What does the $2000 pay for?
All of it. Development, production and certifying of the product. This will be fully funded by all of the investors together.
Do I get interest on my $2000 investment?
You get a free LineScale worth $795 as a thank you for helping us with this project. We avoid using the word interest for accounting purposes.
Plus, you of course get your full investment back, as the retail units sell. Therefore you should consider this investment as a short term loan.
Plus, you of course get your full investment back, as the retail units sell. Therefore you should consider this investment as a short term loan.
What happens if you are not fully funded?
Everyone’s money is returned to them. We will not order the 1000 units until we are fully funded. Your investment will be treated as an escrow account until full funding is collected. In the unlikely case of failed funding, every cent of investment will be returned to each investor!
How long are you trying to raise money for?
Start of crowdfunding is Dec. 16th 2020 @ 2020h CET. The funding period will run until 150 investors have paid their investment, or until March 15th 2021. If by this time we’re unable to collect the 150 investor payments, the funding will be announced failed and all paid investments will be fully refunded. No investor will have any drawbacks, except for not getting a LineScale 🙁
Why don’t you fund this project through a bank loan?
Good question, to which there are two answers:
1. We really considered to do so, but times are dire and we honestly don’t currently have the capacity to fund a 400k$ project by our own at this time. We could simply suspend it for 1-2 years, but it would break our heart to do so, if there are other possibilities… such as funding part of it ourselves, and get 150 investors in the boat for the rest.
2. We truly love our community and customers, therefore we’d much rather treat you with a fantastic deal, such as a free $795 awesome piece of gear, than paying interest to a bank. A loan would probably be cheaper too, but it doesn’t give us back as much as stirring up the crowdfunding scene the way this project will 😀 Spending a bit more on our fans, community and customers is so much more fun, than saving a bit of money… money is not all in life! You can’t do without it, but it’s our philosophy, that we don’t need more than we require to live well.
1. We really considered to do so, but times are dire and we honestly don’t currently have the capacity to fund a 400k$ project by our own at this time. We could simply suspend it for 1-2 years, but it would break our heart to do so, if there are other possibilities… such as funding part of it ourselves, and get 150 investors in the boat for the rest.
2. We truly love our community and customers, therefore we’d much rather treat you with a fantastic deal, such as a free $795 awesome piece of gear, than paying interest to a bank. A loan would probably be cheaper too, but it doesn’t give us back as much as stirring up the crowdfunding scene the way this project will 😀 Spending a bit more on our fans, community and customers is so much more fun, than saving a bit of money… money is not all in life! You can’t do without it, but it’s our philosophy, that we don’t need more than we require to live well.
How often will I be paid my money back?
You will receive four payments @ $500, based on sales of units, until all of your money is returned to you. Equal payments will be issued to each investor as sales volume reaches the threshold to yield a proportionate payment of $500 to each of the investors.
The fourth and final reimbursement could come as late as 3 years after your investment transfer (given the unlikely case of slow sales), or as soon as 3-4 months after your investment transfer, due to pre-order sales, which start right after the project is funded. A high initial sales volume for pre-orders might result in full reimbursement even before the first LineScale-3 units reach LGC’s warehouse.
The fourth and final reimbursement could come as late as 3 years after your investment transfer (given the unlikely case of slow sales), or as soon as 3-4 months after your investment transfer, due to pre-order sales, which start right after the project is funded. A high initial sales volume for pre-orders might result in full reimbursement even before the first LineScale-3 units reach LGC’s warehouse.
How much of each unit’s profit goes back to investors?
90% of net sales will be applied to paying back investors. This means LineGrip Corp makes almost no money until the crowdfunding investors are paid back fully. Out of 1000 Units the first 150 go to investors. Units 151 to about 650 will need to be sold to fully pay back investors. There will be pre-order discounts and wholesale, which means not every unit is sold at full retail price.
How long will it take to get developed?
Approximately 3-4 months. If we succeed to fully fund in December, we expect you to have your LS3 in your hand before the end of May 2021. If funding takes longer, then this date will delay respectively by 1-2 months.
