Madco3d

Madco3d

Early Stage

NYC Startup Leads 3d-Printing Revolution

NYC Startup Leads 3d-Printing Revolution

Overview

Raised to Date: Raised: $343,026

Total Commitments ($USD)

Platform

StartEngine

Start Date

11/06/2023

Close Date

04/08/2024

Min. Goal
$14,998
Max. Goal
$1,234,999
Min. Investment

$253

Security Type

Equity - Common

Series

Pre-Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$3.95

Pre-Money Valuation

$29,850,916

Rolling Commitments ($USD)

Status
Funded
Reporting Date

04/29/2024

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

$2,242

# of Investors

372

Momentum
Funded
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Year Founded

2018

Industry

Real Estate & Construction

Tech Sector

Proptech

Distribution Model

B2B/B2C

Margin

Medium

Capital Intensity

High

Location

New York, New York

Business Type

Growth

Madco3d, with a valuation of $29.85 million, is raising funds on StartEngine. It is a construction technology company developing autonomous 3D printing systems. Madco3d also aims to provide design and build services to help restore the coastal marine environment, solve the housing crisis, and redefine the construction industry. The company is in the pre-revenue stage but has significant development projects in the pipeline, including 100 homes in New Hampshire and a high-rise in New York City. Adam Kushner, Daniel Bernard, and Mark Lazar founded Madco3d in July 2018. The current crowdfunding campaign has a minimum target of $14,998.15 and a maximum target of $1.23 million. The campaign proceeds will be used for research and development, plant, property, and equipment, inventory, company employment, and working capital.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$0

$0

COGS

$0

$0

Tax

$0

$0

 

 

Net Income

$-104,735

$-82,130

Summary Balance Sheet

FY 2022 FY 2021

Cash

$22,713

$3,657

Accounts Receivable

$0

$0

Total Assets

$388,261

$354,538

Short-Term Debt

$11,484

$6,251

Long-Term Debt

$0

$0

Total Liabilities

$11,484

$6,251

Financials as of: 11/06/2023
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Analyst Report

Synopsis

The construction industry is ripe for disruption, with many experts pointing to 3D printing as a key technology that could revolutionize the sector. The potential benefits are significant: 3D printing can reduce construction costs, shorten project timelines, and promote sustainability by minimizing waste and enabling the use of recycled materials.

Madco3d is a construction technology company that aims to capitalize on this opportunity. The company is developing autonomous 3D printing systems for the construction industry to solve the housing crisis, restore the coastal marine environment, and redefine the construction paradigm. Madco3d is currently in the pre-revenue stage of business development. Still, it has significant projects in the pipeline, including 100 homes in New Hampshire and a high-rise in New York City.

Madco3d's approach is not just about the technology but also about providing design and build services. This holistic approach could be a key differentiator in the market, allowing the company to provide end-to-end solutions for its clients.

Next Section: Price

Price

Madco3d is raising funds on StartEngine by offering common equity at a valuation of $29.85 million. Considering the company's valuation and current stage of development, Madco3d appears to be fairly valued. However, it's important to note that the company is in the high capital-intensity construction technology industry. This means that significant investment in research and development, plant, property, and equipment will be required to market its products and services. This can bring a strong dilution for investors.

Additionally, the company is offering common stock. This is less favorable than preferred stock for investors. In the case of liquidation, common stock investors will be the last equity holders to receive cash back.

Next Section: Market

Market

Madco3d operates within the US 3D Printing Construction market, a niche yet rapidly growing segment of the broader construction industry. The value of this segment is estimated at $12.8 million, with an impressive growth rate of 100.1% driven by the increasing adoption of 3D printing technology in the construction sector.

3D printing technology offers high precision, improved efficiency, reduced labor cost, and greater speed for producing unique and customized structures. This technology efficiently caters to the demand for bespoke building projects and is ideal for constructing complex structures using modeling software programs. The offering of Madco3d, an autonomous 3D printing system for the construction industry, is well-aligned with these market drivers.

The market growth is further fueled by the rising adoption of green projects globally. Green construction uses sustainable processes and building materials to create buildings with minimal environmental impact. Madco3d’s focus on providing design and build services to restore the coastal marine environment echoes the industry's trend toward sustainability.

Next Section: Team

Team

Madco3d is led by two experienced founders, Adam Kushner and Dan Bernard.

Adam Kushner serves as the Principal and President of Madco3d. With an impressive 37 years of relevant industry experience, Kushner brings a wealth of knowledge and expertise to the company. He has a strong background in construction and has dedicated himself to developing autonomous 3D printing systems. Kushner's leadership and industry experience position Madco3d for success in the rapidly growing construction technology sector.

Dan Bernard, the Founding Partner of Madco3d, brings his managerial skills and expertise to the team. While Bernard has no relevant industry experience listed, his role as a founding partner suggests that he has been instrumental in the company's early development and growth.

The Madco3d team consists of five members, including the founders. While the team size is relatively small, it is important to note that the company is in the early stages of development.

Next Section: Differentiation

Differentiation

Madco3d is entering the construction technology market, focusing on developing autonomous 3D printing systems. While the company is in the pre-revenue stage, it has already established key partnerships with the University of New Hampshire and Sika, a leading concrete company. These partnerships provide Madco3d with valuable expertise and resources to support its development projects.

