Elevator PitchWe design and manufacture advanced lighting products for indoor agriculture using our patent-pending LED technology
We sell to large commercial farms throughout the US and globally
Multi-billion dollar LED horticultural lighting market
Sales doubling quarter-on-quarter
Y-Combinator company from Summer 2015
Who are our customers?
Controlled Environment Agriculture (CEA) farms. Defined as a
combination of engineering, plant science, and computer managed
greenhouse control technologies used to optimize plant growing
systems, plant quality, and production efficiency.
The ProblemTraditional lighting sucks
HID and Fluorescent waste massive amount of energy and poor photosynthetic lightThey have short lifespans and emit lots of heat
They shatter and have mercury or cadmium (bad for food)
Conventional LED also sucksThey require dozens of LED colors and need complex control systemsThey need inefficient LED colors for photosynthesis reducing system performance
They are large, heavy, require fans and expensive designs
The output spectrum has peaks and valleys and can’t be changed over time
The SolutionTranscend Lighting’s patent-pending LED technologies
Creates a perfectly optimized photosynthetic spectrumOutput spectrum can be changed to target different plants or different growth phases
Ultra-efficient and low heat output
Uses only one color LED which increases reliability and decreases complexity
Can be smaller, lighting and less expensive. No fans needed
High tech, more efficient, more reliable, more flexible
Total Greenhouse LED Opportunity
$12 Billion dollar addressable market in the U.S.
$400 Billion dollar addressable market globally
* Based on already built structures. Not including thousands of acres per year of
new build facilities
Patent Pending Technologies
• High energy blue photons energize a remotely placed phosphor mixture. • The phosphor mixture converts blue photons to other colors
• The phosphor component can be easily swapped to grow many different types of
plants or to optimize for different growth cycles.
• Precisely targeted photosynthetic light is created at industry leading efficiencies.
Our Product• Consumes 230 watts of power
• Equivalent to 600 watt HID• Equivalent to 350 watt LED
• 10 year lifetime (90% output) at 24 hours/day• 10x longer than HID• 5x longer than LED
• 5 year cost of ownership = $1,400 per light• HID = $2,600 per light• LED = $1,800 per light
The Competition Transcend
LightingHigh Pressure
SodiumMetal Halide
Standard LED
Upfront Cost 2 5 5 3Total Cost of Ownership 5 2 1 3
Spectral Performance 5 1 1 3
Efficiency 5 3 2 4
Useful Lifespan 5 2 1 3
Heat Output 5 2 1 3Established
Brand 1 5 5 2
Total 28 20 16 21
Why now?
2012 = LED is a viable option
2015 = LED is the best option
2017 = LEDs is the ONLY option
Haitz’s law for LED is similar to Moore’s Law for Transistors
Riding two waves
• Haitz’s LED law • Rapid increase in performance
• Rapid decrease in cost
• New High Power LEDs
• LEDs have just recently become the most efficient option
LED
• Costs now rival traditional methods• More plants can be grown in less space
• Less water consumption, no pesticides
• Innovative new growing technology
• Global food security concerns• Year around local production
• Predictable profits w/ climate change
Indoor Growing
Sales Cycle and Traction
200% Quarter-on-Quarter sales growth
Revenue to date are sample sales to large facilities
Q1 sample sales are now converting in full production
orders$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Quarter 1 (Jan, Feb, Mar)
Quarter 2 (Apr, May, Jun)
Quarter 3 (July, Aug. Sept)
Quarter 4
2015 Sales
Sample Sale à 6-9 Month Test Period à Full Installation
$960kin
LOIs
In last 2 months
Product/Market Fit
$600,000 project in Canada
$102,500 project in Massachusetts
$258,000 project in The Netherlands
Example Customer (Canada)High Pressure Sodium$275,000 in electricity
Transcend Lighting$125,000 in electricity
$120,000 profit $270,000 profit
$358 COGS $600 Sales Price
Pricing Structure
$242 Gross Profit40% Profit Margin
1000 lights per acre à $600K revenue per acre à $242K profit per acre
(680,000 acres globally)