This is the expected time schedule:
• Development & Prototype: 6-8 weeks (from time of full funding)
• Production of 150 investor units: 10-12 weeks (from clearance of prototype)
• Production of 1000 retail units: 14-16 weeks (from time of receiving investor units)
This is the expected time schedule:
• Development & Prototype: 6-8 weeks (from time of full funding)
• Production of 150 investor units: 10-12 weeks (from clearance of prototype)
• Production of 1000 retail units: 14-16 weeks (from time of receiving investor units)
How long will it take to get my money back?
To be totally honest, that is unknown. We estimate 12 to 24 months to sell the all remaining units (150 went to investors) from the time they are in our warehouse. However, with sold unit no. 500-550, all investors will have all their money back (see below “Do all 1000 units need to be sold before I get all my money back?”).
How safe is my money?
These funds will be held in a separate, project dedicated USD bank account, and only small deposits will be given to the factory for development and production down payments. We’ve been doing business with this manufacturing partner in China for over 10 years, and we’re 100% sure they’re reliable and competent. Until they prove they have the units ready to ship, and these units comply fully to LineGrip Corp. requirements, no money will be transferred for the series products.
What is the risk?
We have been in business for 11 years and our manufacturing partner in China for 20 years, so there is an insignificant risk here.
The units being made as we promise is a small risk, as we do prototypes before making a 1000 units, and we are promising very realistic specs that have been confirmed by the factory.
The biggest risk is market size. We understand there will not be 1000 slackliners who would buy these, but being PPE rated we will access the industrial and rope access markets, and event industry.
The units being made as we promise is a small risk, as we do prototypes before making a 1000 units, and we are promising very realistic specs that have been confirmed by the factory.
The biggest risk is market size. We understand there will not be 1000 slackliners who would buy these, but being PPE rated we will access the industrial and rope access markets, and event industry.
The only current option available in those markets is slow, weak, only an app for iOS, not waterproof and not even UIAA rated let alone PPE.
But this is truly an unknown and that makes it the largest risk – but only in terms of the projected sales period. We might miss the aim to sell all 1000 of them within 2 years, but we have no doubt what so ever, that all 1000 units will be sold! If we did, we wouldn’t take the risk 😉
And after all, keep in mind: we only need to sell about 500 units, to 100% pay back all investors… what happens thereafter is our problem, not the investors one! We are absolutely positive to have these 500 units sold in way less than a year 🙂
For the predecessor, the LineScale-2: 88 units were sold on pre-order within 2 months after announcement. A total of 140 units were sold within one year, and many more customers have expressed interest in purchasing after they were out of stock. But note: LineScale-2 was not PPE, had a scan rate of only 40Hz, and it had no onboard memory for logging without a phone connected.
Can I change my mind after I invested?
Please don’t invest if you are not serious about this project. After you commit to your investment, you won’t be able to revoke it. Once we have ordered the 1000 units, your money will only be reimbursed as units are sold. If we unexpectedly don’t succeed in getting 150 signed investors’ payments, you will be refunded your full investment by March 22nd 2021 at the very latest.
Do all 1000 units need to be sold before I get all my money back?
No. We only keep 10% of net sales to keep the lights on and pay for shipping and misc expenses until all investors are paid back. Until then, 90% of net sales will go into paying you back. Thus, when we sell around the 500th unit you will be paid back fully.
When can I place a “normal” order for a LineScale-3?
Right after we succeed in fully funding this project!
At the time of development start, we will offer a pre-order deal to order LineScales @ presumably 749$.
These will be shipped in order of payment receipt, as the retail batch comes in.
As soon as the retail units are in stock, the LineScale-3 will sell at 795$.
At the time of development start, we will offer a pre-order deal to order LineScales @ presumably 749$.
These will be shipped in order of payment receipt, as the retail batch comes in.
As soon as the retail units are in stock, the LineScale-3 will sell at 795$.
If I invest first, do I get paid back first?
No. All investors will receive an equal share of the profit until all are paid back at the same time.
But as a first investor your money is just as safe as the money of the last investor, because we only start development and production after the full project funds are complete… and note: if you invest first, you start the stoke first!
We do however ship the free LineScales to investors in order of their investment. So the earlier you invest, the sooner you will get your free LineScale-3 ?
But as a first investor your money is just as safe as the money of the last investor, because we only start development and production after the full project funds are complete… and note: if you invest first, you start the stoke first!
