Gravity Power

Gravity Power

Early Stage

A Revolution in Energy Storage

A Revolution in Energy Storage

Overview

Raised this Round: Raised: $242,010

Total Commitments ($USD)

Platform

StartEngine

Start Date

08/09/2023

Close Date

12/11/2023

Min. Goal
$10,000
Max. Goal
$1,235,000
Min. Investment

$250

Security Type

Equity - Preferred

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$0.75

Pre-Money Valuation

$25,209,241

Year Founded

2008

Industry

Energy, Power, & Natural Resources

Tech Sector

Cleantech

Distribution Model

B2B

Margin

Medium

Capital Intensity

High

Location

Goleta, California

Business Type

Growth

Gravity Power, with a valuation of $25.21 million, is raising funds on StartEngine. The company is developing energy storage technology that reduces carbon emissions. Gravity Power’s technology raises and lowers a piston hydraulically in an underground shaft to store energy, thereby reducing costs and minimizing environmental impacts. The company is in the pre-revenue stage yet has key relationships with leading companies, including Stantec, the Robbins Company, and many more. Steve Taber founded Gravity Power in November 2008. The current crowdfunding campaign has a minimum target of $9,999.75 and a maximum target of $1.23 million. The campaign proceeds will be used for operations and research and development.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$0

$0

COGS

$0

$0

Tax

$0

$0

 

 

Net Income

$-404,797

$-480,108

Summary Balance Sheet

FY 2022 FY 2021

Cash

$864

$864

Accounts Receivable

$0

$0

Total Assets

$96,795

$62,292

Short-Term Debt

$1,979,066

$1,622,156

Long-Term Debt

$1,959,852

$1,877,463

Total Liabilities

$3,938,918

$3,499,619

Financials as of: 08/09/2023
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
Gravity Power 07/30/2024 PicMii $25,496,381 $73,332 Equity - Preferred Active RegCF
Gravity Power 12/10/2023 StartEngine $25,209,241 $242,010 Equity - Preferred Funded RegCF
Gravity Power 02/07/2019 Netcapital $11,072,292 $0 Equity - Common Not 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

Gravity Power is a company striving to significantly impact the energy storage industry with its innovative technology. The company's technology raises and lowers a piston hydraulically in an underground shaft to store energy, thereby reducing storage costs and minimizing environmental impacts. The company is in the pre-revenue stage and is still developing its product.

Gravity Power's technology is one of the many potentially revolutionary solutions developed in the energy storage market. The company's solution is cost-effective. It could help create the adoption of solar and wind energy farms by providing peak-hour and long-duration energy storage and filling the intermittency of solar and wind energies. With its innovative technology and strategic partnerships, Gravity Power's technology has the potential to offer cost-effective solutions and replace lithium-ion storage on renewable energy farms.

Next Section: Price

Price

Gravity Power is offering equity at a $25.21 million valuation. While the company is in the early stage of development and has not generated any revenue yet, its innovative energy storage technology shows promise. Gravity Power's technology, which utilizes a piston hydraulically raised in an underground shaft to store energy, has been verified by third-party companies and has received recognition from the US Department of Energy. The company has also established partnerships with leading companies in the industry.

However, the company's product is only conceptual, and a real-size prototype hasn't been built yet.

Therefore, Gravity Power's valuation may be considered high, given the lack of product and financial traction. In comparison, deep-tech companies in the energy sector at a similar stage of development have recently raised money at lower valuations. Qnetic raised $1.2 million at a $15 million valuation, while Airthium is growing more than $1 million at a $20 million valuation. 

Gravity Power's valuation seems inflated at this stage. Investors should closely monitor the progress of the company's R&D efforts, partnerships, and market adoption to assess the potential for future revenue generation and growth.

Next Section: Market

Market

Due to the increasing demand for renewable energy sources and effective energy storage solutions, Gravity Power operates within the U.S. energy storage market, a sector worth $60.3 billion globally. The market is anticipated to grow at a rate of 15.4% providing ample growth opportunities for players in this space. The Inflation Reduction Act further fuels this growth, passed in August 2022, which allocated significant funds to wind, solar, and storage tax credits, thus creating a favorable environment for businesses like Gravity Power.

