By: Ori Mishkal
CEO
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POPIN playgrounds

POPIN developed a foldable indoor playground that allows large play structures to fit easily into small apartments. POPIN‘s unique technology, allows cardboard play structures to carry heavy loads and fold into a flat, easy-to-store unit within seconds.

$ 120,500

Raised so far

9

Investors

18

Days to go
Minimum investment: $5,000
Type:Equity   
Stage:Pre-seed
Category:Entertainment & sport
  • Campaign Highlights
  • Pitch
  • Team
  • Investors 9
  • Updates
  • The Deal
  • Documents
  • Disclosures

Campaign Highlights

An innovative and patented solution for small, overcrowded urban apartments

POPIN has developed an innovative patent-protected product line of folding toys which allow children to enjoy the playground experience in small, urban apartments. The company is leading the field in indoor playgrounds, a field which is growing rapidly as part of the global urbanization process. With POPIN’s large durable toys that unfold and fold in seconds, city kids can also experience a full playroom setting.

Size does matter!

POPIN invented a revolutionary folding method whereby cardboard toys can carry a lot of weight. POPIN's StrongFold™ technology lets the cardboard function as a stable and safe structure, and can be turned into any kind of game facility. The products are easy to carry, fold easily and quickly and are convenient to store. In addition, all products have the highest safety certifications for the countries in which they will be sold (USA, Europe, etc.).

A rapidly growing field in a $90 billion a year market

POPIN is a leading brand pioneer in a new and growing category of toys: the indoor playground - playground structures for use within homes. The global toy market is valued at about $90 billion a year and is growing every year at a steady rate of 2.3%. The "in-home playground" category has grown in parallel with the increasing transition to the dense urban environment, and is expected to yield billions of dollars in the next few years. POPIN offers a unique and creative solution to a huge market of hundreds of millions of urban families overwhelmed by living rooms full of toys.

POPIN en route to the international market

The company has completed a successful sales campaign through the Head Start platform; has signed strategic contracts with leading partners in the fields of mass production, shipping and marketing; and is preparing for distribution in the international market. POPIN has recently been selected to participate in Amazon's launch pad program to sell its products on the site.

A leading team with a history of successful exits

POPIN's team consists of experts in industrial design, sales and marketing, with substantial experience in the world of toys. who joined the company as an investor and Active Chairman, has 29 years of experience as a director and private investor in several companies, with proven success from the founding stages to sales and exits. Among the companies: Galatea, which was sold to the Israeli company Sarine, and Evature, which was sold to Booking.com.

Pitch

the idea

“Free play is an essential part of childhood. All children should be afforded ample, unscheduled, independent non screen time to be creative to reflect and to decompress” (American Academy of Pediatrics)

Numerous studies have shown that the socialization skills of children are developed through shared experiences within active imaginative play. Parents want to provide their children with just such an environment, rich in creativity and play. For this reason, products such as kitchens, playhouses and cars, which simulate the activities of parents' lives, are so popular.

 

The problem

Modern urban construction tends toward the small and crowded, preventing parents from giving their children full child-size activity experiences; the necessary space is simply not available. Despite the dramatic increase in the number of families living in small urban apartments, no adequate solution has yet been found for storing activity playsets. The existing solutions, such as fabric, cardboard or folding plastic playsets, are structurally weak and do not provide an experience comparable to the outdoor playground. In addition, the assembling and folding of these toys is often complicated and takes too long, causing parents and children to abandon them in the closet.

The solution

POPIN's game playsets were created specifically to give children the playground experience within the home, while providing an optimal solution to the storage problem typical of small urban apartments. All this, with high safety and at an affordable price.

Products

POPIN is entering the market with an initial product line, which includes 4 products:

  • POPIN MUSHROOM PLAYHOUSE - A pivotal part of growing up is the development of self-control over kids' actions. By building a house inside the home, the child can create an area for himself where he is in charge. This autonomy enables the child to strengthen his self-worth, in a constructive and fun manner.
  • POPIN PLAY KITCHEN- The kitchen demonstrates the primary need in nutrition and caring, allowing kids to role-play their grown-up counterparts. In addition, it allows them to develop their symbolic play skills and creativity, in every situation they can dream of.
  • POPIN PIRATE TABLE - POPIN’s pirate ship has two seats, so when the child is ready, he can invite a friend to join the adventure! It’s always important to create a trigger for communication, and sailing together in POPIN ship can be great opportunity for a beautiful connection
  • POPIN CAR - POPIN’s car stimulates the child’s sense of exploration and motor skills, supporting all movement- from crawling and climbing to standing, from first steps and beyond

The main advantage of POPIN's products, apart from being enjoyable and providing hours of active play for children, is their ease of use: in just 5 seconds, the product can be folded into a flat package less than 5 cm thick that can be easily stored anywhere in the house.