We do however ship the free LineScales to investors in order of their investment. So the earlier you invest, the sooner you will get your free LineScale-3 ?
Can I invest more than once?
Yes, every investor can sign up for as many investments he/she wants to!
If you invest in e.g. two fundings, and therefore pay 4000$ investment, you will get two free lineScale-3. Furthermore, in each reimbursement run you will be reimbursed 500$ for each investment you hold – for two investments that will be 1000$ reimbursement per run.
In other words, each 2000$ investment will be treated as an individual investment, regardless of the person it belongs to.
But of course you only need to sign one single contract for any number of investments.
If you invest in e.g. two fundings, and therefore pay 4000$ investment, you will get two free lineScale-3. Furthermore, in each reimbursement run you will be reimbursed 500$ for each investment you hold – for two investments that will be 1000$ reimbursement per run.
In other words, each 2000$ investment will be treated as an individual investment, regardless of the person it belongs to.
But of course you only need to sign one single contract for any number of investments.
Do I pay import tax and/or customs on the free LineScale-3?
It depends on the customs and tax regulations of your country.
If your country has a free trade agreement with Germany, you will most probably not pay any fees and taxes for the import. But please note, we can not guarantee this. Theres just too many different regulations for us to keep track of. Please check with your local customs office.
We will ship the free LineScale-3 with a declared goods value of 300€ for insurance purposes. If we’d declare it as 1$ customs value (since its free), the UPS transport insurance will only refund 1$ in case the parcel gets lost or is damaged. We will do this if you insist and take the risk on your part (a tiny risk – UPS has not lost one of our about 1000 parcels in the past 10 years). By doing this you release us from parcel damage/lost liability but you will also not pay any taxes or customs fees, which is actually correct, because you did not pay anything for the goods… therefore it can literally be considered a gift.
If your country has a free trade agreement with Germany, you will most probably not pay any fees and taxes for the import. But please note, we can not guarantee this. Theres just too many different regulations for us to keep track of. Please check with your local customs office.
We will ship the free LineScale-3 with a declared goods value of 300€ for insurance purposes. If we’d declare it as 1$ customs value (since its free), the UPS transport insurance will only refund 1$ in case the parcel gets lost or is damaged. We will do this if you insist and take the risk on your part (a tiny risk – UPS has not lost one of our about 1000 parcels in the past 10 years). By doing this you release us from parcel damage/lost liability but you will also not pay any taxes or customs fees, which is actually correct, because you did not pay anything for the goods… therefore it can literally be considered a gift.
So if I choose to invest, how do I pay?
We have set up two separate bank accounts which are dedicated to this project.
One of these is a USD bank account in the US (with Routing (ABA) and US Account numbers), the other is a EUR bank account in the EU (with BIC and IBAN numbers).
We suggest to use the payment processor Transferwise. They are registered in 50 countries and convert over 50 currencies to any other. This is a UK FCA (Financial Conduct Authority) regulated payment provider, so there is zero risk and 100% flexibility here. We will send you a link with a voucher for 5-6$ transfer rebate in the payment email, after we receive your signed funding contract.
If you’re a US citizen with a US bank account, you can also pay in USD fast and easy if you can process ACH transfers yourself.
If you’re an EU citizen with an EU bank account, you can pay in EUR fast, easy and free via SEPA transfer. We will inform you about the current exchange rate and send you the necessary investment account in EUR, which we will then convert to USD and internally shift it to the USD project account.
If you’re a citizen of another country, you can send USD via any payment gateway, preferrably Transferwise.
After we receive an investment in EUR we will immediately convert it to USD and move it to the USD project account.
Since the LineScale is funded in USD we want to rule out exchange rate fluctuations over the course of the project.
One of these is a USD bank account in the US (with Routing (ABA) and US Account numbers), the other is a EUR bank account in the EU (with BIC and IBAN numbers).
We suggest to use the payment processor Transferwise. They are registered in 50 countries and convert over 50 currencies to any other. This is a UK FCA (Financial Conduct Authority) regulated payment provider, so there is zero risk and 100% flexibility here. We will send you a link with a voucher for 5-6$ transfer rebate in the payment email, after we receive your signed funding contract.
