’s accounts not particularly insightful - nothing from either 2013 somehow which is a unusual.
  • 9 0
 Yes, financials will be disclosed to interested parties. 2023 accounts due to be submitted to Companies House shortly.
  • 5 2
 @deviatecycles: For starters, a free bike would be a good incentive!
  • 12 0
 @cool3: that incentive exists depending on the level of investment.
  • 3 0
 If I had the money, I'd love to. I like their bikes, their image and the idea of rider owned companies. Also moving production to Scotland is an ambitious goal, but one after my own heart.
  • 2 0
 I can't afford financial support, but bringing out innovative bikes and making them in Scotland I thoroughly support, and wish you the best of luck.

Just a thought though... You're a small boutique brand, offering expensive Ti frames. You just have to call one the:
"Den-Ti-St".
  • 9 4
 I think there’s a reason why this isn’t legal in the United States.
  • 32 4
 ..all while giving pointless speeches on corporate events and pocketing $500k is prefectly legal for politicians
  • 3 0
 I think it happens all the time, just have to keep the number of investors below ~100 and there may be a restriction on "qualified" investors having more the $200K in liquid investments.
  • 1 0
 @f00bar: Not to mention politicians getting pre-IPO information from their corporate buddies. This is definitely not the good way to go about business here in the US.
  • 4 0
 This is legal in the US. You just need investors to be accredited. $200k in annual income and $1M in assets, excluding your main residence.

You may be calling out the number of investors. If so, you’re correct. I think the limit is around 100.
  • 4 1
 I donated $10k to a company in a failing industry and all I got was this lousy t-shir... wait, wait a minute... gdamn it, I didn't even get a fking t-shirt!?!
  • 3 0
 Free shirts at a secret level of investment.

Is this scientology?
  • 1 1
 @RonSauce: and, perhaps even a free ebike at another secret level of investment.
  • 1 0
 Where are they manufactured now?
They surely understand the US & Europe are enormous markets and moving production to Scotland will surely increase costs and then extortionate import fees to Europe (thanks Brexit) and North America. I can't see how moving manufacture to anywhere in the UK is a strong business concept?
  • 1 0
 Presumably TW. Given that they don't have warehousing in the EU, and presumably aren't drop shipping, there would be less duty on a UK-made bike to EU than a TW-made bike that passes through a UK warehouse. Thanks to to Brexit a company importing from TW and exporting to EU currently pays the duty twice. The reality of manufacturing in the UK is another matter..
  • 4 0
 @yerdasellsavon: UK made products do not suffer from any import fees into the EU.
  • 1 0
 @deviatecycles: yes, there will be a trade-off of costs of UK manufacture & the savings in duty that you would be best placed to calculate Wink
  • 5 1
 Do I get a bike in return?
  • 7 2
 Nope, that’ll be another 10k. But you’ll get a shirt that says “I invested in Deviate Cyles and all I got was this lousy shirt” shirt………. And a sticker
  • 3 5
 Depends on the level of investment.
  • 3 2
 @deviatecycles: Really, even when the baseline is set at £10,000? At least, that's worth more than a t-shirt...
  • 11 3
 @cool3: yes, this is an investment in the business - the perks are just that, perks.
If you want a bike they cost less than £10k!
  • 1 0
 @Ebab: I hope they do actually make a shirt like that, that would be great
  • 7 4
 Given this is basically a public offering, wouldn't all the rules around reporting/disclosure for an IPO apply?
  • 9 1
 @chriskneeland: This is not a public offering/IPO because they are not a public company. This is a private investment opportunity so none of that would apply. This is also a terrible way to invest 10k because it's a bike company and they are obviously bleeding cash if they are asking everybody and their dog to pony up 10k to "grow". This is likely going to pay their day to day expenses until they go broke again and then you are f*cked.

Buy a bike for 10k, it'll yield a much higher return on your investment.
  • 8 1
 This is not an IPO and the raise is fully compliant with UK law which applies. It is no different from Crowdcube or Seedrs investment platforms.
  • 3 4
 @warmerdamj: A public offering is the sale of equity shares to the public in order to raise capital. If you make a public offering, you are required to jump all the hoops to become a "public company"...at least in Canada and the USA.

Maybe this is legal in the UK, I don't know. It was made illegal in Canada/USA because a lot of people got scammed.
  • 4 0
 @skylerd: for the avoidance of doubt this raise is entirely legal in the UK. Happy to discuss this further with interested parties.
  • 1 0
 @deviatecycles: Would we be able to see financials statements prior to investing.
  • 8 0
 @jalopyj: absolutely. If you follow the link and register interest we'll be in touch.
  • 1 3
 @deviatecycles: right on. I didn't know the UK rules, so it's interesting to see. I never meant to imply this wasn't legitimate, only to give context about why it's so complicated in North America.

Good luck to you guys! This is an enormously challenging method of raising capital, but I hope it pays off!
  • 3 0
 @skylerd: why do you think you can't invest in a non public company in Canada? You just do your own due diligence. They are basically crowdfunding:

www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-business-guides/glossary/crowdfunding
  • 1 3
 @warmerdamj: You can invest in a private company, but a private company cannot make a public offering. An online forum is public. I'm sure there is a lot of nuance to this that I don't understand, and their requirement for $10k minimum may make it technically not a public offering as they are being selective of their investors.

Not trying to speak with authority on this. I was really hoping someone more versed in this stuff would chime in an explain actually.
  • 3 0
 @skylerd: I bought a bunch of shares in persephone when they did some fund raising last fall, it was sort of the same deal.

