This investment carries considerable risks and may lead to a loss of the entire assets invested. Projected returns cannot be guaranteed and may be lower than expected.
Panono has created the Panono Camera – the world's first 360° x 360° throwable camera – to change the multi-billion photography market by means of disruptive innovations. Existing global demand through preorders, unparalleled interest by the media, a record-breaking crowdfunding campaign, numerous awards, and first-rate partners in the areas of production and sales emphasize the potential of this Berlin company to become a success story similar to the video revolution GoPro.
The Panono Camera
Panono was founded in 2012 based on the simple fact that photos influence our lives more than ever but that the essential design of cameras hardly differs from the design of the first compact cameras.
Nikon F from 1959 (Photo © by Jeff Dean)
If one compares this Nikon from 1959 with modern cameras, it seems almost unimaginable that 55 years have passed since then, especially if one considers the dramatic changes in other industries and technologies over this period. Virtually all developments in the area of photography over the last 100 years are based on the same usage situation: Photographers are standing behind the camera and looking at a preferably static scene in front of the camera through the viewfinder or display, which they then capture by pressing a button. However, today's generation no longer sticks to this paradigm, which becomes apparent both in the selfie hype and in innovative products long ridiculed by the traditional industry, e.g., the GoPro action cam, which has become a bestseller in the area of video recording.
As a company, Panono has the goal of playing a decisive role in the paradigm shift in photography with its innovative products made in Germany. Indeed, the company's first product – the award-winning Panono Camera – has the potential of becoming a true game changer:
When the Panono Camera is thrown into the air, its 36 integrated cameras take a 360° x 360° picture at the highest point. The camera thus enables users to take a complete picture of a moment in the most simple fashion imaginable. Each picture taken with the Panono Camera is a complete and interactive panorama (360° x 360°). Everything is photographed in all directions and with an extremely high resolution of 108 megapixels (MP).
This resolution, which is three times higher than that of rival products, ensures extremely sharp pictures. The design of the Panono Camera is protected by international design patents.
Our customers appreciate our engineering work:
In total, we have already received approx. 3,000 preorders for the Panono Camera worth EUR 1.3m. Each month, we receive additional preorders worth EUR 45,000 without any significant advertising activities.
If one believes the media, Panono seems to be extremely close to its goal of having a lasting impact on the future of photography:
In fact, hundreds of media around the globe have been thrilled by the Panono Camera and have published over 500 articles about it. We have appeared not just in American elite media in the area of technology such as Wired, Mashable, and Engadget, but also in European mass media like ZDF, Der Spiegel, and the BBC.
Be part of our global roll-out in early 2015, when we will both make our customers beam with pleasure and use our lucrative business model to make a huge leap toward our goal of playing a decisive role in the future of photography.
* * *
We cannot imagine everyday life without photography anymore. People like to share their special moments with friends and family. But also companies use the emotional component of photography for advertising, product pictures, events, PR, etc.
Number of Pictures Taken in Germany: per Month, per Day, and per Minute
In spite of this fact, there are remarkably few product innovations within this market.
Panoramas in particular enable people to capture unique moments in a special way and to relive them at a later time. However, current solutions available on the market are still very time-consuming, expensive, or full of errors. Therefore, Panono focuses on this promising segment of the photography market with its first product.
In order to create a panorama using conventional technology, people can either capture a small strip with their camera phone or take many individual pictures with a camera and stitch these pictures afterward. In doing so, they either have to accept a decrease in quality or need much time for taking the pictures because they have to take consecutive photos in all directions. Things get even more difficult if something moves while a picture is taken because this will cause people's loved ones to be blurred and to be unrecognizable or to appear in the picture several times. People who use the Panono Camera do not have to sit still like 150 years ago to get a Panorama of themselves.
Typical Errors in a Panorama Taken with a Smartphone
Jonas Pfeil is the inventor of the Panono Camera. In 2011, he developed the first prototype at the Technische Universität (TU) Berlin and published a YouTube Video of his invention, which reached 2 million views within one week and attracted the attention of international media.
In addition, he received over 1,500 email inquiries from consumers and companies around the globe. He soon recognized the huge and unrealized market potential estimated at USD 2bn and, in 2012, founded Panono together with his fellow students Björn Bollensdorff and Qian Qin in order to realize this potential and to play a decisive role in the future of photography by means of innovative products such as the Panono Camera. Over the last two years, we have turned the experimental prototype into a product ready for series production; final production is carried out by Jabil, one of the three largest manufacturers of electronic devices worldwide, and international sales are going to start via Amazon, so we have the best partners imaginable for such a product.
