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Founded in 2006, TechShop’s do-it-yourself workspaces attract makers, innovators and entrepreneurs from all skill levels. Members can use 24/7 a professional workshop and fabrication studio with $1 million in high-quality machines, tools and software. They can access TechShop’s year-round classes, workshops, meet-ups and personalized instruction. With headquarters in San Jose, TechShop has eight locations nationwide. Two international facilities will open in late 2015 and two more domestic locations in 2016.

 

 

The maker community, a community of thinkers, boasts a wealth of ideas. Students, employees and retirees possess unique and singular visions that fuel amazing inventions. But without access to the right machines, tools and software, or expensive items like laser cutters, digital metal lathes and injection molders, an untold number of their ideas are abandoned or never make it off the ground.

Lack of, or limited access to, the right tools restricts experimentation, makes prototype-creation expensive and bars entry for many would-be products. The unfortunate result: a world with less invention and fewer entrepreneurs.

 

TechShop empowers anyone with a great idea by providing top-quality equipment and space to make ideas reality. For $150 a month, TechShop members enjoy unlimited, 24/7 access to our do-it-yourself workspaces. Each TechShop contains $1 million in professional tools, machines and software that span an array of industries and needs.

Aspiring entrepreneurs benefit because they:

  • Don’t need to buy expensive machinery just to make prototypes
  • Don’t have to pay high rents for studio space
  • Don’t get locked into inflated manufacturer contracts
Communities benefit because TechShops:
  • Often use existing large, empty spaces in urban areas
  • Bring in new commerce from member visits
  • Spawn new businesses that often remain local, creating additional jobs and revenue
  • Function as a workforce development program for local residents.
TechShop is the creativity, invention and entrepreneurship solution. Want proof? These early TechShop members took their business ideas to the next level:

 

Jim Newton created TechShop in 2006 for the same reason so many TechShop members visit month after month: the need for a workspace to create inventions. Before TechShop, Newton competed on the television show, BattleBots and was the well-known Science Advisor on the hit Discovery Channel show, MythBusters.

After MythBusters, Newton pursued his own work, but quickly encountered the high cost of tools, machines and software needed to fulfill his visions. TechShop provided the solution. Buy the tools and share them with others equally committed to pursuing their own ideas and passions. Newton collected signatures at the Maker Faire in the Bay Area to gauge interest and the first TechShop opened a year later.

 

Equipped with more than $1 million in tools, machines and software, TechShop’s membership-based workshop and fabrication studios also provide related services and sales within more than 16,000 square feet of workspace, flex space and storage.

We use fully integrated and unique, CRM, ERP and RFID-enabled tool and access management systems that enable us to track customer training and usage to ensure member safety and satisfaction.

 

 

Business Model

Our unique business model places TechShop at the intersection of four major market segments, including two new and fast-growing business trends fueled by the Internet and by related technology.

From this key position, we foresee fast-growth to expand TechShop from our existing eight-store, national presence into a global chain.

Maker Movement Market

  • Definition: A DIY (Do It Yourself) culture subset of tech-savvy inventors, tinkerers, hobbyists and entrepreneurs who create new businesses using new technologies and exchange ideas at maker fairs, workshop spaces and labs.
  • U.S. Market: $29 billion annual contribution to U.S. economy, Source: USA Today, Oct. 2013

 

 

TechShop’s Place in the Market

  • Open Membership: Anyone can join and use a TechShop, eliminating cost barriers and democratizing access to education, skills and information.
  • Fully Equipped Workspace: Each TechShop location provides access to $1 million worth of tools and design software.
  • 24/7 Hours: TechShops are open 24 hours, seven days a week to allow creators who hold jobs or attend school the flexibility to use the space when they want.

 

 

Collaborative Economy Market

  • Definition: Also the “Sharing Economy,” encompasses businesses in varying industries using the Internet and technology to share private resources on-demand with the public.
  • Global Market: 2015 forecast $15 billion, 2025 forecast $335 billion (in five sectors: travel, car sharing, finance, staffing, and music and video sharing). Source: “The Sharing Economy,” Pricewaterhouse Coopers, LLC, 2015

 

TechShop’s Place in the Market

  • Open Workspace: Designed with an “open” workspace floor plan, each TechShop location fosters sharing of information among creators who can learn and inspire each other.
  • Computer Design Hub: This space allows small groups to gather and work out designs communally.
  • Track Record of Startups: Numerous creators have begun innovative businesses based on inventions worked out in TechShop locations.

