Esker Cycles by Krueger Outdoor

Mountain Bikes Built for the Wild

Esker Cycles by Krueger Outdoor

Mountain Bikes Built for the Wild

Columbia Falls, MT
Transportation
At Esker, we make mountain bikes you’ll enjoy throughout the entire ride, no matter where the trail takes you. Using Orion Dynamics, a patented, state-of-the-art suspension system, we design each and every bike to provide peak durability, performance, and versatility - all assembled in the Flathead Valley in Montana. As more and more people opt for the outdoors, Esker bikes are ready to ride wherever you choose to roll.

$269,894

raised
231
Investors
$6.49M
Valuation
$2.31
Price per Share
$231.00
Min. Investment
Common
Shares Offered
Equity
Offering Type
$1.07M
Offering Max
Reg CF
Offering

$269,894

raised
231
Investors
$6.49M
Valuation
$2.31
Price per Share
$231.00
Min. Investment
Common
Shares Offered
Equity
Offering Type
$1.07M
Offering Max
Reg CF
Offering

Rewards

Get rewarded for investing more into Esker Cycles by Krueger Outdoor:

$231+
Investment
StartEngine Owner’s Bonus
This offering is eligible for the StartEngine Owner’s 10% Bonus program. For details on this program, please see the Offering Summary section below.
Early Bird Bonus
Invest within the next 7 days, and get 10% bonus shares.
0
days
9
hours
44
mins
29
secs
$500+
Investment
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+
Investment
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+
Investment
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+
Investment
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+
Investment
Whitefish Trail
Receive shareholder pricing on 1 new bike per year + early access to new bikes + ride with the Esker team at a destination meetup + priority access at bike festivals across the country + hang out and ride at Whitefish, MT + 10% Bonus Shares.
$50,000+
Investment
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 or Continental Divide Trail with the Esker Cycles Founders + 15% Bonus Shares.
$100,000+
Investment
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 or Continental Divide Trail with the Esker Cycles Founders + 15% Bonus Shares.

Reasons to Invest

The global bicycle market size was valued at over $54B in 2020, with demand continuing to outpace inventory. Raising capital will allow us to rapidly expand production, and in turn, will open the door for us to supply a greater number of dealers than we’ve been able to thus far.
Esker Cycles are built with the state-of-the-art Orion Suspension System, licensed from mountain bike suspension expert and industry veteran Dave Weagle.
Our hybrid DTC/dealer model fuels steady, organic growth, while achieving competitive prices and above-average margins.

Mountain bikes for unbridled adventure

Esker 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 cycling industry has been slow to adapt

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


(Source | Source) 


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


Ready to ride, wherever you choose to roll

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


Responding to the "Bicycle Boom"

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). 


(SourceSource)

(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


Selling out, gaining clout, and ready to scale

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


Bikes built for disruption

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.



In the Press

Introducing Esker Cycles and the Elkat

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 Launches New Bike Brand And Full-Suspension Design

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

Esker Cycles first w/ Weagle’s Orion suspension on all-new 150mm Elkat MTB

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.

New MTB Brand Esker Cycles Launches With Carbon Trail Bike, First With Weagle-Patented Orion Suspension Platform

It’s not every day a new mountain bike brand launches, and few dare to start with a high-end carbon fiber trail bike.

Esker Cycles Elkat

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.

Bible of Bikes Review: Esker Elkat

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.

Esker Cycles Introduces the Rowl

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.

The Beta Tests: 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.

Esker Japhy Review: Next-Gen Steel Hardtail

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.

The Esker Japhy is One Scrappy 29er Hardtail

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 Announces Ride Scholarship

Esker Cycles’ new scholarship aims to get more people outside.

Esker Cycles Announces Montana Trails Fundraiser

It’s nice when a brand looks to its home trails and makes an effort to raise both money and awareness towards proper stewardship.

Esker Cycles Releases Rowl Full Suspension 29er

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.

Esker Cycles Releases Japhy Steel Hardtail 29er

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

New Japhy Steel 29er from Esker Cycles Easily Morphs Between Single-Speed and Geared Adventure MTB

Montana-based Esker Cycles has found a few ways to make their new Japhy steel 120mm hardtail special.

Offering Summary


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











Terms


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.

Irregular Use of Proceeds

The Company will not incur any irregular use of proceeds.

Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$741,658.00 USD
$326,881.00 USD
Cash And Cash Equivalents
$11,911.00 USD
$1,245.00 USD
Accounts Receivable
$0.00 USD
$0.00 USD
Short Term Debt
$486,712.00 USD
$294,155.00 USD
Long Term Debt
$618,409.00 USD
$364,175.00 USD
Revenues And Sales
$1,116,052.00 USD
$674,064.00 USD
Costs Of Goods Sold
$657,469.00 USD
$934,646.00 USD
Taxes Paid
$0.00 USD
$0.00 USD
Net Income
-$121,926.00 USD
-$862,061.00 USD

Risks

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.


Updates

Welcoming 200 investors with $200k+ invested!

4 days ago

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! 


 

Thank you for joining us!

10 days ago

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. 

We have been working hard since launching the company—bringing to market a full line of desirable mountain bikes, touring the county to show you all what our bikes can do, and growing Esker into the brand that you know today. Now, we're preparing for the next stage of growth for our company. 

Since its founding, Esker has been primarily self-funded, and we are extremely proud of what we have accomplished, but we are ready for the next stage of growth. Heading into 2022 Esker has new bike models to bring to market, and will be increasing inventory on our existing lineup in order to keep up with the incredible demand of online customers, and to open up new dealers in areas that we have not been able to supply. 

Esker is made up of a group of everyday riders that simply want to make great bikes that allow everyone to get outside and have a great experience. In this next phase, we hope to further expand our community of riders, bring to market new and exciting products, and build on a welcoming culture by offering ownership to anyone that wants to come along for the ride. We'll see you out there!

 

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