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Analyst Report: VEX Robot

Nicolas Robitaille

Created on June 18, 2023

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Innovation first International, inc.

VEX Robotics

Analyst Report

Educational Venture Analyst: Nicolas Robitaille ETEC 522: Ventures in Learning Technology
Summer 2023

Your EVA:

Nicolas Robitaille

About the venture:

VEX Robotics

VentureAnalysis

02.Company Overview

03.Market Overview

01.robotics Overview

04.reflection

05.references

01

robotics

Overview

01. robotics overview

What is Robotics?

Robotics is the interdisciplinary field that combines engineering, science, and technology to design, create, and program robots capable of performing tasks autonomously or under human control.

Why Robotics?

Robotics drives innovation, transforms industries, and empowers individuals to solve complex challenges and shape a better future.

Robotics industries?

Robotics finds applications in a wide range of industries from manufacturing and healthcare to agriculture, automotive and beyond, revolutionizing processes, increasing efficiency, and transforming the way tasks are performed

*image retrieved from: https://www.vexrobotics.com/

01. robotics overview

Real-World Robotics

01. robotics overview

The Coding & Robotics Effect in Education

*graphics retrieved from: https://www.vexrobotics.com/

02

Company

Overview

02. Company Overview

A Coding & Robotics Continuum

Vex Robotics was founded in 2004 by Tony Norman, an electrical engineer, and Bob Mimlitch, a mechanical engineer,

The company currently has a line of 5 unique coding & robotics systems geared towards learning in Pre-K through to college

*graphics/images retrieved from: https://www.vexrobotics.com/

02. Company Overview

FuRther Information

  • Employs over 300 people
  • Has 9 offices worldwide
  • Subsidiary of the parent company "Innovation First International, Inc."
  • Runs the Robotics Education & Competition (REC) Foundation for robotics competitions around the world
  • 1500+ tournaments in over 45 countries
  • Nominated for 9 "EdTech" awards and winner of 1

Financial Snapshot

  • Generated around $5 million in two rounds of funding
  • Estimated revenue of over $30 million in 2021

*images retrieved from: https://www.vexrobotics.com/

02. Company Overview

Core Company Values

*graphics/images retrieved from: https://www.vexrobotics.com/

02. Company Overview

Affiliations, Partnerships and Sponsors

*images retrieved from: https://www.vexrobotics.com/

03

Market

Overview

03. Market Overview

Educational Robot Sector

"The educational robot market share is expected to witness notable growth during the forecast period, owing to a rise in investment in EdTech in emerging economies"-Allied Market Research (2022)
  • subsection of the larger robotics market
  • focuses on the development, production, and application of robots specifically designed for educational purposes
  • robots are designed to assist and enhance learning experiences for students of various age groups
  • designed to be engaging, interactive, and user-friendly, aiming to foster curiosity, problem-solving skills, creativity, and critical thinking among learners
  • includes a wide range of robot types, including programmable robots, humanoid robots, robotic kits, and specialized robotic platforms

03. Market Overview

The Coding and Robotics Market is growing Rapidly

Educational Robot Market: Forecast #1

  • According to this study, this market is projected to double in size between 2021-2027 (Markets and Markets, 2022)

*images retrieved from: https://www.vexrobotics.com/

03. Market Overview

The Coding and Robotics Market is growing Rapidly

Educational Robot Market: Forecast #2

  • According to this study, this market is projected to more than quadruple in size between 2022-2032 (GlobeNewswire, 2023)

*images retrieved from: https://www.vexrobotics.com/

03. Market Overview

The Coding and Robotics Market is growing Rapidly

Educational Robot Market: Forecast #3

  • According to this study, hardware will be the most dominant segment of the sector. This aligns with Vex Robotics products. (Allied Market Research)

*images retrieved from: https://www.vexrobotics.com/

04

Reflection

Benefits and Limitations

04. Reflection

Benefits:

Possible Limitations:

Exponential Growth

lack of Concrete Data

Market projected to see huge levels of growth, year over year, for the next decade and beyond

As a private company, reliable finance reports are not available for closer analysis

Proven Success

Competition

Vex Robotics is an established company with reliable and innovative products

Driven by growth of the sector, Vex has a range of direct competitors (most notably LEGO)

Established Company

sector leader

Because Vex Robotics is established, new investors may not get as much return

Recognized brand with a huge global following and brand loyalty due to Vex Tournaments

*image retrieved from: https://www.vexrobotics.com/

04. Reflection

Main Competitor: Not a True Risk

LEGO Robotics

LEGO Robotics would likely represent Vex Robotics main market competitor.While the LEGO brand is a household name, their robotics offerings are wavering.As of 2022, LEGO has decided to discontinue their "Mindstorm" line of robotics. Because of this, LEGO no longer offers consumers a continuum of robotics products. Essentially LEGO now only offer LEGO Spike and LEGO Spike+ which is does not have advanced enough capabilities for high school robotics

*image retrieved from: https://www.lego.com/

04. Reflection

FInal Thoughts:

Through this venutre anaylsis, my goal was to assess Vex Robotics and determine whether I believe it would be a venture worthy of investment. Based on the company's current situation, market forecasts and the global reach and recognition of the brand, I confidently affirm that Vex Robotics is a sound investment decision. Moving into my own Venture Pitch (A3), these are my takeaways from Vex Robotics' business model:

  • create a product that grows with the consumer: Vex Robotic's continuum builds brand confidence and loyalty through their range of product offerings
  • create excitement around the venture: Vex Robotic's hundreds of regional competitions and World Championship create buzz but also situate their products at the forefront of consumers' minds and as the benchmark for K-12 robotics
  • stay true to the venture's core principles: since its inception, Vex Robotics has established a culture and vision that guides their trajectory and decisions
  • reamining innovative: Vex Robotics only recently devleop their 123 line for early learners

*image retrieved from: https://www.vexrobotics.com/

05

References

05. References

Global Newswire. (2023, March 22). Educational Robots Market to Cross to US$ 5.10 Bn in Revenues by 2032, Higher Education Held 35% of the Market Share. Notified. https://www.globenewswire.com/en/news-release/2023/03/22/2632749/0/en/Educational-Robots-Market-to-Cross-to-US-5-10-Bn-in- Revenues-by-2032-Higher-Education-Held-35-of-the-Market-Share Global Newswire. (2023, March 22). [FOrecast Table]. https://www.globenewswire.com/en/news-release/2023/03/22/2632749/0/en/Educational-Robots- Market-to-Cross-to-US-5-10-Bn-in-Revenues-by-2032-Higher-Education-Held-35-of-the-Market-Share Himanshu, J., & Vineet K. (2022, September). Educational Robot Market. Allied Market Research. https://www.alliedmarketresearch.com/educational-robot- market-A31331Allied Market Research. (2022, September). [Forecast Table]. https://www.alliedmarketresearch.com/educational-robot-market-A31331Innovation First International. (n.d.). Retrieved June 18, 2023, from https://www.innovationfirst.com/Markets and Markets. (2022, July). Educational Robot Market. https://www.marketsandmarkets.com/Market-Reports/educational-robot-market-28174634.html Markets and Markets. (2022). [Forecast Table]. https://www.marketsandmarkets.com/Market-Reports/educational-robot-market-28174634.htmlStatista. (n.d.). Robotics- Worldwide. Statista. https://www.statista.com/outlook/tmo/robotics/worldwide Vex Robotics. (n.d.). Retrieved June 16, 2023, from https://www.vexrobotics.com/ Vex Robotics. (2022, June 23). The Vex Continuum [Video]. Youtube. https://www.youtube.com/watch?v=7KdbWKSIQxo&t=99s