Wearables start-up Mighty Cast is set to secure its latest round of funding imminently, as it works to bring its “very disruptive” NEX Band to market.
Adam Adelman, CEO and co-founder of the company, told Mobile World Live that the funding will see it gain a new partner that is “very, very strategic to us, with quite a bit of consumer electronics and overall consumer products experience.”
NEX Band is a modular wearable, consisting of the band itself and interchangeable ‘Mods’, which can be used to offer social, gaming and mobile notifications.
While Adelman said it will launch with “quite a bit of our own content”, developers can create apps for existing Mods or create “stylised Mods of their own” for specific applications.
This will hopefully lead to a model “where developers with new sensors or new applications won’t have to go out and create their own wearable company, they’ll just be able to develop for what we hope will be a large installed base”.
Adelman said that the target market is “the millennial demographic, so anyone from 12 years old up to mid-20s”.
Noting that many other companies have stayed away from this space, he continued: “I think that what a lot of people are afraid of is that they are very mercurial. They change their tastes very, very frequently. For us, that’s a benefit.”
By enabling owners to personalise bands, Mighty Cast is also hoping to avoid the engagement issues some single-purpose wearable companies have suffered from, instead supporting multiple use cases.
“We really are trying to protect against obsolescence by this modular approach, all the while offering the freedom to choose your style on the outside, very much like Pandora charm bracelets,” Adelman said.
And while younger age groups are often perceived as less lucrative than more mature users, the executive said that “our model is a little bit different from other wearables”.
“We are able to come in lower because we are looking to make more margin on the mods themselves. It’s a traditional razor/razorblades or printer/toner model, where we are looking to make high margin on the recurring revenue piece,” he said.
With the intention of launching products in beta later this year, Adelman acknowledged that the company is moving into a fiercely competitive market.
“Obviously we don’t have a brand name right now, but we are coming to market with some major licence partners as well, that have very strong recognition, and we’ll be doing some applications for them as well.”