#436149 Blue Frog Robotics Answers (Some of) Our ...

In September of 2015, Buddy the social home robot closed its Indiegogo crowdfunding campaign more than 600 percent over its funding goal. A thousand people pledged for a robot originally scheduled to be delivered in December of 2016. But nearly three years later, the future of Buddy is still unclear. Last May, Blue Frog Robotics asked for forgiveness from its backers and announced the launch of an “equity crowdfunding campaign” to try to raise the additional funding necessary to deliver the robot in April of 2020.

By the time the crowdfunding campaign launched in August, the delivery date had slipped again, to September 2020, even as Blue Frog attempted to draw investors by estimating that sales of Buddy would “increase from 2000 robots in 2020 to 20,000 in 2023.” Blue Frog’s most recent communication with backers, in September, mentions a new CTO and a North American office, but does little to reassure backers of Buddy that they’ll ever be receiving their robot.

Backers of the robot are understandably concerned about the future of Buddy, so we sent a series of questions to the founder and CEO of Blue Frog Robotics, Rodolphe Hasselvander.

We’ve edited this interview slightly for clarity, but we should also note that Hasselvander was unable to provide answers to every question. In particular, we asked for some basic information about Blue Frog’s near-term financial plans, on which the entire future of Buddy seems to depend. We’ve left those questions in the interview anyway, along with Hasselvander’s response.

1. At this point, how much additional funding is necessary to deliver Buddy to backers?
2. Assuming funding is successful, when can backers expect to receive Buddy?
3. What happens if the fundraising goal is not met?
4. You estimate that sales of Buddy will increase 10x over three years. What is this estimate based on?

Rodolphe Hasselvander: Regarding the questions 1-4, unfortunately, as we are fundraising in a Regulation D, we do not comment on prospect, customer data, sales forecasts, or figures. Please refer to our press release here to have information about the fundraising.

5. Do you feel that you are currently being transparent enough about this process to satisfy backers?
6. Buddy’s launch date has moved from April 2020 to September 2020 over the last four months. Why should backers remain confident about Buddy’s schedule?

Since the last newsletter, we haven’t changed our communication, the backers will be the first to receive their Buddy, and we plan an official launch in September 2020.

7. What is the goal of My Buddy World?

At Blue Frog, we think that matching a great product with a big market can only happen through continual experimentation, iteration and incorporation of customer feedback. That’s why we created the forum My Buddy World. It has been designed for our Buddy Community to join us, discuss the world’s first emotional robot, and create with us. The objective is to deepen our conversation with Buddy’s fans and users, stay agile in testing our hypothesis and validate our product-market fit. We trust the value of collaboration. Behind Buddy, there is a team of roboticists, engineers, and programmers that are eager to know more about our consumers’ needs and are excited to work with them to create the perfect human/robot experience.

8. How is the current version of Buddy different from the 2015 version that backers pledged for during the successful crowdfunding campaign, in both hardware and software?

We have completely revised some parts of Buddy as well as replaced and/or added more accurate and reliable components to ensure we fully satisfy our customers’ requirements for a mature and high-quality robot from day one. We sourced more innovative components to make sure that Buddy has the most up-to-date technologies such as adding four microphones, a high def thermal matrix, a 3D camera, an 8-megapixel RGB camera, time-of-flight sensors, and touch sensors.
If you want more info, we just posted an article about what is Buddy here.

9. Will the version of Buddy that ships to backers in 2020 do everything that that was shown in the original crowdfunding video?

Concerning the capabilities of Buddy regarding the video published on YouTube, I confirm that Buddy will be able to do everything you can see, like patrol autonomously and secure your home, telepresence, mathematics applications, interactive stories for children, IoT/smart home management, face recognition, alarm clock, reminder, message/photo sharing, music, hands free call, people following, games like hide and seek (and more). In addition, everyone will be able to create their own apps thanks to the “BuddyLab” application.

10. What makes you confident that Buddy will be successful when Jibo, Kuri, and other social robots have not?

Consumer robotics is a new market. Some people think it is a tough one. But we, at Blue Frog Robotics, believe it is a path of learning, understanding, and finding new ways to serve consumers. Here are the five key factors that will make Buddy successful.

1) A market-fit robot

Blue Frog Robotics is a consumer-centric company. We know that a successful business model and a compelling fit to market Buddy must come up from solving consumers’ frustrations and problems in a way that’s new and exciting. We started from there.

By leveraged existing research and syndicated consumer data sets to understand our customers’ needs and aspirations, we get that creating a robot is not about the best tech innovation and features, but always about how well technology becomes a service to one’s basic human needs and assets: convenience, connection, security, fun, self-improvement, and time. To answer to these consumers’ needs and wants, we designed an all-in-one robot with four vital capabilities: intelligence, emotionality, mobility, and customization.

With his multi-purpose brain, he addresses a broad range of needs in modern-day life, from securing homes to carrying out his owners’ daily activities, from helping people with disabilities to educating children, from entertaining to just becoming a robot friend.

Buddy is a disruptive innovative robot that is about to transform the way we live, learn, utilize information, play, and even care about our health.
2) Endless possibilities

One of the major advantages of Buddy is his adaptability. Beyond to be adorable, playful, talkative, and to accompany anyone in their daily life at home whether you are comfortable with technology or not, he offers via his platform applications to engage his owners in a wide range of activities. From fitness to cooking, from health monitoring to education, from games to meditation, the combination of intelligence, sensors, mobility, multi-touch panel opens endless possibilities for consumers and organizations to adapt their Buddy to their own needs.
3) An affordable price

Buddy will be the first robot combining smart, social, and mobile capabilities and a developed platform with a personality to enter the U.S. market at affordable price.

Our competitors are social or assistant robots but rarely both. Competitors differentiate themselves by features: mobile, non-mobile; by shapes: humanoid or not; by skills: social versus smart; targeting a specific domain like entertainment, retail assistant, eldercare, or education for children; and by price. Regarding our six competitors: Moorebot, Elli-Q, and Olly are not mobile; Lynx and Nao are in toy category; Pepper is above $10k targeting B2B market; and finally, Temi can’t be considered an emotional robot.
Buddy remains highly differentiated as an all-in-one, best of his class experience, covering the needs for social interactions and assistance of his owners at each stage of their life at an affordable price.

The price range of Buddy will be between US $1700 and $2000.

4) A winning business model

Buddy’s great business model combines hardware, software, and services, and provides game-changing convenience for consumers, organizations, and developers.

Buddy offers a multi-sided value proposition focused on three vertical markets: direct consumers, corporations (healthcare, education, hospitality), and developers. The model creates engagement and sustained usage and produces stable and diverse cash flow.
5) A Passion for people and technology

From day one, we have always believed in the power of our dream: To bring the services and the fun of an emotional robot in every house, every hospital, in every care house. Each day, we refuse to think that we are stuck or limited; we work hard to make Buddy a reality that will help people all over the world and make them smile.

While we certainly appreciate Hasselvander’s consistent optimism and obvious enthusiasm, we’re obligated to point out that some of our most important questions were not directly answered. We haven’t learned anything that makes us all that much more confident that Blue Frog will be able to successfully deliver Buddy this time. Hasselvander also didn’t address our specific question about whether he feels like Blue Frog’s communication strategy with backers has been adequate, which is particularly relevant considering that over the four months between the last two newsletters, Buddy’s launch date slipped by six months.

At this point, all we can do is hope that the strategy Blue Frog has chosen will be successful. We’ll let you know if as soon as we learn more.

[ Buddy ]

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