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Contact | [email protected] | Dr. Sigvald Harryson | Founder and CEO Office Location | Turning Torso 275 | SE-‐211 15 Malmö | +46 732 50 49 81 Introducing InnoVentum
InnoVentum was established as a limited company on May 5th 2010 with the mission of giving Power to the People. We make exclusive designs to those who can afford and affordable designs to those who need. In 2002, iknow-‐who.com was established to solve fundamental innovation challenges – often climate-‐related – by raising collaborative university competitions involving the global centers of academic excellence. 20 innovation challenges have been solved since then and InnoVentum was spun off from iknow-‐who.com in 2010. The same know-‐who approach to R&D has been used by InnoVentum to co-‐create the breakthroughs that combine renewable materials and renewable energy technologies – the Dali PowerTower, roof-‐mounted wind with hybrid solar PV and the Giraffe:
Our Research & Design approach proactively engages leading researchers from centers of excellence like Lund University in Sweden and ENSTIB (Ecole National Supérieure des Technologies du Bois) in France. Until now, we have created one PCT (Global Patent Collaboration Treaty), 9 design protections and several trademarks, including that for Dali. The use of renewable materials makes our solutions CO2 negative and exceptionally silent. Modular design secures compact transport volumes and ease of installation. Our PCT is centered around mechanisms supporting tower erection without the use of a crane. Excellence in CAD-‐CAM makes mass-‐manufacturing possible anywhere in the world. Any wood engineering workshop using standard CNC (Computer Numeric Control) machines will be able to read our software for accurate computer-‐aided manufacturing of our towers. All wood is from Sweden based on responsible forestry, and the renewable energy technologies and batteries deployed are sourced from leading European and American suppliers.
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Our university partners are involved throughout the R&D process and continue to support prototyping and commercialization. Whenever needed, we tap into our vast network of academic expertise to further optimize specific dimensions, designs, functions and performance-‐parameters.
We intend to capture revenues amounting to 600 mio SEK (€66 mio) for the fiscal year of 2016, and we will capture the required growth from two fundamentally different segments in terms of value attributes, but with significant synergies in terms of functionality.
Exclusive Design to Those Who Can Afford – Affordable Designs to Those Who Need
We address both the top and the bottom of the pyramid – two quite differentiated segments – with one common product portfolio offering:
1. Exclusive designs for those who can afford: Real estate companies, municipalities, owners of EVs and leisure homes without grid-‐access, commercial chains and ecological farms who all appreciate the exclusive design, exclusive renewable materials and the silent and reliable operation of our products;
2. Affordable designs for those who need: NGOs, disaster relief organizations and people who have no access to power today, who appreciate the resource-‐efficient structure of the PowerTower – as well as its high energy-‐density, transportability and speed of installation.
The exclusive design markets that we target include Sweden, Denmark, Germany, Norway, Japan, UK and Benelux. The Power to the People markets also include countries where access to electricity is poor due to disasters, such as the Philippines, which is where we start to apply our PowerTower. All our solutions optimize the use of renewable materials to carry renewable technologies (wind and solar) in hybrid combinations so as to get the flattest possible power curve – day and night, summer and winter. The USPs are equally appreciated by the exclusivity and affordability segments:
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• Hybrid combination of wind and solar more than doubles the energy-‐density of our solutions – while providing a flat energy curve;
• The renewable materials used for all support structures make our solutions both CO2 negative and exceptionally silent;
• Using art and nature as inspiration for our design – leading to the Malmö Municipality Award for Sustainable Design.