Comparison of the Panono Camera (on the Right) and Its Prototype
>> The Highlights
Panono Offers a Whole New Photo Experience
The Panono Camera is the first panoramic ball camera worldwide. It captures everything in all directions and in a fast and easy way – without any blind spots. As all individual cameras are triggered simultaneously, the Panono Camera has no trouble capturing moving objects and is thus perfectly suitable for group pictures. There is no need for people to spend time lining up anymore; everyone may stay where they are, and the situation is captured just perfectly.
Very Sharp Pictures from all Angles
The Panono Camera is the world's first consumer camera with a resolution of more than 100 megapixels. This enables you to discover even the smallest detail in your panorama, for instance elements that you may have missed while taking the picture or that were behind you.
A Whole New User Experience
Experience this new type of panorama yourself and download our free app. You are now able to share every fascinating aspect of your favorite moments.
Deluxe Selfie
Selfies have been one of the major trends in photography over the last few decades.
The Panono Camera now enables people to take unique selfies in a fast and easy fashion and to capture not only themselves but also their entire surroundings.
Features of the Panono Camera
The basic version of the Panono Camera will cost 599 euros including VAT. Our market analysis has shown that this is the ideal price for the product and that this price enables most sales in a profitable manner. Over the medium term, Panono will introduce additional versions of the Panono Camera to the market that will differ in their configuration and features.
>> The Panono Panorama Platform: The YouTube for Panoramas
But the Panono system is much more than just an innovative camera:
The panoramas are stitched together and stored in a self-developed private cloud on the Panono platform. This virtual photo album enables users to manage their panoramas and to share them with friends and family on Facebook and Google+. Naturally, Panono panoramas may also be embedded in websites. In the B2B segment, Panono is going to offer additional service packages – e.g., virtual panorama tours for hotels and real estate agents – which will enable us to access the entire B2B market in addition to the consumer market.
Panorama Taken during the German Victory against Portugal during the Soccer World Cup in Brazil
The cloud may also be synchronized with the free Panono app. Using the Panono app, you can navigate within your panoramas and share them. Download our app from the Apple Store or Play Store and see for yourself.
>> How the Panono Camera Works in Detail
Image Capturing Process
1. Taking Pictures by Tossing the Camera, Using It on a Tripod, or Using It by Remote Control
In a single step, the Panono Camera creates a complete spherical panorama (360° x 360°). To do so, you simply toss it vertically into the air – the camera takes care of everything else. The camera then takes a photo at the highest point of its trajectory. This method is particularly suitable for pictures taken in daylight. Inside buildings or in darker environments, we recommend that you use the Panono Camera on a tripod. You can release the shutter via the Panono app or use a timer. If you want to take a picture really fast, just hold the Panono Camera in your hands and press the shutter release.
2. Immediate Preview on the Mobile Device
Through a Wi-Fi connection, you immediately get a preview of your picture on your mobile device, and the picture is transferred to your own Panono cloud via the Panono app. You may also store up to 400 panoramas on the Panono Camera in case you do not have your phone with you. If you want, you may also transfer the panoramas to your computer using a USB cable.
3. From Single Pictures to Final Panorama
In your private Panono cloud, your pictures are automatically stitched, i.e., put together by our algorithms to form a seamless, high-quality Panono panorama, and stored.
4. View, Share, and Experience Together
The Panono cloud provides you with an all-inclusive package. In this cloud, you manage all of your pictures. You can watch your panoramas in the browser on your computer. Scroll through the picture and zoom in on the details of the 108 megapixels. Synchronize the Panono cloud with your Panono app: Your smartphone or tablet takes you right into the middle of the panorama. Rotate around your own axis and fully experience your unique moment in all its 360° – horizontally and vertically. You may easily share your panoramas on social media, via email, or soon also on our Panono platform. You can decide whether and with whom to share your pictures in your privacy settings. Using embedding codes, you can embed select panoramas in your website.
>> Accessories
Panono is already offering accessories such as selfie sticks, tripod adapters, and camera bags. For each Panono Camera we sell, our customers purchase two additional accessories on average. We will expand our range of accessories at short intervals. Accessories significantly increase our revenue and, most importantly, our profit because Panono can achieve even higher margins selling these products – as is typical of the consumer electronics sector.
