Company Updates

Hydro Wind Energy Company Update

In this company update, we look at Hydro Wind Energy announcing a new crowdfunding round on Republic at a $150M valuation, reflecting its difficult financial position and delays in product development.

Funding Round Details

Hydro Wind Energy logo
Company: Hydro Wind Energy
Security Type: Equity - Tokens
Valuation: $150,000,000
Min Investment: $100
Platform: Republic
Deadline: Jun 15, 2024
$4,999,999
View Deal
  • Hydro Wind Energy has opened a new round on Republic at a valuation of $150M, up 25% from its previous 2022 equity crowdfunding round of $120M. 
  • The Company ended 2023 with just $102,985 in cash and cash equivalents. With a net income of -$847,299 in 2023, Hydro Wind Energy is presumably running low on funds and needs this crowdfunding round to sustain its runway. 
  • This negative net income is ~24% worse than 2022, which makes sense given that revenue also declined ~65% since 2022. 
  • The company included the following statement regarding traction since its last round, indicating that cash flow is tight and testing for OceanHydro Omni is delayed until after this funding round. 
  • Additionally, the company recorded sales of $80k from January to March 2024 from the sales of QuenchSea. If sales continue at this pace, the company will record roughly $320K in 2024, which is still less than what the company recorded in 2022. However, the company could also scale sales up and reach a far higher number, although this seems unlikely given the tight budget the company is on. 
  • The company is working on a QuenchSea V3, which will be easier to pump and flow more water. 
  • Here is the full list of updates that the company reported in March 2024:

 

    • The OceanHydro Omni subscale system has been built and is fully integrated. It’s a 45-tonne structure measuring 10m x 10m and a height of 8m. Painting and deployment are the next milestones. Deployment has been delayed until we finalize our funding round. Cash flow is tight, and we must secure additional funds for deployment and offshore testing. We already have the approval and location from Fujairah ports. Time of year and seasons need to be factored in for deployment. We want to deploy when sufficient wind is available. We also have options to deploy in Oman, Malta and potentially Azerbaijan Caspian Sea. 
    • Shipping version 2.0 QuenchSea and sales in 2024 to date over $80K. Pre-orders from 2023 have all been fulfilled and shipped. We have now exceeded $1 million in sales for QuenchSea from first launch.
    • Working on QuenchSea version 3.0. This will be the most efficient version yet, easier to pump and more water flow. It will have a three way check valve and output would exceed 6 litres per hour. The UN Wash agency have requested we improve on our current version to secure a B2B contract.    
    • We are now part of the Future 100 https://future100.ae/en/list-2023?page=3 
    • Forbes 30 under 30 Congrats to Hayk Vasilyan (CTO) Maryam Hassani (Head Innovation)
    • Tokenization round is going live this week. We’re excited to announce that the HWE equity Token will launch on Avalanche, a leading Layer-1 blockchain network, marking a pivotal technological step in our journey. This tokenization will be done in tandem with Brickken and Republic. 
    • Ongoing institutional round but very little progress so far. Some interest but no firm commitments yet. We have two main leads for whom we are discussing deal terms.

 

  • In my opinion, the 25% valuation increase is not justified given the budgetary issues and lack of revenue growth the company has shown in the previous two years. 
  • Hydro Wind Energy is still priced as a moonshot company, so investing in this round is betting on the full potential of offshore wind power being realized by the company.

Teddy Lyons
About: Teddy Lyons

Teddy comes to KingsCrowd with a background in venture capital and investment banking. He worked at Deutsche Bank as an Investment Banking Analyst in the Technology, Media, and Telecommunications group. Prior to that, he served as an Associate at Alchemi Capital, a venture capital firm in Boston that invests in early-stage technology companies. Teddy holds a degree in Economics and Psychology from Wesleyan University, where he was captain of the varsity soccer team. He also holds a M.S. in Finance from Boston College.


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