FuelGems

FuelGems

Early Stage

Nanotechnology fuel additive which makes fuel more efficient and cleaner

Nanotechnology fuel additive which makes fuel more efficient and cleaner

Overview

Raised this Round: Raised: $675,054

Total Commitments ($USD)

Platform

Republic

Start Date

01/02/2024

Close Date

09/27/2024

Min. Goal
$50,000
Max. Goal
$1,000,000
Min. Investment

$100

Security Type

SAFE

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Early Bird Val. Cap

$13,000,000

Valuation Cap

$17,500,000

Discount

25%

Year Founded

2019

Industry

Transportation, Automotive, Aviation, & Aerospace

Tech Sector

Cleantech

Distribution Model

B2B/B2C

Margin

Medium

Capital Intensity

High

Location

Austin, Texas

Business Type

Growth

FuelGems, with a valuation of $17.5 million, is raising funds on Republic. The company has developed a fuel additive that improves the cleanliness and performance of diesel, gasoline, and biofuel. FuelGems additives are highly effective and affordable and generate up to 1,000% ROI for users. The company has an immediate pipeline of $70 million in revenue and has a demand from 50 companies with a revenue potential of $2.25 billion. Kirill Gichunts founded FuelGems in March 2019. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $3 million. The campaign proceeds will be used for marketing, company employment, and operations.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$0

$0

COGS

$443,507

$544,380

Tax

$0

$0

 

 

Net Income

$-455,187

$-547,459

Summary Balance Sheet

FY 2022 FY 2021

Cash

$366,652

$362,635

Accounts Receivable

$0

$0

Total Assets

$555,117

$433,138

Short-Term Debt

$10,741

$24,030

Long-Term Debt

$826,984

$0

Total Liabilities

$837,725

$24,030

Financials as of: 01/02/2024
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
FuelGems 09/26/2024 Republic $17,500,000 $675,054 SAFE Active RegCF
FuelGems 02/17/2023 StartEngine $15,000,762 $180,076 Equity - Common Funded RegCF
FuelGems 04/28/2022 StartEngine $12,000,000 $1,395,837 Equity - Common Funded RegCF
FuelGems 11/19/2020 Wefunder $8,500,000 $791,207 SAFE Funded RegCF
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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.

Employee History

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Synopsis

FuelGems stands at the forefront of addressing two significant challenges in the global transportation industry: fuel efficiency and environmental impact. As the world continues to seek solutions for reducing greenhouse gas emissions and improving energy consumption, FuelGems has developed a groundbreaking fuel additive that caters to these needs. This additive promises to enhance the cleanliness and performance of various fuels, including diesel, gasoline, and biofuel.

The proprietary nanotechnology behind FuelGems' additive requires only a minute amount—5 grams—to treat 260 gallons of fuel. This efficiency positions the additive as one of the most potent and cost-effective on the market, offering users a return on investment of up to 1000%. The benefits of using FuelGems' additive extend beyond financial savings; it also significantly reduces greenhouse gas emissions by up to 50%, increases engine and fuel pump lubrication, and conserves fuel.

FuelGems' potential has not gone unnoticed, as evidenced by its impressive immediate pipeline of $70 million in revenue. Moreover, the company has garnered interest from 50 companies, indicating a revenue potential of a staggering $2.25 billion. Such demand highlights the vast addressable market for specialty fuel additives and the growing urgency for sustainable fuel solutions.

With a valuation of $17.5 million, FuelGems is currently raising funds on Republic to propel its mission forward. The capital raised will be strategically allocated to marketing efforts, expanding the company's workforce, and bolstering operations. This investment opportunity comes at an early stage in the company's growth, offering potential investors a chance to be part of a venture that is not only profitable but also environmentally conscious.

Founded in March 2019 by Kirill Gichunts, FuelGems has attracted notable investors, including Moneyus Capital and Ray Family Company Holdings. The company's participation in the Sputnix ATX accelerator program and backing by venture capital further validate its promising trajectory. FuelGems' innovative solution is well-positioned to drive significant impact and returns as the transportation sector continues to evolve toward sustainability.

Next Section: Price

Price

FuelGems is raising funds on Republic with a valuation cap of $17.5 million under a SAFE (Simple Agreement for Future Equity) with a 25% discount. The company developed a proprietary technology and raised more than $2.7 million. It has the potential for future growth and an immediate pipeline of $70 million. This suggests that if the company can convert its pipeline into actual sales, investors could have a substantial upside. Therefore, the company is fairly valued.

Next Section: Market

Market

FuelGems Inc. is poised to enter the global specialty fuel additives market, which is currently observed to have a strong growth trajectory. The demand for such additives is driven by the growing need for low-emission and efficient energy sources across key industries such as manufacturing, aviation, and automotive. As environmental regulations become increasingly stringent, the market for specialty additives, which help curb harmful gas emissions and enhance fuel efficiency, has seen substantial growth.

