About this raise
Farm to Flame Energy, with a valuation of $50 million, is raising funds on Wefunder. The company has developed a patented combustion process that uses biomass waste to make electricity. Farm to Flame Energy uses smokeless and odorless generators to provide electricity for commercial buildings. The company has signed $20 million of contracts with Cocoa Processing Company for a 5MW combined heat and power plant and has its working product charging electric vehicles and other electric appliances. Kwaku Jyamfi and Stefano Alva founded Farm to Flame Energy in June 2018. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $5 million. The campaign proceeds will be used for equipment, labor, general administrative expenses, hiring, and installation of 1,000KW of Farm to Flame Energy generators.
Investment Overview
Committed $62,350 :
Deal Terms
Company & Team
Company
- Year Founded
- 2018
- Industry
- Energy, Power, & Natural Resources
- Tech Sector
- Distribution Model
- B2B
- Margin
- Medium
- Capital Intensity
- High
Financials
-
Revenue
- $149,582
- Monthly Burn
- Profitable
- Cash on Hand
- $158,293
- Gross Margin
- 86%
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Synopsis
Farm To Flame Energy is at the forefront of the renewable energy revolution, offering an innovative solution to the global challenge of sustainable electricity generation. With its patented combustion process, the company transforms biomass waste into clean, smokeless, and odorless electricity, targeting commercial buildings as its primary customers. This technology provides an environmentally friendly alternative to traditional power sources and does so at half the cost of diesel, making it an economically attractive option.
The company's technology has proven its viability and market demand through significant contracts, including a $20 million agreement with Cocoa Processing Company to install a 5MW combined heat and power plant. Additionally, Farm To Flame Energy's generators are already in use, powering electric vehicles and appliances, demonstrating their system's practical application and reliability.
Participation in numerous prestigious accelerators and support from notable investors, including Evergreen Climate Innovations, Cisco Global Problem Solver Challenge, and the Richard King Mellon Foundation, further bolster the company's growth.
Price
Farm to Flame Energy has positioned itself as a significant player in the energy, power, and natural resources sector with a pre-money valuation of $50 million as it seeks to raise funds on Wefunder.
Despite Farm to Flame Energy's current revenue standing at $149,582, the substantial contracts it has signed—a $20 million contract with Cocoa Processing Company and a $4.4 million contract with Lyndon Furniture—suggest a promising revenue trajectory. If these contracts are expected to be recognized over the next 1-3 years, they would justify the company's current valuation and set the stage for rapid growth. Still, the company is valued at a high price, which is not advantageous for investors.
Market
The global biomass power market, wherein Farm To Flame Energy operates, is a burgeoning sector within the energy, power, and natural resources industry, with an addressable market size of approximately $121.34 billion and an expected growth rate of 6.00% annually. This market is characterized by moderate competition, with players such as BrightWave, CapCO2 Solutions Inc., FiberX Incorporate, and Plantaer amongst the noted competitors. Despite these established competitors, Farm To Flame Energy distinguishes itself through its patented combustion process that converts biomass waste into electricity, catering primarily to commercial buildings.
The International Energy Agency (IEA) outlines consumer demand, including green tariffs, the economic attractiveness of photovoltaic (PV) and wind systems, and government renewable energy targets as the main drivers for renewable energy growth. Farm To Flame Energy is well-positioned to leverage these market drivers, especially considering the economic attractiveness of its biomass-based electricity generation solution. The company's technology, which boasts the ability to generate smokeless and odorless electricity, not only places it as an environmentally friendly option but also as a cost-effective solution for its B2B clientele.
Team
CEO Kwaku Jyamfi, a Syracuse University graduate with a bachelor's degree in chemical engineering, is at the helm of Farm to Flame Energy. Jyamfi's leadership has been pivotal in steering the company from its inception in 2018 to its current profitable stage. His achievements include securing a $20 million contract for a 5MW combined heat and power plant with the Cocoa Processing Company and a significant waste-to-energy project with Georgia-Pacific. Jyamfi's innovative approach has also led to the development and successful implementation of the FTF 30KW Generator, showcasing his technical expertise and entrepreneurial spirit. His participation in over ten entrepreneurship competitions, resulting in wins, underscores his ability to effectively pitch and validate Farm to Flame Energy's business model.
Supporting Jyamfi is Carla Lam, the Head of Accounting, whose credentials include over 24 years of experience in accounting and CFO services. Lam's expertise, honed at one of the Big 4 audit firms and through her work with central banks and Fortune 500 corporations, provides Farm to Flame Energy with a robust financial foundation. Her recognition as a top 1% Accounting Professional on UpWork speaks volumes about her proficiency and reputation in the field.
Fred Lewis, the Plant Manager, brings over 35 years of experience in the power generation industry to the team. His role in the start-up and operation of more than 4.5GW of combined heat and power (CHP) power plants, representing $13.5 billion in energy assets, is invaluable. Lewis's experience as an Operations Manager at Wood Group, overseeing several Biomass CHP plants, aligns with Farm to Flame Energy's operational needs and goals.
