Geyser Systems

Geyser Systems

Early Stage

Reduce Global Water Demand With Showers That Use Less Than 1 Gallon Of Water

Reduce Global Water Demand With Showers That Use Less Than 1 Gallon Of Water

Overview

Raised to Date: Raised: $93,089

Total Commitments ($USD)

Platform

Wefunder

Start Date

10/29/2023

Close Date

04/29/2024

Min. Goal
$50,010
Max. Goal
$1,199,997
Min. Investment

$100

Security Type

Equity - Preferred

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$7.84

Early Bird Valuation

$7,994,250

Pre-Money Valuation

$9,996,000

Rolling Commitments ($USD)

Status
Funded
Reporting Date

05/04/2024

Days Remaining
Funded
% of Min. Goal
Funded
% of Max. Goal
Funded
Likelihood of Max
Funded
Avg. Daily Raise

$511

# of Investors

87

Momentum
Funded
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Year Founded

2017

Industry

Energy, Power, & Natural Resources

Tech Sector

Cleantech

Distribution Model

B2C

Margin

Low

Capital Intensity

Low

Location

Montrose, Colorado

Business Type

Growth

Geyser Systems, with a valuation of $10 million, is raising funds on Wefunder. The company uses its patented technology to create its portable camping showers. Geyser Systems’ showers use only 0.8 gallons of water, last up to 15 minutes and clean two people. The product, EcoShower, has received several awards and accolades and is aimed at solving the global water crisis. Jonathan Ballesteros founded Geyser Systems in November 2017. The current crowdfunding campaign has a minimum target of $50,009.52 and a maximum target of $1.2 million. The campaign proceeds will be used for marketing, raw materials, staffing, overhead, and working capital.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$686,958

$1,036,674

COGS

$615,209

$865,719

Tax

$0

$0

 

 

Net Income

$-478,409

$-264,817

Summary Balance Sheet

FY 2022 FY 2021

Cash

$98,076

$156,383

Accounts Receivable

$39,701

$48,268

Total Assets

$480,023

$707,526

Short-Term Debt

$426,619

$359,343

Long-Term Debt

$963,524

$849,970

Total Liabilities

$1,390,143

$1,209,313

Financials as of: 10/29/2023
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Founder Profile

Innovative Shower Solutions for Sustainable Living

Geyser Systems is an innovative CPG company offering shower solutions for campers or inhabitants of areas where water is scarce. The company’s first portable shower product is a hit in camping stores. As the company is introducing its water-saving showerhead, we contacted Jonathan Ballesteros to learn more about the opportunity to invest in his business.


Read Founder Interview

Analyst Report

Synopsis

Water scarcity is a global issue. According to the United Nations, by 2025, an estimated 1.8 billion people will live in areas plagued by water scarcity, with two-thirds of the world's population living in water-stressed regions. This situation calls for innovative solutions to conserve and use water more efficiently.

On the other hand, campers face another type of water scarcity, induced by logistical reasons more than by threatening natural phenomena. 

Geyser Industries has developed a patented technology to address water scarcity for campers and individuals living in areas where accessing water is difficult. The company's Geyser System is a portable camping shower that uses only 0.8 gallons of water, lasts up to 15 minutes, and can clean two people. This highly efficient use of water can help conserve this precious resource and reduce the demand for water in places where it is scarce.

EcoShower has received several awards and accolades, including being named one of Colorado's top three most innovative products of 2022. It has also been featured in Condé Nast, Outdoor Magazine, Backpacker, and over 20 YouTube overlanding channels. The product is assembled in the USA and can be used in various settings, including military operations, recreational vehicles, boating, and disaster relief efforts.

The company is now launching EcoShower, a shower head that can be added to any shower pipe and save considerable water. This product is first designated to serve RV owners and inhabitants of areas where water is scarce. But the company also plans on marketing it as an at-home aromatherapy solution to convert more users to its new system.

Next Section: Price

Price

Geyser Industries is raising funds through preferred equity at a valuation of $10 million and an early bird valuation of $7.99 million. With a 2022 annual revenue of $686,958 and a revenue-to-valuation multiple of 14.55x, Geyser Industries is priced slightly high for a company selling consumer goods. However, the valuation isn't outrageous, and investors could still get a 10x return on their investment if the company develops internationally.

Next Section: Market

Market

Geyser Industries operates within the global water-saving shower equipment market, which addresses the growing need for water conservation and efficiency. This market is driven by the increasing water scarcity and the need to reduce water bills, making water-saving showerheads essential household equipment. It is also noteworthy that several countries, like the United States, have restrictions on the flow rate of showerheads, thereby creating significant demand for water-saving solutions.

