ARCO-The First Holographic AR Gaming Robotic

ARCO is trying to see itself as the first holograph AR Gaming Robot that can enhance the gaming and learning experience. However, I also would have a hard time investing in this company. The pitch is focused on selling the AR features of this game, however there were some inconsistencies between the story and the visuals. The pitch wanted to sell us on the idea that ARCO will be a toy that further kid's imagination. They argue that by investing in this product, investors will be in on the hottest game in the VR gaming industry at a low price point of $79 to get the basic package on Kickstarter. The retail price for ARCO is $179 after the Kickstarter campaign has ended.They are focusing more the creativity, imagination and fun that kids and parents will have will playing in the holographic world. The advantage of ARCO is that they are jumping into the VR gaming world quickly. With few products like this out on the market, ARCO is trying to establish itself early in the market because the market becomes saturated with other competitors. The two young inventors are trying to sell the educational and gaming features that ARCO can offer for adults and kids. However, the virtual worlds that were created were not creative or visually appealing that they would instantly grab a kid's attention. They VR world's in the battle mode or the coding puzzle game were not eye popping and did not have a "wow factor." Without a "wow" factor, kids could lose interest and it could be one of those toys that kids might play with once in while. Also with ARCO trying to simplifying the joystick, I fear that kids would lose interest quickly due to the simplicity. . The fact that the kid in the ad, was sitting the whole time and not actively moving around was a disappointment. The market seems to want a VR world that would allow the gamer to interact more with the VR world. While the premise is good and provides parents with the ability to provide a VR experience for their child, the simplicity of the VR world leaves me wanting more as an investor.

Like everybody else who has viewed this product I would NOT invest in it. Reg, I 100% concur with your observations. During the pitch not only was the parent holding the device during the AR demonstration of ARCO but the users were rarely more than a full meter from the robot. This makes me question the responsiveness of the device depending on how far the user is away. Furthermore, your acknowledgement about Sphero is spot on. Sphero has a wide variety of apps that can be used for both educational and entertainment purposes. And when one compares the prices of the two devices it is even more surprising. Sphero retails for $129.99. The retail price of ARCO is $159.99. This I find is very steep for what Heeweon observed as a gaming device that has low quality graphics, stories and mechanics. The AR concept is interesting but I also suspect competition can improve on the technology at a lower cost.

NO, I would not invest in this venture as an EVA. The presentation for ARCO starts off by illustrating the pain point of how toys these days cannot fulfill the children’s imagination. Then it goes on listing off some key features of ARCO that are the solution to the pain point. However, looking at the video and some examples of the usage, I do not believe that ARCO is a toy that will fulfill the children’s wildest imagination. The gameplay footage shows a couple of different examples of what gaming would be like with ARCO. In my opinion, the gameplay that ARCO provides seems to be lower quality in terms of graphics, stories, and mechanics. I feel that children can find a similar game on their phone, PC, and consoles that will allow similar gameplay with better quality in all, providing a better gaming experience. The only difference would be that those games would not be using an AR technology, but I would rather play something more fun and engaging and of better quality (conflict in differentiation that was not mentioned). As for their marketing strategy, they seem to be promoting ARCO on Kickstarter with a pledge amount with rewards starting from $79 to $359 USD. Investors will be awarded an actual ARCO kit and its number depending on how much they decide to pledge. Investors can also make a pledge without reward with any amount of money they wish to donate. As for the team creating this product, HICAT, has done a previous campaign with some success. They have acknowledged that they have some skills in mass production with a contract signed with one of the large-scale factories that manufacture smart toys. However, they have not provided enough details, such as the name of the company, production time and most importantly, the cost. With challenges like the need for further development of software (didn’t really specify the end goal), I think it is too early for an EVA like me to invest in this business.

As an EVA, NO I would not invest in this venture. ARCO - a smart robot with integrated AR technology controlled through an App, standalone controller, or VR headset. The suggested pain point is providing a tech-supported toy to support youth imaginative play (“...most toys these days cannot fulfill their fullest imaginations”). Although an interesting idea, it’s clear from the elevator pitch that the app software could be improved, and the product’s functionalities are limited (lights, AR gaming). The main selling feature (differentiation) of the product is simple gaming, educational puzzles, and coding-based VR activities for children. The software seems rudimentary, but might serve the purposes for its youngster audience (I couldn’t find a suggested age range of use for the ARCO on their sites). The ‘Ask’ on Kickstarter ranges from $79-$359USD for backers, however there is no mention of ROI for larger investors. I’ve noticed this to be the case for many Kickstarter campaigns, and wonder if the ROI is more often discussed in the Venture Pitch or Business Plan. This ARCO pitch focuses more so on the product over the venture or mission. There is an associated link to the Founder’s background, an industrial designer who has worked on multiple smaller-scale startups and RMIT-education led projects. They have since started http://hicat.io/ which has similar micro-robotic products available, controlled by mobile apps. One of my main concerns is use; the videos depicts the child holding the controller while the parent holds the mobile device in order to watch the app AR features. Younger children will most definitely need help with use, and potentially directions and to be shown various ways to use the ARCO. I see this venture as an interesting idea, but more so as a segue into increasingly immersive and interactive AR-type apps for youth. The pitch is fun, light-hearted, and aimed toward parents/adults over venture capitalists, and sells the educational aspect of the apps to make it both fun and educational. Overall, my concerns with profitability, ease of use (controller and/or app use) tip the scales for me, however I must admit that there doesn’t seem to be much competition for AR-based toys that offer an educational aspect other than Sphero (https://www.sphero.com/education), Lego, or Smart Globe (https://www.amazon.ca/Smart-Globe-Discovery-SG268-Interactive/dp/B00PB4SR5A) type interactions. The market space is immature enough that I’d be curious to see what the Hicat team comes up with next. -Reg