0Esker is a rider-owned mountain bike company fueled by the combined experience of industry veterans, an unwavering commitment to quality, and the desire to challenge traditional methods.
We assemble our bikes to order right here in Montana, enabling us to create custom combinations of top-performing frame designs, spec levels, and colors at an excellent price, giving our customers the choice to pick it up at a dealer or have it shipped to their door.
As greater numbers of people hit the trails, Esker has become more than just a brand—our customers meet and ride with the people that design, assemble, and produce their bikes, forming a community of adventurers and dedicated promoters.
The Problem
The “great bicycle boom” has driven a huge surge in recreational cycling, with a dramatic global increase in bicycle sales - yet the cycling industry has remained slow to adapt to a more modern, consumer-facing sales strategy.
Legacy mountain bike brands continue to default to a dealer-only model within their existing networks, while a handful of newcomers are concentrating their spending on high-dollar DTC marketing rather than focusing on product design. This gap in the cycling market gives us an opportunity to cater our products to both online and in-person customers, hybridizing the best of DTC sales with the advantages of dealers and demo events to reach as many cyclists as possible.
The Solution
Unlike companies that cater exclusively to either dealers or online customers, Esker combines the best of both worlds, allowing us to connect with and cater to a broader demographic.
As a small and nimble company, Esker is poised to respond efficiently to the demands of the moment while still concentrating on ride quality and performance. We thrive on being close to our product, overseeing every step of the process—from our in-house proprietary designs and prototyping, to negotiating with the best industry suppliers and assembling our frames into the final product.
Our full suspension bikes are built with Orion suspension, licensed from industry veteran Dave Weagle, and our hardtails are known for having highly refined geometries and ride qualities.
Esker currently makes four bicycles which cater to different riders and terrains, with four additional models preparing to launch in 2022.
The Market
The global bicycle market size experienced an unprecedented boom during the COVID-19 pandemic, reaching a value of over $54B in 2020 (source). Mountain bike demand in particular remains at a high level, with sales of front-suspension mountain bikes up 150% in spring 2020 (source) and an estimated 1M units of high-end bikes sold annually in the US (estimate based on information found here).
This upward trend in popularity is predicted to grow with a CAGR of 10% between now and 2027, catalyzed by broader lifestyle and demographic trends (source). Further still, the sport has benefited from an explosion in trail building, with trail counts increasing between 100% to 500% since 2019, primarily on free-to-use public land (source).
(US high-end bike sales statistic is an estimate. This estimate is based on information found here.)
Esker stands out from competitors by offering a 5–7% better price on similar products. We also present more choice and quality to our customers, with our built-to-order bikes resulting in better performance for riders. Unlike DTC-only companies, Esker can introduce our bikes to customers in-person, concentrating our focus on innovative product design rather than high marketing spend.
By selling our product through multiple channels, we’re able to adjust each channel’s volume to maximize our margins. This results in a blended margin of about 40% - around 10% above the industry average. Once we reach 2,000 units, we’ll arrive at a 15–18% net margin. As we capitalize and grow, the addition of new models and customization choices will help further increase these unit sales and profit margins simultaneously.
Our Traction
We launched Esker in 2018, pre-selling 100 units and bringing in $300K in revenue that first year. We’ve now sold 450 units in 2021 (and are on track to sell 550 total pieces by the end of the year) for a total of $1.7M in revenue.
Currently the product planning, engineering, production coordination, and dealer demand are in place and in progress to hit our projection of 2,000 units in 2024, but so far, our only constraint has been inventory. Our sales channels are repeatedly requesting more product than we have available. Having self-funded up to this point, we’re recognizing the critical need for capital in order to keep pace with demand as the Esker brand gains momentum.
Thanks to excellent press on our first two models, we’ve been able to place reviews in almost all prominent mountain biking publications. By the launch of our third and fourth models, industry insiders were actively coming our way. We’re preparing for a spring 2022 launch of our Titanium Hayduke and Japhy, followed by two new (and undisclosed) Titanium models in the fall.
In 2023 and 2024, we plan to launch three new steel models as well as three new suspension models, all of which are already in the engineering and design phase. Between an established product line and continued customer demand, we’re poised for a unique stage of hypergrowth.
Why Invest
Esker was born under big skies, rooted in late-night campfire conversations, and fueled by long rides into the hills. It’s this collective experience that drives our work, and as we continue to grow, community, quality, and innovation will remain at the core of what we do.
This new round of capital will help us reach 2000 units by 2024, with additional models currently in the process of development and engineering that are set to be released by then.
We expect our footprint to rapidly expand as we’re able to provide inventory to the large volume of dealers who have applied, continuing our trajectory of establishing Esker as a primary player in the high-end mountain bike market.
