Market opportunity
Over the past 2 years mobile devices have gained the ability to create interactive 3D worlds. The consumer drive towards 3D is typified by the recent crowdfunding of a 3D android tablet called neo3do. Today, the top apps in the google play store all have 3D capabilities.
This 3D digital revolution will mean huge changes for gamers, artists, and designers. Engineers won’t sit CADing at a desk for hours, instead they will CAD on the fly using one of the 27 free CAD apps and do it right where they are building their parts.
But with all these advances, mobile technology has been lagging on a key element, and that is an intuitive 3D User input. The 3D digital world has been able to jump out of our flat phones and tablets, but our ability input into them is still stunted by the 2D planar User interface of the touch screen.
Before mobile 3D can have a real impact on the lives of gamers, artists, and designers, we need an intuitive, mobile and truly 3D input. We believe that there is a large market opportunity to be the first mover in this emerging market for 3D human input devices (HID) specifically designed for mobile use.
This 3D digital revolution will mean huge changes for gamers, artists, and designers. Engineers won’t sit CADing at a desk for hours, instead they will CAD on the fly using one of the 27 free CAD apps and do it right where they are building their parts.
But with all these advances, mobile technology has been lagging on a key element, and that is an intuitive 3D User input. The 3D digital world has been able to jump out of our flat phones and tablets, but our ability input into them is still stunted by the 2D planar User interface of the touch screen.
Before mobile 3D can have a real impact on the lives of gamers, artists, and designers, we need an intuitive, mobile and truly 3D input. We believe that there is a large market opportunity to be the first mover in this emerging market for 3D human input devices (HID) specifically designed for mobile use.
bUSINESS MODEL
Tether's main source of revenue comes from the sale of the tether device with a target sale price of $40. In addition to device sales there may be additional revenue from the sale of tether apps, though the initial apps for the device will be offered for free.
To reach a high quantity of customers in a short period of time, tether will launch through a kickstarter campaign by the end of the first quarter of 2014. We expect to ship 5000 device orders for a gross revenue of $200,000. Once tether has launched, it will continue device sales through www.tether3D.com and app sales through the google play market.
An important aspect of tether's business model is engaging a community of developers around creating tether compatible apps. Tether has already created an API that allows for simple integration of the 3D tracking of the tether device into apps. This API will be available for free for developers to use and will encourage the quick growth of a tether-based app base.
Finally, we plan to generate income through one-time design contracts with companies that require the 3D input functionality that the tether device and API offer. Such companies include museums, schools and marketing agencies seeking to create interactive displays.
To reach a high quantity of customers in a short period of time, tether will launch through a kickstarter campaign by the end of the first quarter of 2014. We expect to ship 5000 device orders for a gross revenue of $200,000. Once tether has launched, it will continue device sales through www.tether3D.com and app sales through the google play market.
An important aspect of tether's business model is engaging a community of developers around creating tether compatible apps. Tether has already created an API that allows for simple integration of the 3D tracking of the tether device into apps. This API will be available for free for developers to use and will encourage the quick growth of a tether-based app base.
Finally, we plan to generate income through one-time design contracts with companies that require the 3D input functionality that the tether device and API offer. Such companies include museums, schools and marketing agencies seeking to create interactive displays.
Competitive Landscape
Right now, mobile input is limited to the touch screen, accelerometer and more traditional bluetooth connected mice and keyboards. There are also stylus like devices that allow you to write on the touchscreen itself or a secondary screen. For gaming applications there are some custom game controllers, but none of them are tracking motion.
In the realm of next generation input devices which focus on translating motion into three dimensional input there has been recent success. In 2013, Leap Motion achieved 45 million dollars in pre-order sales for a hand and finger tracking device. Another company, MYO, recently raised 14.5 million dollars in series A investment for a wearable gesture based HID. We see these successes as a form of market validation that these new forms of input are desired by consumers.
In the realm of next generation input devices which focus on translating motion into three dimensional input there has been recent success. In 2013, Leap Motion achieved 45 million dollars in pre-order sales for a hand and finger tracking device. Another company, MYO, recently raised 14.5 million dollars in series A investment for a wearable gesture based HID. We see these successes as a form of market validation that these new forms of input are desired by consumers.