A quick search shows what appears to be really solid IP coverage. It would seem that if the bike division is indeed going under, it's because of poor execution/management/luck, not because everyone is stealing their idea. If anyone attempts to buy out the softride idea, it's the IP that's going to cost them, not the company infrastructure.

It's obvious there's A LOT of money to be made in the high end tri bike market. I hope someone does make a go of this.

I've got about 10 bucks and some manufacturing capacity to throw at the problem....

~Matt

Also interesting to see that their early designs were clearly not intended to be aero, but comfortable. Check it out:

So is the price of softrides going down or up???

Is this good news for Titan Flex ???

Hmmmm, maybe I need to take a drive up the street to my local Venture Capitalist dudes. Too bad they are all focused on segments like telecom, semiconductors and enterprise software.

Not that I would know anything about living in the cut throat high end bike market, but pipe dreams are always nice. Hell, that's the way Gerard and Phil started Cervelo :-).

Since I could not sponser any UCI stuff, I'd have to offer the First to T1 prime at Kona along with the "Geriatric, I have a bad back, Masters Pro Division" :-)

Nothing like a few Friday afternoon dreams from the technology cubeworld.

I was sponsored by Softride in 1994-95-96 (well, I got product, but I'll take anything). Even then the focus was not on aero or weight reduction, but on comfort. It was not until waif thin riders started reporting how they were whipping downhill and dropping big dudes that they took their stuff into the windtunnel.

Dev

Myself and some well funded investors (not that I am not including myself as well funded) sought to purchase the IP of Cannondale in 2003. As you are likely to be aware we were not successful.

Now we know Softride not to be filing for bankruptcy but I will play this out for you anyway. Usually the assets would be sold persuant to a section 363 bankruptcy auction. In order words, the highest and best price usually takes the cake. You get the assets free and clear of the existing liabilities. This type of auction can happen very quickly and generally provide people who have knowledge of the company an inside track into buying the assets -- because they can move quickly and have some idea what the patents are worth, as well as maybe a plan to capitalize on them. A stalking horse agreement is often signed with a party and outside bidders must beat that agreement by a defined overbid.

Bottom line -- You would need cash, a bankruptcy lawyer, someone who could value the IP and some time on your hands. A financing letter would be helpful as well.

I think the most important thing that it would take is balls. And I speak as a Softride owner. I think it's a great design, and (IMO) it provides a fantastic ride - genuinely comfortable and genuinely fast.

But, and this is the big but, which I think is getting buried in a wave of senitment, Softrides are out of fashion at the moment. IIRC, Dan's survey of Kona bikes makes has shown Softride consistently losing ground over the last few years. If you ask yourself "What's hot?", it's Cervelo. Cervelo has proper race pedigree, and they look good too. The Soloist Carbon and P2C are two af the best looking bikes around, and I wouldn't say I'm a Cervelo fan.

By contrast, I think that you either have to want to like the look of a Softride, or you like the ride so much you don't care what it looks like. I have little doubt that the UCI rules that have spilled over into tri that favour double diamond frames have damages Softride. I'd bet that a lot of people who have no prospect of riding in any race where these rules make a difference have talked themselves out of a beam bike - whether due to wishful thinking about their ability, or concerns about the resale market for their bikes, or some other reason.

For me, on the flat, it's all about my sustainable max KmH. I don't care what my bike looks like - I kid myself that anyone who cares about appearances only gets to see the back end of my bike for a short while. But I really doubt that that's a typical view. Which is a shame.

You are right that the UCI rules have not helped, but I think Softride has been guilty of not milking their sponsorships for more. For crying out loud, they have had the fastest biker in the HISTORY of triathlon (if you measure it by being at the front end of the bike segment with the most number of sub 4:30 bike splits) in the form of Jurgen Zack. They just have not been able to turn this into bigger market share. He's one of the the greatest personalities in triathlon.

Like in any market, you can dominate, or you can carve out a nice niche and play in there and run a good profitable business. Something tells me that there is still a business there for 1 major reason:

Years ago the biggest age group was 30-34, now it is 35-39 and in many ironmans, its moving up to 40-44. Guess what folks ? The biggest age group is getting older. Less flexible backs, more beat up bodies, all wanting to race fast and denying their evident mortality.

They should be targeting the 40-49 male with deep pockets, and bad backs. These guys are a dime a dozen.

"I'd bet that a lot of people who have no prospect of riding in any race where these rules make a difference have talked themselves out of a beam bike - whether due to wishful thinking about their ability, or concerns about the resale market for their bikes, or some other reason."

I think a lot of those reasons have to do with NOT seeing Softrides under the butts of the pros in the magazines.

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Some are born to move the world to live their fantasies...

https://triomultisport.com/
http://www.mjolnircycles.com/

Mjuric is in with $10 and production capacity, I have $75 and can do the sales. I own two and they are great bikes, very fast and very aero.

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Brian Stover USAT LII
Accelerate3 Coaching
Insta

Were in process. Were in process. Just hold your water. we'll pay you when we sell the bounce house.

Bryan;
What is an IP?

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Just Triing
Triathlete since 9:56:39 AM EST Aug 20, 2006.
Be kind English is my 2nd language. My primary language is Dave it's a unique evolution of English.

Intellectual property, which in this case would include patents, process designs, any proprietary technology.

[reply]Intellectual property, [/reply]

Clearly I have none lots of vacant property, so if anyone has some intellect for sale I could use it.

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Just Triing
Triathlete since 9:56:39 AM EST Aug 20, 2006.
Be kind English is my 2nd language. My primary language is Dave it's a unique evolution of English.

