Big-Idea-Finals-2017-Revolt

The startup Revolve is pitching their electric bike business to potential investors. The company plans to raise $185,000 in funding to support their research and development costs as well as startup expenses. They anticipate selling 70 units of their RV (recreational vehicle) product in the first year of production, with the goal of capturing 0.2% of the market share in the United States.Revolve's main competitor is Faraday, which has a strong presence in San Francisco. Revolve plans to take inspiration from Faraday's strategy and focus on a primarily digital approach for customer acquisition. They plan to use search engine optimization and Google AdWords to reach potential customers, estimating the cost of reaching 1,000 people to be between $2.50 and $5.Revolve also intends to employ various tactics to maintain engagement with consumers throughout the consumer lifecycle, such as signing up for a newsletter and using trailing ads. The company expects to generate 3.7 RVUs (recreational vehicle units) for every one bike sold in their second year of production.Revolve's valuation is over $2 million, and they plan to use a discounted cash flow model and a black's model to calculate it. Additionally, they anticipate having a significant surplus of funds by the end of the year, which they can reinvest in R&D.