Combining Technological-‐ and Social Innovation
One additional USP that is particularly strong for the Giraffe is its role as a social innovation in society. For example, Malmö City ordered a Giraffe to greet the thousands of visitors joining the Eurovision Song Contest – held in Malmö in May 2013:
Thanks to its smart combination of technical and social innovation, the Giraffe was recently (February 2014) awarded with a 1.6 mio SEK grant from the Swedish Energy Authorities to support EU-‐certification of energy-‐production, noise-‐level and sustainability. The Giraffe has already become an appreciated animal among the Malmö-‐citizens and visitors, who have already posted some 100 pictures on Facebook:
• https://www.facebook.com/media/set/?set=a.576605585732288.1073741832.204831216243062&type=1
Hearing is Believing
In April 2014, the Swedish Agency for Innovation Research (VINNOVA) recommended InnoVentum for a larger grant to support the commercialization of our largest solution – the Dalifant – offering an annual production of 40.000 kWh using our noise-‐absorbing tower structure. The noise-‐absorbing design brings all our products to public places and rooftops – one even being on top of a library with a maximum noise-‐level of 37 DbA. See the installation at:
• http://www.innoventum.se/dali-‐performance/nggallery/slideshow
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Combining Wind and Solar PV to Get a Flat Power Curve
One major drawback with wind energy is that it does not always give power. Solar power is even less regular in power generation as it cuts every night and is low in the winter. The diagram below presents our hybrid solution – with an almost flat energy curve. The main reason is that wind power provides much more energy during the dark and cold parts of the year – both due to higher wind speeds and higher air density:
In short, we bring renewable energy solutions to new levels and new arenas by offering new combinations that bring new user benefits in terms of power continuity, esthetics, acoustics, modularity and sustainability. Combined, our exclusivity and affordability products attract a wide range of segments:
1. Power to the Public Institutions: Green Municipalities, Parks, Universities, Schools, Daycare Centers, Marinas/Leisure Harbors, Public Arenas and Sport Centers, including Golf Clubs.
2. Power to the Commercials: Supermarkets, Shopping Malls, Restaurant Chains, Do It Yourself/Home Improvement Chains, Real Estate Companies for public, commercial and private tenants.
3. Power to the EVs: Using the Giraffe or the PowerTower as charging station for Electric Vehicles – both at public parking facilities, along roads as visual green charging spots and as home installations for private EV owners. After a slow start with California and Norway as the early adopters, the EV segment is now growing fast in several geographies.
4. Power to the Ongrid People: Decentralized power generation at micro-‐level is becoming increasingly popular – especially in countries with high electricity prices and/or Feed In Tariffs (FIT). In Denmark and Germany, the consumer price of electricity is three times higher than in Sweden. In Japan, the FIT is 60 Eurocent per kWh, which is highest in the world and more than 10 times higher than in Sweden. This is the main-‐segment for the Dalifant, which has an ideal energy output for farms. We see a particularly big interest from ecological farms, which are growing in numbers both in Sweden and beyond.
5. Power to the Offgrid People: Summer houses and cottages on islands, in mountains or simply in areas where there is no grid. Norway alone has more than 200.000 houses with no access to the grid. Globally, this is a very large segment going from the top to the bottom of the pyramid with 1.4 billion people lacking access to electricity. In this sense, this segment both addresses B2C in wealthy countries and B2B through NGOs addressing the bottom of the pyramid.
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Segmentation & Sales Strategy
We can cover all five segments listed above, because the first four segments all need the same product portfolio, and the fifth segment uses the same tower structure – the PowerTower – but adds a battery back for offgrid use. Although offgrid products are mainly needed in emerging markets with poor public grid, we also see a need for off-‐grid products among exclusivity buyers in premium markets such as Norway.
We will devote our direct sales efforts through growing teams addressing B2B customers in Sweden, Denmark, Norway, Germany, the UK and France. We will also build a platform for online sales capturing B2C opportunities in these and neighboring markets.
Japan is a particularly interesting market – both with respect to its need for renewable energy and the passion for wood. The leading magazine for landscape architects in Japan, Landscape Design, has already published several articles on InnoVentum, and Japan is our fourth largest population in terms of website visitors. A dozen potential distributors from Japan have approached us and three have been confirmed through distributor agreements. For an example of the articles, see http://www.innoventum.se/wp-‐content/uploads/2012/05/Landscape_Design_Article2-‐Cropped.pdf
Sweden is our lead-‐market and marketing platform for other markets to follow. Even the Power to the Offgrid People segment starts through a B2B collaboration in Sweden. Together with the Children’s Mission, we are bringing offgrid PowerTowers to the Philippines. Read more on this at http://barnmissionen.se/blog/fillipinerna-‐barnmissionen-‐samarbetar-‐med-‐innoventum/
As already mentioned, 1.4 billion people are lacking access to electricity. We have started relationship-‐building and match-‐making efforts towards the United Nations, who happen to have their global logistics center in the Malmö-‐Copenhagen Harbor – just like we do. It takes significant time to qualify for business with the UN and other large NGOs, but the rewards can be significant too. The Philippines pilot is crucial in opening further doors into the UN and other aid organizations. Since we started to provide updates on the Power to the Philippines project on Facebook just a few weeks ago, our number of followers has increased by more than 20%. For future projects of this kind, we will tap into the potential of crowdfunding.