 

 

Education Market

  • Definition: Adult education and training, advanced manufacturing, skills retraining, and entrepreneurship, plus youth STEAM education (science, technology, engineering, art and math), provided onsite or online.
  • Secondary Education Market: More than $147 billion spending on capital expenditures and salaries, Source: U.S. Census Bureau, 2013 County Business Patterns and 2015 Annual Capital Expenditures
  • Global E-learning Market: $107 billion sales, 2015 forecast Source: “Distance Learning: A Global Outlook,” Global Industry Analysts, Inc., February 2012
  • Global training industry: $306.9 billion sales, 2013 Source: trainingindustry.com, www.trainingindustry.com/wiki/entries/size-of-training-industry.aspx, accessed July 22, 2015

 

TechShop’s Place in the Market

  • Veteran’s Retraining Program: Sponsored by GE, DARPA and the VA, 3,000 military service veterans have memberships and attend classes.
  • Youth Programs: STEAM Summer Camp and after-school programs provided for middle school to high school students. TechShop Inside, pilot program with mobile unit for STEAM instruction onsite in schools, to be expanded nationwide.
  • College Memberships: Partnership with ASU allows TechShop access for 69,000+ students. To be expanded to other universities.
  • Onsite Classes: Any member can enroll in classes ranging from computer design to use of tools.

 

Retail Market

  • Definition: Consumer electronic devices and technologies – 3D printers, tablets, thermostats, cameras, software and others – enable maker-movement entrepreneurs to create new inventions and businesses.
  • U.S. Market (consumer electronics): $286 billion, 2015 forecast Source: “U.S. Consumer Electronics Sales and Forecasts,” Consumer Electronics Association, April 2015
  • Global Market (3D printers alone): $1.6 billion, 2015 and $13.4 billion, 2018 forecasts Source: “Forecast 3D Printers, Worldwide, 2014,” Gartner, Inc., Oct. 2014

 

TechShop’s Place in the Market

  • Unique Retail Space: As a retailer, TechShop sells memberships, classes and tech supplies.
  • Partnership with Suppliers: Our Lowe’s partnership allows members to purchase supplies onsite at TechShop locations. We plan to expand such partnerships and the range of supplies and tools for sale.
  • TechShop Services: Partnering with Fujitsu, we plan to offer a full range of design services to assist entrepreneurs by designing and building for them.

 

 

Our revenue stream comes from two main sources: customers with the memberships and supplies they purchase and partners who provide funding for the benefits we bring to them.

Customers

  • Creative Class: 40 million knowledge-based workers in occupations from science and engineering to design. The group has $470 million in disposable income. Source economist and social scientist Richard Florida
  • Current Members: 70% of members are university professors, artists, middle school students, entrepreneurs, hobbyists, designers, engineers and start-up business owners. 30% are kids and parents.

 

Partners

  • City government and city economic development agencies: To spur regional economic improvement
  • Universities: To provide access to technology and invention space
  • Secondary schools: To provide STEAM education
  • Corporations: To spur employee inventions and to gain retail customers

 

 

Only Retail Workspace Chain

Although 432 fab labs (digital fabrication workshops) were listed worldwide in January 2015 (Massachusetts Institute of Technology) and other uncounted workspaces and 3D printing shops also exist, all are single, local enterprises and differ in operation. With eight locales all equipped with the same tools, plus plans for international expansion, TechShop is the only retail chain of workshops in this movement and faces only diffuse but no direct competition.

Projected TechShop Expansion:

  • Now: 8 existing TechShop workshop spaces
  • End of 2015: 3 additional TechShops to be completed
  • Under development: 10 locations, including 2 outside U.S.
  • Under discussion: 12 locations
  • Targeted cities: 9 locations
  • 2025: Goal of 1,000 total locations

Summary: Competitive Advantages

As the leader in the retail, maker workspace, TechShop enjoys several advantages, summarized below:

Experience
9 years in the collaborative economy and maker movement

Proven results
TechShop Detroit 50% increase in patentable ideas by Ford employees; 12+ innovative business prototypes, ideas or technologies born in various TechShop locales

Major partners
Universities, corporations, city economic development agencies and the federal Defense Advanced Research Project Agency