Gravity Power's innovative technology of energy storage, through the hydraulic raising and lowering of a piston in an underground shaft, can significantly reduce storage costs while minimizing environmental impacts. This gives the company a competitive edge in the marketplace. However, many companies are trying to build innovative energy storage solutions like Gravitricity, Energy Vault, and ARES. Some indirect competitors offer alternative energy storage solutions, such as pumped hydro storage, lithium-ion batteries, hydrogen, and molten salt energy storage.

Besides, the global trend towards reducing carbon emissions and increasing the use of clean, renewable energy sources plays in Gravity Power's favor. Its energy storage technology aligns with international efforts to combat climate change and transition to a green economy, enhancing its market potential. The company's business model, targeting developers, utilities, and large commercial users, also widens its consumer base, further increasing its growth prospects.

In conclusion, Gravity Power operates in a rapidly growing, high-potential market with a unique offering that could cater to the global demand for cost-effective and environmentally friendly energy storage solutions.

Next Section: Team

Team

Gravity Power is led by its founder and CTO, Jim Fiske. Fiske brings over 15 years of relevant industry experience to the team. He has a solid technical background and has demonstrated high-level managerial skills. He previously founded Power Ring, a flywheel energy storage startup.

Steve Taber is the CEO of Gravity Power. He has worked in the renewable energy sector since 1992 and joined Gravity Power less than three years ago. He brings leadership experience and an invaluable network to the team.

Robert Weisenmiller is a director and board member at Gravity Power. He is simultaneously leading research on air quality at the University of California, Berkeley. As a former chair of the California Energy Commission, he helped shape California's pioneering energy policies.

Gravity Power's team is relatively small but experimented in the industry and has a strong network that will surely benefit the company.

Next Section: Differentiation

Differentiation

Gravity Power differentiates itself in the energy storage market with its innovative technology. The company's energy storage solution utilizes a hydraulic piston system in an underground shaft to store and generate power. This unique approach differentiates it from established solutions such as pumped hydro storage, lithium-ion batteries, hydrogen, and molten salt energy storage. 

A few startups are developing gravity-based energy storage solutions around the world. The company Energy Vault developed a tower system, different from Gravity Power but ready to be commercialized. Energy Vault's first commercial project will start operating in Shangai, China by the end of 2023. The company's gravity tower has a round trip efficiency of 75% and could reach 80% soon - which gives it an excellent efficiency, similar to pumped hydro storage. 

Furthermore, Gravity Power has been recognized for its innovation and potential by winning the Energy Storage Innovations Prize from the US Department of Energy. Of 42 teams that applied, Gravity Power was selected as one of the five "Storage Innovations Champions." This recognition highlights the company's differentiation and potential impact on the energy storage industry. Other companies like Gravitricity and ARES are developing gravity-based energy storage designs.

Competition isn't a problem yet for GravityPower. It demonstrates the market need for such solutions and educates stakeholders about gravity energy storage. Given the tremendous quantity of storage needed around the world, a variety of solutions, companies, and sources of capital are required for the renewable energy transition.

While Gravity Power is still developing its prototype and does not yet have paying customers, its technology and partnerships position it well for future growth. The company aims to provide energy storage at a significantly lower cost than lithium-ion batteries, making it an attractive option for developers, utilities, and large commercial users.

Next Section: Performance

Performance

Gravity Power is an early-stage company developing a clean energy storage technology to support the grid's utilization of intermittent renewable energy sources. The company's technology involves using a hydraulic piston in an underground shaft to store and release energy, offering a cost-effective and environmentally friendly solution. Gravity Power has received recognition and verification from third-party organizations such as Stantec, BabEng, and Hochtief, which adds credibility to its technology.

In February 2023, the US Department of Energy announced Gravity Power as one of the five "Storage Innovations Champions" out of 42 teams that applied for the Energy Storage Innovations Prize. This recognition further validates the potential of Gravity Power's technology in the energy storage market.

Gravity Power is still prototyping its technology. It didn't test it at a large scale yet. Its technology can potentially disrupt the energy storage market by offering a more cost-effective solution than lithium-ion batteries. But Gravity Power isn't the only one in the race to disupt lithium-ion solutions, and its execution speed will be critical to its success.

Next Section: Risk

Risk

Investing in Gravity Power carries certain risks that investors should be aware of.

Firstly, the company is still in the pre-revenue stage and has not yet generated sales. Developing energy storage technology requires a significant amount of time and resources. This means there is a risk of delays or cost overruns in the development process, which could impact the company's ability to bring its product to market promptly.