If you’re a US citizen with a US bank account, you can also pay in USD fast and easy if you can process ACH transfers yourself.
If you’re an EU citizen with an EU bank account, you can pay in EUR fast, easy and free via SEPA transfer. We will inform you about the current exchange rate and send you the necessary investment account in EUR, which we will then convert to USD and internally shift it to the USD project account.
If you’re a citizen of another country, you can send USD via any payment gateway, preferrably Transferwise.
After we receive an investment in EUR we will immediately convert it to USD and move it to the USD project account.
Since the LineScale is funded in USD we want to rule out exchange rate fluctuations over the course of the project.
Can I pay with Credit-Card or Paypal?
No, they all charge very high transaction fees. In the (unlikely) case of failed funding these fees would be lost and a failed funding would cost us up to 4-5000$ if we need to refund 100 investors. It is paramount for us to refund 100% of your payment in case we fail to fund the project… so, the full 2000$, and not only e.g. 1920$ because of transfer fees!
Therefore we only accept direct bank transfer (ACH for US, SEPA for EU) for this investment, preferably via Transferwise.
Therefore we only accept direct bank transfer (ACH for US, SEPA for EU) for this investment, preferably via Transferwise.
What are the next steps after I click “Invest Now” button and complete check-out?
During check-out you select “Bank Transfer” as payment method, so you don’t pay during check-out!
1. After check-out you will be able to directly download the “Funding Contract” PDF.
2. You study the contract, and if you agree with the terms, you sign it, and email a picture or screenshot of your signature to us.
(the first and last page of the contract is sufficient)
3. You will then receive a second email with the bank account details for transfer of your payment.
4. After your payment is credited on our account you will receive a third email confirming your investment.
1. After check-out you will be able to directly download the “Funding Contract” PDF.
2. You study the contract, and if you agree with the terms, you sign it, and email a picture or screenshot of your signature to us.
(the first and last page of the contract is sufficient)
3. You will then receive a second email with the bank account details for transfer of your payment.
4. After your payment is credited on our account you will receive a third email confirming your investment.
Are you stoked?
Yes, we are very stoked! We don’t have $300,000 just lying around so if 150 slackers can help, then we can create great gear that otherwise wouldn’t exist.
The question is… are you stoked???
The question is… are you stoked???
Yeah, I’m stoked! So what next?
If you want to commit to this project, simply click the “Invest Now” button, and complete the check-out procedure.
After check-out you can directly download the detailed “Crowdfunding Investment Contract” which you should study in detail.
If you then decide to not sign the contract, simply send us a “withdrawal notice” (no explanation required) via email, and your order will be nullified.
After you decide to really commit to this, you sign the contract and return pictures of the signed contract to us.
When we receive your signed contract you will be listed as “signed investor” and receive the payment details.
We will inform you as soon as your payment is credited on our dedicated project bank account.
From here on you are “Official Funding Investor” and you will be regularly informed about the project status.
After we receive 150 investments, the funding period is closed, and the project is fully funded.
That is when the real fun starts… we will begin production 😀
After check-out you can directly download the detailed “Crowdfunding Investment Contract” which you should study in detail.
If you then decide to not sign the contract, simply send us a “withdrawal notice” (no explanation required) via email, and your order will be nullified.
After you decide to really commit to this, you sign the contract and return pictures of the signed contract to us.
When we receive your signed contract you will be listed as “signed investor” and receive the payment details.
We will inform you as soon as your payment is credited on our dedicated project bank account.
From here on you are “Official Funding Investor” and you will be regularly informed about the project status.
After we receive 150 investments, the funding period is closed, and the project is fully funded.
That is when the real fun starts… we will begin production 😀
Lets make this happen… together!
Thank you in advance for your trust and support.
I, Andy, as CEO personally guarantee: if this project gets funded, you as crowding investor will receive a free dyno wayyyyy better than anything else available on the market today!
And should we unexpectedly miss the funding goal, we will refund your investment within 2 weeks, keeping you unharmed in any case!
Your investment is safe with us! We personally stand by this promise, as we’ve stood with all guarantees and promises since 2009.
Andy & Arthur Riedrich
and the LineGrip Corp. Team
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