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B4 Bikes team 8
B4 Bikes Baambrugge, NL

The ultimate E-bike

The B4 E-Cruizer is a hand built and custom made electric bicycle inspired on a Harley Davidson from 1912 combined with the latest space technology.

$116,442 INVESTED
100%
$116,442
Required
6%
Equity
Small_thumb_fa_b4_bikes_logo-zonderbike The ultimate E-bike
INNER CIRCLE
The concept

The B4 E-Cruizer is a hand built and custom made electric bicycle inspired on a Harley Davidson from 1912 combined with the latest space technology. The E-Cruizer is built to inspire and seduce. They are created for people who dare to be them selves. With its iconic 1912 motor design and its powerful 250W-1000W electric engine it gives the comfort and freedom of riding a bike and the thrill of riding a motorcycle. Because of the calculated balance between our battery- and motor management and our lithium battery you are able to cruise 200 km. B4 Bikes have the ambition to become the Rolls Royce of electric bicycles and we want to create an heirloom for the future. The design and the technology of the B4 E-Cruizer are developed by B4 Bikes. The development of technology is realized with the knowledge base of European Space Agency (via ESA Business Incubator).

Unique Selling Points

  • What makes the B4 E-Cruizer unique is the attractive and appealing classic design inspired on recognizable vintage motor icons. 
  • The battery pack is formed in the cylinder that refers to design of the motor block of a Harley Davidson from 1912.
  • The combination of the electric engine and the battery gives the power to cruise 200 km on one charge. 
  • The B4 E-Cruizer is hand built and custom made with a incredible performance and an indescribable experience.
  • The fact is: young, old, man or woman, anyone who steps off the bike has a big smile on their face.

Revenue model

B4 Bikes develops and produces electric E-Cruizers by using high tech electronic technology. At the moment we deliver 2 versions: a 25km/h and a 40km/h version. A V-twin model is ready as a proto type and will be launched after optimization of the technology. The average market price ex VAT:

  • 25km/h version: € 5.200,-
  • 40km/h version: € 6.700,-

Margins are, depending on version and options, between 25% and 40%. Order intake starts after a first payment of 75% of the market price. Because of the remarkable performance of the B4 E-Cruizer, other electric mobility companies have shown interest in the technology of the B4 E-Cruizer to integrate in their own products. The sales of the technology are based on licenses. Besides the bikes and the technology we offer leather B4 bike bags and B4 merchandise like t-shirts, caps etc..

Achieved so far

In the summer of 2012, we started as an art project, with the aim to seduce people to get out of their car, onto an electric bike. Together with European Space Agency (via ESA BIC) we started to improve and develop the necessary technology to become a high end product. After 2 years of development and sales of prototypes we were able to transform into a new business. In 2014 it turned out that the E-Cruizer had such huge attraction and consumer interest that we where able to set up a professional production line. Our results on:

Bikes:

  • Proto type B4 E-Cruizer 40 km/h        sold - 12 pieces
  • B4 E-Cruizer (25 km/h)                       sold - 25 pieces
  • B4 E-Cruizer (40 km/h)                       sold - 3 pieces 
  • B4 Leather bags                                  sold - 10 pieces
Technology:

  • B4 Bikes Battery packs                       sold - 15 pieces
  • Power converter                                  sold - 2 pieces

Merchandise:

  • B4 (Delft blue) hand painted tiles        sold - 10 pieces
Total turnover around:              €200K

Media:

  • The Sunday Times has mentioned the B4 E-Cruizer as the ultimate e-bike to be seen on.
  • The American TV program Tech Toys 360 has covered beside brands like Porsche and Bugatti, the B4 E-Cruizer in their program. The item about the B4 E-Cruizer will be broadcasted in 2015 / 2016 in 125 countries on channels like National Geographic and Discovery Channel.
  • Top Gear Magazine has covered the B4 E-Cruizer in a 5 star article.
Collaboration / joint promotion: 

  • As an alumnus of the Dutch European Space Agency Business Incubator program, the B4 E-Cruizer has become a role model across Europe representing results of innovation on technology.
  • In the campaign Born for Passion of the Indian brand Louis Philippe (LP Jeans) has the B4 E-Cruizer played a big part in their on and off line campaign in 2015 / 2016.
Awards:

  • Winner of the Accenture Innovation Award.

