Investing in a small bike (related) company

[dbnm]

If you could invest in a small bike (related) company, which one would it be.

They must have less than 50 employees and based in the US.

Just curious where you would put your money.

[FlashUNC]

Not in bikes.

[quickfeet]

Not in bikes.

What a grump.


I’ll answer your actual question Wolf Tooth always seems to be coming up with cool stuff and seems to be growing like a weed.

[m_sasso]

Anything electric because the masses are sucking up electric like it's getting them something for nothing.

[FlashUNC]

What a grump.


I’ll answer your actual question Wolf Tooth always seems to be coming up with cool stuff and seems to be growing like a weed.

If the question is which brand do I have the most affinity for and would do something for sentimental reasons, then yeah, but if you're looking for any kind of actual return on your money? Lots better places to out it than bike companies.

But fine, for the same of argument you'd want something ubiquitous that supplies many other bike manufacturers. So the obvious answer is Paragon.

[akelman]

I suspect that VERY few companies in the industry have more than 50 employees.

[fiamme red]

If you could invest in a small bike (related) company, which one would it be.

They must have less than 50 employees and based in the US.

Just curious where you would put your money.Serotta. ;)

[biker72]

If you want a return on your money invest in something other than bikes. I have mainly index ETF's and not a penny in bikes.

They don't meet your criteria but I might put some money with Specialized or Trek but right now they are both privately held companies.

[dbnm]

Moots? Mosaic? Alchemy? Ornot? Velocio?

What company could benefit from an angel investor? Maybe this is not the right place to ask.

[Latestart]

I would guess there is some agreement that 'hardware' in bikes is capital intensive, tough to get distribution (bike shops are a bad channel), mediocre margins, discretionary purchases.

However, the 'services' related might be better. Strava, Peloton (success is in the subscription, not the hardware), Coaching. Safety.

Trips, food, nutrition, etc.

I would focus on the 'aging cyclist'. "Boomers" will want to go as long as possible, but are also injury prone.

[Mark McM]

I guess the OP has never heard the old axiom:

"How can you end up with a small fortune in the bike business? Start with a large fortune."

"Bike company" and "investment" are orthogonal concepts. People get into the bike business because they like bikes, not because they want a return on their investment.

[nmrt]

Maybe the OP did not actually want a return on the investment. But rather a show of support to a US bike goods company that is coming up with something cool and 'wants' them to succeed?

[unterhausen]

I guess the OP has never heard the old axiom:

"How can you end up with a small fortune in the bike business? Start with a large fortune."
I was going to post that. One of the bike shops in town reportedly has an investor backing them. But I can't imagine they are worried about returns.

When I worked at Trek, the Burkes sold toasters and chainsaws out of a giant warehouse in Milwaukee. I'm not sure how much money they put into Trek, but I think it was relatively minimal to begin with. The toasters are gone now, but the bike company remains. So some people do okay investing in bikes. There were about 20 employees when I was there

[dbnm]

TBH, I was just wondering what companies could be on the edge of some real growth and could use a small boost in income to help move them to the next level.

[cinema]

i'd imagine it would be a company that makes parts/batteries/motors for pedal assist bikes

[godfrey1112000]

I guess the OP has never heard the old axiom:

"How can you end up with a small fortune in the bike business? Start with a large fortune."

"Bike company" and "investment" are orthogonal concepts. People get into the bike business because they like bikes, not because they want a return on their investment.

But true:eek:

[buddybikes]

Rivendell

[cinema]

Rivendell

https://www.youtube.com/watch?v=-DT7bX-B1Mg

[jds108]

Fazua (makes electrical drives) just had their latest round of funding 6 months ago. I'd assume they're already larger than the company you're hoping to find.

https://www.crunchbase.com/organization/fazua#section-overview

Sorry, not US based.

[bitpuddle]

I can’t think of a bike-related company I want to invest in to achieve any kind of return. There just isn’t money in the industry.

But if I wanted to get involved with a company for the enjoyment of the product, probably Silca or Rene Herse. They both have an experimental, entrepreneurial approach to the business and are working hard to develop new product. I think that would be a lot of fun. I’d love to work with Moots for a similar reason; I really appreciate their dedication to quality and high standards.

[Louis]

Rivendell

Ha, ha - that's a good one. The OP didn't ask what charity to which one would donate.

[smontanaro]

I think most people are missing the point here. The OP used the term "angel investor." That suggests a reasonable amount of investment already (plenty of boring ETFs). I see nothing wrong with a high risk investment if you already have plenty of dough socked away and can afford to lose the money you plan to invest in this manner. Most early stage investments are extremely high risk, no matter the domain. If you want to invest in bikes because that's what you love, I say more power to you. (Me, I'll stick with ETFs. Most of my "angel" investing is focused on my adult children. ;))

The present circumstances suggest that too much of our just-in-time global pipeline results in products (or intermediate components of finished products) being made offshore, mostly in China. I agree with other people that the e-bike phenomenon is the current big growth opportunity in cycling. If you can find a company trying to manufacture (parts of?) the "e" part of the e-bike here in the US, that might be worth taking a look at. Considering how the coronavirus might change the bicycling landscape longer term, finding companies operating in a space which tries to take advantage of those changes might also be interesting.

[charliedid]

I was going to say Detroit Bikes as they have started a sizable production line to build bikes for Dick's here in the US. I looked but they exceed your 50 employee threshold.

[oldpotatoe]

If you could invest in a small bike (related) company, which one would it be.

They must have less than 50 employees and based in the US.

Just curious where you would put your money.

Someplace that makes bike(related) consumables, not durable goods..Like tires, lubricants, hbar tape, tubeless tape or sealant......

[pbarry]

Support a small company by purchasing a couple of custom bikes. :)

[RWL2222]

Greg LeMond’s new venture looks interesting https://road.cc/content/tech-news/270229-greg-lemond-launch-new-bikes-spring-investment-new-carbon-tech-suggests in that it could be a sort of proof of concept stepping stone for a much bigger market in new carbon fiber applications https://lemondcarbon.com

[Monthly Payment]

Phil Wood: I have always lusted after their stuff. The track bits I have are amazing quality.

Thomson: I’m guaranteed business from this forum.

Some smaller brands from my childhood I like that are surely close to 50 employees: pedros, hed, and especially defeet. I’ve always loved defeet stuff.