>> The Crowd
For the proof of market, Panono launched a crowdfunding on Indiegogo in November 2013. During this campaign, people were able to support the development of the Panono Camera by means of a chargeable preorder. Unlike in the case of our equity-based crowdfunding on Companisto, however, people were not able to buy company shares. Within two months, the team received approx. 2,000 preorders from over 50 countries worth USD 1.25m. Thus, the project set a new record for Germany's most successful crowdfunding campaign.
Key Facts
>> Demand and Preorders
Once it had become clear that there was huge demand for the product, the Panono team worked flat out on finishing product development as soon as possible in order to meet global demand with higher quantities. Since the end of our first crowdfunding campaign, preorders have also been possible directly via the Panono Online Store. Through this store, we are continuously receiving more preorders from all over the world. At the moment, preorders (including those from the crowdfunding campaign) amount to a value of over EUR 1.3m. Roughly 40 percent of all preorders are from the European Economic Area, and 30 percent are from the U.S.; these regions are followed by Japan, Australia, Canada, and China. We receive approx. 100 preorders each month without engaging in any relevant advertising activities, and these preorders correspond to net revenue of EUR 45,000 per month. In total, we have received preorders amounting to net revenue of EUR 400,000 via our online store in 2014.
Development of Preorders
>> Sales and Cooperation Inquiries
Panono is still receiving sales inquiries from established national and international retailers and popular electronics stores. International sales opportunities through Amazon in particular will be very helpful to our roll-out in early 2015.
"I love to see the world from another perspective and panoramas, and especially a thing like [...] [the Panono Camera] literally provides me with another perspective"
Lukas Rieder – Indiegogo Supporter
Our survey among people who have already preordered our camera showed that approx. 70 percent of purchasers want to use the camera in private contexts. Roughly 30 percent want to use the camera in their work.
>> Areas of Application for Consumers
>> Holiday memories, sports, family moments, festivals, concerts, weddings:
No matter whether you want to remember holiday moments, athletic successes, happy family moments, concerts, festivals, or weddings, you can do so using the Panono Camera and travel back to these unique moments anytime.
Skatepark - Pangea Festival
>> Areas of Application for Professional Users
Professional (B2B) users of the Panono Camera are highly interesting to us in an economic sense because B2B customers in the area of photography usually have higher budgets for equipment and services.
In this context, the Panono solution is suitable for numerous applications:
>> Marketing, Event, PR:
The Panono Camera can be used to present products in an unprecedented fashion, to create a new brand experience, and to generate innovative social media content. Our panoramas create a new and interactive brand experience.
>> Real Estate, E-Commerce, Tourism:
Because of Panono, real properties, vacation destinations, and products on the internet may be experienced interactively through high-resolution 360° x 360° panoramas. Customers may be invited to take virtual tours. Today, many hotels and real estate agents are already using panorama technology although it is time-consuming and expensive.
>> Journalism, Film, Documentation:
Using Panono, people can document events and scenes conveniently and comprehensively. In no time, various settings may be captured in their entirety, in a high resolution, and in much detail. Consequently, apart from its various applications in journalism, the camera also has significant advantages over all existing solutions in regard to the legally relevant documentation of progress at construction sites, of accidents, or in security applications.
"At Painting Buddha, we attend many events with hundreds or thousands of people, and what could be better than a group picture from above? This is precisely the right thing for such situations and for simply discovering new perspectives on what we're doing all day."
Michael Bartels (Painting Buddha) – Indiegogo Supporter
Panono is already being used by:
Auto China – Partnership with BMW
Die Fanhansa – Partnership with Lufthansa
New York Fashion Week – Partnership with Hugo Boss
Bungee Jumping – Partnership Jochen Schweizer
Panono generates its revenue primarily in two ways. The first way is of course the sale of the Panono Camera and of accessories; the second way is additional features of the Panono Cloud for consumers and B2B customers.
The gross margin per camera is between approx. 40 % and 60 %, depending on the production quantity. The share of total revenue generated from additional features is intended to increase from 14 % in 2015 to 32 % in 2018.
Because of the subsequent earnings from the Panono Cloud, we will be able to further increase the margin per customer and achieve a long-term "lock-in" effect, i.e., ensure that customers will keep using our system and create a solid basis for the sale of future Panono products to these customers.