For 2025 and beyond, we have explored strategies to continue our growth, such as selling to or merging with other companies in the cycling industry that need our flexible sales methods and/or the consumer-facing channels.
We’d love for you to join us for this ride of a lifetime.
Mountain biking got its start in the garages of passionate tinkerers determined to explore the outdoors in a whole new way. Those early innovators did it for the fun of it, but wound up sparking what has become a huge global industry.
Esker Cycles has announced the release of their new rider-centered bike brand and flagship full-suspension bike model using a patented suspension design platform created by Dave Weagle. The Esker Elkat will be the first market player using Dave Weagle’s patented Orion™ suspension platform. Orion is
Immediately, I was impressed at how active the entire suspension felt while remaining extremely pedal efficient. The suspension really is good enough to make me question why it took so long to make it to a mountain bike.
It’s not every day a new mountain bike brand launches, and few dare to start with a high-end carbon fiber trail bike.
It’s no easy task to launch a new mountain bike brand, especially when the upper echelon of our sport is filled with corporate giants; however, the folks behind Esker Cycles weren’t afraid to dive headfirst into this challenging business environment.
So, does the Elkat and its fancy new dual-link suspension design offer something new? Yeah, it’s pretty cool. It allows the rider to pedal full power through rough sections so smoothly and efficiently that you feel like you’re hovering right over stuff.
The Elkat was absolute magic when climbing the chunky shelfy trails of southwest Utah. The only thing that could make the Elkat better, seven out of eight Bible testers thought, was if it had 29-inch wheels. Enter the Esker Rowl.
Esker’s preferred party attire centers around the Orion link. Two incredibly short links, one of which pivots around the bottom bracket, slyly couple the rear triangle to the front, and do a remarkable job of balancing pedaling and bump forces.
The Japhy really comes alive on rough trails and chunky roads. While zipping along at speed, the Japhy skims effortlessly through rock gardens, roots, and rutted-out trails.
Japhy is scrappy and is willing to claw its way through just about anything...The Japhy is a veritable ally for whatever you can throw at it."
Esker Cycles’ new scholarship aims to get more people outside.
It’s nice when a brand looks to its home trails and makes an effort to raise both money and awareness towards proper stewardship.
After launching the Esker brand in 2018 with the Orion suspension equipped Elkat model, we went to work crafting up a complimentary offering that would build on the positive influence and desirable ride characteristics that have made the Elkat model a success.
This latest addition to the Esker lineup expands on our current offering of the Orion Dynamics Suspension equipped models Elkat and Rowl, and complements our Hayduke model steel hardtail. With the addition of Japhy, we have now made it easy for riders to simply choose between two versatile hardtail
Montana-based Esker Cycles has found a few ways to make their new Japhy steel 120mm hardtail special.
Company | : | Krueger Outdoor, Inc. |
Corporate Address | : | 177 Columbia Mountain Drive, Columbia Falls, MT 59912 |
Offering Minimum | : | $9,999.99 |
Offering Maximum | : | $1,069,998.93 |
Minimum Investment Amount(per investor) | : | $231.00 |
Offering Type | : | Equity |
Security Name | : | Common Stock |
Minimum Number of Shares Offered | : | 4,329 |
Maximum Number of Shares Offered | : | 463,203 |
Price per Share | : | $2.31 |
Pre-Money Valuation | : | $6,487,457.13 |
*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below.
Time-Based:
Friends and Family Early Birds
Invest within the first 48 hours, and get 20% bonus shares.
Super Early Bird Bonus
Invest within the first 72 hours and get 15% bonus shares.
Early Bird Bonus
Invest within the next 7 days, and get 10% bonus shares.
Amount-Based:
$500+ | Mystic Lake
Receive a discount code eligible for 5% off any bike in the next 12 months + a special owner’s t-shirt and hat!
$1,000+ | Big Snowy Mountains Loop
Receive a discount code eligible for 10% off any bike in the next 3 years + a special owner’s t-shirt and hat!
$5,000+| Emerald Lake Trail
Receive a 10% discount code eligible for 1 bike per year (for every year that you continue to own shares with us + a t-shirt and hat + 5% Bonus Shares.
$10,000+ | Grassy Mountain Loop
Receive a 10% discount code eligible for 1 bike per year + a special invitation to an Esker destination meetup to ride with our team + 10% Bonus Shares.
$25,000+ | Whitefish Trail
Receive shareholder pricing on 1 new bike per year as long as you own shares + early access to new bikes + ride with the Esker team at a destination meetup + priority access at bike festivals across the country + an invite to come hang out and ride with us at our Whitefish, MT basecamp + 10% Bonus Shares.
$50,000+ | Continental Divide
Receive shareholder pricing on 1 new bike per year as long as you own shares + an invite to a 3-day/2-night tour of the White Rim trail in Moab, UT (future dates TBD) or a 3-day 2-night tour of a portion of the Continental Divide Trail through our home in Montana (future dates TBD) with the Esker Cycles Founders + 15% Bonus Shares.
