Hydro Wind Energy
[Closed for Investment] Hydro Wind Energy is raising funds on Republic. The company has developed a highly innovative technology, OceanHydro Omni, to harness offshore wind. Hydro Wind Energy’s technology, combined with the power of subsea oceanic pressure, provides reliable, clean, and low-cost energy and energy storage. The other products of Hydro Wind Energy include SubSea RO Wind and QuenchSea for seawater desalination. The business is currently generating revenues from QuenchSea, with over $1 million in sales to date. Lee King, Maryam Hassani, Hayk Vasilyan, Abdulla Ghaly, and Laura Dryden founded Hydro Wind Energy in July 2020. The current crowdfunding campaign has a minimum target of $49,990.54 and a maximum target of $4.99 million. The campaign proceeds will be used for operations and infrastructure, technology and product development, sales and marketing, and inventory.
Investment Overview
Raised: $53,565
Deal Terms
Company & Team
Company
- Year Founded
- 2020
- Industry
- Energy, Power, & Natural Resources
- Tech Sector
- Distribution Model
- B2B
- Margin
- Medium
- Capital Intensity
- High
Financials
- Revenue +118% YoY
- $403,336
- Monthly Burn
- $9,333
-
Runway
- 12 months
- Gross Margin
- 87%
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Synopsis
Hydro Wind Energy, Inc. is at the forefront of addressing some of the most pressing global energy and water scarcity challenges. With its pioneering technology, OceanHydro Omni, the company is set to revolutionize the energy sector by combining offshore wind power with subsea oceanic pressure to generate reliable, clean, cost-effective energy and energy storage solutions. This innovative approach not only promises to deliver low-cost, clean electricity but also provides a scalable solution for grid-scale energy storage.
Moreover, Hydro Wind Energy is making significant strides in the water desalination sector with its products SubSea RO Wind and QuenchSea, targeting the global water desalination equipment market. QuenchSea, in particular, has already demonstrated commercial viability, generating over $1 million in sales. This handheld device offers a practical solution for converting seawater into fresh drinking water, highlighting the company's commitment to addressing water scarcity issues alongside its energy initiatives.
Founded in July 2020 by Lee King, Maryam Hassani, Hayk Vasilyan, Abdulla Ghaly, and Laura Dryden, Hydro Wind Energy has quickly established itself as a key player in the energy and water desalination markets. The company is well-positioned for growth with $2.5 million raised in prior funding rounds and support from notable accelerators and VC investors such as Techstars, The Global Emerging Market Group, Shell Startup Engine, AWS Clean Energy Accelerator, and Innovate Masdar City.
Currently in a growth stage and conducting a fundraising campaign on Republic, Hydro Wind Energy seeks funds to further its operations and infrastructure, technology and product development, sales and marketing, and inventory, with a pre-money valuation of $150 million. This funding round represents an opportunity for investors to contribute to a company that is pioneering in its technological advancements and impactful in its potential to solve critical global issues related to energy and water scarcity.
Price
Hydro Wind Energy is raising funds on Republic with a pre-money valuation of $150 million. With a price per share set at $11.60, the company offers equity tokens, a unique form of investment that could appeal to investors interested in the energy and natural resources sector. Despite being in the pre-profit phase, Hydro Wind Energy has demonstrated significant traction by raising $2.5 million, launching QuenchSea versions 1 and 2, generating sales of over $1 million, and building a customer base of over 10,000.
The valuation is underpinned by several factors, including the company's ability to reach Technology Readiness Level 6, its backing by Techstars, and a commitment of $57 million for an IPO. These achievements, along with a social media following of over 20,000 and three granted patents, suggest strong market interest and technological validation.
However, investors should be aware of the high revenue multiple of 371.90x, which indicates a significant expectation of future growth and profitability. Overall, despite good traction and great potential, Hydro Wind Energy is clearly overvalued.
