University of Cincinnati

06/23/2025 | Press release | Distributed by Public on 06/23/2025 13:45

UC-backed startup’s unexpected pivot takes root

UC-backed startup's unexpected pivot takes root

Bailout Systems began sowing seeds for success at the 1819 Innovation Hub

By Diana M Lara Email Diana M Email Diana M
6 minute read June 23, 2025 Share on facebook Share on Twitter Share on LinkedIn Share on Reddit Print StoryLike

One of the most difficult but defining decisions a startup founder can make is pivoting their business.

When a company realizes its initial go-to-market strategy isn't gaining the traction hoped for, the moment requires not only humility but strategic clarity.

For Bailout Systems, a startup backed by the University of Cincinnati's Venture Lab, that moment came when its technology for safe, rapid descent for military members and firefighters hit regulatory and funding roadblocks.

The answer? A customer segment pivot, redirecting its lifesaving innovation to an adjacent but more accessible market: arborists.

One device, two customers, same mission

An arborist high atop the trees utilizes Bailout Systems safety device. Photo/Bailout Systems.

Bailout Systems' core product, now affectionately known by arborists as the "invisible man device," was initially designed to safely aid emergency descent for first responders and military personnel. For example, firefighters could use it to urgently escape a burning building.

Bailout Systems' technology eliminates human error through hands-free operation and a "soft catch" mechanism, which was a game changer in life-threatening environments. But despite the compelling need, getting into these high-barrier sectors meant navigating slow-moving certification processes, capital-heavy development and lengthy funding cycles, which could bankrupt any startup.

Pivoting the safety device to the tree-cutting industry offered something very different: a faster, less capital-intensive path to market. "Commercializing in this space requires significantly less capital and fewer certifications than our original target markets," Michael Ragsdale, founder and CEO of Bailout Systems, explains. "Only two certifications from the American National Standards Institute (ANSI) are needed, making testing faster and more affordable."

The UC Venture Lab has been a foundational partner and having access to vital tools within the makerspace was essential

Michael Ragsdale Founder and CEO of Bailout Systems

Trees reveal new growth

Bailout Systems designed their device for safety which is paramount for arborists climbing trees of varying height, width and decay. Photo/Bailout Systems

The pivot wasn't driven by barriers alone. A significant industry partner, well-versed with multiple high-risk sectors like firefighting, arbor, military and construction, pointed out that the arborist industry was ripe for innovation. Rigging mishaps in arbor work can be deadly, and many professionals still rely on legacy tools and methods. The invisible man device has the ability to prevent shock loading during limb removal, addressing an urgent, unmet need.

Strategically, the move gave Bailout Systems something invaluable: real-world data. They preserved their core product technology by slightly tweaking it for the arborist industry. "It was primarily a customer segment pivot," Ragsdale says. "We shifted the target customer from firefighters and military to arborists."

Bailout Systems had to prove market fit within a new segment with equally critical and dangerous pain points. However, the barriers to market entry were significantly lower. The team added more rugged housing around the device and improved rigging integration. The invisible man device's soft catch capability and hands-free operation offer a safer and simpler alternative for arborists to mitigate shock loading. The result: feedback from field testers has been "overwhelmingly positive," with several arborists not only signing letters of intent but volunteering to lead the company's future sales efforts.

Branching out

Bailout Systems' internal recalibration was deliberate. The company consulted investors, advisers and test users before moving forward with the pivot. Ragsdale says, "Arbor presented a unique opportunity: serious unmet user needs, minimal competition and a more accessible route to commercialization."

The results are already materializing. Bailout Systems now boasts a functional prototype built in the 1819 Ground Floor Makerspace, a dedicated testing facility and growing momentum within the arborist community. A presales campaign targeting 500 units is set for the fourth quarter of 2025, with broader sales goals aimed at 2,000 units in year one.

This shift has also been instrumental in unlocking investor confidence. Bailout Systems is now in active talks with regional innovation enablers like the Advanced Manufacturing Fund of Ohio and AlphaLab Pittsburgh, and continues to receive guidance from the UC Venture Lab, which has supported the team since the start. "The UC Venture Lab has been a foundational partner and having access to vital tools within the makerspace was essential," Ragsdale says of the facilities at 1819.

Bailout Systems "invisible man" safety device. Photo/Bailout Systems

A pivot that paid off

Bailout Systems' journey is a textbook example of how an innovative pivot can rescue a startup from stagnation and turn it toward success. Rather than abandoning their original mission, the team found a market that welcomed innovation more readily. Importantly, they leveraged existing research and development, relationships and prototypes so the pivot wasn't a restart, but a redirection.

"There's a lesson in this for all founders," Ragsdale notes. "Speed to market matters more than perfect positioning. Waiting to build in harder markets nearly stalled our progress."

As Bailout Systems continues to gain traction in the arborist industry, it hasn't abandoned its original vision. Firefighting, military, construction and even drone logistics remain on the horizon. But now, with real-world traction and an increasingly refined product, they're better equipped to scale across sectors.

Sometimes the best way to reach the top is by climbing a different tree.

Bailout Systems video.

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Tags

  • 1819 Innovation Hub
  • Venture Lab
  • Innovation Agenda

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