This demand is further emphasized by the rising levels of toxic emissions from traditional fuels used in vehicles, which have a significant environmental impact. Specialty additives like those from FuelGems offer a solution by improving the combustion process, reducing burn rates at high temperatures, and cutting emissions of pollutants. The global market for these additives is valued at approximately $9.76 billion and is projected to grow at a compound annual growth rate (CAGR) of 8.6%.

The competitive landscape for FuelGems includes established players such as Chevron, Lucas Oil, STP, Sta-Bil, and Amsoil, indicating that while the market potential is high, the environment is extremely competitive. FuelGems' innovative approach, which involves using nanoparticles to treat fuel and reportedly delivers up to a 1000% return on investment for users, positions the company to potentially disrupt the market with its cost-effective solution.

Next Section: Team

Team

FuelGems is spearheaded by CEO Kirill Gichunts, who brings 12 years of relevant industry experience. Gichunts has a proven track record in the industry, having previously raised $100 million for other companies and successfully navigating the exit of Infreeda Inc. His experience is further validated by his long experience in several venture capital, investment banking, and M&A positions. Right before founding FuelGems, Gichunts co-founded H2 Energy Renaissance.

The team at FuelGems consists of seven members. While there has been no growth since the last funding round, the presence of two relevant advisors and backing from notable investors like Ray Family Company Holdings provides additional support to the company's strategic direction. Furthermore, FuelGems has attracted venture capital investment from Moneyus Capital and has participated in the Sputnix ATX accelerator program, indicating a level of validation and support from the startup ecosystem.

Next Section: Differentiation

Differentiation

FuelGems differentiates itself in the global specialty fuel additives market with a revolutionary product that boasts significant performance improvements for diesel, gasoline, and biofuel. The company's fuel additive stands out due to its high efficiency, requiring only 5 grams to treat 260 gallons of fuel. This level of potency positions FuelGems as one of the most powerful and cost-effective solutions on the market, offering users up to 1000% ROI. The value proposition is further enhanced by the additive's ability to reduce greenhouse gas emissions by up to 50%, increase engine and fuel pump lubrication, and contribute to fuel savings.

Despite being in the pre-revenue stage, FuelGems has demonstrated a strong market demand, with a significant pipeline of prospective clients. The company's engagement with billion-dollar corporations across various sectors, including oil, gas, transportation, and logistics, indicates a high level of market confidence and interest. The potential revenue from the immediate pipeline of $70 million and the larger prospective client base with a revenue potential of $2.25 billion underscores the additive's appeal to a broad range of customers.

In a market with established competitors like Chevron, Lucas Oil, STP, Sta-Bil, and Amsoil, FuelGems has carved out a niche by offering an additive that is not only marginally better than others but also delivers a compelling return on investment for users. The company's growth trajectory, evidenced by a significant increase in its prospective client pipeline year over year, suggests that FuelGems is well-positioned for adoption, expansion, and a far-reaching impact in the worldwide fuel market.

Furthermore, with patented technology, FuelGems' intellectual property strategy provides a competitive edge and barriers to entry that may protect its market position. The combination of a highly effective product, a robust pipeline of potential customers, and a competitive price point makes FuelGems a notable player in the transportation, automotive, aviation, and aerospace industries focused on fuel efficiency and environmental sustainability.

Next Section: Performance

Performance

FuelGems, a transportation and fuel additive company, has reported significant traction in demand and interest from potential clients. Despite being in the pre-revenue phase, FuelGems has developed a pipeline with over 150 prospective clients that use an estimated 20 billion gallons of fuel annually. This suggests a substantial market interest in their fuel additive product, designed to improve the cleanliness and performance of diesel, gasoline, and biofuel.

In 2023, FuelGems may have generated up to $15,000. This figure is still low and shows that the company is not going to market yet.

The company's immediate pipeline is valued at $70 million worth of pilots, positioning FuelGems for potential widespread adoption within the massive global fuel market. Furthermore, the total prospective client pipeline grew by 50% in 2022 and 100% in 2023, with the addition of multiple large companies. This growth demonstrates a rising confidence in the market, with prospective customers being some of the largest corporations globally, boasting a combined revenue of over $500 billion.

Financially, FuelGems raised a total of $2.71 million in prior funding rounds, according to Pitchbook. While the company has shown mediocre progress in product development and no growth in team size since the last round, the strong market demand and significant pipeline indicate a high potential for future revenue generation. FuelGems' competitive landscape is extremely competitive, but the company's value proposition of significant emission reductions and fuel savings positions it well for future growth and market penetration.

Next Section: Risk

Risk

FuelGems Inc. is navigating a sector with several risks associated with its early stage of development and entry into the specialty fuel additives market.

