Eliminating the pain of lost property with patented smart tags and SMS notifications, one school at a time
Client | RagTagd
THE CHALLENGE
Structure an investment vehicle to fit a growing team selling a patented product across New South Wales
THE OUTCOME
Formal agreements between the RagTagd team members including shares and investor protection
Parents face a daily problem of trying to find their children’s lost property. RagTagd found a software and hardware solution to lost property. In uses their patented smart tag system.
RagTagd was launched in 2015 by mechatronics expert Chloe Blattman and entrepreneur Eugene Holdenson. The system aims to ensure school uniforms that are lost at school are not gone forever. It saves time lost looking for missing items. It saves money replacing items, ultimately keeping parents happy.
For each of the 105 schools that have implemented RagTagd’s lost property solution, school uniforms are embedded with passive RFID tag inside the clothing. This is coordinated by RagTagd. When the clothing item is lost and winds up inevitably in the school’s lost property, the tags are picked up by a sensor, and the parent is notified with an SMS notification with the location of the item of clothing.
Process of Scale
The key focus for RagTagd was to gain traction early. RagTagd planned to expand to other territories and markets in a relatively short period of time. The team focused on continuing to refine their product by offering free trials. They paired this with contractors to streamline the process and expand quickly.
The RagTagd team needed to oversee management of the distribution and logistics process. This involved speaking with manufacturers, which they found challenging. Negotiating appropriate contracts was difficult. When developing a patented product, exclusivity is key. It ensures the patent brings a return on investment for the business.
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Journey Challenges
In the early stage of RagTagd, one parent received 4000 texts in a 60 second period. Another parent was sent to the wrong school to pick up a lost item. The team saw this as part of the learning process and took measures to ensure these mistakes weren’t repeated.
“When it came to issuing shares, we needed guidance – we had no idea.”
EUGENE HOLDENSON, CO-FOUNDER OF RAGTAGD
Other challenges involved structuring the business. The team wanted to understand share issues and protection when investors came on board. LegalVision helped the RagTagd team through the process of bringing on investors and issuing shares. Because the startup was growing quickly, LegalVision prioritised speed and efficiency with communication and finalising documents for the RagTagd team.
The Future of RagTagd
RagTagd continues to expand their product with more schools joining the RagTagd program. The team also have plans to expand their service to cover not only uniforms but also other items that go missing like lunch boxes, drink bottles and shoes. RagTagd plans to partner with Transport NSW to ensure that those items that go missing en route from school are also found.
Turning ideas into reality can be challenging. If you have any questions about licencing or creating bespoke agreements for your needs, get in touch with LegalVision’s business lawyers by calling 1300 544 755, or fill out the form on this page.
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