Through its patented technology, Geyser Systems creates portable camping showers that use just 0.8 gallons of water, can last up to 15 minutes, and can clean two people. This product has won several awards. The company is also launching EcoShower, a shower head aimed both to the 11.2 million RV owners and at addressing the global water crisis. This product will allow RV owners to dump their grey waters every three weeks instead of every three days. The company's product directly responds to families' financial needs by reducing water usage and heating costs.

However, it is important to note that the addressable market size for Geyser Industries is estimated to be $1 billion, and the market growth rate is relatively low at 3.1% so far. This suggests that while there is potential for Geyser Industries, the growth opportunities may not be as significant as in other industries.

Furthermore, the market has established competitors, indicating a competitive landscape for Geyser Industries. However, with high market acceptance and a unique product offering, Geyser Industries may be able to carve out a niche within this market.

In conclusion, Geyser Industries is well-positioned to capitalize on the growing demand for water-saving solutions. Its innovative product offering and the increasing need for efficient water usage present an opportunity for the company to make significant strides in this market.

Next Section: Team

Team

Geyser Industries is led by founder and CEO Jonathan Ballesteros. Ballesteros has an undergraduate degree in industrial and aerospace engineering and an MBA. Before launching Geyser Systems, he gained valuable experience in engineering, project management, and product management positions at companies such as Dell and Stryker.

Ballesteros is a dedicated and experienced entrepreneur, owning 100% of the company's shares. His engineering and business management background equips him with the necessary skills to lead Geyser Industries and drive its growth.

The Geyser Systems team consists of seven members, including Ballesteros. The team's expertise spans various areas, including engineering, product development, marketing, and operations. Their combined efforts have resulted in the creating Geyser Systems' innovative and award-winning product, the EcoShower.

Next Section: Differentiation

Differentiation

Geyser Industries differentiates itself in the global water-saving shower equipment market through its unique positioning and patented technology. While other companies offer similar products at different price ranges, Geyser Systems stands out as the most efficient solution.

In the United States, Geyser Industries is a luxury brand for campers, sustainability-conscious individuals, and those interested in aromatherapy with the EcoShower. The company has gained traction and recognition, with REI launching Geyser Systems as an exclusive product in all its stores. Customers have praised the product, as evidenced by the 4.6-star rating on REI's website. Additionally, Geyser Industries won the prestigious "Coolest Thing Made in Colorado 2022" award, further validating its innovative approach.

Internationally, Geyser Systems positions itself as an investment to save on water bills, appealing to a broader market concerned about water scarcity and conservation.

Geyser Industries' patented technology sets it apart from its competitors. The Geyser System is more geared to campers than Beach Sould , a $139 manual pump branded for surfing, which doesn't offer any solution to heat the water. It is also cheaper and more compact than the Joolca camping shower sold between $299 and $449. The company's portable camping showers utilize this technology, providing a unique selling proposition. The showers' design and exceptional efficiency make Geyser Systems the most advanced solution available.

While the competitive landscape in the water-saving shower equipment market is slightly competitive, Geyser Industries has established partnerships and gained paying customers. The company's differentiation level in terms of quality is high, as evidenced by its numerous accolades and positive customer reviews. Additionally, Geyser Systems holds patents for its technology, further solidifying its position as an innovative leader in the industry.

As Geyser Industries continues to grow, the company's focus on marketing, raw materials, staffing, overhead, and working capital will be crucial to maintain its competitive edge and expand its market presence. Geyser Industries is well-positioned for future success with its disruptive technology and commitment to addressing the global water crisis.

Next Section: Performance

Performance

Geyser Industries has shown promising traction in the market, with its portable camping showers gaining popularity among outdoor enthusiasts. The company has secured major distributors such as REI, Amazon, and Camping World, contributing to its growing sell-through at retailers. In fact, REI Co-op, one of the largest outdoor retail chains, launched Geyser as an exclusive product in all its stores in 2020. This partnership has been successful, as evidenced by the product's positive reviews and high rating of 4.6 stars on REI's website.

However, Geyser experienced a decline in revenue from $1,036,674 in 2021 to $686,958 in 2022. This decrease can be attributed to a specific situation with its partnership with REI. After the product's initial success, REI overordered units, resulting in excess inventory. As a result, REI paused its orders, leading to a decline in Geyser's revenue. However, Geyser expects this situation to improve by early 2024 when REI is projected to resume ordering from the company. This anticipated partnership renewal with REI will boost Geyser's revenue and help it recover from the decline.

Geyser Industries has plans for future growth and expansion. The company intends to launch two new partnerships in 2024, with etrailer.com and Bass Pro. Additionally, Geyser's CEO, Jonathan Ballesteros, plans to introduce a new product called EcoShower in 2024, which is expected to increase the company's revenue further. Furthermore, Geyser aims to develop a MiniGeyser in the near future and expand its product offerings into the Mexican market.