As a pre-revenue company, FuelGems has not yet established a proven track record of sales, which presents an intrinsic risk to potential investors. The company's ambitious targets have yet to be realized, including a $70 million immediate revenue pipeline and a demand from 50 companies with a revenue potential of $2.25 billion. These projections reflect potential rather than secured revenue, and the company's ability to convert interest into long-term sales agreements remains untested.

FuelGems does not have partnerships despite having pilots, which is a potential risk factor. Partnerships within the industry can be crucial for scaling production, distribution, and sales. The absence of such partnerships may signal challenges in establishing industry relationships to grow the business.

The company's success is further contingent on its supply chain for producing its nanotechnology fuel additive. Supply chain disruptions or inefficiencies can pose significant production or quality control risks, potentially impacting the company's ability to meet market demand or maintain cost-effectiveness.

Competing against well-established brands like Chevron, Lucas Oil, STP, Sta-Bil, and Amsoil introduces a risk of market penetration. FuelGems must differentiate its product sufficiently to capture market share from these entrenched competitors, which may require significant marketing investment and consumer education.

Next Section: Bullish Outlook

Bullish Outlook

FuelGems offers a patented nanotechnology fuel additive that significantly enhances the cleanliness and performance of various fuels, including diesel, gasoline, and biofuel. FuelGems' additive reduces greenhouse gas emissions by up to 50% and increases engine and fuel pump lubrication, contributing to the longevity and reliability of vehicles and machinery.

With the burgeoning demand for more environmentally friendly fuel solutions, FuelGems' potential market impact is substantial. The company's numerous pilots demonstrate both the market need and the potential for rapid scalability. The global market for these additives is valued at approximately $9.76 billion and is projected to grow at a compound annual growth rate (CAGR) of 8.6%. But FuelGems's sustainable niche should grow even faster.

Additionally, FuelGems has attracted notable investors, including Ray Family Company Holdings and venture capital from Moneyus Capital, and participated in the Sputnix ATX accelerator, signaling confidence from seasoned investors in the company's direction and management team led by founder Kirill Gichunts.

Next Section: Bearish Outlook

Bearish Outlook

Bearing in mind the highly competitive marketplace in which FuelGems operates, with established players like Chevron and Amsoil, the company's pre-revenue status presents considerable risk to potential investors. Moreover, the company's claim of an immediate pipeline of $70 million in revenue and demand from 50 companies, while promising, lacks substantiation through actual sales or binding agreements. The company already claimed to have such a $50 million pipeline back in 2020 but still didn't generate revenues.

The specialty fuel additives market is not only competitive but also deeply entrenched with customer loyalties and long-term contracts. This scenario presents significant barriers to entry for new entrants like FuelGems. Convincing customers to switch to a new product can be a slow and costly process, requiring extensive marketing and sales efforts.

The capital intensity of the company's product accentuates the financial risks involved. Without a clear indication of when the company will move beyond the pre-revenue phase and start generating profits, the path to financial sustainability appears challenging. 

Next Section: Executive Summary

Executive Summary

FuelGems Inc. has developed a proprietary fuel additive to significantly improve the cleanliness and performance of various fuel types, including diesel, gasoline, and biofuel. This nanotechnology-based solution is potent, requiring only a small amount of additive to treat large quantities of fuel, but also cost-effective, offering users a potential return on investment of up to 1000%. The additive boasts the ability to reduce greenhouse gas emissions by up to 50%, enhance engine and fuel pump lubrication, and contribute to fuel savings.

The company is in a pre-revenue stage but has demonstrated considerable traction, with a promising pipeline of potential clients and a high conversion rate across industries such as Oil & Gas, Transportation, and Logistics. FuelGems has garnered interest from billion-dollar companies, entering dialogues and trials, and has also seen a high intent for initial additive runs among small and medium businesses. With a prospective client pipeline that grew significantly in recent years, FuelGems has positioned itself for potential widespread adoption in the expansive global fuel market.

Amidst a growing demand for low-emission and efficient energy sources, the market for specialty fuel additives is projected to expand in the face of stringent environmental regulations. FuelGems is strategically positioned to capitalize on this trend, offering a solution that meets regulatory demands and delivers tangible benefits to users. The company plans to use the proceeds from its crowdfunding campaign for marketing, expanding its workforce, and operational costs as it seeks to scale its business.

Despite the competitive landscape with key players such as Chevron and Lucas Oil, FuelGems' innovative approach and patented technology set it apart. The company has raised $2.71 million in prior funding rounds and is backed by investors, including Moneyus Capital and Ray Family Company Holdings. As it moves forward, FuelGems aims to disrupt the market with its high-impact, environmentally conscious additive, addressing the urgent need for cleaner and more efficient fuel consumption.

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FuelGems on Republic 2024
Platform: Republic
Security Type: SAFE
Valuation: $17,500,000

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