The New York City investment firm that just purchased the assets and technology of football helmet maker Vicis plans to keep the company’s brand alive and maintain a Seattle presence.
As GeekWire reported this week, Innovatus Capital Partners paid $2.85 million for Vicis’ assets out of receivership following the sudden downfall of the Seattle startup that had raised more than $85 million since spinning out of the University of Washington in 2014.
This past October, Innovatus made a $18 million investment in Litchfield, Il.-based Schutt, one of the leading U.S. football helmet manufacturers and a Vicis rival.
In an interview with GeekWire on Friday, Innovatus Partner Ravi Bhagavatula said his firm was familiar with Vicis given its investment in Schutt.
“We liked the brand and the tech,” Bhagavatula said of Vicis. “We believe that the company can be resurrected.”
Innovatus will form a new company with the Vicis assets, but will keep the same brand. The firm also plans to have a Seattle office.
“We intend to continue the mission that company was founded to do, which was to create safer sports equipment products based on new technology and material sciences,” said Jeff Holland, a vice president at Innovatus.
Vicis-related R&D work will continue, but plans for manufacturing and production is up in the air given the current economic downturn, the investors said.
For existing customers, the Vicis website provides links to those that want to get their helmets reconditioned.
Court documents show that Innovatus was the only bidder for Vicis’ assets, even though acquisition inquiries were sent to more than 100 potential buyers. Innovatus originally agreed to pay $3.1 million but negotiated a cheaper price due to uncertainty with the COVID-19 outbreak.
One source close to the receivership process said many investors balked at making an offer due to the complicated nature of the helmet manufacturing process, especially for groups with little industry expertise. The COVID-19 outbreak was also a factor in discouraging bids. Investors are more cautious with their spending, and it’s unclear when football at all levels will be allowed given the social distancing mandates put in place.
More than 400 investors put money behind Vicis, which developed a helmet that featured multiple, specialized layers built to mitigate the impacts believed to cause concussions.
Last year the company had more than 20 NFL teams with a starter who wore its helmet, and 180 college programs had deals with Vicis.
But as GeekWire previously reported, the company ran into several problems over the past few years. Insiders say the company put too much focus on grabbing market share from incumbents such as Riddell and Schutt, rather than turning a profit. The troubles came as a surprise to some shareholders. Vicis was unable to raise more cash before shutting down the company and laying off more than 100 employees in December.
Vicis was founded by Per Reinhall, chair of the UW’s mechanical engineering department; Samuel Browd, professor of neurological surgery at the UW; and former CEO Dave Marver, who stepped down in November. UW engineering professor Jonathan Posner is another co-founder; he left the company in 2015.
Reinhall told GeekWire this week that he’s satisfied with an industry leader taking over Vicis’ assets.
“It is devastating that all the investors lost their money,” Reinhall said. “But from a technical perspective, I’m happy to see the product live on. Sam [Browd] and I are very committed to making football and other fast-moving sports safer.”