The largest proportion of the expenses listed in our projection is due to the production of the Panono Camera. Because of economies of scale, these expenses will decrease with increasing quantities. In addition, we want to cut costs by 25 % through optimization until 2017 and simultaneously increase revenue through recurring earnings from service activities on our web platform. For each Panono Camera sold, we currently sell two accessories on average, e.g., tripod adapters, protective covers, handles, or camera bags.
For our detailed projection, please refer to the "Financial Data" section.
Generally speaking, the camera market is a multi-billion market. In 2013, roughly 89 million digital cameras and approximately more than one billion camera phones and smartphones were sold worldwide (click here for details). However, significant innovation within this market is rare: If one compares, for instance, the Canon EOS D-30 introduced roughly 15 years ago – one of the first popular digital cameras for discriminating professional users and amateurs – with current models, it is hard to see a real difference. Simply put, there has not been much progress over the last 15 years apart from higher resolutions, increased memory capacity, and perhaps the video feature. Quite the contrary: Many manufacturers do not want to try anything new because they are afraid they might confuse customers.
This enables start-ups like GoPro, Lytro, and Panono that defy old conventions to penetrate the market with innovative solutions and to meet the enormous demand.
GoPro Inc., the manufacturer of the small, waterproof, and shock-resistant action camcorder, initially increased its revenue threefold or fourfold from year to year. Originally, the camera had been developed for filming surfing, and it was later used in several other areas as well. Despite being considered "toys" in the beginning, GoPro products have become essential to the area of professional filming, for instance for TV productions and movies (click here for details). GoPro saw a very successful NASDAQ IPO in June 2014, when the company was valued at approx. USD 3bn after having existed for little more than 10 years. Until today, GoPro has increased its company value to more than USD 8bn because of increasing sales.
Experts estimate the market for digital cameras at EUR 19bn (not considering any accessories). In 2013, more than 6 times as many digital cameras as camcorders and action cameras were sold.
Whereas the market for simple cameras is in decline, the market for more expensive cameras has seen annual growth rates of 72 % ever since 2009.
Digital Camera Sales
B2B camera sales are skyrocketing and will increase by 33 % to approx. 520,000 items in Germany in 2014; global growth rates in this segment will be similarly high (click here for more details).
The market for action cams is also considered a fast-growing market. The average annual increase in action cams sold over the next five years is estimated at 23.83 % (click here for more details).
>> Competition
The Panono camera is unique because it is the only camera that captures a full panorama in all directions with an unparalleled resolution of 108 MP whenever it is simply thrown into the air.
Overview of Competitors
To reach our ambitious goal of playing a decisive role in the future of photography, we need an interdisciplinary team that blends expertise in hardware, software, and marketing. In the Panono offices in Berlin-Kreuzberg, we are working very hard on the web back end, the stitching software, and the apps. Panono develops the electronic and mechanical components in cooperation with experienced partners from these areas in several international locations. This ensures that the Panono Camera can also be built in large quantities and meet customers' demands. The three company founders and their team (now consisting of 14 employees) have been working full-time for three years to make their vision of introducing disruptive innovations to photography come true:
Jonas supervises development and production of the Panono Camera. He holds a university degree in computer engineering and makes sure that Panono's products meet the highest standards. The inventor of the Panono Camera, the designer of the first prototype, and a former Jugend forscht (a German competition for young researchers) laureate, he is the perfect person to oversee the complex interplay between hardware and software, to manage the different lines of development, and to apply for international patents on our inventions.
Björn serves as Panono's managing director, oversees all areas, and promotes company development. In particular, he supervises the HR department, finances, and controlling. A trained engineer and communications expert, he gained valuable experience concerning corporate governance and stunning products during the time he spent at the legendary Pixar Animation Studios in California. This experience now enables him to ensure well-structured growth at Panono.
Qian supervises software development, which includes the cloud service and app development in particular. In his youth, Qian had already designed his first sophisticated web services. The developer of the largest European anime chat website (www.animechat.de) and of qTranslate – the standard for multi-language WordPress websites – uses his long experiences in software development to achieve maximum usability for Panono's products.
Sarah is the head of the marketing and PR team. Using her experience gained at the agencies Scholz & Friends and Johanssen und Kretschmer, she ensures a smooth market introduction. She now uses her experience from campaigns for KPMG, Axel Springer, REWE, Coca Cola, and Deutsche Bahn for the benefit of Panono. With the help of excellent partners such as BMW, Lufthansa, or Jochen Schweizer, she thus paves the way for a fantastic market launch.