Bryan, was there a specific strategy for purchasing C'dale IP ? Are you aware of any VC's or Angels playing in this industry category ? Something tells me that there is a business here.

Gerard and Phil might be engineers, but they get the promotional aspects of marketing. How is it possible that one company can extract more marketing mileage out of Bjorn Anderson who has not really done that much in Ironman (relatively speaking with all respect to Bjorn), when another (Softride) gets limited mileage out of perhaps the greatest bike talent ever to put his rubber on the Kona Lava Fields. It just does not make a lot of sense. Zack is 40, he is in the same boomer demographic as they guys that need softrides, and he is a triathlete. He is buried down in the bowels of the Softride web site...with an incredible palmares:

Jürgen Zäck Claim to Fame:Honor: 1997, IronMan Germany, 7.51.42 - 2nd fastest time in history
1st - 1993 IronMan Germany
1st - 1994 IronMan Germany
1st - 1995 IronMan Germany
1st - 1998 IronMan Germany
1st - 1999 IronMan Germany
1st - 2000 IronMan Austria
1st - 2001 IronMan Austria
2nd - 2002 Wildflower USA
3rd - 2003 IronMan Germany
6th - 2003 Ironman world championships Kona, Hi

Arguably the greatest Ironman athlete, German native Jurgen Zach knows how to win. Despite severe back pain problems and nerve damage in his foot earlier on in his career (which he was told was irreversible), Jurgen is back on track and won’t be stopping anytime soon.

Jurgen Zach’s struggles with his back led him to Softride back in 1993. After a test-ride on the Softride Power-V, Jurgen had to hold back the tears because this was the first pain-free ride he had experienced in a long time. He then immediately decided to ride a Softride at the Ironman Hawaii where he then proceeded to break the course record by 5 minutes. This triumph led Jurgen to a strong dedication toward Softride bikes, which have helped him continue in his conquest of accomplishments.

Jurgen will be celebrating his 40th birthday soon, but the only hill he will be going over is the one across the Ironman finish line. Age is not much of an issue for Jurgen, if he’s still feeling good, healthy, hungry, and can still race at the elite level, Jurgen will continue racing. Softride will be there to do everything we can to help Jurgen get the best out the years to come. Jurgen is scheduled to race in Ironman Germany in July and Ironman Hawaii in October and possibly a couple other short races in California and Germany throughout this year. Through his dedication and intense training and sacrifice, this triathlete encompasses remarkable characteristics making him the epitome of a true Ironman. In working hand-in-hand, Softride and Jurgen have established a powerful affiliation toward each other. Softride is proud to sponsor such a prestigious and world-renowned triathlete such as Jurgen Zach.

Jurgen is currently riding the Softride Medium FASTT 650c and we wish him the best of luck in all upcoming races.

Softride has to sell to triathletes. Selling to roadies is just a terrible uphill battle cause every roadie whether he is racing or not, needs to have a bike (or perceives to need a bike) that is UCI compliant.

Thus softride needs only four bike categories:

1. High End Tri bike

2. Entry Level Tri bike

3. Touring bike for bike touring

4. Mountain bike

The bottom three need to be marketed as the back saving, butt saving gems that they are. The first as your ticket to be the next Jurgen Zack.

I agree with you Dev. As someone appraoching your old age :) I have been thinking that a softride might be the way to go for my next major bike purchase. One of the marketing issues that I see them having difficulty overcoming is the "bouncy" ride perception. They not only have to push their technology but make it accessible for people to ride. Before I drop the kind of money on a softride that a FasTT or Rocket costs I would want to make sure their radically different design worked for me. That is one issue Cervelo doesn't have to worry about. If I were a softride marketing executive, I would have had gone after a deal with people like Mitch Fraser and had demo bikes at every Subaru series race going so that people could try them out. I think that this marketing approach in conjuction with a solid spec entry level bike would have won over a lot of people.

Allan, it would not take a lot to have the SR travelling road show at a variety of tri series across North America serviced by regional reps.

As far as I understand, the new rigid beam has no real bounce issue and as such they also need to do some marketing to alleviate the conception of racing on the 25 mph pogo.

As someone who was told by a specialist many years ago that I might have to give up running due to some severe muscle damage in my lower back (I'm glad I ignored this advice and asked elsewhere!) I'd definitely like to try one out and a "road show" would get me onto one for a test ride.

Yes, some of our plans were Cannondale specific and bankruptcy specific. The basic program was as follows:

1) Utilize the bankruptcy to shed unwanted liabilities and substantial obsolete inventory

2) Right size the business now that it was no longer associated with the motorsports business

3) Inject new operating talent into the organization

4) Develop a new line of tri related products and new line of BMX products

5) Expand apparel business

6) Increase international brand building and distribution efforts

As for private equity people that would play in the space:

Pegasus - Owns Cannondale
Chartwell - Owns Richard Childress Racing
Mercanti Group - Likes small consumer distribution businesses
Vulcan - Owns Dick's Sporting Goods
Leonard Green - Owns Gart Brothers Sporting Goods

This deal would likely be too small for most of those guys. It would need angles. Normally in bike deals you look close to Lance Armstrong's team, the problem is if your bike can't be ridden in the tour, those folks tend not to be interested. If you become really seriously we can talk about who to call.

"Too small" , ballpark , what do you think it would go for?

Unfortunately I can't tell you that without taking a look at the financial statements and inventory levels. However, if you really pressed me I would save somewhere between $5M and $10M -- maybe more, maybe less depending on a few things.

 

How do you get a small fortune in the bicycle industry, start out with a big one.