Zing Drone Solutions

Zing Drone Solutions

Early Stage

Building the next generation of drone operations

Building the next generation of drone operations

Overview

Raised to Date: Raised: $4,000

Total Commitments ($USD)

Platform

Wefunder

Start Date

03/03/2024

Close Date

07/02/2024

Min. Goal
$50,000
Max. Goal
$124,000
Min. Investment

$500

Security Type

SAFE

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Early Bird Val. Cap

$6,750,000

Valuation Cap

$7,500,000

Discount

0%

Rolling Commitments ($USD)

Status

Active

Reporting Date

05/04/2024

Days Remaining

58

% of Min. Goal

8%

% of Max. Goal

3%

Likelihood of Max
unlikely
Avg. Daily Raise

$65

Momentum
cold.svg
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Year Founded

2018

Industry

Logistics, Delivery, & Supply Chain

Tech Sector

MarketplaceTech

Distribution Model

B2B/B2C

Margin

High

Capital Intensity

Low

Location

Palm City, Florida

Business Type

Growth

Zing Drone Solutions, with a valuation of $7.5 million, is raising funds on Wefunder. The company is building the next generation of drone operations with its two FAA-approved products. Zing Drone Solutions is highlighted by its innovative Z-RID Series and revolutionizing last-mile logistics with scalable drone delivery solutions. The business sold out its first batch for $80,000 in five months and has 600 unique customers, with more than 350 on the waitlist. Ian Annase founded Zing Drone Solutions in June 2018. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $124,000. The campaign proceeds will be used for inventory and manufacturing, digital marketing efforts, and the engineering team.

Summary Profit and Loss Statement

FY 2023 FY 2022

Revenue

$40,847

$7,048

COGS

$34,216

$2,331

Tax

$778

$1,073

 

 

Net Income

$-160,287

$-157,590

Summary Balance Sheet

FY 2023 FY 2022

Cash

$2,850

$9,311

Accounts Receivable

$0

$0

Total Assets

$28,719

$46,559

Short-Term Debt

$0

$0

Long-Term Debt

$0

$0

Total Liabilities

$0

$0

Financials as of: 03/03/2024
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
Zing Drone Solutions 07/01/2024 Wefunder $7,500,000 $4,000 SAFE Active RegCF
Zing 04/27/2022 Wefunder $7,500,000 $122,161 SAFE Funded RegCF
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Price per Share History

Note: Share prices shown in earlier rounds may not be indicative of any stock splits.

Valuation History

Revenue History

Note: Revenue data points reflect the latest of either the most recent fiscal year's financials, or updated revenues directly from the founder, at each raise's close date.

Employee History

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Analyst Report

Synopsis

Zing Drone Solutions is at the forefront of transforming the logistics, delivery, and supply chain industry through innovative drone technology. With the rise of e-commerce and the increasing demand for faster delivery times, the logistics sector is pressured to find more efficient delivery methods. Zing Drone Solutions is stepping up to meet this challenge by developing the next generation of drone operations, emphasizing the potential to revolutionize last-mile logistics with its scalable drone delivery solutions.

The company has made significant strides in this emerging market with its two FAA-approved products, including the innovative Z-RID Series. This product line showcases Zing Drone Solutions' commitment to leveraging technology for more efficient delivery methods. The success of these products is evident in the company's ability to sell out its first batch for $80,000 in just five months, attracting 600 unique customers and accumulating more than 350 individuals on the waitlist. Such achievements highlight the market's readiness and enthusiasm for drone delivery solutions.

Zing Drone Solutions aims to use technological innovation to make resources more accessible. By developing a drone delivery platform that enables pilots from around the world to make autonomous and environmentally friendly deliveries from local businesses, Zing is not only addressing the efficiency and speed of deliveries but also contributing to a reduction in carbon footprint associated with traditional delivery methods.

The company's participation in the Tampa Bay Innovation Center accelerator program underscores its commitment to innovation and growth within the drone delivery sector. Despite being in the early stages and facing the inherent risks of a "moonshot" venture, Zing Drone Solutions presents a compelling opportunity for investors looking to support a company that could redefine the future of logistics and delivery.

