Access Menu

Log in via Social

Modbook Inc.

Modbook Inc.

We make the Mac OS X tablet that Apple won't

Verify Investor Status to make a reservation

Deal Type

Equity

Funding Goal

$1,000,000

Current Reservations

$1,519,164

Minimum Reservation

$5,000

Deal Stage

Series A

Pre-money Valuation

$2,500,000

Open Date

07/15/2016

Closing Date

09/15/2016

Elevator Pitch

We make the Mac OS X Tablet Apple won't - a pen-enabled, tablet/laptop convertible for a $1.9bn market of power+creative users hungry for the portable workstation-class performance no iPad can offer

Company Overview

October 2017 Update

  • Added 1:1 and 2:1 Warrant coverage investor incentives
  • New Company Video
  • New Company Slideshare presentation
  • New 2017 Traction milestones
  • New Testimonials
  • New Press links
  • New & updated Documents (please request access)
  • New Top 6 FAQs (25 in new "Frequently Asked Questions" document)

We make the macOS tablets that Apple won't

We make the Mac tablet that Apple won’t — a full-featured, all-in-one pen tablet convertible for power and performance dependent Mac users.


23c61d69bf5a0650768b5317fd4ff504.jpg

These users, desperate for workstation-class mobility solutions, represent a $1.9b global market opportunity that iPad and other tablets can’t address. Only our latest flagship product, the Modbook Pro X, unlocks the maximum workflow fluidity these users require for optimum productivity.

Led and advised by former Apple managers, Modbook has successfully established a strong brand with a proven record of manufacturing and shipping Mac-based solutions, and has built an active business platform powered by a reliable, flexible and scalable ecommerce system serving customers in 70 countries to date.

The Pro X has stirred intense media and consumer interest. Supported by $403k in pledges brought in by our Kickstarter Top 100 success, the world's only Mac tablet convertible promises to quickly make headway in this high-profit-margin market.

2a66bdd0fd832c6d8dadd862b5ceef3a.jpg

Traction

  • Modbook CEO A. Haas last Manager of Newton Systems Group at Apple, the forerunner of the current iPhone and iPad products

    February, 1998
  • Begin Tablet Mac Development - Realizing that Apple would likely never offer a Tablet Mac, A Haas begins devising a way to create a solution

    August, 2004
  • First Tablet Mac Prototype - Choosing the Apple laptop with the longest product life expectancy, A. Haas creates first Tablet Mac prototype.

    May, 2005
  • Induction as Technology Partner - A. Haas partners with Wacom to integrate their industry-leading pen technologies.

    August, 2006
  • 1st. Gen. Modbook wins Best-of-Show - A Haas introduces the first 13-inch pen-enabled Mac tablet at the MacWorld Conference and Expo in SF

    January, 2007
  • Apple Proprietary Solution Provider - Modbook project added to the PSP program, later transitioned to better suited Apple Premier Developer

    May, 2007
  • 15-inch Prototype wins Best-of-Show - A Haas and Steve Wozniak showcase first 15-inch Modbook at the MacWorld, winning another best-in-show.

    January, 2009
  • Modbook Inc. Established - A Haas establishes Modbook Inc. in Los Angeles, California, the center of the creative content producing industry

    February, 2012
  • 2nd. Gen. Modbook Launched - Launch of the Modbook Pro to help build & fine-tune business processes & infrastructure needed for the Pro X

    November, 2012
  • Modbook begins domination of page-one Google SERPs for “modbook” and “mac tablet”

    May, 2013
  • Pro X Kickstarter Closes Successfully - Modbook Pro X campaign raises $403,000+ in 40 days, entering Top 100 most successful Kickstarters

    September, 2014
  • Modbook Pro X R&D Revision - Project development undergoes major overhaul to expand support for more Apple 15-inch MacBook Pro base systems

    May, 2015
  • Modbook Pro X R&D Complete - Initial development work on the Modbook Pro X is complete, preparation for worldwide product launch begins

