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Pennsylvania

Digital Dream Labs

About Documents
129%
$129,000 Funded
$100,000 Target
4 days Time Left
18 Investors
$100,000 Min. Raise
$1,000,000 Max. Raise
60 mo. Term Length
1.8x Multiple
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Revenue Sharing

Investing in this offering involves purchasing a Revenue Share Note. This means that Digital Dream Labs' repayments will be tied to the amount of total company revenue they generate over time until 1.8x the amount borrowed is returned to investors. If Digital Dream Labs generates higher revenue, their monthly repayments will be greater and investors will be repaid more quickly; if the company generates a lower revenue, their repayment will be lesser and investors will be repaid more slowly – in which case a balloon payment may be needed at the end of the term. Check out our blog for more information on Revenue Sharing.

The key terms defined in the Revenue Sharing blog are outlined below with regard to this offering.

Investment Multiple 1.8x  (Ex: If you invest $10,000 you will receive a repayment of $18,000 if the note is paid as agreed)
Term Length 5 years, with a balloon payment, if the full repayment is not returned within the 60 months
Repayment Terms Digital Dream Labs makes monthly payments, distributed to investors quarterly
Revenue Percentage Varies from 1% to 2% based on the total amount raised in the campaign.  See Financial Summary for details.
Minimum Payment Regardless of monthly revenue, Digital Dream Labs will pay a minimum of 1.0% of total funds raised
Securitization Yes; blanket lien on assets of the company

 

 

Highlights

  • Profitable since 2017
  • YoY Revenue has Doubled
  • Net Income Jan - June 2020 $1,395,361
  • Acquired Anki's assets in December 2019
  • Recently completed a $1M Equity raise via Republic.co
  • Funds raised will go toward InfiniDrive, a racecar game
  • Most recent product sold over 2 million units at a $160 retail price
  • Goal of repatriation of manufacturing: aka, “Made in the USA” – this will result in a lower cost of goods, reduced political risk and exposure to tariffs, and a selling point to racing fans
  • Patented technology allows the racecars to wirelessly charge on the track
  • Nearly 3 million customers

 

Overview

Digital Dream Labs is a  consumer robotics and STEAM (science, technology, engineering, art, and math) video game company based in Pittsburgh. Their goal is to create games that kids love while reducing educational inequities from pre-readers to high schoolers. With over 8,000 schools and countless families using their products around the world, they are dedicated to perfecting the consumer engagement and enjoyment of our products.

In 2019, Digital Dream Labs acquired the assets of Anki, makers of the enormously popular “Overdrive” racing game. With over 2 million units sold, they plan to improve and reintroduce the product to throngs of excited fans.

January brought the successful close of a $1,000,000 equity funding via Republic. This offering, alongside the $1M already raised, will allow Digital Dream Labs to hire the staff, and ramp up production quickly and efficiently.

 

Our patented technology charges the cars as they race.

 

The Project

This new iteration of the Overdrive racecar game will allow us to remain the worldwide leader in racing games. The funds raised during this campaign will allow us to grow our team, expand the features and functionality of the game, and manufacture at least 100,000 units and gradually bring manufacturing back to the US, even to Pittsburgh!

To ensure the best game possible, we want to develop an augmented reality feature for the game, embed more wireless technology, develop new skins for the cars, and create a bigger, more comprehensive, life-like game experience.

 

The patented microchip charging technology allows for infinite play.

Business

Past, Present, and Future

We were founded in 2012 to solve two enduring and related problems: kids don’t always enjoy learning, and educational inequities beginning in pre-school can be insurmountable by the time students get to high school. Our products are educational and really feel like games! By playing with our products, kids are learning more and building confidence in their STEAM abilities, making them happier and more engaged students.

 

Our products are educational and really feel like games!

 

We’ve created a series of games called Puzzlets to engage kids in chemistry, math, art, programming, and music. After acquiring Anki’s assets in December 2019, we adopted and further developed Overdrive, Cozmo, and Vector. Having run a Reg CF campaign on Republic in January 2020 (raising $1,005,516), we are launching our first Reg D campaign with Honeycomb.