$100,000+ | Grizzly Loop
Receive shareholder pricing on 1 new bike per year as long as you own share + a brand new Hayduke or Japhy, 3-day/2-night tour of the White Rim trail in Moab, UT (future dates TBD) or a 3-day 2-night tour of a portion of the Continental Divide Trail through our home in Montana (future dates TBD) with the Esker Cycles Founders + 15% Bonus Shares.
*All perks occur when the offering is completed.
**All perk levels receive a t-shirt and hat
The 10% StartEngine Owners' Bonus
Krueger Outdoor, Inc. will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.
This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Common Stock at $2.31 / share, you will receive 110 shares of Common Stock, meaning you'll own 110 shares for $231. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.
This 10% Bonus is only valid during the investors eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are cancelled or fail.
Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.
Voting Proxy
Each Investor shall appoint the Chief Executive Officer of the Company (the “CEO”), or his or her successor, as the Investor’s true and lawful proxy and attorney, with the power to act alone and with full power of substitution, to, consistent with this instrument and on behalf of the Investor, (i) vote all Securities, (ii) give and receive notices and communications, (iii) execute any instrument or document that the CEO determines is necessary or appropriate in the exercise of its authority under this instrument, and (iv) take all actions necessary or appropriate in the judgment of the CEO for the accomplishment of the foregoing. The proxy and power granted by the Investor pursuant to this Section are coupled with an interest. Such proxy and power will be irrevocable. The proxy and power, so long as the Investor is an individual, will survive the death, incompetency and disability of the Investor and, so long as the Investor is an entity, will survive the merger or reorganization of the Investor or any other entity holding the Securities. However, the Proxy will terminate upon the closing of a firm commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933 covering the offer and sale of Common Stock or the effectiveness of a registration statement under the Securities Exchange Act of 1934 covering the Common Stock.
A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.
Thank you to everyone who has invested so far! We have a lot of exciting things going on at Esker Cycles and want to put 100% of our focus on there.
This is a notice to let you know that our campaign on StartEngine will be closing on Saturday April 30th, 2021, so please consider investing now!
[The following is an automated notice from the StartEngine team].
Hello!
As you might know, Esker Cycles by Krueger Outdoor has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Esker Cycles by Krueger Outdoor be on the lookout for an email that describes more about the disbursement process.
This campaign will continue to accept investments until its indicated closing date.
Thanks for funding the future.
-StartEngine
[The following is an automated notice from the StartEngine team].
Hello!
As you might know, Esker Cycles by Krueger Outdoor has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Esker Cycles by Krueger Outdoor be on the lookout for an email that describes more about the disbursement process.
This campaign will continue to accept investments until its indicated closing date.
Thanks for funding the future.
-StartEngine
Esker is proud to release our latest video "Into the Backcountry" on our growing YouTube channel. We invite all of our investors and followers to head over and give it a watch and see what the Esker Rowl, one of our leading Orion Suspension equipped full suspension mountain bikes, can do on this rough and scenic backcountry terrain.
We want to wish each and every one of you Happy Holidays from our family to yours. 2021 has been our best year yet at Esker Cycles, and we have all of you to thank for that. Going into the new year, we have new bikes in the works, additional demo events planned to connect with our customers, more inventory on the way, and a growing Esker Family with many new shareholders now joining us. If you have not yet, we encourage you to join us and come along on this exciting ride as we head into the new year and beyond. We'll see you out there!
[The following is an automated notice from the StartEngine team].
Hello!
As you might know, Esker Cycles by Krueger Outdoor has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Esker Cycles by Krueger Outdoor be on the lookout for an email that describes more about the disbursement process.
This campaign will continue to accept investments until its indicated closing date.
Thanks for funding the future.
-StartEngine
Esker is closing in on $300K invested from 230+ individual investors! We are over 2 weeks into the campaign, and this early progress has been incredible.
Furthermore, it has been exciting to see so many of our passionate bike customers that have been around since the beginning, are now becoming investors in our company. We see this as a very positive sign that our customers are loving the product, and want to get more involved in the company. We personally believe that our bikes are the best, but this vote of confidence from our customers is absolutely amazing. Thank you!
Looking forward to the new year, we can't wait to show all of our new investors and the rest of the world what we have planned as we move into the next phase of growth for our company. There is still time to invest in Esker and join us on this exciting journey!
This is a major milestone for us, and you have all made it happen. We are inspired by the traction of this campaign so early on, and are excited to have each of you joining us at Esker. Welcome to every new shareholder, and thank you!
All of us at Esker are excited to launch this campaign, and to have you along for the ride! We are thrilled to finally be able to offer this opportunity to our community at an exciting stage in our company’s growth.
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