COI Energy

Early Stage

Digital energy platform that detects, eliminates and monetizes energy waste

Analytics

Raised to Date: Raised: $589,126

Aggregate Commitments $

Platform

Republic

Start Date

08/26/2020

Close Date

04/02/2021

Min. Goal

$25,000

Max. Goal

$1,070,000

Min. Investment

$100

Security Type

SAFE

Funding Type

RegCF

Series

Seed

Valuation Cap

$18,000,000

Discount Rate

20%

Rolling Commitments $

Status
Funded
Reporting Date

04/30/2021

Days Remaining
Funded
% of Min. Goal

2,357%

% of Max. Goal

55%

Likelihood of Max
Funded
Avg. Daily Raise

$2,690

# of Investors

1,759

Momentum
Funded
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Location

Tampa, Florida

Industry

Energy, Power, & Natural Resources

Tech Sector

EnterpriseTech

Distribution Model

B2B

Margin

Medium

Capital Intensity

Low

Business Type

Growth

COI Energy, with a valuation cap of $18 million, is raising funds on Republic. It is a digital energy platform that helps companies and businesses to control their energy wastage, achieve their energy goals, and reduce their carbon footprint. The platform detects, eliminates, and monetizes energy waste. SaLisa Berrien founded COI Energy in January 2018 and has raised over $1 million since its inception. The proceeds of the current crowdfunding campaign, with a minimum raise of $25,000 and a maximum raise of $1,070,000, will be used to expand relationships with the customers and eventually become the hub for the transactive energy marketplace. COI Energy has over 150 paying customers, including US Foods and Citi. The company has exclusive utility partnerships with TECO and NYPA and works on a simple subscription model.

Summary Profit and Loss Statement

Most Recent Year Prior Year

Revenue

$191,935

$365,749

COGS

$104,503

$130,796

Tax

$0

$0

 

 

Net Income

$-793,777

$-270,932

Summary Balance Sheet

Most Recent Year Prior Year

Cash

$66,556

$9,613

Accounts Receivable

$33,116

$159,444

Total Assets

$303,042

$407,031

Short-Term Debt

$244,409

$19,582

Long-Term Debt

$964,898

$499,949

Total Liabilities

$1,209,307

$519,531

Financials as of: 08/26/2020
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Ratings KingsCrowd Startup Rating Methodology Article

Analyst Report Analyst Report Methodology Article

Summary

COI Energy has been selected as a “Deal to Watch” by KingsCrowd. This distinction is reserved for deals selected into the top 10%-20% of our due diligence funnel. If you have questions regarding our deal diligence and selection methodology, please reach out to hello@kingscrowd.com.

The COI Energy founder is part of traditionally underrepresented groups in startup investing.

Analysis by Daniel Jones.

Problem

Global energy demand is astronomical. As the world continues developing, so too will energy consumption rise. This is indisputable. To meet demand, particularly during peak times, utilities often have to produce more than what’s typically needed. End users, too, often waste energy, with commercial buildings wasting an impressive 30% of what they tap from their providers. This creates a tremendous cost on both sides of the supply chain.

Solution

One company that’s dedicated to reducing energy waste and the costs associated with it is COI Energy. The company operates as a hardware-and-software provider. Operationally, it targets the detection, elimination, and monetization of energy waste. The company does this by connecting its technology, its system, to a user’s meter and other energy-related assets. It then collects data from the system that enables real-time insight into consumption. Examples of analytics include measuring a firm’s carbon footprint, looking at both traditional and renewable energy consumption figures, and measuring energy efficiency. Users will then be able to plan their consumption and energy production based on real-time and historical data — thus lowering waste and costs. COI Energy utilizes machine learning and AI protocols to help with the analysis of the data their system collects.

It can be difficult to gain traction for an early-stage business in the enterprise space. Even so, COI Energy has done well since launching the platform. Today, they have more than 150 paying customers. This roster includes Citi, US Foods, TECO, and the New York Power Authority. It also has partnerships, including one with SAP Software Solutions. Pricing specifics were not provided, but the company does have a couple of revenue streams. The first of these involves one-time activation charges the business collects. After that, the customer continues to pay for the service through a monthly subscription plan. Management claims that the average payback period generated from customers’ savings is about 6 months. After that, net savings flow through to the subscriber for as long as the technology is being implemented.

