Getting separated or lost in a crowd is a scary experience, and if you’re lost in the wilderness, this can quickly escalate into a life or death situation. Lynq created the human compass, a device that requires no infrastructure or cellular networks, and through a GPS connection, it enables peer-to-peer location and data tracking of people or groups. The software behind Lynq is licensable and can be easily incorporated into other offerings.
AlleyWatch interviewed Dave Shor to learn more about Lynq and its recent funding round.
Who were your investors and how much did you raise?
We closed a $6M Seed round that included ff Venture Capital, Sony Innovation Fund, Chetrit Ventures, and Plus Eight Equity Partners.
Tell us about the product or service that Lynq Technologies offers.
Lynq is changing how devices are connected — securely, without infrastructure or cellular networks. Our licensable software can be integrated into any device, allowing each to communicate data, decentralized and private over miles, with any device that leverages Lynq’s network protocol.
The foundation for an ecosystem, “connected by Lynq”.
One that begins with a single device, our own people compass — capable of private, peer-to-peer location of people, groups or assets without the need for phones, cellular networks or infrastructure.
What inspired the start of Lynq Technologies?
Over the past couple of years, the broad applicability of our core technology became apparent, though when we started the company, the people compass was our only product. And what inspired us each day was the knowledge that this little device had the ability to impact, change, and save lives. Specifically, to keep those we care about (and care for) together — and to save loved ones who wander, such as those with special needs or Alzheimer’s.
Since those early days, Lynq’s vision has grown exponentially, though saving lives through our technology has remained a part of all that we create.
How is Lynq Technologies different?
Lynq’s technology adds mobility, security and network independence to data — extending the edge of connectivity, while allowing freedom from it.
What market does Lynq Technologies target and how big is it?
All devices that can benefit from communicating data over miles, independent of infrastructure; those that can benefit from sending this data privately and securely; and device-to-device communications where reliability is key. Some examples include location data, sensor data, messages, any low-bandwidth data and other types of data.
Who do you consider to be your main competitors?
Competitors to our core technology are networks, network protocols and related technologies. For example, LPWAN and Narrowband.
What’s your business model?
Our people compass devices are sold direct-to-consumer and the government – the primary sources of 2020 revenue. However, licensing our software for integration into a broad range of devices will quickly evolve into our primary revenue stream and core business model. This is a massive, high margin and rapidly scalable model compared to device sales.
What was the funding process like?
A majority of the round was allocated to pro-rata requests from existing investors and inbound requests, so it was a more close-knit process than normal without the chance to conduct a real VC outreach.
What are the biggest challenges that you faced while raising capital?
Bandwidth. Raising capital takes a lot of time away from running the company.
What factors about your business led your investors to write the check?
Our $1.7M presale and government traction led to early interest, though it was the software and integration side which demonstrated the sheer scale of the opportunity and drove the raise.
Our $1.7M presale and government traction led to early interest, though it was the software and integration side which demonstrated the sheer scale of the opportunity and drove the raise.
What are the milestones you plan to achieve in the next six months?
Growing our team, completing development of our software, upcoming integrations and partnerships to be announced in the near future.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Perseverance. Startups are a rollercoaster and at moments when things appear bleak, that can make all the difference.
Mentors and advisors. Good mentorship will help with the above (especially other founders as mentors) as well as strategy, materials and network for investment.
Connect with investors *before* you need to raise and update them on key milestones. An investor that’s had a chance to see progress and get to know the founders personally is more likely to move forward when (or before) the round is opened. And it goes both ways. Getting an early sense of what it’s like to work with a potential investor will help a founder decide if they’re the right investor.
Where do you see the company going now over the near term?
Growing our team, sales of our people compass device, strategic partners and the initial integration of our technology into the devices of our software licensees.
What’s your favorite restaurant in the city?
Meadowsweet in Williamsburg, for sure. If you’re able to go on a weeknight, their 5-course tasting menu is otherworldly. Even their dinner rolls are fresh-out-of-the-oven dense, soft and delicious.
