Knightscope, a US-based security robot developer backed by several corporates, is set to raise $20m in a regulation A+ public offering at a valuation of $80m, TechCrunch has reported.
Regulation A+, a legal framework introduced a year ago, is a crowdfunding campaign in which a private startup is allowed to offer equity shares. Any members of the public are able to purchase a stake in Knightscope by committing a minimum of $999.
Founded in 2013, Knightscope produces security robots (pictured) that autonomously patrol an area. The company wants to use the proceeds from the offering to develop weapon detection technology that could prevent mass shootings.
Knightscope also hopes to expand across the US. Its robots are currently being used in several locations across California, including a campus of software producer Microsoft.
The offering has attracted the interest of more than 2,000 people, which would put the potential total proceeds at $65m. However, the company is limited by the rules of regulation A+, which only allow up to $20m in tier 1 campaigns and up to $50m in tier 2 campaigns.
Knightscope had previously raised approximately $15m in funding. Printing equipment maker Konica Minolta, supply chain services provider Flextronics and NTT Docomo Ventures, the investment unit of mobile network operator NTT Docomo, supplied $5.2m in series A funding in 2014.
The series A round included a $1.5m seed round secured in 2013 from NTT Docomo Ventures, SeedInvest and private investor Kishore Ganji.
The company raised $9.4m in series B funding from unnamed investors in October 2016, according to deals databases CrunchBase and AngelList, though the claim is unsourced on both sites.
William Santana Li, chief executive of Knightscope, said: “Most VCs are not fluent nor have a track record in physical security, law enforcement, robotics and large-scale hardware – though there are a lot of smart folks out there.
“No amount of thoughts and prayers from our political leaders will solve the level of violence, mass shootings and terrorism in our country – and this is a chance to back a solution instead of backing words with no action.”
– Image courtesy of Knightscope