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THE IRISH COMPANY that makes a stress-reduction device called the Pip has sought court protection from its creditors following a failed crowdfunding bid.
Dublin-based firm Galvanic has asked for the appointment of an examiner only a month after it asked the public for £700,000 in return for shares in the company.
However the device-maker, set up in 2011, secured only £200,000 in pledges on UK equity crowdfunding site Crowdcube.
Company filings show the firm has previously taken on a combined €2.1 million from backers since its incorporation.
Kickstarter success
Galvanic was the first Irish company to raise $100,000 on crowdfunding platform Kickstarter.
That campaign brought a significant amount of attention to its flagship product, the Pip, which a wireless, handheld device that’s used to monitor stress through games and apps. The teardrop-shaped device retails at €179.
The device serves as a bio-sensor that can assess stress levels by measuring “electro-dermal activity” at the fingertips, where changes in sweat levels reveal when the body’s flight or fight response starts to kick in.
The sensor measures that feedback eight times per second and feeds the data to an app on a connected device like a smartphone or tablet.
Designed to help users reduce stress, the suite of apps employ game-like scenarios such as a race where the on-screen character speeds up the more the device-holder relaxes.
Previous crowdfunding
The company’s chief executive and co-founder David Ingram – who jointly set up sub-prime lender Start Mortgages during the boom - told Fora that he does not wish to comment on the examinership bid at this time.
According to the most recent set of accounts for Galvanic, the company booked a loss of just over €550,000 for the financial year ended 31 March 2015, pushing accumulated losses to nearly €1 million. Accounts for 2016 have not yet been filed.
In an interview with Fora last year, David Ingram said that the crowdfunding route is tough.
“I don’t know if there is any Kickstarter campaign where there is a product being manufactured and they hit the target date they set,” he said at the time.
“We ended up shipping product in August 2014 and originally it was meant to be March or April. That’s pretty good compared to other challenges I’ve seen people face when they are manufacturing.”
He previously said the company opted to have its devices manufactured in Cork – rather than at lower cost offshore – because it was important the product was seen internationally as being Irish.
As previously explained by Fora, examinership is a process that’s unique to Ireland. it’s intended as a last roll of the dice to try to save a business from insolvency.
Written by Conor McMahon and posted on Fora.ie
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Want to reduce stress? Get out for a walk/run. Watch a funny film. Get a cat/dog. If you can’t own one, borrow one or volunteer at an animal rescue centre. Realise that everything doesn’t need to be perfect. Stop trying to keep up with the Jones’s.
@Cindy Crawford: but how are you gonna make money out of that?
@Larry Doyle:
Selling treadmills or Fitbit type Apps, making funny films or breeding cats or dogs. I guess you are destined not to be an entrepreneur Larry.
@Larry Doyle: The people that buy them to relieve stress don’t make money. They just waste it instead.
These boys are great at play with other people’s money. Given the amount of money pumped into this, they clearly have a product that’s not commercially viable.
@Anthony Halpin: most business people don’t tend to risk their own money, standard practice.
@Anthony Halpin: __ If it weren’t for investors taking a risk, we’d still be living in the Dark Ages. Sometimes it’s a fairly safe bet, and sometimes it isn’t.
Set up ” sub prime” lending company then set up a company to profit on your victims stress. When it inevitably fails – blame the investors. Capitalism in a nutshell.
He doesn’t know of any Kickstarter that delivered on time. The last Kickstarter I backed delivered a fully functioning product a month ahead of schedule.
Does it go in your bum? It looks like it goes in your bum.
Bums need WiFi too!
@Louis Jacob: I’m sure it can go in your bum if you want it to, Louis. Not sure what that will do for your stress levels, but with the right lube I’d say you’d be fine.
@Louis Jacob: __ This gadget obviously by-passed the bum and went straight down the toilet.
@tae: WhiFfy
@Louis Jacob: Take tomorrow off Louis in recognition of winning the internet today!
Lots of stress for the investors,but it was a gamble that might still pay out ,
I got a pip a while ago as other things like yoga and meditation apps hadn’t worked for me. Personally I’ve really found it great, it helps me to de-stress and it seems to be very accurate in its readings. The price point is probably hindering sales and it’s a pity they can’t sell it for less because it is a very good product and I reckon it could help other people. Am sorry to hear they are in difficulty and hope things turn around. Also for those asking – no it doesn’t go in your ass!!! You hold the pip between your thumb and index finger and the app on your phone reads your stress levels.
@Lynn2380: Thanks for clearing that up. It could go in your bum if you wanted though right?
@Lynn2380:
You sound like someone who invested in the company trying to drum enough business to get your money out.
@Louis Jacob: Haha
@P.J. Nolan: I didn’t invest in the company. I have no affiliation whatsoever with them. I am just a customer who found a product good and thought I’d vouch for it.
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