Deuce Drone's original offering opened on February 10, 2020 and closed on May 5, 2020. Except for the Updates section which may contain more recent information, the information on this page was accurate as of May 5, 2020.

Deuce Drone

Deuce Drone designs, builds, and operates drone delivery systems, enabling same-day delivery for retailers.

Best buy price

$0.35

Best sell price

$1.00

Volume

Not currently available

Range of prices

Not currently available

Full bid-ask spread

“Last mile delivery is both the most expensive and time-consuming part of the shipping process.”

- Business Insider

Introduction

The Problem

Same day delivery that doesn’t break the bank - that’s every retailer’s dream. The fact is, store owners must have high-speed order fulfillment if they are going to successfully compete with Amazon.

The problem is the last mile of delivery to the consumer’s doorstep is so expensive! The cost of that final leg of the journey represents more than half of total delivery expense. Meanwhile, with traffic and so many stops to make, it just takes too long for packages to arrive at their final destination.

Man delivering package

The Solution

Instead of using gas-guzzling trucks that have to weave in and out traffic and struggle to find parking, why not use drones to deliver packages directly to consumers? Bypassing traffic congestion and other obstacles, drone delivery is quick, affordable, and energy-efficient.

Delivering by drone could also save retailers big dollars. According to research done by the MIT Center for Transportation & Logistics, stores could save 30% on delivery costs by switching from trucks to drones. Meanwhile, McKinsey estimates that cost savings could be as high as 40%.

Drone delivering package

“Drones provide an avenue for cost reduction... which will drive widespread adoption in the coming years”

- Barclays

Company Description

Deuce Drone solves the last mile delivery problem for “brick and mortar” retailers by enabling drone shipment from existing stores. Leveraging clients’ current infrastructure, we design, build, and operate drone delivery systems, transforming retail stores into customer fulfillment centers. Deuce Drone provides a cost-effective, technology-driven solution for same-day delivery that allows retailers to compete with major e-commerce players.

Market Opportunity

Market Opportunity

“The (drone) market is ready to soar.”

- Barclays

Business Model

Deuce Drone turns retail stores into conveniently located fulfillment centers by enabling retailers to deliver their products through the air, using drone technology.

We plan to generate fee income from the following sources:

  • Implementation consulting and design
  • Retrofitting “brick and mortar” infrastructure for drone pickup and delivery
  • Software services and systems integration
  • Resale of drones and related hardware, and
  • Operation of drone delivery systems.

Competitive Advantages

Deuce Drone’s competitive advantages include expertise in logistics, aerospace, construction, and technology.

Logistics

Logistics

Logistics experience is critical in order to design a successful drone delivery platform. And no one does logistics like the U.S. military! That’s why we are lucky to have the former Director of Logistics for the U.S. European Command on our team.

Aerospace

Aerospace

Deuce Drone’s management also includes both the former CEO of Continental Aerospace Technologies and the former President of Million Air Inc, which gives us critical knowledge of the aerospace sector. Our regulatory insights and relationships with the FAA should prove beneficial as we move forward.

Construction

Construction

With the CEO of Burton Property Group, one of the largest real estate development firms in Alabama, our team has the necessary experience to design and construct drone delivery docking ports for our clients.

Technology

Technology

Technology is an essential driver of drone delivery and logistics. Technology pioneer, the Founding Chairman and CEO of napster, will help us navigate the drone technology landscape.

Team

Blaine Holt

Brigadier General (retired) Blaine D. Holt is the CEO of Irascible Strategic Advisors LLC. Prior roles include President of Million Air Inc. and COO of Braidy Industries. The general's command experience includes the 376th Air Expeditionary Wing, Transit Center at Manas, Kyrgyz Republic and the 16th Airlift and 817th Expeditionary Airlift Squadrons. Key assignments include a previous posting as the Director of Logistics, United States European Command, a Military Fellowship at the Council on Foreign Relations, and Director of the Air Force Secretary and Chief of Staff's Executive Action Group. General Holt is a command pilot with more than 3,900 flying hours in a variety of aircraft and is a life member of the Wings Club and the Council on Foreign Relations.

Rhett Ross

Mr. Ross has 30 years of aerospace and engineering management experience. Former President and CEO of Continental Aerospace Technologies, Ross is credited with leading the company in five successful acquisitions to add technology and additional product lines valued in excess of $40 million. Prior to his role at Continental, Mr. Ross was President of Teledyne Energy Systems, Inc., a manufacturer of thermoelectric, electrolytic hydrogen generation, and fuel cell devices. Mr. Ross is a former member of the Advisory Panel to the U.S. Department of Energy’s Laboratory Hydrogen Program Review Team and of the U.S. Congress Office of Technology Assessment Advisory Panel for the Review of Advanced Automotive Technology. He is also the former President of the U.S. Fuel Cell Council.

