Kapsul

Kapsul is targeting the $14 billion U.S. market for home cooling products.

The company is building a line of premium appliances, starting with a “smart” air conditioner. This product is Wi-Fi enabled, connects to a mobile app, and can be controlled using platforms such as Alexa, Nest, and Google Home.

According to Tech Insider, Kapsul’s product is “The solution to air conditioners we’ve all been waiting for.”

In the U.S., an estimated 34 million homes have individual air conditioners. Units typically need to be replaced every 7 to 10 years.

Traditional window air conditioners are loud, heavy, and difficult to install.

In contrast, Kapsul’s units are quiet, small, and can be installed by one person. Each unit dispenses cool air at a rate of 5,000 BTU, enough to cool rooms of up to 150 square feet.

Its air conditioner can be controlled 3 different ways: by a single knob on the unit; by using Kapsul’s mobile app over a Wi-Fi connection; or using voice technology with compatible smart home platforms.

Kapsul has already developed multiple prototypes of its air conditioner, established software and supply chain logistics, and is ready to start manufacturing at scale.

The company has filed for eight patents (three have already been granted) and completed Techstars' accelerator program.

The company will sell its products through Kapsulair.com, as well as through Amazon and third-party retailers. The suggested retail price will range between $599 and $799.

Kapsul has generated $3.3 million in pre-sales through fundraising platforms Kickstarter and Indiegogo, and through its own website.

In addition, the company has $2 million in pending orders for 2019 from major retailers including Home Depot, PC Richard, and Bed, Bath & Beyond.

Along with sales of its physical products, Kapsul will earn recurring revenue through sales of its software. In total, the company is projecting to generate $7 million in revenue in 2019 and achieve product margins exceeding 50%.

Kapsul has plans to create additional products in the future. Its plans include two humidistats (a humidifier and de-humidifier in a single product), two portable air conditioners, and a micro-split unit (air conditioners that contain an outdoor and indoor unit).

Team Background

Don Pancoe - Co-Founder & CTO

Don is an engineer and designer with significant experience in building “connected” devices.

He formerly served as Principal of product development company Likuma Laboratories with teammate Kurt Swanson.

For 15 years, he served as a systems engineer for Clifton, Weiss & Associates. While there, he designed communications and control networks for public transit organizations including Amtrak, SEPTA, and Metrolink.

He formerly served as a systems engineer for STV Incorporated, a company providing architectural and engineering management services to businesses.

Don earned a Bachelor’s degree in Electrical Engineering from Penn State and a Master’s in Industrial Design from Philadelphia University.

Kurt Swanson - Co-Founder & CEO

Kurt brings a background in engineering to Kapsul.

Prior to starting the company, he served as Principal of Likuma Laboratories, a product development company that assisted businesses such as Biomeme, Noria, and Smart Vision Labs to create new products.

For nearly six years, he served as a structural analyst for Boeing, where he assisted in the development of Boeing's 787 aircraft.

Kurt obtained a Bachelor’s degree in Mechanical Engineering from Stevens Institute of Technology.

Chris Myers - Co-Founder & COO

Before starting Kapsul, Chris served as Managing Director of Philadelphia Development Group. This organization advises technology start-ups on issues including capital raising, product development, and marketing strategy.

He previously founded MAGetc, a company providing publishers with online content management and application development.

For eight years, he served as an adjunct professor at Drexel University’s College of Business.

He founded Project A.R., a company that developed voice-controlled augmented reality environments.

Chris previously served as CEO of searchbuilder.com, one of the largest online advertising providers of the “dotcom” era. While there, he worked with notable clients including Best Buy, Gateway, HP, and Yahoo!.

He earned a Bachelor’s degree in Philosophy from The New School.

Co-Investors

TechStars

Prominent accelerator for tech companies. Investments include Uber, ClassPass and Twilio.