Next Section: Price

Price

Zing Drone Solutions is raising funds on Wefunder with a valuation cap of $7.5 million, utilizing a SAFE (Simple Agreement for Future Equity) instrument. This valuation is set against the backdrop of a company experiencing rapid growth, with a $300K run rate in just two months and a month-over-month revenue growth of 120%. The company has already demonstrated significant market traction by selling out its first batch of products, generating over $120K in revenue in 6 months, and acquiring 900 unique customers with an additional 250+ on the waitlist.

Given the company's early stage, the valuation cap of $7.5 million might initially appear ambitious. However, the valuation is justifiable considering the rapid growth rate, the innovative nature of their FAA-approved drone delivery products, and the burgeoning market for drone delivery solutions. The drone logistics and delivery market is projected to grow significantly in the coming years, driven by increasing demand for faster delivery, reduced human contact in logistics, and the ability to reach remote locations. Zing's patent-pending hardware and automated software position it well to capitalize on this growth.

For investors, the key to a successful exit and the potential for a 10X return lies in Zing's ability to continue scaling its operations, expand its customer base, and maintain its technological lead in the drone delivery space. The company's success in navigating regulatory landscapes and potentially securing strategic partnerships will also be crucial. As the market for drone deliveries matures, Zing could become an attractive acquisition target for larger logistics and e-commerce companies looking to enhance their delivery capabilities or could leverage its technology and market position to pursue a public offering.

However, investors should also consider the risks of investing in an early-stage company in a rapidly evolving industry. Regulatory changes, competitors' technological advancements, and the challenges of scaling operations are all factors that could impact Zing's growth trajectory and, by extension, investor returns. Nevertheless, for those with a high-risk tolerance and a belief in the future of drone delivery, Zing Drone Solutions presents a compelling investment opportunity.

Next Section: Market

Market

The global logistics landscape is rapidly evolving, with the last-mile delivery market at the forefront of this transformation. This sector is experiencing significant growth, fueled by an increasing consumer demand for fast, seamless, and contactless delivery options. Drones, with their ability to bypass traditional traffic constraints and deliver directly to destinations, represent a revolutionary step in addressing these demands.

Zing Drone Solutions is strategically positioned within the U.S. delivery drone market, a niche yet rapidly expanding segment. According to Grand View Research, the market size is currently valued at approximately $270.35 million, with an astounding growth rate projection of 39.4% annually. This growth is primarily driven by the need for same-day deliveries, a push for sustainable and low-carbon emission delivery methods, and significant advancements in drone technology. Furthermore, the COVID-19 pandemic has served as a catalyst, accelerating the adoption of e-commerce and the demand for contactless delivery services, thereby further amplifying investments in the drone delivery industry.

Zing Drone Solutions has already demonstrated impressive traction within this burgeoning market, selling out its first batch of products for $80,000 in five months and amassing over 600 unique customers with over 350 on the waitlist. This success underscores the high market acceptance of drone delivery solutions and Zing's potential to capture a significant market share. However, the company operates in a space characterized by high regulatory scrutiny, as drone operations necessitate stringent FAA approvals. This regulatory environment could pose challenges but also serve as a barrier to entry for potential competitors, potentially offering Zing a competitive advantage.

In summary, Zing Drone Solutions is entering a market with high growth potential, driven by evolving consumer behaviors and technological advancements. Despite the competitive landscape and regulatory hurdles, Zing's early successes and strategic positioning bode well for its ability to capitalize on the expanding delivery drone market's opportunities.

Next Section: Team

Team

Zing Drone Solutions, led by CEO Ian Annase, is carving a niche in the logistics, delivery, and supply chain industry through innovative drone delivery solutions. Annase, a first-time founder with five years of relevant industry experience, has successfully guided Zing through its early stages, including participating in the Tampa Bay Innovation Center accelerator program. This involvement likely provided valuable resources and mentorship, aiding in developing and launching Zing's FAA-approved products.

Despite being a relatively young and small team of three, Zing has achieved notable milestones under Annase's leadership. The company's first batch of products sold out, generating $80,000 in five months and attracting 600 unique customers, with over 350 on the waitlist. This demonstrates market demand for Zing's drone delivery solutions and the team's ability to execute their business plan effectively.

However, the team's medium decline in growth since the last round raises questions about scalability and long-term strategy. With Annase at the helm, Zing must focus on expanding its team and expertise to sustain its growth trajectory and capitalize on the burgeoning US delivery drone market.