Philip Burton

As President and CEO of Burton Property Group (BPG), one of the largest real estate development firms in South Alabama, Phillip Burton currently manages a $200 million portfolio throughout the southeast. Prior to his current role, Mr. Burton served as President/CEO of BBMC/MCS Investments, Inc. He is also a founder of the Beverly Burton Scholarship Trust, named in honor of his late mother, which provides college scholarship opportunities to the Boys & Girls Clubs Youth of the Year recipients. He is also a board member of the Mobile Chamber of Commerce and University of South Alabama’s Foundation for Research and Commercialization, as well as a member of the YPO Southeastern Chapter.

John W. Fanning

John W. Fanning, Founding Chairman and CEO of napster, has been a pioneer in Internet Technologies for over 30 years. In addition to his work with napster on the distributed aggregation of content, he has introduced such net-related innovations as client-server game play, voice over IP, and auto-upgrading/authentication. Since 1994, he has founded numerous successful Internet ventures, including napster, NetGames, and NetMovies.

Kelton Hardrict Jr. (KJ)

Kelton Hardrict Jr. (KJ) is a graduating senior studying Aerospace Engineering at MIT. He is an experienced researcher having conducted research in MIT’s Space Propulsion Lab, Human Systems Lab, and Space Systems Lab; he has also spent a summer conducting research in Stanford’s Structures and Composites Lab. In industry, KJ has completed two successful intern stints at Northrop Grumman Aerospace Corporation in the roles of Software Engineer and Systems Dynamics Engineer. During his undergraduate career, KJ has also created and grown his brand on YouTube with over 7 million views and 75,000 subscribers. Next fall, KJ plans to begin his pursuit of both an Aerospace Engineering Master’s Degree and PhD at Stanford University in autonomous systems.

Timmy Hussain

Timmy is a graduating senior studying Aerospace Engineering at MIT with a minor in Management from MIT’s Sloan School of Management. He has experience working with real-time systems, robotics, and machine learning. Timmy has successfully completed several research positions in these areas holding positions at MIT CSAIL's Interactive Robotics Group, MIT's Human Systems Laboratory and Stanford University's Aerospace Design Laboratory working on the development of an Electric Vertical Take-Off and Landing (eVTOL) drone system.

Use of Proceeds


If the offering's maximum amount of $107,000 is raised:

UseValue% of Proceeds
Engineering & Development$61,05457.1%
Marketing$20,35119.0%
General/Admin. Expense$20,35219.0%
Intermediary fees$5,2434.9%

Terms

This is an offering of Membership Interest Units, under registration exemption 4(a)(6), in Deuce Drone LLC. This offering must raise at least $10,000 by May 5, 2020 at 11:59pm ET. If this offering doesn’t reach its target, then your money will be refunded. Deuce Drone may issue additional securities to raise up to $107,000, the offering’s maximum.

$10,000 minimum
$106,500 raised

If the offering is successful at raising the maximum amount, then the company’s implied valuation after the offering (sometimes called its post-money valuation) will be:

11,991,143 units
×
$0.35 per unit
$4,196,900implied valuation

Pitch Deck

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Financials

These financial statements have been audited by an independent Certified Public Accountant.

SEC Filings

The Offering Statement is a formal description of the company and this transaction. It’s filed with the SEC to comply with the requirements of exemption 4(a)(6) of the Securities Act of 1933.

Updates

  • May 6, 2020
    Primary offering closed, selling 304,285 units
    Sold 304,285 units at $0.35 for a total of $106,499.75

Transactions

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Understand the Risks

Be sure to understand the risks of this type of investment. No regulatory body (not the SEC, not any state regulator) has passed upon the merits of or given its approval to the securities, the terms of the offering, or the accuracy or completeness of any offering materials or information posted herein. That’s typical for Regulation CF offerings like this one.

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The information contained herein includes forward-looking statements. These statements relate to future events or to future financial performance, and involve known and unknown risks, uncertainties, and other factors, that may cause actual results to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties, and other factors, which are, in some cases, beyond the company’s control and which could, and likely will, materially affect actual results, levels of activity, performance, or achievements. Any forward-looking statement reflects the current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to operations, results of operations, growth strategy, and liquidity. No obligation exists to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

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