Required investment and purpose

We are selling custom made and hand built e-bikes. It takes 3 months to build a bike on order. We have noticed that our customers don't want to wait 3 months on their bike(s). The fact is that 80% of all the sold bikes are red and black. To fulfill the wishes of our customers (no waiting time) and retailers we want to produce up front to create a stock of approx. 20 bikes. Investing in marketing and sales. The E-Cruizer needs to be introduced to a bigger audience to show and experience the B4 E-Cruizer. Creating a renewed website including webshop. Increasing the sales capacity and maintenance points through Europe and North America. On the technology side we need to develop remote diagnostics for maintenance on the electronics.

Summery:

  • Stock bikes & Supply chain               €50K
  • Marketing Communication                €10K
  • Website                                             €5K
  • Sales                                                 €25K
  • Development                                     €10K
  • Total                                                  €100K  

For the investor

  • For all investors we will organize a meet and ride experience at our workshop in Baambrugge.
  • Every investor who invests a €1K or more and orders a B4 E-Cruizer we offer a free leather bag including leather covered lock chain (market value € 375,00 incl. VAT).

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Harm Lok (1962)
Head of Technology

Founder and shareholder B4H; Technology and ICT.
University Eindhoven:
Information technology
Embedded Systems.
Associated professor mosfet technology
Durable drive trains
Lecturer power electronics:
Conversion/Grid technology
(Motor) steering algorithms
Regenerative Electrolyze,
Eco shoot and Ders
Regenerative motor-/process steering
Owner Spectra

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Matthijs Scholten ((1983)
Marketing, Communication and Sales

Founder and co-owner B4-Holding; Marketing, Communication and Sales
Haarlem School of Business, Small business and retail management
Founder and co-owner at Skinstamp: innovative certified skin ink
Concept development and art director at La Scheers Co
Marketing communication officer at Fair Support.

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Jan Scholten (1956)
Managing Director

Founder and co-owner B4-Holding; General Management and Finance.
Erasmus University Rotterdam: Business administration
Former banker: various management positions at ABN, Chase, NCB, CL and UBS
COO and CTO at Delta Lloyd Bank
Founder and co-owner at Suyzer Holding: Innovative transport system
Founder and co-owner at Skinstamp: Innovative certified skin ink.

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Johan Hogenbirk (1958)
Head Mechanics

Co-owner B4-Holding. Mechanics and Quality Control
Dutch Aviation College: Aircraft engineering and engineer, certifying staff KLM
Lecturer Technical Aircraft training center Fokker.
Expert operations: building aircrafts and quality control.
Expert product innovation

The product

The B4 E-Cruizer is an electric bicycle. In the middle of the handle bar is the control console. To activate the electronics of the bike you need to put the key in the ignition and turn the key. The bike has 6 speed modes. For a smoother cycling experience, the B4 E-Cruizer is fitted with a closed-unit automatic gearing system: the NuVinci® Harmony™ electronic hub. With this cadence switch you can set your preferred intensity and the hub will automatically adjust the drive ratio to keep you peddling at a constant number of revolutions per minute. This allows you to maintain a steady cycling rhythm, at your chosen speed, even when moving between uphill and downhill terrain. To active the motor you have to push the pedals. To stop the motor you either need to use hand brakes and or stop pedaling.


Specifications B4 E-Cruizer 25 km/h:

  • Maximum speed:         25km/h
  • Battery:             B4 Lithium Ion Battery Pack
  • Capacity:          19,95 Ah / 36V
  • BMS:                B4 E-Cruizer management system
  • Range:             200 km
  • Charging time: 4 hours
  • Frame:             B4 Basman frame 26 inch – Steel
  • Brakes:            Magura MT4 – Hydraulic front & rear disc brakes
  • Engine type:    Crystalyte High Torque Brushless 3 fase PM motor
  • Engine power: 250 – 1000 Watt
  • Gear system:  NuVinci® Harmony™ 330
  • Weight:           42 kg
  • Dimensions:    L2020 x W800 x H980 mm
  • Price:              €5.2K ex VAT.