Market
The global water desalination equipment market, where Hydro Wind Energy positions its innovative products, is witnessing a significant uptrend. The market size is estimated at $15.53 billion and has a growth rate of 9.4%. This market is propelled by increasing global concerns such as growing populations, rapid urbanization, and the escalating issue of water scarcity in several regions worldwide. Hydro Wind Energy's offering, particularly its QuenchSea product for seawater desalination, taps directly into this growing demand for sustainable and innovative solutions to water scarcity.
The adverse impact of the COVID-19 pandemic on the industry, notably through the temporary shutdown of construction sites and manufacturing enterprises in 2020, underscored the vulnerability of the water desalination equipment market to global crises. However, the rebound in demand for water desalination technology as the world began returning to normalcy in early 2021 highlights the resilience and essential nature of the market. Governments worldwide have increasingly invested in water treatment solutions to combat water scarcity, indicating strong institutional support for the sector. For example, initiatives like India's Atal Mission for Urban Rejuvenation and Transformation (AMRUT) aim to establish infrastructure that ensures adequate water supply and sewage networks, further bolstering market growth prospects.
Hydro Wind Energy’s OceanHydro Omni technology, combining offshore wind harnessing with subsea oceanic pressure for energy generation and storage and its seawater desalination products, positions the company at the forefront of addressing some of the 21st century's most pressing challenges. With over $1 million in sales from its QuenchSea product, Hydro Wind Energy is already generating revenue, demonstrating market acceptance and the commercial viability of its innovations.
Despite the high market potential and the innovative nature of Hydro Wind Energy's solutions, the company operates within a highly regulated industry that requires significant approvals and licenses. This regulatory environment, coupled with the capital-intensive nature of the energy and water desalination sectors, poses challenges. However, it also acts as a barrier to entry for potential competitors, making the competitive landscape moderately competitive.
In conclusion, Hydro Wind Energy is well-positioned to capitalize on the growing demand for water desalination equipment, driven by global trends such as urbanization, water scarcity, and the shift towards sustainable solutions. The company’s innovative technology and early success in generating sales signal strong market acceptance and the potential for significant growth within the burgeoning global water desalination equipment market.
Team
Hydro Wind Energy, Inc., under the leadership of CEO Lee King, is pioneering the development of innovative technologies aimed at addressing some of the most pressing challenges in the energy sector. King, with 11 years of relevant industry experience, leads a diverse and dedicated team of founders, including Hayk Vasilyan (CTO), Maryam A Hassani (CIO), Aboozy Ghaly (Systems Integration and IT Director), and Laura Dryden (People Director). This team's collective experience averages over 5 years in the industry, with each member bringing unique skills and perspectives to the table.
Despite being first-time founders, the team's participation in the Techstars accelerator program demonstrates their commitment to learning and adapting in a highly competitive environment. This experience, coupled with the backing from notable venture capital investors such as The Global Emerging Market Group, Techstars, Shell Startup Engine, AWS Clean Energy Accelerator, and Innovate Masdar City, underscores the potential of Hydro Wind Energy's innovative solutions and the confidence in the team's ability to execute their vision.
The team's diverse background is further highlighted by their international experience and the inclusion of minority and women founders, which brings a wide range of perspectives and insights critical for global market penetration. This diversity is a significant asset in the energy sector, where understanding various market needs and regulatory environments is crucial for success.
Hydro Wind Energy's focus on developing the OceanHydro Omni technology, alongside products like SubSea RO Wind and QuenchSea for seawater desalination, showcases the team's innovative approach to solving the challenges of clean electricity, grid-scale energy storage, and seawater desalination. With over $1 million in sales from QuenchSea, the team has already begun to demonstrate its capability to generate revenue and push the boundaries of traditional energy solutions.
Overall, the leadership and founding team of Hydro Wind Energy possess a blend of technical expertise, innovative thinking, and a proven commitment to addressing critical global challenges. Their diverse backgrounds and support from prominent accelerator programs and venture capital investors position the company well for future growth and success in the energy, power, and natural resources industry.
