Three Man Rocket says it hopes to bring BikeSpike to market by funding it through a Kickstarter campaign.
Three Man Rocket has raised about $41,000 of the $150,000 goal to launch the product, RedEye reported Friday.
If a bike equipped with BikeSpike is tampered with, the company said, text and email notifications would be sent to the user's phone and the bike can be tracked on a map, with updates about every 30 seconds.
"Why on earth are all these bikes getting stolen when there's technology in our pockets right now that, assembled in the right order, can at least make a dent in the recovery rates?" asked Clay Neigher, one of the company's founders, said.
In addition to being an anti-theft device, BikeSpike will contain an accelerometer collecting data like speed, road conditions and location.
If BikeSpike detects a sudden slowdown or impact, it can send location and accident data to a user's contact list to let them know the cyclist may have been involved in an accident, the company said.
"This is far more than just a recovery device. This has way more potential," project developer Josh Billions said. "It can improve the city that you live in."