    June, 2016
  • Crowdfunder Reg D Fundraise passes $1 Million - accredited investors only fundraising indicates high interest from non-accredited investors

    February, 2017
  • Modbook Pro X Re-vamped - Product design re-vamp & incorporation of the new Apple Touch Bar is complete, ready to be put into pre-production

    March, 2017
  • 6TB Storage Expansion Option - Modbook Pro X receives massive internal PCIe SSD upgrade to 3x times capacity of top-end Apple MacBook Pro

    June, 2017
  • 3rd. Gen. Modbook Announced - Modbook Pro X with Touch Bar officially introduced, shipping following successful closing of fundraising

    September, 2017
  • Warrant Coverage Perks - New investment perks for Crowdfunder.com investors, warrant coverage 1:1 for $10k+ and 2:1 for $20k+ investments

    October, 2017

Pitch Deck

Press Mentions

Key Customers & Partners

Customers ObjectCode Pixelogic Clemenger Group SPOT Platinum Dreamworks LAIKA Pixar Animation Studios Walt Disney Animation Warner Brothers Animations Nike Behnisch Architekten Squarehead Technology Dark Horse Comics Apple Inc. LoveBook Colordoc Creative Production CaLARTS University of Cambridge University of Harvard University of Stanford University of Yale Technische Universität Eindhoven Manitoba Hydro Spaeth Design Menichetti Unified Pictures VISA Agio Electronic Arts Nationwide Children's National Institutes of Health Ximedica Holiday Inn Express Comprehensive Consulting Services WorldWideWAN GmbH Leap Frog Mellen Nivek Box Studios Stryker Cirque Du Soleil Jet Propulsion Laboratory FireFly Tattoo 31 Thirteen Studios Illinois Manufacturers Associatin

Testimonials

Steve Wozniak
Steve Wozniak
Co-Founder Apple Inc.
"I'm a gadget guy so I love to collect new, interesting things... and what an incredible device this [Modbook Pro] is."
Mike Costache
Mike Costache
Managing Partner @ Krowdmentor
"Modbook’s CEO Haas' Apple background was really what sold me on investing. Who better to create a solution like this than someone who’s been on the inside? It's an added bonus that his solution is not competing with Apple but making them money instead."
Andrew Beegle
Andrew Beegle
Executive Producer and Co-Founder, Dos Outlaw
"For me, the investment in Modbook Inc. was a no-brainer once I had the chance to get my hands on the Pro X. Between the crystal clear retina display, to the ability to use a pen, it's going to be a game-changer for creatives."
Kody Chamberlain
Kody Chamberlain
Professional Illustrator & Comic Book Artist
"The power and mobility of the Modbook Pro are a game changer for me."
Tommy Castillo
Tommy Castillo
Professional Illustrator & Comic Book Artist
"Nothing compares to the power of a MacBook Pro and a Cintiq in the form of a Modbook Pro in one’s hands, anywhere you go."
Cult Of Mac
Cult Of Mac
Web Publisher of Apple-related Insider News
"Forget the Microsoft Surface: the Modbook Pro X is a Mac/iPad hybrid ... the only way [it] will ever become a reality."
TechCrunch
TechCrunch
#1 Web Publisher of Technology Industry News
"The hardware is impressive, feels sturdy and durable. The Modbook Pro is a remarkable achievement and perfect for those who demand portability."
MacWorld
MacWorld
Preeminent Web Publisher Dedicated to Apple
"We have always been impressed by the Modbook. Sturdy and strong. Great for creating design work on the move."
WIRED Magazine
WIRED Magazine
Premier Emerging Technology Magazine
"'Modbook Tablet Is a Designer’s BFF.' Impressively versatile… formidable engineering kung fu."

Previous Funding

  • $836,133 Equity
  • Raise Source: Investors
  • December 2012
  • $389,546 Equity
  • Raise Source: Investors
  • December 2013
  • $86,000 Equity
  • Raise Source: Investors
  • December 2014
  • $45,600 Other
  • Raise Source: Other
  • December 2015

Frequently Asked Questions

  1. What is your relationship with Apple?

       Apple initially embraced my vision by signing me on as an Apple Proprietary Solution Provider and subsequently transitioning me into an Apple Premier Developer. Today I am proud to count Apple amongst my oldest customers purchasing my Modbook solutions.