Differentiation
Hydro Wind Energy, Inc. distinguishes itself in the global water desalination and renewable energy markets through its innovative OceanHydro Omni technology. This proprietary technology leverages offshore wind and subsea oceanic pressure to generate clean, reliable, cost-effective energy and energy storage solutions. The company's ability to reach Technology Readiness Level 6, moving closer to Level 7 for its offshore technologies, signifies a significant advancement in bringing its solutions closer to commercial viability and mass adoption.
Hydro Wind Energy's success is further underscored by its ability to raise $2.5 million to date, launch QuenchSea versions 1 and 2, generate sales in excess of $1 million, and establish a customer base of over 10,000. These achievements indicate the market's response to Hydro Wind Energy's offerings, particularly its QuenchSea product for seawater desalination, which directly addresses the critical global need for accessible clean water.
Moreover, the company's strategic partnerships and backing by notable entities such as Techstars, coupled with a commitment of $54 million for an IPO, position Hydro Wind Energy favorably against its competitors. The recognition by Future 100, PwC Future 50, Forbes 30 under 30, WEF Top 100 Startups, COP28, AWS Clean Energy, and Shell Startup Engine further validates the company's innovative approach and potential for impact in addressing some of the 21st century's most significant challenges.
While the global water desalination equipment market is moderately competitive, Hydro Wind Energy's proprietary technology, combined with its strategic achievements and recognition, sets it apart. The company's focus on harnessing offshore wind and subsea oceanic pressure for energy generation and storage offers a unique value proposition that is marginally better than existing solutions. With high barriers to entry in this sector, Hydro Wind Energy's portfolio of 3 granted patents further solidifies its competitive edge, ensuring protection for its innovative technologies and processes.
Performance
Hydro Wind Energy, Inc. has demonstrated significant traction in its journey to revolutionize the energy and water desalination sectors. The company has successfully raised $2.5 million to date, which has been pivotal in launching its innovative products, QuenchSea versions 1 and 2, and advancing the development of its OceanHydro Omni technology. The successful product launches and development progress underline the company's capability to translate capital into tangible outcomes.
The commercial success of QuenchSea, generating sales over $1 million and attracting a customer base of over 10,000, is particularly noteworthy. This achievement validates the market demand for Hydro Wind Energy's solutions and its ability to execute its business model effectively. The company's ability to amass a social media following of over 20,000 further underscores its growing brand recognition and market presence.
Hydro Wind Energy's technological advancements are grounded in solid intellectual property, as evidenced by its three granted patents. The company's progress to Technology Readiness Level (TRL) 6, with sights set on reaching TRL 7 for its offshore technologies, indicates a mature and scalable solution that is closer to commercial deployment. This technological edge, combined with support and recognition from prestigious entities such as Techstars, Future 100, PwC Future 50, Forbes 30 under 30, WEF Top 100 Startups, COP28, AWS Clean Energy, and Shell Startup Engine, positions Hydro Wind Energy as a leading innovator in the sector.
The company's strategic partnership with Avalanche and the commitment of $54 million for an IPO further bolster its financial stability and growth prospects. These developments provide the necessary capital to scale operations and enhance Hydro Wind Energy's credibility and investor appeal.
Despite its pre-profit status and a monthly burn rate of $9,333, Hydro Wind Energy's financial management appears prudent, with cash and cash equivalents of $112,000 most recently reported. This financial discipline is crucial as the company navigates the path to profitability and scales its innovative solutions in the global water desalination equipment market.
In summary, Hydro Wind Energy has shown remarkable performance in its early stages, which have been marked by successful fundraising, product launches, and technological advancements. The company's strategic partnerships, significant market traction, and recognition by industry leaders underscore its potential to become a key player in providing reliable, clean, and low-cost energy and water desalination solutions globally.
Risk
Hydro Wind Energy, Inc. presents a unique investment opportunity in the energy sector, particularly with its groundbreaking OceanHydro Omni technology aimed at offshore wind harnessing and seawater desalination. However, prospective investors should be aware of several risk factors associated with this venture.
