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Pennsylvania

Digital Dream Labs, Inc.

About Documents
196%
$49,050 Funded
$25,000 Target
Closed Time Left
75 Investors
$25,000 Min. Raise
$500,000 Max. Raise
60 mo. Term Length
1.8x Multiple
Closed

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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 1.5% 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

  • Digital Dream Labs has been Profitable Since 2017
  • YoY Revenue (2019 to 2020) has Quadrupled
  • Dramatic Growth Despite Pandemic
  • Acquired Anki's assets in December 2019
  • Trademarks, Copyrights and Patented Technologies (30+ Patents)
  • Recognized Name in Ed-tech Market with 3M+ Customers

 

 

Overview

Digital Dream Labs is a consumer electronics company which develops patented, industry-leading personal robots and hands-on STEM / STEAM (science, technology, engineering, arts and math) education video games. Their goal is to create games that kids love while reducing educational inequities from pre-readers to high schoolers. With 8,000+ school districts in the United States and millions of families using their products around the world, they are dedicated to perfecting the consumer engagement and enjoyment of their products.

In 2019, Digital Dream Labs acquired the assets of Anki, makers of the enormously popular Cozmo and Vector robots and Overdrive racing game. With 2M+ units sold, they plan to improve and reintroduce the product to throngs of excited fans.

 

User Interacting with Vector

Vector is an interactive companion robot made to hang out and help out.

The Project

The funds raised during this campaign will be focused on allowing Digital Dream Labs to hire additional engineers. These addition resources will allow the company to improve their current products while also accelerating hardware design and getting to new robots to market faster.

With the continued growth of the Edtech / smart classroom market and further expansion of the business's consumer sales, DDL is expecting to achieve YoY revenue in excess of $100 million by 2023. Join DDL in its mission to spark curiosity in STEM / STEAM topics through their innovative, hands-on technology.

Business

Past, Present, and Future

Introduction to Digital Dream Labs

Based in Pittsburgh, PA, Digital Dream Labs (DDL) is a consumer electronics company which develops patented, industry-leading personal robots and hands-on STEM education video games. DDL makes learning 21st century skills fun while reducing educational inequities in schools.

DDL's products satisfy the need for engaging, language and system-agnostic solutions that allow children of all ages to have fun while learning 21st century skills (communication, collaboration, creativity and computational thinking). With an experienced team and an exciting product roadmap that has the potential for 60%+ revenue growth, DDL is poised to capture its sector of the $4 trillion worldwide education market.

Long Term Business Plans

The educational technology (Edtech) market is projected to grow 16% YoY for the next three years and beyond, and startups and crowdfunded projects are rushing to enter the space, promising revolutionary new learning technologies that are nevertheless unlikely to deliver due to unforeseen distribution and other constraints. With 8,000+ school districts in the United States and millions of families using their products around the world, DDL’s tested manufacturing and development capabilities have already established significant barriers to entry for its competitors.

With the continued growth of the Edtech / smart classroom market and further expansion of the business's consumer sales, DDL is expecting to achieve YoY revenue in excess of $100 million by 2023. The company is exploring the possibility of going public as an IPO in the next 3 to 5 years and an EPO as early as 2021.

 

Children Playing with Cozmo

Cozmo is an educational toy robot that teaches children coding through the power of play.

 

Ed-tech Solutions that Make Learning Incidental

Whether it’s an educational toy robot like Cozmo or an interactive video game for Puzzlets, these engaging products are fun first and make learning incidental. By playing with these products, students are learning more and building confidence in their STEM / STEAM (science, technology, engineering, arts and mathematics) skills, making them happier and more engaged students.

Synergy of Business Lines

Many of DDL’s products solve two enduring and intertwined problems found in contemporary education:

  1. Children don’t always enjoy learning
  2. Educational inequities that begin in pre-school can be insurmountable by the time students reach high school.

In preliminary classroom studies, students using DDL’s hands-on learning solutions showed a 10-25% gain in logic and sequencing skills after only 8 weeks. More importantly, the studies showed that this tactile intervention helped to reduce the achievement gap with at-risk students thriving alongside their classmates.

Cozmo - Educational Toy Robot

Cozmo is an educational toy robot that teaches children aged 8-14 coding through the power of play.

Powered by cutting-edge technology and an unparalleled personality, Cozmo is the ultimate robot for kids to play and learn with. A real-life robot buddy, Cozmo can play games of speed and skill, with 30+ mini-games. Using Code Lab, a complimentary app, children can explore, organize and express their creativity by programming their Cozmo robot.

Vector - Advanced AI / Companion Robot

Designed for technology enthusiasts, Vector is an interactive companion robot made to hang out and help out.

Powered by AI (artificial intelligence) and advanced robotics, Vector is alive with personality and can engage with his surroundings by sight, sound and touch. This personal robot responds to voice commands and can be integrated with Amazon Alexa for a variety of advanced functions. Vector is also compatible with Digital Dream Labs' Open Source Kit for Robots (OSKR). OSKR allows hardcore hobbyists or professional developers to modify the robot's source code to adjust its behaviors, animations and much more.

InfiniDrive - Advanced Slot Car Style Racing Game

InfiniDrive (formerly Overdrive) is a slot car style racing game take remote control racing to the next level with robotic cars that are controlled by the players' smart phone / tablet.

This popular toy combines a video game interface with self-aware race cars that are driven by artificial inteligence (AI) - ensuring hours of interactive gameplay. Setup is easy and the magnetic track pieces allow for limitless combinations. Infinidrive is easy to pick up and nearly impossible to put down.

Puzzlets - Hands-on Educational Video Games

Puzzlets is proprietary video game platform that integrates with most bluetooth-ready computers / tablets to introduce K-2 students to STEM / STEAM topics, including: coding, math and color theory.

Each game includes a themed set of physical Puzzlets tiles that can be arranged on the Play Tray to relay commands to an accompanying video game. Puzzlets combines hands-on play with interactive gaming to form one seamless experience, engaging the mind and teaching players new ways of thinking about STEM / STEAM topics. Game titles include:

  • Cork The Volcano - This game helps students develop a mindset for coding, by inputting the exact moves Rus and his friends must take to collect the golden pieces, and reseal the volcano before King Caldera escapes.
  • Swatch Out! - In this action title, players must quickly find the color they need, and avoid spikes, bouncers, and enemies as you travel throughout the colorful Art Zone!
  • Abacus Finch - This game requires that students utilize their math skills to overcome obstacles as they progress through 60 levels of gameplay. 
  • Monstrous Molecules - Inspired by a love of science, Monstrous Molecules combines gameplay elements from classic dungeon-crawler games with elementary chemistry.

Press

Forbes | Butter Robot Cooking Up Chaos this Thanksgiving

Kidscreen | Sutikki Jumps on the Robot Train

The Verge | Digital Dream Labs Saves Anki's Robots

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

  $25,000 - $500,000

 Multiple

  1.8x 

 Revenue Share %

  (rate dermined by total offering amount)     

  Amount Raised                                        % of Revenue

  $25,000 - $250,000                                       1.00%

  $250,001 - $500,000                                     1.50%

 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 Portal LLC

 Offering Type

  Reg CF

View our
Offering Documents

Meet the Digital Dream Labs, Inc. team

At Digital Dream Labs, our mission is to develop games and personal robots that solve our greatest challenges and spark curiosity in children of all ages.

Chief Executive Officer
Jacob Hanchar

Chief Product Officer
Thomas Schubert

Chief Roboticist
Grant Olson

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