       Being a respectful Mac citizen and keeping our solutions 100% Mac Developer guidelines compliant not only earned us our accepted place in the Apple ecosystem, it also ensures that our Modbook tablet computers support all macOS applications right out of the box - if it works/runs on an Apple 15.4-inch Retina MacBook Pro before we transform it, then it will equally run on it after we transformed it into a Modbook Pro X.

  1. If Apple doesn't license its operating system, how are you building your macOS tablet solutions?

       We are to Apple like what Shelby was to Ford or AMG was to Mercedes in the car industry - an aftermarket, in our case Macintosh conversion, solution provider.

       Since the introduction of the original Macintosh in 1984, companies (other than Apple) created legal macOS solutions either by producing Macintosh clones or manufacturing Macintosh conversions. The former requires a license from Apple, the latter require the purchases of 100% genuine Apple Mac computers which are then "converted" and sold as aftermarket solutions. Macintosh conversions are protected by laws in the US (First-sale doctrine) and most other countries that naturally allow the owner of a product, once acquired, to dispose of it whichever s/he sees fit.

 

       Every Modbook tablet mac solution is essentially an enclosure conversion of a previously purchased 100% genuine Apple MacBook/Pro. Because the entire Mac computer (minus the original enclosure and a few other parts no longer needed) is retained within the converted solution, its Mac operating system also remains 100% compliant with its OS license agreement terms. Not only does this keep the entire solution top-to-bottom in a safe legal harbor, it is also the reason for the core Modbook rule for Mac compatibility: if it works/runs on the MacBook Pro before we transform it, then it will equally run on it after we transformed it into a Modbook.

  1. Why is Apple not going to compete with you?

       Apple will not address our niche for the foreseeable future for the following two main reasons:

       One(1) – It would be utterly incompatible with their product strategy (not marketing strategy, which could be much more easily adjusted).
       Making a macOS X-based tablet would mean Apple would have to abandon their extremely successful and deeply ingrained platform strategy of splitting their mobile offerings into macOS-based notebooks vs. iOS-based iPhone/iPad tablets. Clearly separated through their distinct interface paradigms (mouse/trackpad on macOS and touch on iOS), Apple has carefully crafted their feature sets and positioning so as to complement and integrate with each other, and not overlap. This has arguably enabled Apple to become most if not the valuable company on the planet. However, it is also this strategy that creates the need for our products in the first place.

 

       Two(2) – The niche is too small
       Just in the last year, Apple generated an estimated $220bn in revenues from over 200m happy customers, whereas our niche represents only a fraction of 1% of their business, and not even that. It is a $1.9bn revenue potential only for us, but not for Apple. We sell transformed Apple base systems, and for every Modbook we sell, we also sell one MacBook for Apple. So Apple would only stand to gain just over half (~$963m) of that potential, hardly worth sacrificing Apple’s competitive advantage over the PC industry (vs. Windows/Android one-OS-fits-all model).

       As such, it is highly unlikely that Apple will pursue this, or as Apple CEO’s Tim Cook says: “Apple feels strongly that customers are not looking for a converged Mac and iPad”.

  1. Why aren’t other companies competing with you? Do you have any barriers, such as IP to protect your business?

       Currently the protection of our market niche from potential competitors is centered around our unique approach to creating our products. Our Modbooks are, in essence, Macintosh conversion kits that transform genuine Apple MacBook Pro laptop computers into pen-enabled Mac tablets. This not only makes us unique (which is alway valuable) but also makes it exceedingly hard for traditional PC manufacturers to copy us.

       Most every other PC manufacturer relies on mass production out of asia to build most, if not all, of their component parts in large batch numbers, filling their inventories to last months at a time.

