China is killing us.
In 1990, it produced less than 3% of the world’s manufacturing output. By 2015, that number had increased to nearly 25%.
Today it produces about 90% of the world’s computers, 70% of its mobile phones, and 63% of its shoes.
But now the Chinese government is investing billions of dollars into a new sector… and if it’s successful, U.S. companies and their employees could get badly hurt.
Thankfully, the U.S. still has a shot at competing in this sector and winning.
Today, I’ll show you how this fight could soon help U.S. businesses, their workers — and most importantly for you, their investors.
Meet George Jetson!
Growing up, one of my favorite cartoons was The Jetsons.
The Jetsons were a futuristic family. They lived in a beautiful house in the sky, drove flying cars, and enjoyed the services of their robot maid, Rosie.
The show was from the 60s, and at the time, many believed we’d soon be living its utopian vision of futuristic technology.
Well, sixty years later, civilization still hasn’t delivered flying cars. But robots have made a lot of progress…
Especially in China.
The Robotics Industry
Over the last few years, the Chinese government has invested billions of dollars into robotics companies.
As a result, China is on a path to become the world’s largest producer of robots.
These robots make Chinese manufacturers more efficient, and they’re getting close to delivering on the promise of Rosie the Robot — handling tasks that are too mundane, or in some cases, too dangerous, to be handled by humans.
Meanwhile, the U.S. has only invested a tiny sum into this critical new sector.
Mark Cuban (a “Shark” on Shark Tank and the owner of the Dallas Mavericks) is pushing Washington to spend $100 billion to help jumpstart the U.S. robotics sector.
Frank Tobe, publisher of The Robot Report, agrees that action is needed. “We should be in the robot business,” he said. “Not just users of foreign robots.”
If we fail to take action, much of what we buy in the future will be made in China, by Chinese robots. What can we do to remedy this situation?
Well, the U.S. government could provide subsidies to robotics companies, or take drastic action in the trade-war dispute.
Or (and this is where you come in), individuals like us could take action…
Specifically, instead of waiting for the government to come to the rescue, we could invest directly in U.S. robotics startups!
This way, we can support the U.S. and we can aim to make a profit.
Meet Knightscope’s Security Guard
For example, look at a U.S.-based startup called Knightscope.
Knightscope builds security robots that can predict and prevent crime. Its devices look like R2-D2 from Star Wars.
Here’s one of them patrolling the Microsoft campus.
These devices operate on their own, gather real-time data, and report their findings to humans at the Knightscope Security Operations Center (KSOC).
Knightscope’s clients include the State of California, Westfield Malls, and more than 10 companies in the Fortune 1,000. And its future clients include hospitals, airports, power plants, and government facilities.
Annually, $500 billion is spent on security. This is a very big opportunity.
The Investment Opportunity
Knightscope has already raised more than $40 million from professional investors like NTT DOCOMO, and from individuals from you.
Now it’s raising an additional $50 million. The minimum investment is $1,000, and its valuation (i.e., its market cap) is $310 million.
That’s a steep valuation. For you to earn 10x your money (our target for startup investments), the company would need to get acquired or go public for ~ $3 billion.
Not many companies get acquired for such large sums. That’s why I am not recommending that you run out and invest in Knightscope. This is a risky venture that requires substantial investment research.
But if you’re eager to help the U.S. stay competitive, and you’re excited about startup investing, you can review all the details of this opportunity here »
Please note: Crowdability has no relationship with Knightscope, or with any of the companies or platforms we write about. Crowdability is an independent provider of education, information and research on start-ups and alternative investments.