Investments into Salesforce, IT Platforms and IP Expansion
In order to reach the 600 million SEK (€66 million) business-‐target by end of fiscal year 2016, we seek investments in two rounds: 9 million SEK during 2014 and another 12 million SEK in 2015. With this, we count on reaching 30 employees by end of 2015 and 60 employees by end of 2016. Most new employees will be devoted to sales and project execution. We will also strengthen our digital marketing resources in the core languages required and build IT platforms to support:
• Our online wind-‐check app to work also for hybrid solutions and core markets beyond Sweden • Online performance monitoring – allowing for customers and us to have full control • Online sales for DIY products, including CRM and supply-‐chain coordination • Additional social media communication and crowdfunding.
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We will also widen the geographical scope of our patent, design and trademark protections. Some of these investments will be carried by our own income from operations (IFO). The items that will absorb the investments are listed in the chart below:
Value Creation and Exit Strategy:
The emission for 2014 is targeting 9 million SEK for 15% of the company. In 2015, another 12 million SEK will be acquired in investments for 10% of the company. The exit strategy is to make an IPO by the end of 2016. SE Banken Venture Capital indicates a pre-‐IPO value of 1.2 billion SEK (€132 million) when InnoVentum reaches revenues of 600 million SEK with a gross margin of 60%. Should InnoVentum only reach 300 million SEK sales by end of 2016, the value creation for investors joining this emission round will be reduced from factor 20 to factor 10, but this ten folding will still be achieved within less than three years.
The graph on the left shows the value creation from company creation through IP and commercial installations. The graph on the right shows the three emissions performed in black figures and the two forthcoming emissions as well as the planned IPO in green figures:
The main-‐reasons and key-‐enablers of these business results are listed on the next page:
Category Detail 2014 2015
IT3Budget Expand'Wind'check'App'to'Hybrid'and'NO,'DK'and'DE;'On;Line'Monitoring;'CRM;'Crowdfundingcovering'hybrid'solutions'and
Total: 8003000 6003000Marketing Printed'Materials;'Events;'Exhibitions;'Online'Advertising'incl'FB'and'Google'Ad'Words
Total: 4603000 8003000Sales3Growth Sales'People'and'Marketing'Installations'for'SE,'DK,'NO'and'DE
Total: 139403000 336503000Certification Tower'certification'for'Dali'and'Dalifant'in'DK,'DE'and'UK:
Total: 230003000 330003000IP Designs'(US'&'Japan),'Trademarks'and'Expanding'Patents'to'also'cover'China,'Hong'Kong
Total: 2503000 3503000
Project Project'execution'manager'responsible'for'supply'chain'and'Malmö;Copenhagen'Harbor'logistics
Execution Total: 3503000 7003000OPEX Running'costs'including:'salaries,'tax,'communication,'storage,'travel'(300,000sek'per'month) 3'600'000 7'200'000
Income3from3Operations3(IFO) 400'000 4'300'000
INVESTMENTS 33320143333AND33332015 930003000 1230003000
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• Positive Business Development Trend: Since we brought our first sales person on-‐board in March 2013, we did more sales in nine months than during the first three years. The business-‐development figures in thousands of SEK are: 2011: 100; 2012: 200; 2013: 900
• Expanding Distribution: We are being approached on a weekly basis by companies wishing to become our agents, distributors or installers. So far, we have signed six distributor agreements.
• Web-‐Logics: For every year so far, the numbers of unique web-‐visitors and followers on Facebook have doubled – and the growth-‐pace is still increasing. We will capture the viral potential through online sales and crowdfunding platforms.