Despite the temporary decline in revenue, Geyser Industries has demonstrated its ability to secure major partnerships, gain customer acclaim, and receive industry recognition. With its innovative and water-saving portable camping showers, the company is well-positioned to address the global water crisis and capture a significant share of the addressable market for water-saving shower equipment.

Next Section: Risk

Risk

Investing in Geyser Industries carries certain risks, primarily related to adoption and market size.

While the American outdoor market is substantial, it may not be large enough to provide high returns to investors. The success of Geyser Industries relies on the widespread adoption of its portable camping showers and or its upcoming shower head. If the market size remains limited, it could hinder the company's ability to generate significant revenue and profits. In this case, the company's international expansion becomes crucial to tap into larger markets and achieve higher growth.

Additionally, Geyser Industries operates in a competitive landscape with several companies offering slightly different solutions that could convince customers. Increased competition could impact Geyser Industries' market share and profitability.

Furthermore, the company faces production and quality control risks associated with its hardware products. Maintaining consistent quality and meeting production demands are critical to satisfying customer expectations and building a strong reputation. Any issues related to production delays, supply chain disruptions, or product defects could result in customer dissatisfaction and harm the company's brand image.

Lastly, Geyser Industries relies on patent protection for its technology. While the company currently holds patents, there is a risk of potential infringement or challenges from competitors. Any legal disputes or the expiration of patents could impact the company's ability to protect its intellectual property and maintain a competitive advantage.

Next Section: Bullish Outlook

Bullish Outlook

Geyser Industries has developed an innovative solution to address the need for water savings during camping trips and the global water crisis with its patented portable camping showers and its upcoming shower heads. The company's portable shower product has garnered recognition and acclaim, receiving awards and accolades from reputable sources such as REI Coop, Condé Nast, and Outdoor Magazine.

One of the key advantages of Geyser Systems' showers is their exceptionally low water usage. Using only 0.8 gallons of water, these showers can provide a 15-minute cleaning experience for two people. The company's products are sold by distribution partners like REI and Camping World, and it should add two new distributors soon.

While the competitive landscape may have some players in the water-saving shower equipment market, Geyser Industries' patented technology, unique value proposition, and clear positioning provide a competitive advantage. The company's ability to help RV owners save time and money while addressing the global water crisis with its innovative showers distinguishes it from competitors like Joolca and Beach Soul.

Next Section: Bearish Outlook

Bearish Outlook

Geyser Industries operates in a slightly competitive market with its EcoShower product, which aims to address the global water crisis. While the product has received awards and recognition, it faces market challenges.

The barriers to entry in the water-saving shower equipment industry are relatively low, allowing for potential new entrants to introduce similar products. This could increase competition and impact Geyser Industries' market share and profitability.

Additionally, Geyser Industries' financials indicate a negative net income of -$478,409 in the most recent fiscal year. The company's monthly burn rate of more than $50,000 suggests it heavily relies on external funding to sustain operations. This reliance on fundraising raises concerns about the company's ability to achieve profitability and generate positive cash flow in the near term. 

Furthermore, the valuation of Geyser Industries at $10 million may be considered high compared to its current revenue and profit figures. This suggests that the company may be slightly overvalued, impacting investor returns and potential future fundraising efforts.

Next Section: Executive Summary

Executive Summary

Geyser Industries is a company that seeks to help campers and address the global water crisis with its patented technology for portable camping showers. The product uses only 0.8 gallons of water and can last up to 15 minutes, cleaning two people. This innovative solution has earned the company several awards and accolades, and it has been featured in notable publications such as Condé Nast and Outdoor Magazine. Geyser will now launch a shower head for RVs and homes to help users save water while enjoying the benefits of at-home aromatherapy.

The company has shown fair traction, with a total revenue of $686,958 in 2022 and a 33.73% annual revenue growth since 2021. Geyser Systems successfully launched its product in all REI Co-op stores in 2020 and continues to experience growing sell-through at retailers. The company has also secured distribution through Amazon and Camping World.

Despite operating in a slightly competitive market with low barriers to entry, Geyser Industries has managed to differentiate itself with its unique product offering and commitment to environmental sustainability. The company's product is well-positioned in the global water-saving shower equipment market, driven by increasing awareness of water scarcity and the need to conserve water.

Geyser Industries is seeking funding through a crowdfunding campaign with a minimum target of $50,009.52 and a maximum target of $1.2 million. The funds raised will be used for marketing, raw materials, staffing, overhead, and working capital. This funding will support the company's mission to reduce global water demand and significantly impact the environment.

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Geyser Systems on Wefunder 2023
Platform: Wefunder
Security Type: Equity - Preferred
Valuation: $9,996,000
Price per Share: $7.84

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