I received a google alert today that linked to this article mentioning that the Tech Coast Angels (the largest angel group in the world) funded BikeStation. The press release boasts their first “triple bottom line investment benefiting people, producing profit and saving the planet.”
First of all, with the economy and all, I’m stoked to see any press releases hitting the wire of companies receiving angel investments. However, I was very surprised to see TCA making an investment in what seems to be a high-end bike shop/storage station. Don’t get me wrong — I love the concept, but it doesn’t fit into the typical angel investment mold. Some of the questions that I have: how large is the market? What’s their sustainable competitive advantage? Will they really be able to return 10x the investment? How long will the station be relevant? Hey, it could just be a nice PR play.
I think that it is brilliant PR by Bikestation to push such a strong green message — it’s such a hot trend right now that even NBA bball players are wearing their green initiative t-shirts. In fact, I heard from an executive several weeks ago who told me that they tried raising investment capital for about 6 months without any luck whatsoever. Almost hopeless and ready to give up, they decided to go back to the drawing board and re-brand the company to be green. 2 months later, they again hit the funding trail and the reception was completely different and — you guessed it — they raised a few million.
I may not completely understand the investment, but I give props to the team at Bikestation and wish them the best of luck.