COI Energy is still very much an early-stage business. Its sole focus now seems to be on growth. But when you look at its financial results for the past two years, you notice something that’s initially disturbing. In 2018, the business generated revenue of $365,749. Instead of surging into 2019, it fell to just $191,935. Though this may look worrisome, management assured investors that the drop was caused by activation fees in 2018. In 2019 the firm’s main source of income was its subscription fees. Official data has not been provided for 2020 yet, but the company did say that it expects sales of $1.5 million for the year. On the bottom line, COI Energy has not done particularly well, but that’s to be expected given how early stage the business is. In 2018, the business lost $270,932. This loss skyrocketed to $793,777 in 2019. Operating cash outflows in 2018 were $383,481. This expanded modestly to $501,632 last year. No estimates have been provided for 2020 yet.

Market

The market that COI Energy operates in is difficult to assess. The firm’s management team pegs the global addressable market for its industry at about $92 billion by the year 2025. Our assessment of the industry came up with something different. One source, looking solely at the smart grid market as a whole, pegged the opportunity at $35 billion today. It projected that with annualized growth of 22%, it will reach $94.7 billion by 2025. A different source suggested a similar outcome, with the industry growing 20.9% per annum from $34.8 billion this year to $61.3 billion by 2023. Yet a third source forecasted something far greater, with the market rising 12.4% per annum from $95.1 billion this year to $169.2 billion by 2025.

Narrowing down the opportunity, we get a smaller immediate market for the business — the global energy and utilities analytics market. One source pegs the market opportunity this year at about $2 billion. It forecasts an annualized growth rate of 16.3%, which should take the industry to $4.3 billion by 2025. A second source estimated the market’s size at $1.5 billion last year, with a 12.76% annualized growth rate taking it to $2.9 billion by 2025. Yet a third source projects that with a 10.4% annualized growth rate, the market should grow from $1.15 billion in 2018 to $2.31 billion by 2025. These figures may feel lackluster by comparison to the broader market. However, they are still attractive enough and provide enough room to help build COI Energy into a valuable player in the energy industry.

Team

The management team at COI Energy consists of six individuals, including two developers and a marketing manager. The top two members, though, are SaLisa Berrien and Prakash Bhatia. Berrien is the founder and CEO of COI Energy. At present, she is also a cohort member of both the Nasdaq Entrepreneurial Center and Morgan Stanley. She currently serves as a Board Trustee at the University of Pittsburgh, and she is the founder of STRIVE, Inc, a STEM leadership development company. In the past, she also worked as a Board Member at Valley Youth House. 

The other key member, Bhatia, is the Head of Value for COI Energy. At present, he is also serving as the Global Strategy Pricing Director for LivaNova. In the past, he worked as the Head of Global Sales Operations and Strategic Pricing at Capsugel. This was a role he was promoted to from a lower position at the same company. And before that, his experience included working as Manager of Strategic Contracts and pricing at Stryker.

Rating

Our team has rated COI Energy as a Deal to Watch. The company’s sales figures look worrisome at first glance. But when you understand why revenue dropped in 2019 and where it’s expected to be this year, the situation is far better. Yes, COI Energy does generate significant losses, but that’s to be expected given its stage of development. Add in the small industry it operates in and the $18 million valuation cap, and investors may wonder what there is to be excited about.

For starters, on the plus side is the initial traction the firm received — 150 B2B customers is not an easy target to hit. Their system’s 6-month average payback period is also very appealing. As is the fact that the industry opportunity, while initially small, is growing at a very attractive rate. The projection for $1.5 million in revenue this year is also encouraging, as is management’s call for annual recurring revenue to hit $25 million by 2022. Even if the firm achieves half that target, the valuation cap today could look logical. Add all of this together and it’s hard not to like what COI Energy is doing.

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Platform: Republic
Security Type: SAFE
Valuation: $18,000,000

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