Furthermore, Gravity Power operates in a competitive landscape, with several direct and indirect competitors in the energy storage sector. This competition could limit the company's market share and growth potential.

Lastly, while Gravity Power has vital relationships with leading companies, such as Stantec and the Robbins Company, there is no guarantee that these partnerships will result in significant business opportunities or revenue. Overall, investors should carefully consider these risks before investing in Gravity Power.

Next Section: Bullish Outlook

Bullish Outlook

With its innovative technology, gravity Power is positioned to disrupt the energy storage market. The company's turnkey, utility-scale energy storage systems offer significant advantages over traditional lithium-ion batteries, providing storage at a fraction of the cost. This cost advantage makes Gravity Power an attractive option for developers, utilities, and large commercial users looking to incorporate renewable energy into their operations. An experienced team leads Gravity Power.

Gravity Power's technology, which utilizes a piston raised and lowered hydraulically in an underground shaft, offers significant environmental benefits. By storing energy in this manner, the company reduces carbon emissions and minimizes ecological impacts compared to traditional energy storage solutions like lithium-ion. This aligns with the growing demand for clean energy solutions and positions Gravity Power as a player in transitioning to a more sustainable energy future.

Gravity Power's competitors like Energy Vault and ARES aren't a threat but a chance to develop the interest of the market stakeholders in gravity-based energy storage solutions.

Gravity Power's innovative approach, strong partnerships, and commitment to environmental sustainability position the company for success in the energy storage market. As the demand for renewable energy continues to grow, Gravity Power's technology has the potential to revolutionize the industry and play a vital role in enabling the widespread adoption of intermittent renewable energy sources.

Next Section: Bearish Outlook

Bearish Outlook

Gravity Power is an early-stage company in the energy storage industry that has yet to generate revenue or finalize its real-scale prototype. While using gravitational force to store energy is bright, the company faces significant challenges in a highly competitive market. Gravity Power's main competitors include pumped hydro storage, lithium-ion batteries, hydrogen, and molten salt energy storage systems. Direct competitors such as Gravitricity, Energy Vault, and ARES already have established products and are further along in their development and commercialization efforts. They could gain more market share than Gravity Power by having a first-mover advantage.

Furthermore, Gravity Power's valuation of $25.21 million seems inflated, considering the company's lack of revenue and unproven technology. With no users or income to demonstrate the viability of their energy storage solution, potential investors should approach with caution.

While Gravity Power claims to have critical relationships with leading companies such as Stantec and the Robbins Company, it is unclear how these partnerships will translate into customer adoption and revenue generation. The company's lack of traction and progress since its prior funding rounds is discouraging, raising doubts about its ability to meet its growth milestones and deliver on its promises.

Additionally, the barriers to entry in the energy storage industry are high, with established players already dominating the market. Without a clear competitive advantage or a significant technological breakthrough, Gravity Power may struggle to carve out a meaningful share in the addressable market of US energy storage.

While Gravity Power's revolutionary approach to energy storage is intriguing, the company's lack of revenue, unproven technology, and intense competition make it a risky investment. Investors should consider these factors and the company's ability to overcome these challenges before committing to their capital.

Next Section: Executive Summary

Executive Summary

Gravity Power is developing an innovative energy storage technology that uses the principle of gravitational force to store and release energy. The company's Gravity Power Module (GPM) consists of a deep shaft with a massive piston hydraulically raised by pressurized water. When stored energy is required, the piston descends, forcing water below it up through a penstock to drive a conventional pump turbine and generate power. This technology aims to provide energy storage at 20% of the cost of lithium-ion batteries, offering a cost-effective and environmentally friendly solution for energy storage.

Third parties such as Stantec, BabEng, and Hochtief have verified Gravity Power's technology, and the company has agreed to conduct a joint R&D program with the Robbins Company, a tunnel boring machine company. The US Department of Energy also recognized the company as one of the five "Storage Innovations Champions" in 2023.

However, Gravity Power is still in the pre-revenue stage and has yet to finalize its prototype. The company operates in a highly competitive market with significant barriers to entry.

Still, the global market for energy storage is expected to grow significantly in the coming years, driven by the increasing adoption of renewable energy sources and the need for more efficient and cost-effective energy storage solutions. This presents a significant opportunity for Gravity Power to establish itself as a leading player in the energy storage market.

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Gravity Power on StartEngine 2023
Platform: StartEngine
Security Type: Equity - Preferred
Valuation: $25,209,241
Price per Share: $0.75

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