Invest in Knightscope, Scam or Legit? Review
Knightscope is definitely not a scam. So, we no need to be worried on that part. This company has been covered by many reputed news channels like BBC, CNBC and so on. However, when it comes about
investing in share, it’s not enough to see either that company is scam or legit because there are lots of factors which can make us lose our investment by investing in shares.
OK, we will discuss either we should invest in share of Knightscope or not later in this post. First of all, let’s have some brief Knightscope review to find out what
What is Knightscope?
Knightscope is a company which design, manufacture and deploy Autonomous Data Machines (ADMs) which is used for security purpose. Those machines are used to monitor crimes in malls,
parking lots, and so on. Company has claimed that these machine will be very useful to prevent future crimes.
Is it safe to invest in Knightscope?
Now this is the tricky question. If we consider invest in Knightscope only thinking either Knightscope a scam or a legit, then definitely we can blindly invest in this company because it is a
But, let’s think again. Do every legit companies make profit? Does the share of every legit companies rise?
Of course not.
So, how can be we sure that our investment will be secure and we will make profit and we won’t lose any money by investing in Knightscope’s share. Well, we can’t be sure about that.
Knightscope is very innovative company with completely new technology. We never know this technology will be accepted by the society in the future or not.
Its seed share value was $0.33 per share which is now $8. So, early bird has definitely made money. But, did the value of this share will increase in the future? Well, that depends upon the sale
and performance of company’s product. So, let’s talk about sales number and performance of Knightscope’s product.
It has only sell its products to few companies which is definitely not enough to make this company profitable in the future. Many people still don’t think its product line is very useful.
BBC has reported that even one time its product (ADM) has been found to be drown inside the fountain. However, AMD has meant to be providing security features by running smoothly with
its sensor. So, if it has been fallen into the fountain, then that means there is still some fault in its product line. However, we are not a technical person to go deeply on this issue. But, we
believe the advanced technology like ADM should not be drowned into the fountain by itself.
Not only that, one time it has also found to be running over 16 month old child left with swelling to his right foot. However, the company has explained that was not the fault on the ADM side but
the sensor become confuse due to the activity of child. Well, either it is ADM’s fault or not, but if ADMs keep on running like this, then definitely people will start to hate these machines. No
one like the machine do any harm to human beings.
So, considering these facts, it seems ADM still need to be improved.
In order to make any company’s share profitable, the sales of the product should go sky rocket which seems difficult in the case of Knightscope as still it is unable to sell its product in a
Knightscope is a private company. So, its stock is not freely tradable. It has claimed that the company has filed certain periodic reports with the SEC under Regulation A of the Securities
Act of 1933, which are available on the EDGAR website and which provide additional information about the company, including its financial statements.
Now here is another risk to invest with such company because such kind of share can’t be readily transfer or resell. There is no market or liquidity for these shares and it does not seems
that company have any plans to list these shares on an exchange or other secondary market anytime soon. At some point the company may choose to do so, but until then you should plan to hold your
investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when the company either lists their shares on an exchange, is acquired, or goes
bankrupt.” So we don’t find it is promising to raise money on crowdfunding. When there is no market for the investment and just have to sit on it for potentially years and hope
that it goes public or is bought is really a risky thing. Actully this is what we think. However, we defintely like to have a discussion with you guys about this issuse. So, please feel free
to leave your comment below to have some discussion on this topic so that we can be more clear either we can get any benefit by investing in share of Knightscope or not.