Financial commitment company that purchased Vicis assets options to keep brand name alive and preserve a Seattle presence – GeekWire-TechWeu

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Taylor Soper

Seahawks extensive receiver David Brown dons a Vicis helmet. ( CommunityPhoto / Kevin Lisota)
The New York City expense organization that just ordered the belongings and engineering of soccer helmet maker Vicis programs to retain the company’s brand alive and maintain a Seattle presence.
As Communityreported this 7 days, Innovatus Capital Partners compensated $2.85 million for Vicis’ assets out of receivership following the unexpected downfall of the Seattle startup that experienced elevated additional than $85 million since spinning out of the University of Washington in 2014.
Previously: What occurred to Vicis: Within the collapse of the significant-tech helmet maker, as board decides its destiny
This past October, Innovatus made a $18 million investment in Litchfield, Il.-based Schutt, one of the foremost U.S. soccer helmet producers and a Vicis rival.
In an job interview with Communityon Friday, Innovatus Partner Ravi Bhagavatula claimed his agency was familiar with Vicis supplied its expense in Schutt.
“We preferred the model and the tech,” Bhagavatula claimed of Vicis. “We believe that the company can be resurrected.”
Innovatus will sort a new company with the Vicis assets, but will maintain the very same model. The firm also designs to have a Seattle place of work.
“We intend to keep on the mission that firm was established to do, which was to create safer sports activities gear products and solutions dependent on new technological innovation and content sciences,” reported Jeff Holland, a vice president at Innovatus.
Vicis-relevant R&D operate will proceed, but designs for producing and manufacturing is up in the air specified the recent financial downturn, the traders said.
For existing buyers, the Vicis internet site provides back links to individuals that want to get their helmets reconditioned.
Court docket documents exhibit that Innovatus was the only bidder for Vicis’ assets, even while acquisition inquiries had been sent to more than 100 prospective prospective buyers. Innovatus initially agreed to pay $3.1 million but negotiated a cheaper cost because of to uncertainty with the COVID-19 outbreak.
A single supply near to the receivership process explained numerous traders balked at producing an give thanks to the complex character of the helmet producing course of action, especially for teams with small sector abilities. The COVID-19 outbreak was also a factor in discouraging bids. Traders are much more cautious with their spending, and it’s unclear when soccer at all stages will be allowed provided the social distancing mandates put in position.
Extra than 400 traders put funds driving Vicis, which made a helmet that featured many, specialised layers built to mitigate the impacts considered to lead to concussions.
Final calendar year the corporation experienced much more than 20 NFL teams with a starter who wore its helmet, and 180 school applications experienced bargains with Vicis.
But as Communitypreviously described, the company ran into quite a few issues more than the previous couple of several years. Insiders say the organization place as well much concentrate on grabbing current market share from incumbents such as Riddell and Schutt, somewhat than turning a financial gain. The difficulties came as a shock to some shareholders. Vicis was not able to raise far more hard cash prior to shutting down the company and laying off extra than 100 employees in December.
Vicis was launched by Per Reinhall, chair of the UW’s mechanical engineering department Samuel Browd, professor of neurological surgical procedure at the UW and former CEO Dave Marver, who stepped down in November. UW engineering professor Jonathan Posner is another co-founder he still left the business in 2015.
Reinhall informed Communitythis 7 days that he’s happy with an sector chief having above Vicis’ belongings.
“It is devastating that all the traders dropped their revenue,” Reinhall explained. “But from a specialized viewpoint, I’m satisfied to see the item dwell on. Sam [Browd] and I are very fully commited to building football and other rapid-moving sports activities safer.”

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