14yo kid turns down $30M - Page 1
Forum section: electronics / general

author: EEVblog
author_rank: Unknown
timestamp: May 12, 2016, 12:13:55 pm
content: What a foolhttps://t.co/IGqQ85VJNBhttp://images.lmgtfy.com/?q=first+aid+vending+machinehe's holding out for $50M it seemshttps://t.co/s0HRtAeJNy

author: VK5RC
author_rank: Unknown
timestamp: May 12, 2016, 12:20:50 pm
content: +1 on that, I doubt his business (bandaid vending machine) will realise a turnover c$400m and profit of $40m within the first few years, take the money re-invest some experiment again with the other part, IF it was a real offer.

author: Kjelt
author_rank: Super Contributor
timestamp: May 12, 2016, 12:27:49 pm
content: +1Another company jumping in cleverly circumventing the patents (if there are any because whats new here?) and you're idea is worth $5.-Since the kid is minor age he is not legally allowed to make any transitions anyway so what were the parents thinking?

author: sleemanj
author_rank: Super Contributor
timestamp: May 12, 2016, 12:28:05 pm
content: I'm with VK5RC, this almost certainly wasn't a real offer, I doubt it was an offer at all, just hype talk.If this guy walked into Dragon's Den with this idea, the first thing they'd ask is "can you patent this?!", and I'd say the answer is, no, you can't, it's a vending machine, which happens to vend first aid kits, this is not only obvious, but already done.Japan has vending machines for everything from cans of coke to used women's panties, I think there will be one for first aid kits there somewhere.

author: edy
author_rank: Super Contributor
timestamp: May 12, 2016, 12:28:26 pm
content: Smart kid!I wonder how easy it is to just copy the idea though. I'm glad he didn't just take the money and run. There is a good chance it would taint his life for the negative, or those around him (friends, family, relationships)... especially at his age.Money isn't everything and it does not buy happiness, but I sure would like to be given that choice one day.

author: Kjelt
author_rank: Super Contributor
timestamp: May 12, 2016, 12:30:15 pm
content: Quote from: edy on May 12, 2016, 12:28:26 pmIt would allow him to go to MIT or set up another business. Although usually these kinds of flukes only happen once in a lifetime, there are very little succesfull serial enterpreneurs if any.

author: MadTux
author_rank: Frequent Contributor
timestamp: May 12, 2016, 12:33:57 pm
content: Same thought here, when I read the news today.Grab those $30M from the fool who's offering it, invest in some real estate and live in wealth and happyness from the rental income. Even if he would do nothing and stack the money in gold bars at his home, he could spend $30k per month for the rest of his live.Now he will either become bankrupt because someone does it cheaper or someone will screw him like it has happened so many times before.

author: AF6LJ
author_rank: Unknown
timestamp: May 12, 2016, 12:35:39 pm
content: I think he has larger plans, Just spending thirty seconds thinking it over, I can think of several markets this can be incorporated in. fifty Mega-dollars you say young man? That is a bargain.

author: Kjelt
author_rank: Super Contributor
timestamp: May 12, 2016, 12:35:49 pm
content: Nothing new here folks, here is a picture from Germany made in 2010 just google and there are more all over the globe. Idea is worth $0.-

author: EEVblog
author_rank: Unknown
timestamp: May 12, 2016, 12:38:56 pm
content: Quote from: sleemanj on May 12, 2016, 12:28:05 pmI already posted the link:http://images.lmgtfy.com/?q=first+aid+vending+machinePlenty of them around.

author: elgonzo
author_rank: Unknown
timestamp: May 12, 2016, 01:05:02 pm
content: Quote from: EEVblog on May 12, 2016, 12:38:56 pmYupp...If you have ever been to the Octoberfest in Munich (disclaimer: i am not a big fan of Octoberfest), you might know such vending machines already. Somebody made even a video showing such a machine (although it being out of operation):Press reports about those vending machines were as early as 2011, if not earlier (for example,http://www.sueddeutsche.de/muenchen/bizarre-automaten-in-muenchen-goldbarren-und-ballerinas-to-go-1.1080860-7)A quick googling revealed that Australia also has at leastone vendoroffering first aid vending machines.So, what is that story really about here? About broken patent systems perhaps. On the other hand, i would not be surprised if that story about the rejected $30 million was not anything more than an exaggerated tale with little substance and no real money on the table at any time.

