HILOS

HILOS

Custom shoes on-demand, made locally and sustainably without inventory

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Security Type
Crowd Note
Categories
Consumer Goods & Products
Min Investment
$100
Location
Portland, OR
Offering Date
August 31, 2020
Expected Close Date
December 28, 2020
Target Raise
$25.00K-$250.00K
Deal Notes

In connection with equity financing of at least $1 million, the Company has the option to convert the Crowd Note into non-voting preferred stock (Conversion Shares) at a price based on the lower of (A) a 20% discount to the price per share for Preferred Stock by investors in the Qualified Equity Financing or (B) the price per share paid on a $6 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.

Company Description

HILOS aims to transform how consumer products are made and bought by pioneering on-demand, custom manufacturing, starting with footwear. Rather than make thousands of identical shoes overseas and bear inventory risk, the HILOS platform was built to manufacture the exact shoe a customer wants when they want it. This manufacturing process was created to reduce inventory and supply chain risk.i This on-demand approach can provide greater user customization as well as corresponding benefits in performance and comfort.

Many legacy brands are struggling to respond to supply chain disruptions, rapidly changing consumer preferences, and growth of digital during the COVID-19 crisis.ii HILOS aims to provide a new kind of business model that brings the agility and resiliency of the digital world to consumer products, finally bridging the divide between our screens and our shelves. With an on-demand production model that embraces minimal supply chains and inventory costs, rapid product development timelines and the ability to offer a personalized experience and custom product, HILOS aims to position itself at the intersection of on-demand customization and sustainable, locally-made products.

HILOS is raising capital to expand into new product lines and increase manufacturing capacity as it prepares for a full market launch in Spring 2021.

Key Deal Facts

End-to-end custom manufacturing platform engineered to be scalable across multiple footwear categories and brands
Portland-made in 72 hours from click-to-ship using 3D printing and digital automation
Offering is tailored to each foot, customizable, 100% recyclable
Customers have pre-ordered the entire first product drop of its initial style, the Georgia

Use of Proceeds

If the minimum amount is raised, HILOS will use the proceeds as follows:

  • Intermediary Fees: $1,250
  • Campaign Marketing: $8,000
  • Manufacturing: $4,000
  • Equipment Purchases: $9,250
  • Purchase of Real Property: $2,500

If the minimum amount is raised, HILOS will allocate the proceeds as follows:

  • Intermediary Fees: $12,500
  • Campaign Marketing: $50,000
  • Manufacturing: $40,000
  • Equipment Purchases: $75,000
  • Purchase of Real Property: $10,000
  • General Marketing: $32,500
  • General Working Capital: $30,000

Management Team / Advisory Board Bios

Elias Stahl
Co-Founder and CEO
Elias leads business strategy, daily operations, finance, and strategic partnerships as HILOS’ CEO. Elias also is a startup member of Go Paladin, a non-profit that works with minority entrepreneurs in the tech ecosystem. Before co-founding HILOS, he was the VP of product at Handshake Partners, a strategic consulting agency that helps organizations build influence and measure social impact. In this role, Elias built a team and developed a business intelligence SaaS platform for Fortune100 brands, which was launched at the World Economic Forum’s Davos meeting in January 2019. Earlier in his career, Elias served in the Israeli Special Forces. He holds a BA in history from the University of Toronto and an MA in international economics and strategic studies from Johns Hopkins University.

Gaia Giladi
Co-Founder and Chief Creative
Gaia has years of experience making her passion into a career as a designer, creator, and marketer. As Chief Creative Officer, Gaia leads product design, company branding, and marketing strategy and execution. Beyond HILOS, she founded HOLO and designs, creates, and markets one-off prints for private clients. Gaia has previously worked as a designer for Hybrid Apparel, St. John Knits, St. Roche, and BCBGMAXAZRIAGROUP. Gaia holds a BA in fashion and apparel design from the Academy of Art University and was a fashion designer for the school’s BFA Runway Show.

Eric Folsom
Director of Product
Eric brings more than 25 years of experience in mechanical and electrical engineering to HILOS. As director of product, Eric is responsible for leading product development, manufacturing architecture, testing, and quality assurance. Before joining the HILOS team, Eric co-founded Cibo Vero and designed, developed, and built aquaponics systems and sensors for the urban agricultural space. He was also founder of YourSourceChina, where he reportedly developed and brought to market over 200 separate products and helped scale a client’s business from $200,000 in yearly revenue to over $20 million in five years.xxxv He initially jumpstarted his career and engineering experience in the U.S. Navy as an aviation electronics technician, where he served for 10 years. Eric has a BS in electrical engineering and an MS in electronics engineering and communications from Belford University.

Deal Notes

In connection with equity financing of at least $1 million, the Company has the option to convert the Crowd Note into non-voting preferred stock (Conversion Shares) at a price based on the lower of (A) a 20% discount to the price per share for Preferred Stock by investors in the Qualified Equity Financing or (B) the price per share paid on a $6 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.

Amount Raised : $7,675
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Security Description

A Crowd Note modifies the typical convertible note so that the crowd does not automatically convert to equity shareholders on the next financing and remain off the issuer’s capitalization table, but the crowd will still participate in any exit as if they had converted to equity. If there is no future financing, the holders of the Crowd Note still have upside, but could miss out significantly.

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