Investors
As many as 30 angel investors have already been thrilled by Panono and have invested more than EUR 1,000,000. Because of these angels, Panono possesses a large network of contacts in the areas of manufacturing, sales, R&D, and online sales.
„I was thrilled primarily by the Panono team, not so much by the product. They were simply three great people who wanted to implement an idea. [...] They were so excited and inspired by their idea that I told myself: 'If anyone succeeds at this, they will.'"
Stefan Steinhardt – Angel Investor
Partners
Panono is supported by experienced partners in the areas of development, sales, and business development:
Ralf Coenen, former COO at Leica and department head at Carl Zeiss, serves as an advisor in the implementation of the production and supply chain. Berlin serial entrepreneur Rüdger Rubbert, founder of three companies (Orametrix, Lingualcare, and Natural Dental Implants; Lingualcare was acquired by 3M), acts as a sparring partner for the management and, most importantly, as an experienced advisor in the area of international patents (during his career, Rüdger has played a leading role in the preparation of over 100 patents, has applied for and received international patents, and has successfully defended these). To ensure that electronic and mechanical components are also reliable when produced in large quantities, we cooperate with experienced partners in the area of development and have our products manufactured by Jabil, one of the three largest manufacturers of electronic products worldwide.
Panono has identified unrealized potential within the photography market, has developed a superior solution for panorama photography, has successfully tested this solution on the market, and has thus created a perfect basis for the global roll-out in early 2015:
Development of the mechanical parts of the case has been finished, and there have already been drop tests to ensure that the case is sufficiently robust. The insights gained in these tests will be considered in product development, and the production of injection molds will be the next step. The design of the electronic parts has also been completed, and our contractor Jabil is currently producing the first prototypes of these parts.
To meet the high international demand, we have found strong partners: Amazon is the best partner imaginable for international sales. The Panono Camera is manufactured by Jabil, one of the three largest contract manufacturers worldwide. Thus, our major partners will ensure scalability even if demand skyrockets. The production costs of the Panono Camera will keep decreasing over the next few years because of economies of scale and the optimization of electronic parts.
For 2015, the year of the market launch, Panono estimates EUR 4.7m in revenue. Revenue is intended to increase to EUR 12m over the next 3 years. According to this very conservative projection, Panono will reach breakeven as early as 2017. This financial projection is a conservative estimation of our sales figures based on only 30 % growth per year until 2018, which is in turn based on the preorders during our first crowdfunding campaign. By comparison, GoPro experienced annual growth rates of 300 % in the first 2 years.
The capital raised via Companisto is going to be used for the production, marketing, and sale of the Panono Camera. Moreover, we will always use part of our capital for the ongoing development of other innovative products to ensure the long-term success of Panono.
Looking back on the past 24 months, we have achieved a lot:
>> Largest German crowdfunding campaign (as of January 2014) – USD 1.25m
>> Patent applications in the EU, the U.S., China, Japan, and South Korea
>> Partnerships with renowned companies around the globe
>> Preorders worth over EUR 1.3m
>> Monthly (net) revenue of approx. EUR 45,000 without any relevant marketing activities
>> More than 500 media around the globe have reported on us
Media that Have Reported on Us
>> More than 3.5 million clicks on our YouTube Video
>> Grand prize in the IKT Innovativ start-up competition (30,000 euros)
>> 1st place at the innovation award of the Gesellschaft für Informatik (society for computer sciences; 3,000 euros)
>> 1st place at the Businessplan-Wettbewerb Berlin-Brandenburg in the "Technology" category (8,500 euros)
>> Numerous other awards for the company and the product
We have learned that the crowd is extremely important to us. From the initial success of our first YouTube videos (that have been viewed over 3.5 million times now) and the 2000 supporters from our Indiegogo campaign to our 11,000 Facebook fans and thousands of suggestions concerning our products, we are convinced by the crowd and hereby choose it as a supplement to our angels again; this is also a deliberate decision against other sources of capital whose value in addition to the capital provided is much lower.
Become part of our company story, and let's make our vision of playing a decisive role in the future of photography come true together!
Panono GmbH
Französische Straße 9
10117 Berlin
Germany
Phone: +49-30-220128990
Fax: +49-30-220128991
Email: companisto@panono.com
Website: www.panono.com
Facebook: https://www.facebook.com/panono.camera
Twitter: https://twitter.com/panono
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