Chapter2 is positioned as a boutique bike brand, ‘but with a business model that can be scaled up quickly and efficiently’. The company is currently seeking investors, with a minimum investment of US$1000. Interested parties can view details about the business, and register their interest online.
Over 1,342 frames have reported been sold, across 33 countries, since Chapter2 launched in July 2017. Based in New Zealand, Chapter2 reports that it is on track to deliver net revenue of NZ$2.1m for 2019. The company is now seeking capital and further expertise to take the business to the next level.
Chapter2 sells direct to consumer (D2C) and direct to dealers (D2D) online. According to the company, this allows the business to ‘build strong relationships with customers and service centres, while generating superior gross margins.’
Chapter2 reports that its business model delivers gross margins in the region of 56%, versus industry norms of ~20-25%.
Chapter2 produces high specification carbon bike frames with ‘unique designs that inspire desirability’. Based on extensive industry experience built up at NEILPRYDE, a division of Pryde Group, the Chapter2 business was established by Michael Pryde in 2017.
Frames are designed in Auckland, New Zealand by ex-architect & ex-director of NeilPrydeBikes, Michael Pryde. The frame designs are then sent to China for mould fabrication and production. Thease are stocked in Hong Kong and China, then shipped globally.
Chapter2 intends to continue growing its business through opening up new distribution channels, increasing marketing spend, and ensuring the right resources are available to grow existing markets. Funds raised through the capital raise will help set up distribution and warehousing in Europe & the US, hire full-time staff in Japan and allow the business ‘to better scale the opportunity in front of us’.