All POPIN playsets boast the following features:

  • Open and fold to a thickness of 5 cm in seconds (without any assembly)
  • Durable and rigid – can support more than 50 kg over 1000 hours of play
  • Easy to store - can be stored anywhere (behind cabinet or sofa, etc.)
  • Easy to carry - can be taken anywhere (grandparents, friends)
  • Constructed from eco-friendly aterials - all play playsets are made of recycled cardboard and can be fully recycled.
  • Patent Protected (each facility is protected by a separate patent).
  • Approved by the Standards Institute of Israel (SII) and the European standard for toy safety: EN 71-73. The products are also in the process of passing the ASTM F963 standard of the American Standards Institute.

The technology / how it works

How can lightweight cardboard structures support high loads and also fold in 5 seconds?

Using reinforced cardboard instead of plastic makes the playsets foldable, easy to store and transportable. The two recognized disadvantages of cardboard products, structural weakness and complicated assembly, are not found in POPIN products thanks to StrongFold™ technology - POPIN's unique design and folding method, which enables high load resistance and yet folds into a thin module:

  • Pop-up folding allows the product to easily open and close as a single unit (Collapsible)
  • Creates structural strength and rigidity when unfolded.

Design and production method

  • In the first planning stage, the playset is constructed from cardboard by simplifying its shape into flat surfaces. The fold lines between the surfaces provide rigid structural geometry, which gives physical strength to the playset.
  • In the second planning stage, mathematical tools from the origami world are used to calculate the length and angles required to fold the toy into one flat unit.
  • The final production is carried out in standard cardboard plants using machines capable of producing thousands of units per day, from folding the cardboard to full assembly.

Logistic and business advantages

  • The shipping and storage advantages of POPIN's folded playsets allow for high margins from selling directly to customers on online platforms. Many times, purchasing a great and fun playset for a child requires going especially to the store. If the customer wants to purchase the playset on an online platform, the shipping costs significantly increase the price.
  • Patents – Each of the playsets is protected separately by a registered patent. Sub-structures and geometrical locks are also protected by a patent.
  • Automation of the production process will reduce costs and enable the transfer of production to the vicinity of the target markets.

Business model

The Company has a three-stage plan:

Stage A - Launch

  • Building the brand and identity of POPIN as the leading, reliable, practical and safe solution for the indoor playground niche
  • Branding as a high quality, "must have" product, at a cost that is considered "Impulse buy" in most relevant markets
  • Launch a Kickstarter campaign with a sales target of thousands of units
  • Build an active Amazon store
  • Sales target of 40,000 units in year 1

 

Stage B - Gradual sales growth

  • Expanding sales activity through collaboration with significant distributors that have extensive international footprint
  • Entering marketing networks, including retail chains
  • Sales target of 290 thousand units in year 2

Stage C - Significant sales acceleration

  • Extensive online marketing activity
  • Product to be sold in selected toy chains in several strategic countries
  • Online sales
  • Sales target of 550,000 units

 

Timeline

 

the market

The global toy market was estimated at about $ 91 billion in 2018. It is a stable market with a growth rate of 2.3% annually.

  • People from different population segments in developed countries around the world buy toys for more than a billion children, with the average annual amount spent per child varying significantly from country to country. In the United States, the sum is about $ 370 a year, in Britain about $ 440 a year, in Italy about $ 190 and so on.
  • The United States alone holds about a quarter of the world market, making it the initial target market for POPIN.
  • The closest category to In-home Playground is the Sports & Outdoors category, which accounts for 20% of total revenue in the toy market ($ 18B). Of these, 20% are products that can be used in-house, and this is the primary market in which POPIN operates ($ 3.6b).
  • With the availability of POPIN’s new market category, parents of children in small apartments who had not considered buying a folding playset facility for their home, are expected to do so now. The potential for penetrating this market is enormous, and POPIN has high potential to be the market leader of this category - the Fisher-Price or the Little Tikes of the in home toy market.

POPIN addresses two main target audiences:

1. Parents living in dense cities - large cities with over one million inhabitants (in 2007, 1.7 billion people lived in cities with more than 1 million inhabitants - 23% of the world population).

2. Cold countries – POPIN allows kids the possibility to play active games at home in countries having difficult weather conditions, where the average annual temperature is 10 degrees and below - Canada, Austria, the Netherlands, etc.