Specifications B4 E-Cruizer 40 km/h:

  • Maximum speed:         40 km/h
  • Battery:             B4 Lithium Ion Battery Pack
  • Capacity:          19,95 Ah / 36V
  • BMS:                B4 E-Cruizer management system
  • Range:             200 km
  • Charging time: 4 hours
  • Frame:             B4 Basman frame 26 inch – Steel
  • Brakes:            Magura MT4 – Hydraulic front & rear disc brakes
  • Engine type:    Crystalyte High Speed BLDC 3 fase PM motor
  • Engine power: 250 – 1000 Watt
  • Gear system:  NuVinci® Harmony™ 330
  • Weight:           42 kg
  • Dimensions:    L2020 x W800 x H980 mm
  • Price:              €6.7K ex VAT.

Unique Selling Points

  • What makes the B4 E-Cruizer unique is the attractive and appealing classic design inspired on recognizable vintage motor icons.
  • The battery pack is formed in the cylinder that refers to design of the motor block of a Harley Davidson from 1912.
  • The combination of the electric engine and the battery gives the power to cruise 200 km on one charge (average bikes are 70 - 100 km).
  • The B4 E-Cruizer is hand built and custom made with a incredible performance and an indescribable experience.
  • The B4 E-Cruizer is front wheel driven and the rear wheel is provided with an automatic gearing system: the NuVinci® Harmony™, an electronic hub.
  • The fact is: young, old, man or woman, anyone who steps off the bike has a big smile on their face.

Revenue model

Margins on sales of the B4 E-Cruizer, and margins on sales of license of the B4 technology.


Scalability

The production line and building capacity today is about 4 bikes per week. Upscale to 10 bikes per week can be done in the same place in Baambrugge, without enormous investments in hardware, etc.. Of course we need additional staff. For production outside Europe - which could be necessary - we have to build an atelier in the same way we did already. In that case we have to invest around €50K in production facilities and staff in based on an additional business plan.

Current status

2012:

  • Start design of the B4 E-Cruizer
  • Start of the B4 E-Cruizer technology
  • Cooperation with ESA BIC

2013:

  • Proto type of the B4 E-Cruizer available for 2 designs (single block and duo block (V-twin))
  • Building proto types for test rides and display
  • Building and sales of proto types

2014:

  • Production version B4 E-Cruizer market ready
  • Development production version B4 technology
  • B4 battery pack and B4 Battery Management System
  • B4 display and motor management system
  • Power convertor
  • Alumnus of ESA BIC
  • Creating new legal entity - B4 Holding BV
  • Building of production version B4 E-Cruizer
  • Building 5 promotion B4 E-Cruizers for test rides and display
  • Creating B4 bikes website
  • Go to market with launch at:
  • The LXRY Fair, Amsterdam
  • The Motor Expo, London

2015:

  • Development, creation and implementation of the B4 bikes workshop and atelier in Baambrugge
  • Development and implementing B4 Bikes life-style
  • Opening B4 bikes workshop and atelier
  • Organizing the supply chain
  • Development of 2 models leather B4 bike bags with integrated locker

Planned developments

B4 E-Cruizer:

  • Developing new display 
  • Developing remote diagnostics for maintenance on the electronics
  • Communication through mobile and internet
  • Developing additional drivers profiles and user experience
  • Developing the technology of the B4 E-Cruizer V-Twin

Target group

Our current customers are man and women 50+ and entrepreneurs. Based on the profile of our customers we have defined our target audience:

Consumers:

  • Man & women
  • Age 50+
  • Located world wide
  • Living in cities or suburbs
  • High educated
  • High income
  • Entrepreneurs / business owner
  • Stylish and classy
  • Interests: common affairs, politics, business, art, design, sports, food, traveling

Organizations & Businesses:

  • 10 + employees
  • Positioning green sustainable
  • Lifestyle image
  • Based downtown big cities
  • High end / exclusive
  • Need to travel on a regular base easy fast through the city

Shops:

  • On and offline high end bike shops
  • On and offline high end lifestyle / concepts shops

Market size

The use of bicycles, scooters, and other forms of two-wheeled transport when commuting is increasing in major cities around the world. The expectation is that the sales of electric bicycles will grow. According to a recent report by Navigant Research (http://www.navigantresearch.com) will grow global sales of electric bicycles from € 8.4 billion in 2013 to € 10.8 billion in 2020. The main drivers of growth in the global market electric bikes are technology and governments.