author: edy
author_rank: Super Contributor
timestamp: May 12, 2016, 01:11:18 pm
content: I think if this kid is well-grounded he will be able to work hard and go to MIT or wherever he wants to go, whether he has $30 mil or not. Plus he seems more on a trajectory to business school than doing the nitty-gritty tech work. Did he actually design the electronics, mechanical, software? Or just decide to stock an existing machine with first aid stuff and brand and market it?As far as the offer goes, doesn't he already have investors? Do you think they had a hand in reviewing any offers? Wouldn't they have wanted to flip their investment and cash out? Or perhaps these venture capitalists got greedy and are holding out?I don't think this kid is running the whole show. Other parties (adults around him) are likely responsible and with this kind of money involved things are going to get ugly. The fact that there is a whiz kid involved makes a good headline but I wonder if this is being used as a tactic to gain media traction in order to help a potential flip?

author: Kjelt
author_rank: Super Contributor
timestamp: May 12, 2016, 01:30:13 pm
content: 95% of the succesfull self made enterpreneurs has never gone to a businesschool or has an MBA.

author: ZeTeX
author_rank: Frequent Contributor
timestamp: May 12, 2016, 06:23:11 pm
content: This kid is retard, take the money and throw this vending machine out of the window, you are not going to make a lot of money by selling first aid vending machine.

author: vodka
author_rank: Frequent Contributor
timestamp: May 12, 2016, 07:49:36 pm
content: QuoteFurthermore, for having succesfull the enterpreneurs must be a good seller and rotter.

author: XOIIO
author_rank: Super Contributor
timestamp: May 12, 2016, 11:30:41 pm
content: Quote from: ZeTeX on May 12, 2016, 06:23:11 pmAgreed.

author: LabSpokane
author_rank: Super Contributor
timestamp: May 13, 2016, 12:58:28 am
content: I'm calling bullshit on the $30MM "offer." Show me a signed offer WITH a bank guarantee.There are already band aids in industry standard vending machines - which are completely commoditized devices. It's a worthless, useless idea with no where to go but down.

author: KL27x
author_rank: Super Contributor
timestamp: May 13, 2016, 02:12:29 am
content: I thought the innovation would be that you could get the band-aid quick, like before you bled all over yourself. And be charged automatically. Maybe his machine does something useful, afterall.If not (provided the offer was real, lol), this kid is REALLY going places. If he can sell this idea for $30 million, just imagine what he could do with a lemonade stand! Billions!!!

author: timb
author_rank: Super Contributor
timestamp: May 13, 2016, 11:38:26 am
content: Read the article. He's got some of the technology patented. In addition, it doesn't *just* dispense a bandaid. It's more of an interactive first aid kiosk that can show or talk you through minor emergencies, in addition to connecting you to 911 (or in-house first responders if you're at a theme park, for instances). That's why Six Flags has already ordered 100 machines from him.It's a rather clever idea.

author: Red Squirrel
author_rank: Super Contributor
timestamp: May 13, 2016, 11:48:07 am
content: Wow 1mil is enough to be set for life if you're smart, let alone 30. I would have taken the money. At that age, still go on with life as normal and invest most of it for like 5-10 years. Finish school etc, but then no need to ever worry about job security. I'd probably still work even if it was for a few years just to say that I did.

author: StuUK
author_rank: Frequent Contributor
timestamp: May 13, 2016, 12:03:28 pm
content: Must have been a slow news day.... load of old BS..... Doubt there was any offer....

author: MT
author_rank: Super Contributor
timestamp: May 13, 2016, 01:01:51 pm
content: Think the idea is already obsolete! if i was injured, lets say car crash broken bones as such so do i have time and energy to seek up a talkingband aid box? No, i want the band aid box seek me up and collect my bodily parts and actually stitch me up or so, i might be dying!The whole robot thing!

author: rrinker
author_rank: Super Contributor
timestamp: May 13, 2016, 01:02:59 pm
content: Niven's AutoDocs will come, this is just the first baby step.

author: Buriedcode
author_rank: Super Contributor
timestamp: May 13, 2016, 01:11:48 pm
content: Source was from the 'Dailymail'. A British newspaper I learned to deride/hate/laugh at over the years. It's our version of US media scare mongering - and their tech stories are *almost* as bad as tech magazines that prop up ventures like uBeam.

author: StuUK
author_rank: Frequent Contributor
timestamp: May 13, 2016, 01:28:31 pm
content: Quote from: Buriedcode on May 13, 2016, 01:11:48 pmYup, won't even wrap my fish and chips in it....

author: rt
author_rank: Regular Contributor
timestamp: May 13, 2016, 01:46:36 pm
content: Quote from: StuUK on May 13, 2016, 01:28:31 pmIf you turn over the page you can read about:"Outrage as 14yr old caught selling condoms in theme park"In other news, how defendable is a patent around a vending machine concept? Anyone know anything about the patent law on that kind of sales/service channel? Even a vending machine/kiosk that gives first aid advice.rt

author: LabSpokane
author_rank: Super Contributor
timestamp: May 13, 2016, 04:29:14 pm
content: Quote from: timb on May 13, 2016, 11:38:26 amRidiculous things are patented daily. A patent is a tool to litigate, but is not a figure of merit.As far as the "order," I'm not from Missouri, but show me anyway. Show me the wire transfer for the down payment.

