A Hardware Startup StoryJan Goetgeluk

CEO, Virtuix Inc.

Until recently, virtual reality was not ready

Source: www.doolwind.com

Virtuix Omni: omni-directional treadmill for VR

PLAY

Company Snapshot

Virtuix Omni™• First ever virtual reality platform for moving freely and naturally in video

games• $699 price

$1.1 million Kickstarter campaign in July 2013

$8 million raised by investors to date• Investors include Mark Cuban, Maveron, Tekton Ventures,

Scentan Ventures, Scout Ventures, WTI, and Startcaps Ventures

31 employees; Offices in Austin / Menlo Park / ZhuhaiPresident / COO in China

$2.0MM+ pre-order revenues (4,000+ units)

Timeline of events

2007

2008

2009

2010

2011

2012

2013

2014

US ArrivalMSME

MBA at Rice University

J.P. Morgan IBStart of Omni development

Don’t Look For Opportunities

Look For Problems

Ideas Are Worth $0Execution To Commercial Viability Creates

Value

Timeline of events

2007

2008

2009

2010

2011

2012

2013

2014

US ArrivalMSME

Quit JPMStart of Virtuix

MBA at Rice University

J.P. Morgan IBStart of Omni development

Timeline of events

Q1’13 Q2’13 Q3’13

Q4’13 Q1’14 Q2’14 Q3’14 Q4’14

$1.1MM Kickstarter campaign

Timeline of events

Q1’13 Q2’13 Q3’13

Q4’13 Q1’14 Q2’14 Q3’14 Q4’14

$1.1MM Kickstarter campaign

Shark Tank

Fundraising is the hardest part

Get used to getting rejected

Chicken vs. The Egg: no one wants to put in the first $100

6-month process

$3MM Round completed in April 2014• Ended up turning away $1MM from 38 investors after upsizing by

$1MM• SeedInvest: equity crowdfunding component• Institutional investors: Mark Cuban, Maveron, Tekton, and others

Timeline of events

Q1’13 Q2’13 Q3’13

Q4’13 Q1’14 Q2’14 Q3’14 Q4’14

$1.1MM Kickstarter campaign

Shark Tank

Seed Round 1 complete$3MM raisedAdd’l $1MM venture debt

Seed Round 2 complete$3MM raisedAgain over-subscribed

Timeline of events

Q1’15 Q2’15 Q3’15

Q4’15 Q1’16 Q2’16 Q3’16 Q4’16

$1MM add-on round

Delivery of first Omni unit

CES 2016 Top Pick WinnerPreparing for Series A

Parting Thoughts

Entrepreneurship requires determination, hard work, and constant hustling

Certain level of ignorance helps

Get the right people on the bus and the wrong people off the bus ASAP• When the right people work on the right problems, magic happens

Keep your costs down

Thank You