National presence
Only existing chain of national maker shops in 8 locations, 24/7 hours, soon to expand internationally

Education
On-site instruction, hundreds of classes monthly, expanding to online instruction, plus bachelor’s degree currently offered in engineering management in partnership with Arizona State University

Proprietary store management software
Works with badging system to permit only trained machine users on tools, plus tracks usage

Business community builder
TechShop and its events attract local entrepreneurs and start-up businesses, helping promote economic development

 

I invested in TechShop because I believe in the founder’s vision to democratize the Maker and technology movement for anyone with a desire to learn. For me, taking classes and building things at TechShop brings back the joy I had in my 7th grade industrial arts class.
Gregory Miller
Investor, TechShop, Inc.


When the new San Francisco location was first announced, I was very excited to be getting a TechShp in my city. Investing was an easy decision, because with every visit to TechShop, I could actually experience my investment in action, which is both fulfilling and inspiring. I love knowing that I helped launch a shop that serves as an anchor in the San Francisco Maker culture and is also enabling many people to pursue their dreams.
Perry Tancredi
Lender, TechShop San Francisco


I’ve always wanted to work with shop tools, but when I was a teenager, girls didn’t do that sort of thing. Then at age 70, I found TechShop, and now I am fulfilling this life-long need. I invested in TechShop because it satisfies the Maker passion of all genders and ages, regardless of skill level.
Jill Knuth
Lender, TechShop Mid-Peninsula


From the first day I walked into TechShop in 2006, I knew they were onto something, and I was eager to get involved in any way I could. TechShop empowers Makers with the resources, information and community network they need to succeed and grow. I’ve developed skills and interests I didn’t know I had! Being able to invest in TechShop and support this cause was a no-brainer.
Jennifer Tong
Lender, TechShop San Jose


We invested in TechShop because we immediately saw its value to small businesses like ours. Access to TechShop equipment and resources has helped revolutionize our manufacturing process. Our product lines have more than doubled, and we are far better able to respond to our customers’ demands for customized products.
Bob & Nani Lavin
Lenders, TechShop Mid-Peninsula

 

Jim Newton, Chairman & Founder

A lifelong maker, DIY-er and serial entrepreneur, Jim Newton holds several design patents and was a BattleBots competitor and full-time Science Advisor on the Discovery Channel's hit show MythBusters. He created TechShop because he needed a place to build his own inventions. He spends much of his time on-site at TechShop and enjoys helping TechShop members with their projects.

 

 

Mark Hatch, CEO

A recognized leader in the global maker movement, Mark Hatch has held executive positions at Kinko’s, Avery Dennison and Health Net. Under his leadership, TechShop grew revenues and added new U.S. locations.

In 2013, McGraw-Hill Education published his book, The Maker Movement Manifesto. Hatch has been recognized by San Francisco Business Times as one of the Bay Area’s Most Admired CEOs. Popular Mechanics named him one of 25 movers and makers reinventing the American dream. He has spoken at events such as SXSW, Techonomy, TEDx, and The Clinton Global Initiative. A former Green Beret, Hatch holds an MBA from the Drucker Center at Claremont Graduate University.

 

 

Mike Hilberman, CFO

Mike Hilberman is an experienced financial executive with more than 20 years of leadership and management consulting experience. While with Booz Allen Hamilton, Inc., and M Squared Consulting, he provided expertise and guidance to Fortune 500 companies like Cisco, Chevron, Mobil Oil, Fox, First Nationwide and Bechtel.

Hilberman has served as an executive at Levi Strauss & Company, managing all finance-related technology initiatives. He has also held management positions with small companies and been an outside advisor to several startups. As a current CFO with Early Growth, Hilberman supports companies throughout their early stages of development. He received an MBA in finance, marketing, strategy and entrepreneurship from the Kellogg School of Management at Northwestern, and a BA in economics, mathematics and psychology from Claremont McKenna College.

 

 

Dan Woods, COO and VP of Business Development

Dan Woods drives TechShop's operations, product and service strategies, and is responsible for business development and sales programs. Before joining the team, he spent nine years at O'Reilly Media and was the co-founder of MAKE Magazine, which focuses on how-to projects for makers. At the magazine, Woods oversaw marketing, media relations, circulation development, community outreach and sales, helping it become the voice of the DIY market. He also conceived and launched the Maker Shed store, growing it to become one of MAKE's most important assets. Dan has a BS in Aeronautics from San Jose State University and studied business administration at Santa Clara University's Graduate School of Business.

