Chatterbox - No I would not invest in this venture at this point. There isn’t enough information readily available for me to have the whole picture. I’ll admit, as a father of two growing children who are increasingly integrating technology into their lives, the pain point of customized automation through a smart speaker without Google or Amazon sniffing around is enticing, but I see some issues that would prevent me from investing. Firstly, the pitch is about the idea and the team, and unfortunately, there is little information about the executive team. Kickstarter has an interview of the founder from hackster.io but he is essentially giving us an infomercial rather than a venture pitch. When I try to navigate to the chatterbox website from my search engine, I’m given a broken link. The kit is selling for $180 USD, and I think this is a major weakness for chatterbox. This might be a fit for one-off units, but if they’re wanting to break into the education market and sell them in quantity, then this is much too steep for edu-buyers. There are too many other options to teach kids to code using block-based programming. I would have liked to see something in their pitch about how they differentiate themselves from their competition. Something I wonder is that if they do plan to try and sell them to schools, how might they be reused? For $180 USD I would hope they could be used for multiple classes. I don’t get the sense that they can be deconstructed/wiped and reassembled/reprogrammed. Ultimately there are too many issues with the pitch to warrant an investment.
I would not invest in this venture. I might buy one for my children, but not for my classroom. Think of Chatterbox as a build it yourself Google Home or Alexa. Through the construction process of Chatterbox, students learn how and why this technology works and provides an opportunely for kids to privately interact with AI. (Chatterbox ensure no data collection and no ads) Chatterbox states that children spend “way to much time with technology that isn’t looking out for them” they aim to combat this by providing a product that is private and creative. It looks like most potential buys will buy online (unless you live in the California area) no big box store or Amazon. The team is briefly described on the Kickstarter page with no more information than their titles. I see no schooling, experience, etc. This would not make me want to invest as an investor. Al, so they use “fun” job titles which doesn't help establish a sense of professionalism. They briefly identify competitors as Alexa and Google Home but identify their product as one that is safe/private for children. On Kickstarter this company had a goal of $10,000 o help them produce Chatterbox at a better value. (they did raise over $55,000) Investors would be expected to get their return about 6 months after they finalize the supply chain. However, if you bought a higher level perk you could receive is faster.
No, I wouldn't invest in this company. Chatterbox addresses a market that is certainly going to grow, and provides an interesting product. The biggest issue however is that Chatterbox is outclassed and a year behind a key competitor; Nintendo. In April 2018, Nintendo released the Nintendo Labo which is essentially a better product of what Chatterbox is offering. A self-built, cardboard toy that can play games, but also be programmed to respond to AI. The pitch does very little to differentiate its product, and address its competition. The price is also very expensive, considering the quality of the products being used. In particular, the Raspberry Pi system which is the core computer hardware is just not a very powerful system and has huge limitations in its capabilities. The messaging is also very narrow, with very little attention put into the legitimacy of its makers and the product. The only real demonstration of market readiness is the fact it is being tested in schools. However, we have no idea what kinds of schools they are, or how many. It also does not address the unique nature of use in schools, such as durability. The demonstration of the product and the concept is also light on details, and the software being used seems like a knockoff version of Scratch (the most prominent, youth focused coding program in the world). This project feels like it is trying to take advantage of our current obsession with smart speakers; and does not have a long term vision. There seems to be very little success or value that will be derived from Chatterbox, nothing is offered to the investor in terms of what Chatterbox's greater goals are in introducing this into classrooms.
No, I wouldn't invest in this company. Chatterbox has shown a clear pain point here as having voice assistant A.I. around children have major privacy concerns. Chatterbox also seems to blend STEM activity and coding into one DIY project which is an interesting concept. However, the use of cardboard in the construction of these chatterboxes should give this company the competitive edge of a lower price point to beat out competitors, so I am curious why each kit costs over 100 USD which is on par with other non cardboard based DIY robots. With the same price points, I am doubtful that a mass consumer base wouldn't opt for a similar but non cardboard DIY robot. Furthermore, from the website and kickstarter campaign, it isn't clear as to the degree of expertise, experience and authority the creators have within this space as their backstory isn't divulged.
