Agito Protective Apparel is a company founded in Denver Colorado by two brothers Ryan and Mark Alle

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Agito Protective Apparel is a company founded in Denver Colorado by two brothers Ryan and Mark Alle

Sports Entrepreneurship
Agito Protective Apparel is a company founded in Denver, Colorado, by two brothers, Ryan and Mark Allen. Ryan is a qualified engineer and Mark is in his final year at The George Washington University School of Business. They developed an attachment for ski helmets that uses a telemetry system to inflate a cushion when it detects a change in speed and direction associated with a fall. The cushion adds a layer of protection to the regular helmet, extra protection to the face, and some neck support. The company is also looking at developing an inner for ski jackets and pants that can protect the rest of the body.

Initially, the brothers conducted market research on the skiing industry in Colorado, and they arrived at the following statistics:

  • Every year, 800,000–900,000 people visit Colorado to ski.
  • On average, US$2,750,000 is spent every year in Colorado on skiing equipment during the skiing season.
  • Regarding sales of ski gear, ski shops account for 64%, mass merchants 15%, and sporting goods chains 11%.
  • About 42–88% of skiing-related deaths in Colorado are due to head trauma.
  • In Colorado, it is a legal requirement for children under the age of 14 to wear a helmet while skiing.

Using this research, the company develops a profile of its potential target market and the motivation for purchasing the product:

  • The typical consumer is 35–45 years old, female, married, from Boston, and a stay-at-home mom with young children.

The brothers have raised US$150,000 to develop the product but estimate that they need an additional US$300,000 to produce and supply enough of the product to start generating profits. They are considering approaching an angel investor and a VC firm based in Denver to acquire more capital. The brothers hope that the angel investor will supply US$50,000 initially, and the investor has asked for 8% equity in the company with limited control. They believe that the VC firm will offer US$200,000 in exchange for a 45% stake in the company.

Question 1

Use your knowledge of the business model canvas to answer the following questions regarding Agito Protective Apparel.

  • Based on the research, is it evident that there is a problem and an opportunity that the product addresses?
  • What methods should the company use to determine if the market is large enough to ensure demand for the product?
  • Do you think the ideal target market has been adequately identified? Why?
  • What are your recommendations to the company for diversifying its products? Do you think diversification would be a good idea?
  • What distribution channels should the company follow?
  • Considering the research conducted, do you think the company will be successful? What other considerations should it take into account?

(Max. 300 words)

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Question 2

The brothers behind Agito Protective Apparel have managed to find potential funding sources for their product. However, they have come to you for some advice. Based on the information given about the investors, answer the following questions:

  • Is the company prepared enough to approach external investors?
  • What are your concerns regarding the investors they have identified?
  • What other sources of funding would you recommend to the company?

(Max. 350 words)

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