Overall, while the Zing team is small and relatively inexperienced in high-level managerial roles, its early achievements and innovative approach to drone delivery suggest a promising future. Annase and his team will face the key challenge of scaling their operations and navigating the complexities of the logistics and delivery industry while continuing to innovate and meet customer demand.

Next Section: Differentiation

Differentiation

Zing Drone Solutions distinguishes itself in the competitive drone delivery market through its innovative approach and early traction. The company's two FAA-approved products showcase its focus on building the next generation of drone operations.

One of Zing's key differentiators is its patent-pending hardware and automated software, which position it as a leader in scalable drone delivery solutions. This technological edge, combined with its ability to meet local businesses' growing demand for environmentally friendly delivery options, sets Zing apart from competitors in the logistics, delivery, and supply chain industry. The anticipation of continued revenue acceleration through and beyond the FAA deadline further underscores the potential for Zing's solutions in the market.

While the drone delivery market is crowded, with many companies vying for a share of the burgeoning industry, Zing's early achievements and strategic focus on FAA-approved products give it a competitive edge. The company's ability to quickly attract a substantial customer base, along with its innovative approach to drone delivery, positions Zing Drone Solutions as a noteworthy player in the logistics and delivery sector. As the industry evolves and the demand for drone delivery services continues to grow, Zing's early traction and technological innovations could significantly shape the future of last-mile logistics.

Next Section: Performance

Performance

Zing Drone Solutions has demonstrated remarkable traction and growth since its inception, particularly in the rapidly evolving drone delivery market. Within just two months, the company achieved a $300K run rate, showcasing a significant month-over-month growth rate of 120%. This impressive growth trajectory is further highlighted by the company's ability to sell out its first batch of products, generating over $120K in revenue within six months. Additionally, Zing has attracted a substantial customer base, with 900 unique customers and more than 250 individuals on the waitlist, indicating a strong demand for its innovative drone delivery solutions.

The company's financial health, as evidenced by its cash position and funding history, underlines its potential for sustained growth and expansion. With $17,860 in cash on hand and $250,000 raised in prior funding rounds, Zing has managed to navigate the early stages of its development effectively. But with a monthly burn rate of $13,357.23, the company desperately needs cash. Hopefully, the anticipated acceleration of revenue post the FAA deadline suggests a promising outlook for achieving profitability and scaling operations.

Zing's product offering, including its FAA-approved Z-RID Series, positions the company at the forefront of revolutionizing last-mile logistics through scalable drone delivery solutions. The patent-pending hardware and automated software further strengthen Zing's competitive advantage, making it a notable player in the moderately competitive delivery drone market. The company's strategic focus on both B2B and B2C distribution models and a mix of recurring and transactional revenue streams provides a versatile and robust business model poised for success in the evolving logistics and delivery landscape.

In conclusion, Zing Drone Solutions exhibits strong performance indicators and growth potential within the drone delivery sector. The company's innovative technology, growing customer base, and strategic market positioning underscore its capability to capitalize on the expanding opportunities in drone logistics and delivery services. As Zing continues to navigate the regulatory landscape and expand its product offerings, its financial health and operational milestones signal a promising future for the company and its stakeholders.

Next Section: Risk

Risk

Zing Drone Solutions operates within the rapidly evolving drone delivery sector, which, while promising, exposes the company to several unique risks. The business, still in its early growth stage, is navigating a market characterized by high regulatory scrutiny. With drone operations being subject to stringent FAA regulations, any changes or tightening of these regulations could significantly impact Zing's operational capabilities and market expansion plans. The company's reliance on FAA approvals for its products underscores the regulatory risk as a pivotal factor that could affect its future growth trajectory.

Another critical risk pertains to production and quality control, inherent challenges in hardware-focused companies like Zing. Ensuring consistent quality and scaling production to meet demand, especially with their first batch selling out quickly and a significant waitlist, poses a substantial operational challenge. Any failure to maintain product quality or scale production efficiently could harm the company's reputation and financial performance.

Financially, the company's current financial position indicates potential liquidity risks, with a modest cash reserve and a history of net income losses. This financial situation underscores the importance of the current fundraising effort's success. Failure to secure sufficient funding could restrict Zing's ability to invest in necessary inventory, manufacturing capabilities, and further technological development, potentially delaying or derailing its growth plans.