Competition

B4 Bikes competes in the category retro / vintage electric bikes. Main competitors are:

Prices in this category are between the € 3K and the € 9K for a retro / vintage electric bicycle.

What sets the B4 E-Cruizer apart from the completion is:

  • Range of 200 km
  • Space technology 
  • Dutch design
  • Look and feel
  • Battery incorporated in cylinder
  • Hand and custom built
  • Front wheel motor
  • Gear system: NuVinci® Harmony™

Customer feedback

75% of the current customers of B4 Bikes are male and 25% of the buyers are female. Age is 50+ and they are mainly entrepreneurs. The reason why they have bought the bike is because of the design and the technology. Our customers use the bike for weekend rides and or to display the bike in their house or office.The current customers are from the Netherlands, USA, United Kingdom, Belgium, France, Dubai, Swiss and Portugal.

Customer feedback

  • ''If you drive the B4 E-Cruizer you feel like a rock star''
  • ''When I am stressed it take the bike out to relax''
  • ''I got more attention on the bike than when I am driving my Rolls Royce''
  • ''What an incredible range has the bike''
  • ''Makes you feel like a child again''
  • ''This is a totally new driving experience; you can't compare it with nothing. Not with a bicycle, regular e-bike, scooter or a motor''
  • ''Love the personal touch and service of B4 Bikes it seems that you know all your customers personally''
  • ''What a cool way of selling bikes in your workshop with your own bar and smoked meat''

New customers

Targets:

  • 2016:   225 bikes / customers
  • 2017:   275 bikes / customers
  • 2018:   325 bikes / customers

Main request and interest is coming from:

  • The Netherlands
  • United Kingdom
  • USA
  • Switzerland
  • Germany
  • France
  • Canada
  • India
  • Australia

Sales pitch

The B4 E-Cruizer is a hand built and custom made electric bicycle inspired on a Harley Davidson from 1912 combined with the latest space technology. They are created for people who dare to be them selves. With its iconic motor design and its powerful electric engine it gives you the comfort and freedom of riding a bike and the thrill of cruising a motorcycle. What makes the bike really unique besides the look and feel is the range of 200 km on one charge.You can take the bike out for a relax ride on a sunny Saturday afternoon but it is also perfect for commuting to avoid the traffic jams. As the Sunday Times already mentioned this E-Cruizer is the Ultimate E-bike to be seen on. That is why businesses uses the attractive bike not only as their green company transport but also as a marketing tool to display on fairs or to spice up their interior. We receive our clients in our workshop in Baambrugge where the bikes are assembled by hand. The workshop is stylishly decorated with carpets, Delft blue tiles with rock’ roll motifs and indoor birch trees. At our bar we serve our clients home smoked meat while we discuss their design wishes over an ice-cold beer. Every customer who goes out for a test ride gets photographed and gets the pictures afterwards to show their friends and share their experience on social media.

What has been done before

Internet: 

Marketing:

  • E-mail approaching media and companies to introduce them B4 Bikes and the B4 E-Cruizer.
Handing out flyers:

  • Fairs, streets, shops, events

Exposing on main events and fairs:

  • Motor Expo, London
  • LXRY Fair, Amsterdam
  • Wereldhaven dagen, Rotterdam
  • Dutch Design Week, Eindhoven
  • ESA Events
  • Monaco ePrix, Monaco
  • Holland House Hanover Messe, Hanover
  • Road Show Cars & Business, München, Como, Monaco and St Tropez

Main free publicity:

  • 4-star article Sunday times (UK) – coverage 3.5 mil readers
  • 5-star article Top Gear magazine (NL) – coverage 50.000 magazines
  • 5 star article Het Parool (NL) – coverage 60.000 papers
  • TV program Tech Toys 360 – USA, Latin America, Asia, Europe – coverage 125 countries

Main joint promotions:

  • Campaign LP jeans India (nation wide) – coverage 6 months
  • Punt Amsterdam Netherlands (nation wide) – coverage 6 months
  • Munsterhuis Sport Cars (Hengelo) – coverage 2 months
  • Concrete Matter (Amsterdam) – coverage 3 months
  • Bijenkorf (Amsterdam) – coverage 1 month
  • Piet Jonker (Baambrugge) – coverage 3 months    

Marketing & sales channels

Besides our current point of sales we want to invest in more outlets in the major cities of Europe and the USA (Paris, Berlin, Geneva, Copenhagen, LA, San Francisco and more) This by creating partnerships with distributors and resellers. These outlets will act as concept stores, conveying our brand identity to our customers and acting as sales, service and operational centers for the region.

To create the opportunity to sell more bikes in ones we will aim for the business-to-business market. We will approach business located in big cities that have a need for striking and socially responsible mobility, like estate agencies, law firms, fashion houses etc.

We intend to sell more bikes through our online shop. We will create a web shop where we can sell our standard colored bikes with a few options to customize the black or Indian red E-Cruizer.

At the same time we want to increase the visits of prospects to our shop. It appears and the history has proven that when they have been to our workshop they are easier to move to purchases.

Additionally we want to aim to set up joint promotions with international high-end life style brands. To use their marketing and communication coverage and their customer base to introduce and show our bike to a bigger crowed.

We will intensify the approach to the media got create more free publicity. As we have noticed the media is well willing to publish the story behind B4 Bikes and the design of the E-Cruizer. The focus will be on the international media.

We will continue product placements in high-end (retail) stores to engage large audience awareness for our brand and product. But also to give us better view of which customers are in what type of stores they can be found.

To give people an better idea feeling and handling of the B4 E-Cruizer and to experience the lifestyle behind B4 Bikes better we will invest more invested in the development of lifestyle video and photo material. To show people the feeling of the bike and the brand, and convince them to get a test drive.

Marketing objective

  • Show the B4 E-Cruizer and seduces customers, businesses and  media to get make a test ride.
  • Create more points of sales, service and maintenance
  • Increase sales

Partnerships

Luxury European and exotic car tuning boutique based in Dubai.

Leading UK retailer of e-bikes, electric bike accessories and other electric vehicles.

Turnover so far

In the period of the art project and initial development (summer 2012 - summer 2014) we have realized a turnover of about €75K. Since the start in July 2014 of the new entity we have realized a turnover of about €150K until end 2015 (extended financial year).

Projected turnover

Based on target expectations we expect to realize a turnover for:

  • 2016               €1.500K
  • 2017               €2.250K
  • 2018               €2.900K

Assumptions

Based on target expectations, we think we are able to sell and produce:

  • 2016               around 225 bikes
  • 2017               around 275 bikes 
  • 2018               around 325 bikes 

Invested so far

In hard cash (equity) is invested €25K and for €60K on security on a RABO working capital credit facility of €105K. Besides that all shareholders have worked in the company without any fee, only cost compensation. This investment part is based on 2 persons fulltime and 2 persons halftime over a period of around 3 1/2 year.

Investment requirement

We are looking for crowd funding in 2 tranches:

  • €100K for 6% equity
  • €70K for 3% equity

Purpose of investment

Create stock for approx. 20 bikes, partly in components, partly in finished products

  • Improve supply chain
  • Marketing and sales
  • Innovation

Return

Create shareholders value with a serious chance on a profitable exit. We strive for a yearly dividend payout and doubling of your investment over a period of 3 years.

Risks

What we know from the past is the enormous attraction of the bike on people, businesses and media. The category (retro/vintage) electric bikes are relative new. People are interested but mostly at first somewhat hesitated. To find the real target customer is a challenge; we think we are on the right track (and successful) via trail and error. Convince to buy a bike by this target group is not difficult. Our experience on these customers is: "I want this bike, I'll take 2".