 

 

Carrie Motamedi, VP of Marketing

Responsible for sharing the TechShop mission with internal and external audiences, Carrie Motamedi creates and executes national marketing programs with partners that include Autodesk, General Electric, Ford, Lowe’s and the US Department of Veterans Affairs. She also oversees public relations and investor relations, and manages the corporate culture.

Before joining TechShop in 2010, Motamedi spent more than 15 years in technology marketing. At Sun Microsystems, she led public relations, analyst relations, employee communications and social programs for different business groups. Prior to Sun, she worked at global public relations firm Burson-Marsteller. Carrie earned a dual degree from Michigan State University and studied at the University of London.

 

 

Q: Where is TechShop located?
A: We have shops nationwide. See the Locations page for information and directions to all of our TechShop locations.

Q: How long has TechShop been open?
A: TechShop opened on October 1, 2006.

Q: What are TechShop's operating hours?
A: TechShop is open 24/7, except holidays. See the Locations page and select your location for specific information.

Q: Can you show me how to use the tools and equipment?
A: Yes. We offer Safety and Basic Use (SBU) classes to get you up to speed quickly and safely. See our Take Classes page for a list of current classes.

Q: What kinds of classes does TechShop offer?
A: We offer several types of classes: Safety and Basic Use (SBU) classes are designed to provide you with basic safety training on a specific tool or machine. Pathway classes are offered as building blocks to help you meet your project goals. Project classes offer instruction in the specific techniques necessary to complete an in-class project. See the Take Classes page for a complete list of current classes.

Q: Do I have to be a member to take classes?
A: No, most people can take classes at TechShop. For safety reasons, however, some classes have minimum age requirements. Taking a class is a great way for you to pick up new skills and experience first-hand.

Q: What tools and equipment does TechShop provide its members?
A: We provide our members access to milling machines and lathes, laser cutters, sheet metal equipment, welding equipment, an indoor automotive work bay, woodworking equipment – including a 4' x 8' CNC (computer numerically controlled) ShopBot router – plastics working equipment, hand tools, 3D printers, CNC vinyl cutters, industrial sewing machines, design software and more. For a more complete list of tools and equipment, see the Equipment page.

Q: Can I use any tool or machine in the shop?
A: Yes, as soon as you have taken and passed the Safety and Basic Use (SBU) class for that tool or machine, if one is required. Many of the tools and some of the machines at TechShop do not have an SBU requirement. However, for safety reasons, if a machine can injure you or can be damaged through improper use, then you must first take and pass the related SBU.

Q: Can I reserve time on a machine?
A: Yes. With an active TechShop membership, you can reserve time on any machine in advance of your visit by calling the TechShop front desk. See the Locations page for shop-specific phone numbers and information.

Q: How much does a TechShop membership cost?
A: For current membership pricing and offers, see the Membership page. Your TechShop membership is good at all TechShop locations nationwide.

Q: How do I cancel or get a refund for a TechShop membership or class?
A: See the Payments, Refunds and Cancellations page for complete details.

Q: Can my kids work on projects and take classes with me at TechShop?
A: Kids and young adults 12 to 17 years of age can work on projects or take most classes at TechShop under the direct supervision of a parent or legal guardian if they are included in your membership. (Call and ask about Family Membership offers.) Children under 12 years of age are not permitted to enter the workshop areas at TechShop except during staff guided tours, age-appropriate classes and certain special events. Please see the Family Policies & Guidelines for more information.

Q: Does TechShop carry liability insurance?
A: We have liability insurance and we require members and anyone who takes a class at TechShop to sign a liability release waiver. We also require members to receive safety training on machines and equipment before they can use them. We don't want anyone to be injured. We strive to build a safety-conscious culture at TechShop.

Q: Can I open a TechShop in my area?
A: We are expanding TechShop to other cities as company-owned locations and are not currently offering franchise opportunities. We will announce on our website if we choose to offer franchises in the future.

 

TechShop was envisioned by two maker- and DIY-movement leaders: Jim Newton, previously on Discovery Channel’s, MythBusters, and Mark Hatch, author of The Maker Movement Manifesto. Together, they create workspaces that enable the “Creative Class” to build their dreams.

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