Helmet manufacturer Vicis is running out of cash

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At a time when traditional helmet manufacturers keep rolling, the new kid on the block is having trouble making ends meet.

Via the New York Times, Vicis informed investors last month that the company is “running out of cash.”

Vicis has designed a helmet that is widely regarded as safer than other helmets. The Vicis Zero1 performed the best of all helmets tested by the NFL and NFL Players Association earlier this year.

But product quality and financial viability are two different concepts. Despite a valuation of $90 million last year, the Times reports that the company will try to sell new shares that value that company at only $5 million.

The company also plans to slash operating costs in half and focus on two helmets: The adult model and a version for children. The company reportedly expects to lose $26 million this year.

Star players like Russell Wilson and Patrick Mahomes wear a Vicis helmet. The Zero1 has a retail price of $950.

19 responses to “Helmet manufacturer Vicis is running out of cash

  1. Probably great product, but the potential is limited. You invested money in creating a product for a small addressable market and a market that is declining. The helmet market likely can only support5 a limited number of firms. The owners of that business probably should have hired an economist first.

  2. k1dicarus says:
    December 17, 2019 at 1:05 pm

    AB would never wear this helmet, in fact if he had his way he would go leather.
    _______________________________________________________________________________

    Based on his behavior, I think he already did go leather.

  3. I’m sure that most of the losses are due to the financial liability policies that they have to purchase in order to cover lawsuits brought by the very players that they are trying to sell their helmets to.

  4. How does the $950 price compare to other helmets approved by the league? On the one hand doesn’t seem like much to protect your brain. On the other if the competition is half that its a problem.

  5. dryzzt23 says:
    December 17, 2019 at 1:26 pm

    I’m sure that most of the losses are due to the financial liability policies that they have to purchase in order to cover lawsuits brought by the very players that they are trying to sell their helmets to.

    ********************************************
    Doubt it.
    I’m sure most of the losses are based on the fact that their product is almost 1000 per unit and marketed towards a customer base of pretty much ONLY NFL teams and/or College D1 programs.

    You’re not gonna see most High schools affording 1K helmets.

    They won’t be the first company that made a superior product but failed to manage it from a business/marketing perspective.

  6. Having played hockey growing up and paying $250-300 for skates, $150 for gloves and $70-100 for each stick and other equipment i still can’t believe a football helmet would cost $950.

  7. You must have bought crappy skates.

    Having played hockey growing up and paying $250-300 for skates, $150 for gloves and $70-100 for each stick and other equipment i still can’t believe a football helmet would cost $950.

  8. If we’ve learned anything from AB, if I were Wilson or Mahomes I’d buy several more for myself before they’re no longer available.

  9. I know a lot of folks are criticizing the $1000 price, but what’s a reasonable price for protecting your brain? How much in medical/pharmaceutical expenses could follow traumatic brain injury?

    Seriously, people no longer even balk at the thought of upgrading their $1000+ phone every single year. If the data shows your the brain is better protected in a specific helmet, wait another year or two on the phone and protect your high school/college kid’s brain. Or switch to basketball or the debate team.

  10. If they made a $500 youth football helmet they would sell them fine. Might even help get more kids playing.

  11. How does $950 compare to the cost of all the other helmets in the league? Tossing that out there with no context is not much value.

  12. 2 things.…….they’re uncomfortable and the most expensive. Its like carrying insurance. You complain about the premiums until the day your house burns down or you total your car.

  13. One would think that an organization facing billions of dollars in settlements would mandate purchase and use of a superior product. Cheaper than denial, yes?

  14. Schutt and Ridell helmets, available to the public, run between $300 and $450 US. Vicis’ youth helmet will run you $450 US.

    Vicis also makes military grade helmets.

    It’s not so much their helmets are expensive for a limited market. The issue is they are a start-up. It is not at all unusual to consume large amounts of cash as they invest in technology, marketing, business development, etc. If their military product beck made adopted they will make a large amount of money.

  15. I believe Schutt has a high end helmet that runs about $900, and Riddell has custom fit helmets that run over $1,000. Word on the street in the coaching world is that Vicis helmets are the worse protecting helmets of them all (lots of concussions) and are prone to crack.

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