Firstly, the company operates in the highly regulated energy and water desalination sectors, which require compliance with stringent market approval and licensing regulations. These regulatory hurdles could delay product launches, increase operational costs, or limit market access.
Secondly, Hydro Wind Energy is in a pre-profit development phase, which inherently carries greater financial risk compared to established, profit-generating companies. Despite having generated over $1 million in sales from its QuenchSea product, the company reported a net income loss of -$847,299 in the most recent fiscal year. This indicates a significant burn rate and a need for cautious financial management and further capital injection to sustain operations and growth.
Additionally, the company's valuation of $150 million could be seen as high, especially given its current financial performance. This valuation may pose an overvaluation risk, affecting the potential return on investment. Investors should consider the company's growth potential and its ability to scale and penetrate the market against this backdrop successfully.
Another point of consideration is the technological and production-related risks. While Hydro Wind Energy boasts innovative products and has secured patents, scaling production for technologically sophisticated products like OceanHydro Omni and SubSea RO Wind poses a challenge. Ensuring quality control and managing production costs will be critical for maintaining profit margins and competitive pricing.
Lastly, the company's need for significant time and resources to scale sales and distribution highlights the market penetration and acceptance challenge. Given the innovative nature of the company's offerings, educating the market and establishing a strong distribution network will be essential for success but may take considerable time and effort.
Bullish Outlook
Hydro Wind Energy stands at the cusp of revolutionizing the global energy and water desalination markets with its innovative technologies. The company's OceanHydro Omni technology, which harnesses offshore wind combined with subsea oceanic pressure, is a testament to its potential in providing reliable, clean, and low-cost energy and energy storage solutions. This, alongside its other products like SubSea RO Wind and QuenchSea for seawater desalination, positions Hydro Wind Energy uniquely in the Energy, Power, & Natural Resources sector.
The high growth trajectory of Hydro Wind Energy, evidenced by an impressive 118% annual revenue growth and over $1 million in sales from QuenchSea alone, signals strong market acceptance and the effectiveness of its solutions. This vibrant growth is further bolstered by the company's strategic partnerships and support from prestigious accelerators like Techstars, and venture capital investors such as The Global Emerging Market Group, Techstars, Shell Startup Engine, AWS Clean Energy Accelerator, and Innovate Masdar City. These alliances not only provide financial backing but also validate Hydro Wind Energy's technological innovations and market potential.
Moreover, the company's engagement in the global water desalination equipment market—a sector with an increasing demand due to the global water scarcity crisis—underscores its commitment to addressing some of the most critical environmental challenges of our time. The addressable market is vast, and Hydro Wind Energy's entrance with a focus on environmentally friendly solutions gives it a competitive edge.
Hydro Wind Energy's portfolio of patented technologies and the high barriers to entry in its operational fields protect its innovative products from immediate competition, securing its place as a pioneer in the industry. The company's business model, which includes both transactional and recurring revenue streams, promises sustainability and long-term growth. With the company currently in the growth stage and actively raising funds to expand its operations, technology and product development, sales, and marketing efforts, the future looks promising for Hydro Wind Energy.
In conclusion, Hydro Wind Energy's innovative approach to leveraging offshore wind power for energy generation and seawater desalination, combined with its impressive growth, strategic partnerships, and backing by notable accelerators and investors, presents a highly optimistic outlook. The company is not just offering novel technologies; it's paving the way for sustainable energy and water resources solutions, making it a compelling proposition for investors looking for impactful and innovative ventures.
Bearish Outlook
Hydro Wind Energy's ambitious venture into the global water desalination equipment market and the development of offshore wind technology through its OceanHydro Omni and other products represents a bold attempt to address some of the most significant challenges of our time. However, several factors could temper investor enthusiasm for the company's prospects.
Firstly, the company's pre-profit status is a critical factor to consider. Despite generating over $1 million in sales from its QuenchSea product, Hydro Wind Energy reported an annual revenue of $403,336 with a corresponding net income of -$847,299 for the most recent fiscal year. This discrepancy indicates that the company is still in the early stages of establishing a sustainable business model and achieving profitability, further underscoring its high monthly burn rate of $70,608.25. Such financial metrics suggest Hydro Wind Energy faces significant challenges in managing its operational expenses against its current revenue streams.
