Chapter 11 Acquisition Opportunity

quirky-logo-web

Quirky Inc.

Intellectual Property and Related Assets


Bid Deadline: November 13, 2015 12:00PM EST
Auction Date: November 17, 2015 10:00AM EST

INTRODUCTION

Hilco Streambank has been retained by Quirky Inc. (the “Company”) as its exclusive agent for the purposes of marketing and selling its intellectual property and related assets (the “Assets”). The Company is currently operating as a Debtor under Chapter 11 in the United States Bankruptcy Court for the Southern District of New York.

BACKGROUND

Quirky was founded in 2009 by Ben Kaufman, the inventor behind Mophie. The company’s mission was to put invention and innovation to work using the contributions from a large community of innovators to generate and refine ideas for new products. In 2014 the Company generated over $52MM in sales revenue. The company raised significant capital from institutions including Kleiner Perkins Caufield & Byers, Andreessen Horowitz, RRE Ventures, GE Ventures and Norwest Venture Partners.

Ben Kaufman also served as the company’s CEO. Kaufman founded Quirky on the belief that ordinary people have extraordinary ideas and that invention should be accessible to everyone.

The Community

Quirky is a socially developed product company founded with the vision of making invention accessible. The Company’s 1.15MM community members include thousands of product influencers who ultimately share in the financial proceeds of product commercialization. Headquartered in New York City, Quirky brings game-changing products, such as Pivot Power® and AROS Smart Air Conditioner, to the marketplace through interaction between its active online global community and Quirky’s expert product design staff, nurturing ideas from their earliest stages to commercialization.

The Process

The company sources ideas for new products through the Quirky.com community and its employees. Any of Quirky’s community members can become influencers by submitting new ideas or refinements and helping to determine which products Quirky will ultimately bring to market. Community members who submit ideas that are then developed and influencers who contribute to those ideas share in royalties based on product sales.

The Products

Quirky’s product line spans multiple categories from small appliances to power supply devices and productivity gadgets. Quirky products were sold online and in-store at a large number of mass merchants including Amazon.com, Target, The Home Depot, Bed Bath and Beyond, The Container Store, QVC, BirchBox and others. Quirky also sold directly to consumers through Quirky.com.

Product Categories Include:

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Powered by Quirky (PBQ)

The Company has established a series of valuable strategic relationships with key corporations throughout the years. Organizations such as GE, Harman and toy giant – Mattel teamed up with Quirky to enhance product development and marketing efforts of certain inventions. Through these partnerships PbQ was introduced to leverage the trust of the consumer, and allow for larger scale projects.

The Platform

TThe Quirky 2.0 platform was deployed in 2015 using the current cutting edge technology stack. The platform is designed and architected to provide a solid foundation for future development. The data model allows for high flexibility to develop and evolve the platform. The design is responsive and accounts for different form factors.

Quirky 2.0 is a single page JavaScript app. The app communicates to the server through an API. The API is architected to serve future needs (such as mobile apps). Objects sent through the API are serialized through custom implemented serializers. The API code is in a gem to be reusable across services. The platform includes an additional single page app (served from the same server) for admin tools. The platform uses a separate Ruby on Rails server to process attachments (using Carrierwave and rmagik).

The platform includes authentication system, and a comprehensive role based authorization system which is integrated into the code (using CanCan). The code base is very well documented with comments, and rigorously structured to adhere to conventions. The visual design implementation is highly standardized with a strictly followed and well-documented style guide. The platform includes a very comprehensive testing suite with very high coverage.

  • Hosted on Heroku
  • Average response time is approx. 175ms
  • Error rate is nearly 0%.

 

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ASSETS

  • Company and product specific trademarks
  • Company and Product Specific Domain Portfolio including: Quirky.com, Kluster.com, Undercurrent.com, and more.
  • Innovation sourcing and development platform
  • Community of 1.15 million innovators and contributors
  • Portfolio of products including patents, schematics, CAD files, specifications, prototypes, product specific trademarks and domains and inventory.

SALE PROCESS

Hilco Streambank is currently soliciting interest in these assets from qualified buyers:

Data Room: An online data room has been constructed where parties under confidentiality agreement can review
assembled diligence information.

Bid Submission: Interested parties that wish to acquire some or all of the assets must submit bids by 12 Noon on November 13, 2015.

Bid Deadline: November 13, 2015

Auction Date: November 17, 2015