author: Red Squirrel
author_rank: Super Contributor
timestamp: May 13, 2016, 04:37:53 pm
content: Quote from: MT on May 13, 2016, 01:01:51 pmYeah they even make mobile medical aid boxes that will come to you! Some people like to call them amber lamps.

author: timb
author_rank: Super Contributor
timestamp: May 14, 2016, 09:26:15 am
content: Quote from: Red Squirrel on May 13, 2016, 04:37:53 pmOr ambulances!

author: XOIIO
author_rank: Super Contributor
timestamp: May 14, 2016, 09:37:39 am
content: Quote from: timb on May 14, 2016, 09:26:15 amYou mean the wee woo boxes?

author: edy
author_rank: Super Contributor
timestamp: May 16, 2016, 02:53:32 am
content: I have yet to find the patent filed by Taylor Rosenthal or RecMed in a USPTO search. I am interested in knowing what the patent is actually on. Can you patent a vending machine based on what it dispenses? Can you patent a tele-presence emergency response system? I can buy a generic machine, stock it with whatever I want and program in prices... Away you go! I can add an iPad application to the front panel that lets users navigate through emergencies and select the kit they should be buying, and show a video of what to do with it. If there is a cellular phone service built into the machine, it can broadcast usage/stock data and also alert a emergency response system. Can you really patent all of this? Or just the nitty-gritty implementation? I'm curious to find out, if anyone has any ideas how to track down this so called "patent".While I like the idea also, I don't know what kind of market analysis was done on the need for these machines. An order of 100 on machines that cost $5500 each adds up to $550,000. That's gross. It is going to cost a bundle to make these machines, I can't imagine they cost less than $2000 to make. Maybe even more. The net profit on this is probably quarter million? Tops? Not even? Ok, so the machines won't make money... maybe dispensing items will? How many emergencies are we going to need a day to make it profitable? They are also selling ads on the machines. Either plastering static ads on the boxes, or having ads play on the video screen while the vending machine is not actively in use. I can see them generating some money from that. Somehow it adds up to at least an evaluation of $30,000,000? Does it make business sense? I guess someone out there thinks so.... if there was indeed an offer, and it was rejected, maybe it is worth even more?

author: Shock
author_rank: Super Contributor
timestamp: May 16, 2016, 03:21:00 am
content: Should be turned into a test of skill to win said medical supplies.

author: LabSpokane
author_rank: Super Contributor
timestamp: May 16, 2016, 03:49:14 am
content: Quote from: edy on May 16, 2016, 02:53:32 amThe math doesn't even remotely work. Typically, a business is priced on about five years of net cash flow. So a $30MM valuation would lead to $6M/yr net which translates to $24M/yr of business at a typical $25% gross margin. So, this business would have to produce annually 2400 units at $10,000 each to be worth the valuation. Yet, they have made zero. For all anyone knows, the prototype is an iPad behind a plexiglass facia.Is the above evaluation perfect? No, but it's a damned sight closer to reality than a fawning press has presented.

author: Corporate666
author_rank: Unknown
timestamp: May 16, 2016, 05:28:29 am
content: This whole story is just a marketing ploy, IMO.The kid is 14. Even if he did have the idea (which I tend to doubt), he didn't build this business and organize prototypes, etc. It says both his parents are in the medical profession. I would bet my bottom dollar they are putting the kid as the face of the company for press and PR purposes. The same reason why they mention a $30MM buyout offer from an unnamed "health care" company. To generate press and buzz.The hope is that someone wealthy idiot comes along, believes they already have an order from a major customer, and that someone bid $30MM and was turned down, and wants to get in on this red hot action right away - picks up the phone and bids higher than $30MM.It's a fake story. I've seen band aids and other similar things in vending machines for years. Lots of smaller hotels have that stuff next to the candy and potato chips in the same machine. The interactive stuff is a new addition, but is that really valuable? Is a vending machine going to diagnose my rash or tell me if my cut needs stitches? Will the machine carry medical malpractice insurance?More to the point - has anyone here in their entire lives ever had a kind of medical situation that could be treated from something you could get out of a vending machine, but just didn't know exactly which of those things you needed? And really, how often are we places that we can't easily buy small medical supplies, but that we may need them? Yeah, theme parks, music concerts.... err I'm already running out of places. The other 99.9% of our time, we would just go to the nearest pharmacy or convenience store. It's a verrrrry limited market, made much more limited with the added features.