Inergy

Inergy

Growth Stage

Power For Life

Power For Life

Overview

Raised this Round: Raised: $732,481

Total Commitments ($USD)

Platform

StartEngine

Start Date

06/13/2023

Close Date

11/13/2023

Min. Goal
$9,999
Max. Goal
$1,235,000
Min. Investment

$250

Security Type

Equity - Preferred

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$1.14

Pre-Money Valuation

$20,031,038

Year Founded

2014

Industry

Energy, Power, & Natural Resources

Tech Sector

Cleantech

Distribution Model

B2B/B2C

Margin

Low

Capital Intensity

Low

Location

CHUBBUCK, Idaho

Business Type

Growth

Inergy, with a valuation of $20 million, is raising funds on StartEngine. It is a clean technology company that is developing innovative solar-powered products. The products of Inergy can be used to harness and store renewable energy and can be used by everyday people for everyday use. The patented technology of Inergy has contracts with the US Department of Energy and the Department of Defense and has generated $14 million in revenue to date. Sean Luangrath founded Inergy in May 2014. The current crowdfunding campaign has a minimum target of $10,000 and a maximum target of $1.23 million. The campaign proceeds will be used for inventory, marketing, and research and development.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$8,820,821

$5,650,356

COGS

$5,342,406

$3,701,015

Tax

$0

$0

 

 

Net Income

$-1,060,066

$-2,331,640

Summary Balance Sheet

FY 2022 FY 2021

Cash

$5,518

$67,423

Accounts Receivable

$0

$0

Total Assets

$1,543,755

$842,423

Short-Term Debt

$1,244,553

$281,356

Long-Term Debt

$3,699,896

$3,099,138

Total Liabilities

$4,944,449

$3,380,494

Financials as of: 06/13/2023
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Overview

Inergy sells stackable and portable lithium-ion batteries to harness and store renewable energy for everyday use. The company’s positioning is clear. It’s a B2C-first, B2B-second company that offers high-quality and high-flexibility energy storage. Inergy’s users can add up to 96 batteries under Inergy’s power system, but they can also add chargers to their power station to store energy faster. The company considers its solution the “Lego blocks of consumer solar.” Inergy’s system is used by B2C customers as an outdoor recreational power source, as an energy backup when the grid fails, or to complete a residential energy system. 

Inergy also sells the Flex Tactical, a water, shock, and dust-proof battery system designed for the military. Indeed, its patented technology has gained recognition and contracts with the US Department of Energy and the Department of Defense.

In the past two years, Inergy has generated over $14 million in revenue, demonstrating the market demand for its innovative solar-powered products. The transition to renewable energy and the unreliability of the grid due to climate disasters are very large business opportunities that Inergy intends to harness.

Inergy demonstrated impressive traction on the customer side and great development by selling to a few businesses. Its technology does face competition, but Inergy offers a high-quality and well-differentiated product. It also works with Idaho National Lab to build microgrid software and diversify its revenue sources. Additionally, Inergy will soon launch a paid app for its customers to monitor and manage their battery systems. Thanks to its impressive execution ability, KingsCrowd Capital is investing in Inergy’s current StartEngine round at a $20 million valuation.

Next Section: Price

Price

Inergy is offering equity at a $20 million valuation, representing a 2.27x revenue-to-valuation multiple. This is a very low multiple compared to most equity crowdfunding deals and a fair valuation given that the battery systems is a perfect competition market, similar to commodities. 

This is a highly favorable valuation for investors. With $8.8 million in annual revenue in 2022 and a 57% annual revenue growth rate, Inergy is demonstrating strong financial performance.

Next Section: Market

Market

Inergy’s is a great investment opportunity thanks to its fast-growing market. It operates in the US Portable Power Station market, estimated at $7.9 billion by 2025, and in the Battery Energy Storage System (BESS) market, estimated at $4.4 billion in 2022, and growing at an annual rate of 21.6%. Inergy is not the only company trying to get this opportunity; hundreds of competitors are fighting for market shares. However, the steady market growth indicates that companies like Inergy can still sell with fairly profitable margins, grow quickly, and capture new customers. 

Indeed, the demand for portable and stackable batteries should stay for decades. The push towards renewable energy sources and the increasing electricity demand are driving the need for storage solutions. Inergy has a partnership with a residential solar installer that sells Inergy’s batteries with its solar panels to customers who want to be independent of the grid and use solar energy at night. 

The overall electrification of society is an opportunity for Inergy. Customers are moving away from gas and gasoline-powered stoves and generators. They prefer buying batteries to use energy outdoors or have a home backup when the grid fails. Governments are actually acting to increase the use of sustainable energy technologies. California will ban the sale of gasoline generators in 2028. And Inergy’s B2C customers can actually benefit from a 30% tax credit from the Inflation Reduction Act, and ease the high capital cost associated with the acquisition of battery storage.

Similar drivers are pushing businesses to move to cleaner energy. Potential Inergy customers include any business needing energy without access to the grid, such as food trucks, events, farms, schools, and many off-grid businesses and communities in developing countries. Last but not least, the US Army and Air Force are among Inergy’s customers.

Inergy’s fast-growing market reinforces its potential as a great investment opportunity.

Next Section: Performance

Performance

Inergy is the battery storage company that had the highest revenue at the time of its raise on equity crowdfunding platforms. With $8.8 million in 2022, a 57% growth from $5.7 in 2021, Inergy is only followed by Amped Innovation, which had a revenue of $2.8 million at its raise. From a traction standpoint, Inergy is the best battery deal ever available online.