Go To Market

B2C

  • An Online Store - Direct sales through company website.
  • E-commerce platforms, leading with Amazon, of which 2.5% of profits were generated from the sale of toys in 2017 ($ 4.5B).
  • Kickstarter - POPIN is launching a large Kickstarter campaign in partnership with Tross, the world leader in promoting and marketing fundraising campaigns; Tross only takes on itself with products that can potentially generate more than $ 500,000 in a campaign.
  • The Green Campaign - POPIN will participate in design competitions and use advertising on relevant blogs and websites to increase its digital signature and online exposure.

B2B

  • Business conferences and exhibitions - POPIN will display its products at large toy exhibitions and make distribution deals in various countries.
  • Physical stores - through distribution partners POPIN will provide quality playsets for the toy market. The partner will use proprietary designs of POPIN under a licensing agreement.
  • Campaign promotion - POPIN toys can be used to promote campaigns for toy manufacturers or child service providers. POPIN will provide design for each campaign under the license agreement.

Competitors

POPIN has three types of competitors:

1. Folding toys - Several companies are trying to solve the problem of active games in-house by manufacturing toys through different production methods. The main difference in most cases: outdoor - non-folding and weather resistant; in-home - folding and easy to store but not weather-resistant.

 

2. Toys made from a variety of folding materials such as cloth (tents), cardboard (playhouses) and plastic (inflatable chairs), or rod-based structures (various toys). The problems with these products:

  • The playsets are limited to the specific construction methods of the material from which they are made, such as the play tent, allowing only low-end products.
  • Little/no structural strength.
  • Complicated folding - the playsets require difficult and cumbersome folding.

 

3. Game playsets by Category - POPIN produces four models of toy playsets, each addressing similar needs as those of other companies. Benefits of POPIN:

  • Folding option
  • Easy carrying and storage

 

4. Cardboard toys: There are many companies that manufacture various cardboard products, but they have numerous drawbacks:

  • No structural strength
  • Complicated assembly that takes a long time
  • No folding option

 

the exit strategy

Innovation in the world of toys as a whole, and space saving technologies in particular, is considered an alluring sector for investors and entrepreneurs. The technology and innovation of POPIN, which may be realized on several levels and in business areas that the company touches on, will draw natural interest from potential buyers, thanks to the innovative product that generates added value for the following sectors:

Use of proceeds

Team

Ori Mishal
founder and CEO
Biography
Ori graduated the Department of Industrial Design at Bezalel Academy of Art and Design. Specializes in a unique design niche of folding products, designed dozens of products from various materials for numerous customers, and his designs have been recognized and awarded. Uri is an enthusiastic activist in the field of sustainable design and has also established a library of green raw materials at Bezalel. Today he works as a lecturer and a consultant in the field of cardboard products. Inspired by pop-up books and great love for toys, Ori founded POPIN toys, with the purpose of making products from green materials and supplies, and bringing real solutions for parents in the modern world.

  • Founder
Niv Bornstein
VP Marketing and Sales and Co-Founder
Biography
An experienced entrepreneur with 5 years of proven marketing and sales experience in the toy market. Niv brings with him a unique combination of strategic thinking with a talent for meticulous, energetic, creative and motivated work, extensive work experience (B2B, B2C) both in large organizations and in start-ups. Niv founded a start-up company that developed mobile games for children and was responsible for all stages of marketing and sales of the company‘s physical products, both in building strategy and methodology and up to implementation and execution of the programs. He negotiated with large toy distributors around the world, including retail stores such as Wal-Mart, Toys R Us, Hamleys and Harrods. His efforts brought nearly $ 5 million in global sales. Niv holds a BA in Cinema and Television from Tel Aviv University.

  • Founder
Yechiel Kurtz
Active Chairman (BOD), investor
Biography
- 29 years of experience in senior positions and as an investor: - 11 years in development, marketing and sales in leading companies such as Fibronics and MRV Communications, where he co- initiated a new division that reached annual sales of over $ 100m. Last position VP Strategic Sales, with direct annual sales of $ 20m worldwide. - 18 years of experience in the field of active investments in start-up companies as a private investor, as a senior investment manager in the Apax Partners venture capital fund and as VP of investments in Xenia incubator. - Director and private investor in a number of companies, with proven success from the establishment to sales and exits. Among the companies: • Galatea, which was sold to the Israeli company Sarin with more than 7X ROI • Evature, which was sold to Booking.com with an impressive 14X ROI Yechiel’s education includes degrees in the fields of technology and business: • BScEE with honors from the Technion. • International Executive MBA from Northwestern University and Tel Aviv University. • PhD Candidate in Business Administration, International School of Management, Paris.

  • Chairman of the Board

Investors 9

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Updates

Currently there are no updates in this pitch

The Deal

Documents

Disclosures

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