Moreover, the company's valuation of $150 million, alongside a revenue multiple of 371.9x, may raise concerns about overvaluation. For investors, combining a high valuation with the company's current financial performance could represent a significant risk, particularly without clear and near-term pathways to profitability and revenue growth that would justify such valuation metrics.
Another area of concern is the inherently high barriers to entry and capital intensity of the energy and desalination markets. Hydro Wind Energy operates in a sector requiring substantial research and development investments, regulatory compliance, and infrastructure development. While the company has successfully raised $2.5 million in prior funding rounds and has developed patented technologies, the scale of investment required to bring its innovations to market on a commercial scale—and to compete effectively in a moderately competitive landscape—cannot be understated.
In sum, while Hydro Wind Energy's innovative approach to clean energy generation and seawater desalination holds promise, its current financial health, the risk of overvaluation, and the challenges associated with scaling and commercializing its technologies in a capital-intensive industry present significant hurdles. Investors should weigh these factors carefully when considering the company's growth prospects.
Executive Summary
Hydro Wind Energy, Inc. is at the forefront of addressing three of the 21st century's most pressing challenges: generating low-cost clean electricity, grid-scale energy storage, and seawater desalination. The company's proprietary technology, OceanHydro Omni, leverages offshore wind with subsea oceanic pressure to offer reliable, clean, and cost-effective energy solutions. Additionally, Hydro Wind Energy has developed products like SubSea RO Wind and QuenchSea. This groundbreaking seawater desalination device has already generated over $1 million in sales and attracted a customer base of more than 10,000.
Hydro Wind Energy has demonstrated significant traction in the market, having raised $2.5 million to date and with a social media following exceeding 20,000. The company's technological advancements have reached Technology Readiness Level 6, moving closer to Level 7 for offshore technologies, indicating a mature and market-ready offering. Hydro Wind Energy has secured three patents, reinforcing its innovative edge in the competitive energy sector.
The global demand for water desalination equipment, driven by rising water scarcity and rapid urbanization, presents a substantial market opportunity for Hydro Wind Energy. The company's business model, which includes transactional and recurring revenue streams, positions it well to capitalize on this growing market. The addressable market for water desalination equipment and clean energy solutions is vast, with Hydro Wind Energy poised to play a significant role in these sectors.
Despite being in a pre-profit phase with a high monthly burn rate of $70,608.25 and a net income loss of $847,299 in the most recent fiscal year, Hydro Wind Energy has managed to secure a commitment of $54 million for an IPO, showcasing strong investor confidence in its future prospects. The company's participation in accelerators such as Techstars and backing from notable VC investors like The Global Emerging Market Group and AWS Clean Energy Accelerator further validate its potential for high growth.
In conclusion, Hydro Wind Energy's innovative approach to harnessing offshore wind and desalinating seawater, combined with its demonstrated market traction and strong backing from investors and accelerators, positions the company for significant growth in the energy and water desalination markets. As the company advances towards achieving higher technology readiness levels and expanding its product offerings, Hydro Wind Energy represents a compelling opportunity in the renewable energy and water desalination sectors.
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Company Funding & Growth
Funding history
- Total Prior Capital Raised
- $2,500,000
- VC Backed?
- Yes
Close Date | Platform | Valuation | Total Raised | Security Type | Status | Reg Type |
---|---|---|---|---|---|---|
06/15/2024 | Republic | $150,000,000 | $53,565 | Equity - Tokens | Funded | RegCF |
01/23/2023 | Republic | $120,000,000 | $512,639 | SAFE | Funded | RegCF |
09/22/2022 | StartEngine | $119,643,700 | $148,657 | Equity - Common | Funded | RegCF |
04/30/2022 | Republic | $70,000,000 | $529,590 | SAFE | Funded | RegCF |
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.
Employee History
Company Updates
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.