The company’s traction doesn’t stop there. Inergy has secured contracts worth a couple of millions of dollars with the US Department of Energy and the Department of Defense for its Flex platform of systems, including the Flex Tactical, a shock, dust, and water-proof model, and the Flex P3, a whole-home scale solutions that also modular and portable. Inergy is also working with Idaho National Lab to build microgrid software. This has the potential to grow the company’s revenue. These partnerships provide Inergy with valuable opportunities for growth and further market penetration.

Next Section: Differentiators

Differentiators

Inergy’s product isn’t unique per se. Still, its positioning as a high-quality flexible battery gives it an advantage in a crowded market and allows it to sell with decent margins.

As investors know, the competitive landscape in the battery storage industry is extremely crowded, with over 292 direct competitors in the United States. Joule Case is one of Inergy’s closest competitors in product, as it builds stackable and portable batteries. But while the two companies’ products are similar, Joule Case now focuses on B2B sales and large-scale batteries and serves the transportation, food truck, and event industries. On the contrary, Inergy serves the B2C market first and the military and businesses second. Additionally, Inergy sells a supercharger, which increases the charging speed of its batteries and is a real differentiator. Last but not least, Inergy developed Flex Tactical for the Army and Air Force, a stackable water and dust-proof flexible battery storage – a unique product on the market. Inergy designed this system for the Air Force and now offers it to the entire Department of Defense. Joule Case and Inergy’s positionings are different enough to co-exist in the market easily.

Inergy’s high-quality products are priced at a mainstream level on the American market, with its flagship product, the 1,500 Wh Flex Power Station, selling at $1,450. However, this good pricing in the US may be too expensive for expansion in developing countries. Inergy already sold its product in emerging markets, but its pricing may limit its ability to scale. A few competitors are targeting these markets at a more affordable price. For example, Amped Innovation, a Redwood, California-based startup, designs cheap, dust, water-, and ant-proof batteries meant to last a long time. While Amped Innovation’s products aren’t stackable, it is among the many competitors in the developing country market.

Overall, Inergy has been able to differentiate its product and appeal to its own niche. Its product quality is an asset in the American market, and despite the intense competition, the company’s brand identity could bring it to success. 

Next Section: Team

Team

Inergy has a complete and experienced team capable of growing the company quickly.

Inergy’s founder is Brad Barrott, who currently serves as a board member. Barrott previously founded Big Dog Solar, a full-service residential and commercial solar and battery backup company. Barrott enlisted Sean Luangrath as the CEO of Inergy, a seasoned international manager with a strong background in technology. Luangrath has worked for notable companies such as HP, Oracle, and Apple and has held executive leadership positions at several successful startups, including Aerohive Networks and Mellmo. His experience brings valuable insights and strategic guidance to Inergy. After talking with Luangrath, we can confidently say that he has a clear vision for his company and a real talent for finding the right growth strategy for Inergy.

CTO Zac Blume is a renowned battery storage and power electronics designer and engineer. With his expertise, Blume plays a crucial role in developing Inergy’s innovative solar-powered products, ensuring they are efficient and effective in harnessing and storing renewable energy.

Next Section: Risks

Risks

Investing in Inergy involves a couple of risks. The company’s main revenue is coming from customer sales. For many, Inergy’s product is more a nice-to-have than a must-have. Indeed, being able to afford the high cost of entry of the product is better for the environment and cheaper in the long term as Inergy’s products do not require constant gasoline buying. But in difficult economic times, Inergy’s higher initial cost than gasoline generators may prevent the company’s growth.

High selling prices also mean high costs for Inergy. The company constantly requires capital to produce its products and refurnish its inventory before selling. Therefore, Inergy’s ability to raise capital will trigger its growth ability.

Finally, Inergy’s competitive landscape increases the deal’s risk. With over 292 companies offering battery storage products in the United States, Inergy must navigate intense competition to gain market share. Its branding, sales, and differentiation efforts will determine its success.

Next Section: Bullish Outlook

Bullish Outlook

Inergy is the battery storage deal with the highest revenue on equity crowdfunding platforms. The startup’s revenue grew from $5.6 million in 2021 to $8.8 million in 2022, demonstrating the company’s product-market fit in its fast-growing market.

Inergy’s overall traction is impressive. It secured contracts with the US Departments of Energy and Defense, showcasing its credibility and potential for further growth. These partnerships provide valuable opportunities for expansion and market penetration. Inergy is also working with Idaho National Lab to build microgrid software and diversify its revenue sources. The company’s partnership with solar installers also increases its revenue streams and reduces its sales risk.

Inergy is led by an experienced, relevant, and efficient team. The green energy Mergers & Acquisitions (M&A) market is dynamic and could induce high gains for investors. Recently, Engie acquired the battery storage business Broad Reach Power for $1 billion. With a low valuation of $20 million and a successful track record, Inergy presents a substantial investment opportunity.

Next Section: Bearish Outlook

Bearish Outlook

The bearish perspective on Inergy primarily revolves around its highly competitive battery storage market, with at least 292 competitors in the United States. While Inergy’s technology differs from most competitors, its stackable technology is similar to Joule Case, and its dust-proof Flex Tactical battery brings it close to Amped Innovation’s offering. Even if Inergy operates in different markets than Joule Case and Amped Innovation, the competition is risky. This could limit Inergy’s ability to capture a significant market share and achieve comprehensive profitability. Furthermore, given the low barriers to entry in this industry, the risk of new competitors emerging is high.

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Inergy on StartEngine 2023
Platform: StartEngine
Security Type: Equity - Preferred
Valuation: $20,031,038
Price per Share: $1.14

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