With the Edtech market projected to exceed $252 billion in 2020 – in a $4 trillion global educational market – we are expecting to achieve $100 million per year in revenue in three years.  We expect to exceed $10 million in 2021 and may still even do so in 2020.  We are exploring the possibility of going public as an IPO in the next three to five years and an EPO as early as 2021.

 

 

Meet the CEO

Jacob Hanchar

H. Jacob Hanchar is the CEO and a major investor in Digital Dream Labs. He serves as advisor and investor to many start-up companies in Western PA. Jacob received his doctorate in 2007 from the University of California, Los Angeles, where he focused on research in biological sciences. He performed post-doctoral work in otolaryngologic disorders, particularly tinnitus, at Rosalind Franklin University in Chicago and the University of Pittsburgh Center for Neuroscience.

 

Press

The Verge: Anki’s toy robots are being saved from a digital death

Gizmodo: Vector, the Little Robot That Could(n't Do Much) Is Back From the Dead

Venturebeat: Digital Dream Labs will revive shuttered startup Anki’s Vector robot

MarketWatch: Digital Dream Labs Launching High-Tech Infinidrive Robotic Car Racing System

Dig Boston: ROBOT RESURRECTION: ANKI GETS A NEW LEASE ON LIFE

 

 

Deal Summary

 

 Issuer

  Digital Dream Labs LLC

 Security Type

  Secured Revenue Sharing Note

 Loan Purpose

  Grow team & manufacturing

 Offering Amount

  $100,000 - $1,000,000

 Multiple

  1.8x 

 Revenue Share %

  (rate dermined by total offering amount)     

  Amount Raised                                        % of Revenue

  $100,000 - $250,000                    1.00%

  $250,001 - $500,000                    1.50%

  $500,001 - $1,000,000                 2.00%

 Payment

  % of revenue paid monthly, distributed to investors quarterly  

 Minimum Payment    

  In the event that officer-certified monthly revenue is not reported

   within 5 business days of month end, a Minimum Monthly

   Payment of 1.0% of the total offering amount will be assessed

 Maturity

  60 months

 Security Interest

  Blanket lien on assets of company

 Offered by

  Honeycomb SMB LLC

 Offering Type

  Reg D

 

How to Invest

Regulation D Offerings are available to accredited investors only. We verify accreditation through our third-party partner, VerifyInvestor.

1) Click the invest button at the top of the page.

2) Complete your investor profile.

3) Choose an investment amount.

4) Select a payment method (ACH, Wire, Paper Check)

5) Verify accreditation via VerifyInvestor- the easiest way to do so is via a signed letter from your CPA or personal attorney verifying that you are an accredited investor. Alternatively, W2s or a list of personal assets and liabilities is acceptable.

6) Review and e-sign your documents.

 

View our
Offering Documents

Meet the Digital Dream Labs team

Chief Roboticist
Grant Olson

Human-cyborg relations.

Chief Product Engineer
Thomas Schubert

Hardware expert.

Updates

Comments

Q & A

+ Hello, I want to ask when do you also plan to sell anki overdrive? I would be very interested in exclusive imports to Slovakia and the Czech Republic.

Yes, we are looking for partnerships for international distribution. Please submit your info on our contact form: https://support.digitaldreamlabs.com/

+ You seem to stress Reg D. What are it’s implications for DDL?

The reason we are stressing Reg D is because it is very different from a typical crowd funding campaign. To invest in a Reg D, you must meet criteria of an accredited investor established by the SEC, https://bit.ly/2Et41uN. Reg CF, for example, does not have these restrictions and we want to make certain the correct people are investing in the correct investment vehicles. There is no real difference for our company other than a different form to fill.

+ What does multiple 1.8 mean? What is the annual yield?

The 1.8x multiple means the total return over the course of five years. This works out to roughly 12% compounded interest. This would be the worst case scenario as it would be our goal to pay off these notes much sooner than that. I've also received a couple questions on how this raise relates to the the Republic investment. The Republic investment was for equity in the company (ownership stake); this Honeycomb raise is acting more like a bank note that earns interest. It's a different type of investment that some people are more comfortable doing, like investing in a stock that pays dividends or owning bonds.