 

       Large inventories work fine, if you have a license to build the entire computer, top to bottom. Every single PC manufacturer today is using this business model, based either on a license from Microsoft (for making Windows PCs) or Google (making Android computers) or any of the UNIX/LINUX systems and their respective licensing models.

       However, Apple does not license its Mac operating system. The only way to legally create a macOS based computer solution, is by way of producing a Macintosh conversions that will transform a genuine Apple computer into something else, in our case, a Mac pen-tablet computer.

 

       Large inventories for conversion kits are a very (very) bad idea. The moment there is a change in the product for which the kit is designed, and we see Apple (like most every other PC manufacturer) update/change their products every 6-12 months, that inventory has just become obsolete and the associated capital expense is lost.

       We spent a long time trying different approaches, product designs, and manufacturing process combinations, until we developed our very own, proprietary version of Just-In-Time manufacturing, with under 10 days in inventory for the current Modbook Pro, and an expected 6 days in inventory for the Modbook Pro X. Using a 100% US-based manufacturing and assembly line, we have worked out not only how to build one or a handful of conversion kits for one particular Apple computer, but do so for a line of Apple products and on a commercial production level scale.

 

       This is what constitutes our key barrier to entry anyone looking to enter our market space and compete with us would have to overcome.

       Of course, in the longer term, once we launched the Modbook Pro X and begin building out our product roadmap, we do plan on adding certain patentable processes and features to our products and build out our intellectual property portfolio.

  1. Why would users want to spend the money on your all-in-one pen-enabled Modbook, rather than making do with "almost" workaround solutions?

      Modbook’s products are sensibly priced to the same combined cost of the patched-together “almost” solutions they are designed replace. We are not making a VW Beetle for the mass market, we are building the equivalent of a Ford F-450 Super Duty Pickup Truck with the full SuperCrew cabin, V8 engine, and the extra long truck bed. That vehicle makes little sense for the vast majority of car buyers, but the professionals whose livelihood depends on it, couldn’t imagine making a business investment in anything else.

 

      We created Modbook Inc because we believe that “almost” solutions should never be the only choice for any professional. Creative professionals need a tablet for more than standard office software and content consumption. For them, a pen is an essential part of their creative process. They need a tablet to act as a full-featured, professional desktop with workstation-level performance to run power hungry creative software applications. Their desire to combine pen capabilities of the iOS platform or a Windows-based pen tablet with the power, performance and portability of the macOS platform, force creative professionals to patch together an “almost” solution and force their workflows around it.

 

      When creatives need pen capabilities and the power, performance, and portability of the macOS platform, Apple recommends purchasing a Mac for the creative pro apps and for the pen use, either an iPad or a third-party solution such as a windows based tablet, and using all of them in tandem. Such “almost” solutions leave creative professionals on their own to build, maintain, and troubleshoot the most critical links in their workflow.

       For creative professionals, inefficient workarounds, forced upon them by their “almost” solutions, hinder their workflow performance, as well as their ability to effectively and efficiently work in the highly mobile environment their clients demand. Creatives are generally being paid by the deliverables they produce, not by the time they spend working on them. Any factor that streamlines their workflow will directly impact their profitability and livelihood.

  1. What is the exit plan for your investors?

    We have set our year-over-year unit sales targets within proven performance benchmarks I have previously achieved. This will not only allow us to pace our growth at levels I have successfully managed before, but reaching our revenue milestones set conservatively will also clearly demonstrate the business potential of our market niche and more importantly, substantiate the even bigger market opportunity left un-captured. It is our strong believe that this will attract the attention of larger players looking to bolster their existing market share or expand into ancillary markets by acquiring our company.

 

       We have designed this exit strategy and its metrics under the guidance of one of our advisors, who is also a senior advisor to the HP Mergers & Acquisitions Board. Accordingly we would expect to see such an anticipated acquisition to be priced at a multiple of our targeted revenues, which in turn would achieve for our investors a high ROI at several multiples of their initial investments.

Documents

Confidential

Loading...