They had online material that said "hey buy some shares", so I did through some platform very legit platform and I even got nice tax documents for it. I think it's very cool and very legal.
  • 5 1
 @skylerd: you are definitely not speaking with authority
  • 5 2
 What’s the point of this? Could I actually make more than just putting it in the sp500, or is it charity?
  • 4 1
 Its almost like they saw people spending 10-15k on ebikes and were like "obviously the next step is 10,000 for a no-bike"
  • 3 0
 Good luck Deviate, I should have done something when James Lamb put us in touch.
  • 3 0
 Good luck Deviate, cool bikes! Unfortunately I don’t see investing in a bike company as viable right now.
  • 3 0
 @deviatecycles you have me as a rider, fan, and customer for life! keep charging hard!!!
  • 3 0
 Invest at your own risk…
  • 2 0
 Agreed. Most likely not worth it for anyone unless they're willing to lose money for a possible tax write off.
  • 7 0
 I'm more interested in investing at someone else's risk. Anyone got 10k they don't need?
  • 3 0
 Kitsbow did something similar last year...
  • 2 0
 kitsbow was the first thing that came to mind. I think they closed doors months after they closed their funding round (which I believe was fully subscribed)
  • 1 0
 @killerparties: That sounds suspiciously like a rugpull
  • 2 0
 @killerparties: Yeah, that honestly broke my heart. Great gear, great people. Just too expensive to manufacture in the US.
  • 3 0
 But does the ownership certificate come printed on a bike?
  • 2 0
 if you like!
  • 2 0
 I'd suggest that investing in a bike company at this time might not be prudent.
  • 1 0
 @deviatecycles serious question: will the eBike be pinion MGU driven? Then I would consider reading and being part of the support!
  • 5 3
 If I invest 10k USD, do I get a free bike?
  • 19 0
 You just get the opportunity to lose $10k
  • 1 0
 I'm putting $10,000 on $SHIB tonight, on my way in the private jet by the end of the week to buy Deviate outright.
  • 4 6
 @deviatecycles - couple of questions came to mind.

1. Management Team. Do we get to see the CV / Bio's of the board members? Be nice to know if the owners have experience in running a profitable company. Owners who understands numbers, revenue, profits, and operations.
2. Dividend Payouts - like to know the policy (if any)
3. Aside of issuing shares, what liquidity risk do you have?

assuming income statement, balance sheets, cash statements, etc will all be provided if one were to purchase shares. Will you also provide 1, 3 and 5 year business plans? as well as provide KPI, CSF, and SWOT information?
  • 5 0
 Absolutely, we will be fully transparent with interested parties and answers to 1,2,3 are largely contained within our pitch deck and/or will be answered 1 to 1.
I will however keep the answers to your questions off this public forum - so if you are interested, please do fill in our very quick form and we'll be in touch.
  • 4 1
 I think you might be over-estimating the size of a small bike company with all of the finance bro chat and suggesting there are 'board members' etc

Its a small bike company trying to expand, not a tech company on the edge of the next big app, the 'directors' are likely doing a hell of a lot more than just managing the company.

E.g. - Accounts filed in 2022 show there were 3 employees at the company.

I co-own a small company in the UK, Im a 'director' and we have 3-5 employees depending on how busy things are, we certainly don't have a board (we don't have a board room either...) and we aren't finance bro's, but we do understand the principle and organisation of business at this level.

Good luck to the guys at @deviatecycles - bikes look great, an ebike would surely boost your share of the market.
  • 1 0
 What would you possibly assume they would be paying dividends out of in a scenario where they are crowdfunding $1M?
  • 3 1
 @warmerdamj: They probably are paying dividends - small LTD company directors often pay themselves mostly from dividends here in the UK (I am in / from UK)

So in my company I take a small salary around £12k a year and pay myself a monthly / quarterly dividend - its more tax effective (Or at least it was, its very close now thanks to the Tories, party of business!) Obviously you can't pay a dividend if the company isn't in profit while you can still take a salary if it is so it all depends on how the company is doing etc.

So paying dividends is entirely normal if you don't have investors / other directors to answer to - if you do then that's where things get more tricky and agreements / dividend meetings come into play.

But yea, our company makes way, way less than £1mil in profit and I have been taking dividends for the last 10 years as the main part of my income.
  • 1 0
 @justanotherusername: paying yourself in dividends as an owner vs a salary is entirely different than a company issuing dividends to all shareholders and that's clearly what he's asking. You do it because it's more tax efficient for you to receive them, you have to pay yourself something regardless, it's your job. Dividends to all the shareholders are paid from excess cash on hand, which a company asking the internet for $1M does not have.
  • 2 0
 @justanotherusername: Deviate does not currently pay dividends. While this may be an appropriate way of taking "salary" for an owner operated business, it would be not appropriate for Deviate at this point.
  • 3 1
 @deviatecycles: sorry,I wasn’t trying to speak for you and as I said all depends on the arrangement in the company - I find people outside of the UK get very confused with Uk company rules and language.

Best of luck with this, hope you get the investment.
  • 4 1
 eMTB range? lol f*ck off
  • 2 0
 invest in a bike company in this day an age.......... No fanx
  • 4 3
 Does that $10k include a bike at least?
  • 6 0
 No, it includes equity in a company. It's an investment, not a bike purchase.
  • 1 1
 I hear only fans is branching out, maybe they can lend a hand
  • 2 2
 Better ways to blow 10K
  • 1 2
 How is titanium sustainable?
  • 1 1
 Lol. Ya, good luck
  • 1 2
 Anotha one
  • 2 3
 Not keen on the logo
  • 3 5
 This is not a good sign.
  • 3 5
 Not a good sign
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