Swell Watercraft LLC

Invest in the Future of Roto Molding and Kayaks

Last Funded August 2022

$152,137

raised from 82 investors

Highlights

1
💰 Sold out for 4 years with minimal marketing
2
📈 Our advantage lies in 50-years of design research and kayaking experience.
3
💣 High revenue growth projections with CAGR at 70% from 2022-2024 (not guaranteed).
4
đŸ€“ High gross profit margins, projected at 61%. Apple’s GMP in 2021 was 41% (not guaranteed).

Featured Investor

Our Team

During my years as Publisher of Canoe and Kayak magazine I was lucky enough to tour all the major kayak factories in the USA. These experiences were formative, and I began to grow confident I could succeed in this field. I combined this with my irritation at the copy cat nature of kayak manufacturers to start the business.

Pitch

Swell Watercraft has built the first of its kind sit-on-top kayak with footwells lowered below the waterline, a patent-pending scupper valve, and a kayak shell that is light yet indestructible. It might sound impressive, but what really exemplifies our success is this: we’ve been sold out our entire existence despite spending nothing on advertising.  

Why are our kayaks flying off the shelves? We filled a much-awaited design gap in the industry through precision engineering and innovative thinking. We’ve earned a reputation for delivering the fastest, most stable, and ergonomically superior sit on top kayaks in the market.

It all started when we realized that most existing sit-on-top kayak manufacturers in the market were paddling in the wrong direction. The new kayaks were getting wider, longer, and too heavy. As seasoned kayakers, we felt lost at sea and decided to take matters into our own hands.

Even Men’s Journal wondered “Why is every new fishing kayak made for fat guys?”. In order to make the boats we wanted, we’d have to make them ourselves.  

To be the best we had to consult the best. So we consulted with Tim Niemer, creator of the first sit-on-top kayaks in the 1970s, and it turns out he shared our pain. With him as our lighthouse, we decided to put a spin on Niemer’s original Scupper kayak and designed a new and improved successor.

This Scupper 2.0 version is a Low Rider that takes paddling to new heights. We lowered the footwells below the waterline, which had never been done in a sit-on-top. A lower cockpit also means a lower center of gravity, which makes our kayaks extremely stable. Another advantage of lowered footwells is more legroom resulting in ergonomically superior kayaks minus the knee hits. In one fell swoop we had increased speed, comfort and stability. All in the same kayak.  

But what about the fact that now we could be in deep water for lowering the footwells? To counter this, we designed the first-of-its-kind Scupper valve that drains the cockpit when you paddle fast. Paddlers can now go on adventure-fishing, diving, touring, surfing, or sailing and the Scupper conforms without confining. “The scupper valve deployed easily and as I cruised along any water would be sucked down the hole via the Venturi effect,” mentioned one happy user.

Swell’s kayaks are currently made in an exclusive South African factory headed by renowned kayak designer/manufacturer Celliers Kruger. Kruger has perfected his Poly2 roto molding process, where a foaming agent is added mid-operation.  

Inside the kayak this foam layer hardens, creating a 2 layer polyetylene material. The end result is kayaks that are lighter, stiffer, more buoyant, longer-lasting and prone not to “oil can” or malform.  

Swell is bringing this superior manufacturing process to the USA, home of the biggest kayaking marketplace on earth. From a Chicago, IL area base, we will be able to drastically increase our profit margins while drastically reducing the importing costs of our foreign distributors.  

Kruger, alongside lifelong chemical engineer and plastics expert Thomas Marsh, plan to track Swell Watercraft onto the cutting edge of chemical processes and materials. Taking control of the process allows for us to actively improve our products through research, observation and data analysis.  

That’s plastic supremacy.  

The number of kayakers in the US roughly doubled between 2010-2020. Then Covid happened. It has sparked a boom as consumers paddled their way through the pandemic for three reasons.

1) Kayaking is an inclusive sport, safe for all age groups and genders above 6 years of age. Insert a pie chart like the one below from the site above. Put age group 18-24 also which shows 62% women kayak.

2)Kayaking is a solo sport that can be enjoyed by oneself and as a reason witnessed mass adoption during the pandemic, and now it’s here to stay.

3) The international shipping crisis has made the USA a very affordable and effective place to export from.  

 

Swell Watercraft designs their products to be adaptable to different uses and users. Whether you want to paddle with your dog or go on a 3-month camping expedition, we’ve engineered in the attachment points so you can do it.  

That’s why we considered things like sailing, diving, fishing, towing when we applied options such as rudders, rod holders, hatches, deck pads, hatch cover retainers and scuba tank holders. The kayak adapts to the paddler’s needs.  

That’s because Swell’s products are only designed by the very best kayak designers on the planet. Every detail is poured over not just so our boats perform better. We look at how different people use them, keep themselves organized on and off the water, and ensure our products that will last beyond a lifetime.  

Our next boat, the Scupper 16, is currently being designed by acclaimed kayak designer Celliers Kruger from South Africa. 

When Swell started pre-sales in 2018 of the Scupper 14, we could never dreamed the word of mouth on this new kayak would blow up and we would never catch up on orders. Unfortunately, that has been the case. If you order a kayak in the USA from us now, it could be up to 6 months before you receive it.  