• Visibility: Our spectacular installations at the Eurovision site in Hyllie, the EV charging Giraffe in the West Harbor of Malmö and the rooftop installation on Blekinge Technical University attract a stream of leads as many people see them and are attracted to know more. In terms of lead-‐capturing, we focus on high-‐visibility-‐installations.
• Power to the Offgrid People: One segment counting 1.4 billion people deserves attention both in terms of sales and communication. We have experienced very positive reactions from our Power to the Philippines initiative and see viral potential in this type of projects.
• Financial Solutions: Starting in Sweden, we have Swedbank as partner offering attractive financing solutions to our customers, who get lower monthly fees than the energy savings – making the investment in our solution cash-‐flow positive.
• Security: Through a partnership with a large Swedish insurance company, our customers are offered attractive insurance solutions both against damage and business interruption.
• Fame and Institutional Support: 2014 has started very well in February with InnoVentum winning the Malmö Business Award for Sustainable Development and Design. In March, we were awarded 1.6 million SEK by the Swedish Energy Authority for EU certification of the Giraffe and in April, VINNOVA (the governmental agency for innovation-‐support) recommended InnoVentum for a somewhat larger grant to support the commercialization of the Dalifant.
Thanks to the VINNOVA grant, our revenues for 2016 will also include the Dalifant – at least to some extent. Also this product will often be sold as hybrid combination with the PV panels mounted directly on the roof of one of the farm buildings as a complement to the wind energy.
PowerTower: 150 mio Dali Rooftop: 200 mio Giraffe: 200 mio Dalifant: 50 mio Power to the (offgrid) People SE, DK, DE, JP, FR, NL SE, DK, NO, DE, FR, NL SE, DK, DE, UK NO, SE, DK, DE, NL, US All figures are in SEK
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List of Investors (+ indicates that some have invested more than once): Name Shares Complementarity of Investors
Sigvald Harryson 320 Founder and Global Alliance Manager
Henrik Hildebrand 174 Legal Compliance Expert
Mohsen Djalali 20+10 Senior Executive within Tetra Pak
Mark Pilgerman 12+6 Operations and Germany-‐expansion
Ewa Dudkowska 18 Baltic Market Expansion
Niklas Åkerman 18 Product Management
Martin Ertl 12 Chief Innovation Officer, Bombardier
Percy Petersson 12 Advisor in IP Kaj Kangeman 12 Marketing & Sales in Stockholm
Rafal Dudkowski 12+3+2 Strategic Planning & Business Development
Bettina Ullman 6 Marketing Support in Austria
Ala Kazlova 6 IP Management and Media Innovation
Stefan Sjöblom 6 CEO of Delta Energy Systems, Scandinavia
Nils Bohlin 6+3+3 Founder of ADL Scandinavia + First Investor Yang HAN 6 Marketing and IPO Preparation in China Christoph Appert 6 R&D Management and IP protection Danuta Sikorska 6 Business Development in Telecom Olof Sjögren 6 Business Development in West-‐Sweden Mats Kemi 6 Business Development in North-‐Sweden Morgan Widung 12+6 Our New Head of Sales Manne Widung 3 Graphic Design and Sales in Åland Jim Håkansson & Charlotta Grahn 4 Head of R&D of Nolato, Material Expert Alexander Stern 2 PhD in Crowdsourcing of Innovation Dan Olsson 7 CEO of Swedish Healthcare company Per Nilsson 1 Managing Partner, Roland Berger
Tord Wingren 6 CEO of Ericsson Mobile Platforms, MD of Samsung Electronics, Chairman of TAT
We welcome additional investors who have complementary networks and share our ambition to make a positive sustainable difference for the benefit of future generations. Please contact [email protected] to pursue your investment in a green future.
Follow us on Facebook learn more about us on YouTube:
• Let’s Reverse the Trend: http://www.youtube.com/watch?v=kUa7dFa7-ek • Let’s Change the Source: http://www.youtube.com/watch?v=XJsDDy-Ut4s • Let’s Change the Material: http://www.youtube.com/watch?v=1OAB33Zos5Y