Finally, while Zing's innovative approach to drone delivery and its existing FAA approvals set it apart, the drone delivery market is becoming increasingly competitive. As more players enter the space and existing competitors scale their operations, Zing will need to continuously innovate and possibly outpace larger entities with more resources. Market acceptance remains high, yet sustaining this amidst growing competition and evolving consumer expectations will be crucial for Zing's long-term success.

Next Section: Bullish Outlook

Bullish Outlook

Zing Drone Solutions is at the forefront of a transformative shift in logistics and delivery, leveraging its FAA-approved drone technology to revolutionize last-mile delivery services. With a clear demonstration of market demand, as evidenced by the rapid sale of its first batch of products generating $120,000 in revenue within six months and a substantial waitlist of over 350 customers, Zing showcases significant potential for rapid growth and expansion.

The company’s operational model, which blends both B2B and B2C strategies, allows for a wide-ranging addressable market across the burgeoning US Delivery Drone sector. This flexibility enhances Zing’s market potential and diversifies its revenue streams, making the business model resilient and scalable. Zing’s recurring and transactional revenue model further underscores its potential for sustained growth and profitability.

Zing’s commitment to technological innovation is evident in its pursuit of patents, which will further solidify its competitive position by protecting its proprietary technology. Zing has a fair valuation of $7.5 million and a compelling product that addresses a critical market need.

Next Section: Bearish Outlook

Bearish Outlook

While Zing Drone Solutions showcases promising early traction with its innovative drone delivery products and a growing customer base, several bearish considerations are apparent. First, the logistics, delivery, and supply chain sector, especially involving drones, is subject to stringent regulatory environments. The reliance on FAA approvals introduces a significant risk factor, as any regulatory changes or delays can severely impact the company’s ability to operate and scale. This dependency on regulatory bodies for crucial aspects of operation may deter potential investors looking for less regulatory-reliant opportunities.

Moreover, Zing Drone Solutions’ financial health raises concerns. The company appears to be on a tight financial runway with a relatively low amount of cash ($17,860) compared to its low profit of $4,000 a month. This situation could force the company into making unfavorable financial decisions, such as taking on debt under less-than-ideal terms or a dilutive fundraising round, which could adversely affect early investors.

Zing’s current market position and resources might not suffice to fend off competition, especially from those with deeper pockets and more robust technological infrastructure. This competitive pressure could stifle Zing’s growth and market capture efforts, making it a risky bet for investors.

Next Section: Executive Summary

Executive Summary

Zing Drone Solutions is at the forefront of innovating the logistics and delivery industry through its cutting-edge drone technology. With a focus on last-mile logistics, Zing aims to revolutionize the way goods are delivered by leveraging scalable drone delivery solutions. The company has developed two FAA-approved products, the Z-RID Series, demonstrating its commitment to compliance and safety in drone operations. Zing's business model has shown promising early results, with a $300K run rate in just 2 months and a growth rate of 120% MoM. This rapid growth is supported by the sale of its first batch worth $120K+ in 6 months, attracting 900 unique customers with an additional 250+ on the waitlist.

The global last-mile delivery market is experiencing significant growth, driven by consumer demand for fast, seamless delivery experiences. Drones offer a unique solution to traditional delivery challenges, such as traffic congestion, by providing direct routes to destinations. The pandemic has further accelerated e-commerce adoption and the need for contactless delivery solutions, highlighting the potential for drone delivery services. Zing's innovative approach, patent-pending hardware, and automated software position it well to capitalize on these market trends.

However, Zing Drone Solutions faces challenges typical of early-stage companies in a rapidly evolving industry. The competitive landscape is moderately competitive, with high barriers to entry due to regulatory hurdles and the need for technological innovation. Despite these challenges, Zing has demonstrated its ability to attract customers and generate revenue, albeit in the early stages. The company plans to use proceeds from its crowdfunding campaign for inventory and manufacturing, digital marketing efforts, and expanding its engineering team.

With a valuation of $7.5 million, Zing Drone Solutions is an early-stage company with high growth potential in the burgeoning drone delivery market. The company's focus on FAA compliance, innovative technology, and a growing customer base make it a noteworthy player in the logistics and delivery industry. As Zing continues to develop its products and expand its market reach, it will be important to monitor its ability to scale operations and navigate the regulatory environment of drone delivery.

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Zing Drone Solutions on Wefunder 2024
Platform: Wefunder
Security Type: SAFE
Valuation: $7,500,000

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