For this reason we have had to refuse to open many specialty retail stores throughout the country. Our domestic sales are 85% direct to consumer. Our direct-to-consumer shipping system has been fined tuned through using the largest boxes ever made in the state of Washington and building solid relationships with freight companies.  

We’ve chosen to give some preference to international distributors, who pay up front for their goods. We’re now established in Chile, Puerto Rico, The Netherlands, United Kingdom and Finland with well-established dealers in their respective territories. These distributors actually contacted us based on the budding reputation of the Scupper 14 kayak.  

Our kayaks are currently made in South Africa at Roto Kayaks, one of the premiere kayak factories in the world. Owner Celliers Kruger has perfected his Poly2 rotomolding process, which makes the ultimate plastic for kayak construction.

   

RotoForm Molding is the contract manufacturing arm of our new factory. We will have the ability to make single, double and triple-layer polyethylene construction, giving us the ability to produce anything rotomolded. This has drawn us some interest from other boat manufacturers about the availability of our machines. The pandemic and subsequent shipping crisis has shifted economics to make America the most beneficial place in the world to produce kayaks and other large, heavy items. This change has already filled the schedule of many roto molders throughout North America, especially those few who have long enough machines to build kayaks. After production begins, we will have our pick of products and companies to include. Roto Form Molding will diversify what we build and how we monetize, giving us added flexibility to run our business.

The pandemic and the subsequent international shipping crisis have negatively shifted economics and delivery times and made importing inconvenient. The time is now to bring this superior manufacturing process to the USA. Kruger will work directly with Swell’s Thom Marsh, an experienced chemical engineer, to do just that.  

Building kayaks in the USA gives us several advantages. We’ve dismissed the heavy shipping charges that building in South Africa brings. Exporting from our Chicago location through the Great Lakes will be more affordable for our international distributors. Our margins drastically improve. Delivery times improve.  

Most importantly, the products improve. We gain the control to focus more intensely on accelerating everything we do. We can develop techniques that make our kayaks lighter and more durable. We can build the small parts- grab handles, foot pedals, hatch covers, etc that enhance the user experience.  

The international shipping crisis caused the price of Chinese kayaks to raise an astounding 30% in 2021! It’s clear that manufacturing large items such as boats should happen close to the place where they will be sold. The USA is the largest paddling marketplace in the world. This is an opportunity to invest in a cutting edge builder of first class products and create permanent jobs in the USA.   

(Forward-looking projections. Cannot be guaranteed)

GearJunkie: “This boat is an immense improvement in biomechanical efficiency over virtually any other recreational SOT.” 
Tony R.: “I’ve owned many different styles of kayaks in my life, and I have to say the Scupper is my favorite.”
J.R.  (Guide Trainer): “The hatch did not take in a drop of water and the cockpit area remained dry throughout the paddle into the wind and swells.”
FishJam59: “I fish lakes in Indiana. I insisted the foot braces be moved to the outside walls of the cockpit. Swell responded and moved the brass inserts for me. I bought this to replace a kaskazi Dorado 2 I had used since 2011. It is faster than the dorado. On flat water, it's better suited for me than the kaskazi. Very stable and more comfortable too. It's a dry ride on lakes and easier to transport.”

10 Fastest Sit On Top Kayaks: 10 Fastest Sit On Top Kayaks - Kayak Help

Best Sit On Tops 2021: Best Sit On Top Kayaks of 2021 | Paddling.com

28 Five Star Consumer Reviews: Scupper 14 Reviews - Swell Watercraft | Buyers' Guide | Paddling.com

Headwaters Kayak Review:  Swell Scupper 12 vs. Scupper 14 Review - YouTube

Aliex Folgueira:  Superb Sit on Top Kayak? Swell Scupper 12 Surprising Water Test

Paddle Experience: https://paddleexperience.co.za/2021/02/03/scupper-14-review/

Gear Junkie: Swell Watercraft Scupper 14: Sit-On-Top Kayak Evolved | GearJunkie

Men’s Journal: New Gear Snapshots from 2018 Paddlesports Retailer | Men's Journal (mensjournal.com)

Paddle World: Paddle World Magazine | The international all paddlesports magazine

Trend Hunter:  Speedy Sit-On-Top Kayaks : swell scupper (trendhunter.com)

Perks:

Top 10 Reasons to Invest

1. 🎯 Opportunity for lifetime 20% discounts for our investors to feel more connected to their sport. 

2. đŸ‡ș🇾 Bring manufacturing back to the USA.

3. đŸ’” High sales are expected to double in no time as we will be launching new kayaks as well as a motorized division (not guaranteed).

4. 🏆High year-on-year expected revenue growth, 70% with marked profitability (not guaranteed).

5.🌟 Conceptualized by the biggest name in the world of kayaking, Tim Niemer founder of Ocean Kayak.

6. 🌊 Groundbreaking patented kayaks that can't be duplicated and are highly rated.

7. 💣 One-of-a-kind plastic technology that is bomb-proof and unique to North America.

8. đŸ’«Our projected gross profit margin is at 61%. A rarity for physical goods (not guaranteed).

9.👑 Only 5-star reviews from critics and users globally.


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Overview