Rounding out the team is Ric Airesman, the Systems Engineer, whose background includes managing Generator Operations for U.S. Naval Ships above 300MW and working at the Bruce Mansfield Power Plant, where he was involved in operating and commissioning 2,550MW ($7.65B in Heat and Power Assets). Airesman's expertise in bringing the FTF S2 Generator online and designing generator automation loops is crucial for Farm to Flame Energy's technological advancement and operational efficiency.
This diverse and experienced team, led by Kwaku Jyamfi, is well-positioned to drive Farm to Flame Energy's mission to provide sustainable electricity solutions through its patented combustion process. Their collective expertise in engineering, financial management, and power plant operations forms a solid foundation for the company's continued growth and success in the global biomass power market.
Differentiation
Farm To Flame Energy differentiates itself in the global biomass power market through its patented combustion process that transforms biomass waste into electricity. This innovative approach addresses waste management issues and provides a sustainable and renewable energy source. The company’s technology is especially relevant in regions with significant biomass waste and a need for reliable electricity generation, positioning Farm To Flame Energy at the forefront of clean energy solutions.
In the United States, Farm To Flame Energy capitalizes on the dual benefits of its technology: reducing biomass waste and lowering electricity costs for its clients. This value proposition is compelling for commercial entities looking to manage waste more efficiently and economically, offering a clear competitive advantage over traditional waste management and energy solutions. The company’s ability to sign substantial contracts, such as the $20 million agreement with Cocoa Processing Company for a 5MW combined heat and power plant, demonstrates its traction and the market’s recognition of its unique offering.
However, Farm To Flame Energy's solution stands to make the most substantial impact in developing countries like Nigeria, where the electric grid is unreliable and the reliance on diesel generators poses significant health and environmental risks. The company addresses a critical need by providing a cheaper and more reliable electricity source, potentially transforming the energy landscape in such regions. This strategic market positioning highlights Farm To Flame Energy’s social impact and opens up a vast and relatively untapped market opportunity.
While the company faces competition from other biomass-powered generators like Airburners in the US, Farm To Flame Energy’s business model—charging for the electricity produced rather than the machine—offers a unique value proposition. This approach could lead to broader adoption and recurring revenue, distinguishing it from competitors that sell the equipment outright.
Overall, Farm To Flame Energy’s innovative technology and its strategic focus on developed and developing markets position it as a significant player in the biomass energy sector. The company’s ability to address environmental sustainability and energy reliability sets it apart in a moderately competitive landscape, with high barriers to entry protecting its unique solution.
Performance
Farm to Flame Energy has demonstrated significant traction in its mission to provide sustainable electricity solutions through its patented combustion process that utilizes biomass waste. The company's innovative approach has attracted attention and considerable funding from both social impact funds and federal organizations, highlighting its potential to substantially impact the energy sector. Notably, Farm to Flame Energy's accomplishments include winning first place in a social impact competition held by BNY Mellon in partnership with Innovation Works, receiving non-dilutive funding from the New Jersey Commission of Science, Technology, and Innovation, and securing an investment from the Richard King Mellon Foundation. These achievements underscore the company's commitment to creating clean-tech jobs and providing transition opportunities for workers previously part of the coal industry.
In terms of financial performance, Farm to Flame Energy has successfully signed two significant contracts: a $20 million contract with Cocoa Processing Company for a 5MW combined heat and power plant and a $4.4 million contract with Lyndon Furniture for a combined heat and power purchase agreement. These contracts are pivotal for the company's growth trajectory and, if revenue is recognized within 1-3 years, could justify its current valuation of $50 million. The company's ability to secure such substantial contracts reflects the market's confidence in its technology and business model.
Farm to Flame Energy's patented technology has already been implemented, with its smokeless and odorless generators providing electricity for commercial buildings and charging electric vehicles and other electric appliances. This practical application of its technology demonstrates its viability and potential to address the global biomass power market. With a reported annual revenue of $149,582 in 2023, Farm to Flame Energy is in the early stages of revenue generation. Still, it shows promise for rapid growth, especially considering its recent contract wins.
The company's financial health is supported by a solid foundation of $1.6 million raised in prior funding rounds and cash reserves reported at $208,527 at the end of the most recent fiscal year. Despite being in a growth phase and facing a moderately competitive landscape, Farm to Flame Energy's unique value proposition, combined with its successful funding and contract acquisition efforts, positions it well for future success in the energy sector.
Risk
Farm To Flame Energy's approach to electricity generation using a patented combustion process that utilizes biomass waste presents unique risks alongside its innovative solution.
Firstly, the company's operational model, focusing on producing electricity for commercial buildings and charging electric vehicles with smokeless and odorless generators, requires significant scaling of production to meet the demands outlined in their $20 million contracts with Cocoa Processing Company for a 5MW combined heat and power plant. This need to scale production could strain existing resources and delay project timelines if not managed carefully.
Farm To Flame Energy must navigate the moderately competitive landscape of the biomass power industry. Competitors like BrightWave, CapCO2 Solutions Inc, FiberX Incorporate, and Plantaer represent established players with whom Farm To Flame Energy must contend for market share. This competition necessitates continuous innovation and efficient production processes to maintain a competitive edge.
Lastly, the high capital intensity level required to operate and scale Farm To Flame Energy's technology introduces a risk of significant capital expenditure before achieving desired revenue scales. This capital intensity, coupled with the necessity for substantial initial and ongoing investment in equipment, labor, and general administrative expenses, underscores the importance of efficient capital management and the ability to secure further funding as needed.
Bullish Outlook
Farm To Flame Energy's innovative approach to generating clean electricity through a patented combustion process represents a significant advancement in the energy sector. This approach, leveraging biomass waste to produce electricity, addresses environmental concerns and offers a sustainable solution to energy supply challenges. The company's ability to provide smokeless and odorless generators for commercial buildings and its application in charging electric vehicles and other electric appliances underscores its versatility and the relevance of its technology in today's increasingly eco-conscious market.
The signing of a $20 million contract with Cocoa Processing Company for a 5MW combined heat and power plant exemplifies the strong market demand and commercial viability of Farm To Flame Energy's technology. This, coupled with a profitable business model and a revenue growth trajectory, signals robust financial health and operational efficiency.
Supported by notable investors like the Cisco Global Problem Solver Challenge and the Richard King Mellon Foundation, as well as participation in multiple accelerators such as Reach, Syracuse CoE, and Cleantech Open, Farm To Flame Energy has demonstrated its ability to attract substantial support and recognition.
Bearish Outlook
Despite Farm To Flame Energy's innovative approach to generating electricity from biomass waste, several factors contribute to a bearish outlook on its investment potential. First, the company's $50 million valuation appears high, especially when considering its 2023 revenue of $149,582.00. The company's $24.4 million in signed contracts can help justify an increase in valuation since its last round, but the current deal price could lower investors' returns.
The high capital intensity inherent in the energy sector, combined with its high barriers to entry, suggests that significant further investment will be required for expansion and to maintain competitiveness. This could dilute existing shareholders or increase financial strain on the company.
Furthermore, the company operates within a moderately competitive landscape featuring notable direct competitors such as BrightWave and CapCO2 Solutions Inc. The presence of these established players could hinder Farm To Flame Energy's ability to capture market share, particularly in industries as complex and regulated as energy and power.
Executive Summary
Farm to Flame Energy is at the forefront of the renewable energy sector, leveraging a patented combustion process that converts biomass waste into electricity. This innovative approach addresses the urgent need for sustainable energy solutions and aligns with the global shift towards environmental preservation and reducing carbon footprints. The company's technology, which produces smokeless and odorless electricity, is designed for commercial buildings and has already demonstrated its capability by charging electric vehicles and appliances.
Despite being in the growth stage and pre-revenue, Farm to Flame Energy has exhibited significant traction by raising over $1.6 million in capital and securing $20 million in contracts with the Cocoa Processing Company for a 5MW combined heat and power plant. This achievement underscores the market's confidence in the company's technology and its potential to disrupt the traditional energy sector. Furthermore, the company's success in social impact competitions and support from federal organizations highlight its societal benefits, particularly in creating clean-tech jobs and providing sustainable solutions to areas lacking access to electricity.
The global biomass power market represents a substantial addressable market for Farm to Flame Energy, bolstered by the increasing consumer demand for renewable energy, the economic attractiveness of alternative energy sources, and government targets for renewable energy adoption. The company's business model, which focuses on recurring revenue through the sale of electricity generated by its biomass-powered generators, positions it well to capitalize on these market drivers.
With a valuation of $50 million on Wefunder, Farm to Flame Energy is seeking funds further to standardize its generator operating procedure, scale manufacturing, and pursue FDA clearance for market entry. Using proceeds for equipment, labor, and administrative expenses indicates a strategic approach to scaling operations and achieving market penetration.
However, investors should consider the energy sector's high capital intensity and competitive landscape. Despite these challenges, Farm to Flame Energy's innovative technology, proven market demand, and strong growth potential make it a compelling investment opportunity for those looking to contribute to the transition towards a more sustainable energy future.
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Company Funding & Growth
Funding history
- Total Prior Capital Raised
- $1,600,000
- VC Backed?
- Yes
Growth Charts
Revenue History
Note: Revenue data points reflect the latest of either the most recent fiscal year's financials, or updated revenues directly from the founder, at each raise's close date.
Valuation History
Price per Share History
Note: Share prices shown in earlier rounds may not be indicative of any stock splits.