One of Madco3d's key differentiators is its proprietary Flashcrete™ autonomous robotic/drone system, for which the company has filed five provisional patents. However, competitors must develop similar technologies. Mighty Buildings, Apis Cor, SQ4D, and Hive3D are similar companies also about to go to market. Hopefully, the market is growing fast enough that all of these competitors should be able to grow and earn market shares.

The company's focus on addressing the housing crisis and restoring the coastal marine environment adds a unique aspect to its business model. By providing design and build services, Madco3d aims to redefine the construction industry and contribute to solving critical environmental and societal challenges.

Next Section: Performance

Performance

Madco3d is a construction technology company focused on developing autonomous 3D printing systems. The company aims to solve the housing crisis, restore the coastal marine environment, and redefine the construction industry through innovative solutions. Madco3d has made significant progress in establishing key partnerships with reputable institutions such as the University of New Hampshire's Olson Center for Advanced Manufacturing and Sika, a leading concrete company.

Madco3d has received inquiries for over 100 homes in New Hampshire and thousands more in the Caribbean, indicating strong market interest in its offerings. The company has filed five provisional patents for its Flashcrete™ autonomous robotic/drone system, demonstrating its commitment to protecting its intellectual property. In addition to patents, Madco3d holds numerous trade secrets, protected data, trademarks, and other proprietary technologies, further solidifying its competitive advantage in the market.

Next Section: Risk

Risk

Investing in Madco3d comes with several risks that potential investors should consider. Firstly, the company is in the pre-revenue stage of business development, indicating that it has not yet generated any significant revenue. This lack of revenue poses a risk as it raises questions about the company's ability to generate sustainable income in the future.

Madco3d operates in the highly competitive real estate and construction industry. While the company states it is not competitive, it still faces indirect competition from companies like Mighty Buildings, Apis Cor, SQ4D, and Hive3D. These competitors may already have established market presence and resources, which could make it challenging for Madco3d to gain market share and successfully execute its projects.

Madco3d's business model also relies on partnerships and significant development projects to generate revenue. This dependence on external factors poses a risk, as delays or failures in securing partnerships or completing projects could impact the company's revenue generation and growth prospects.

Financially, Madco3d is burning funds, indicating a reliance on external funding to sustain its operations. The company's need for long-term scaling of production and sales distribution further indicates that it may take time to achieve profitability and financial sustainability.

Furthermore, Madco3d's market acceptance is currently low, which suggests there may be challenges in convincing potential customers and investors about the value and viability of its offerings. The company must invest in marketing and education efforts to increase market acceptance and awareness of its autonomous 3D printing systems and design and build services.

Lastly, Madco3d has pending patents, which means that there is a level of uncertainty regarding its intellectual property rights and potential competition in the market. The pending status of these patents may also delay or limit the company's ability to fully protect its technology and innovations.

Next Section: Bullish Outlook

Bullish Outlook

Madco3d is well-positioned to take part in the 3D printing revolution of the construction industry. The company's innovative technology has the potential to redefine the construction paradigm by offering efficient and sustainable solutions to address the housing crisis and restore the coastal marine environment.

Madco3d has already established partnerships and has significant development projects in its pipeline, including constructing 100 homes in New Hampshire and a high-rise building in New York City. These projects demonstrate the company's capability to undertake large-scale construction projects and highlight its potential to capture a significant share of the US 3D printing construction market.

The market potential for Madco3d is high, given the increasing demand for sustainable and cost-effective construction methods. The company's unique offering and focus on environmental and social impact investing further differentiate it from competitors in the industry. Additionally, Madco3d's pending patents and high barriers to entry provide a competitive advantage and protect its intellectual property.

Next Section: Bearish Outlook

Bearish Outlook

Madco3d faces competition from other players in the 3D printing construction space, including Mighty Buildings, Apis Cor, SQ4D, and Hive3D. Some of these competitors have already established their presence and made progress in the market. Without a clear differentiating factor or significant market traction, Madco3d may struggle to gain a competitive edge and attract customers.

In addition, the high capital intensity of the construction industry poses a challenge for Madco3d. Developing and marketing autonomous 3D printing systems requires substantial financial resources for research and development, manufacturing, and sales and marketing efforts. With limited cash and cash equivalents of $22,713 and no prior funding rounds, Madco3d may face difficulties scaling its operations and bringing its products to market.

Overall, Madco3d's lack of revenue, competition from established players, and limited financial resources raise concerns about the company's ability to achieve sustainable growth and profitability in the highly competitive construction industry.

Next Section: Executive Summary

Executive Summary

Madco3d is a construction technology company developing autonomous 3D printing systems. The company aims to help solve the housing crisis, restore the coastal marine environment, and redefine the construction paradigm. Madco3d is currently in a pre-revenue stage of business development but has already established key partnerships with the University of New Hampshire, their Olson Center for Advanced Manufacturing, and Sika, a leading concrete company.

The company has also filed five provisional patents for its Flashcrete™ autonomous robotic/drone system and holds numerous additional trade secrets, protected data, trademarks, and proprietary technologies. Although in the pre-revenue stage, Madco3d has already received inquiries for over 100 homes in New Hampshire alone and thousands more in the Caribbean.

Madco3d operates in the US 3D Printing Construction market, rapidly growing due to the technology's ability to create unique structures ideal for bespoke building projects. 3D printing offers high accuracy, improved efficiency, reduced labor cost, and greater speed, making it ideal for construction.

However, the company faces competition in the market from companies like Mighty Buildings, Apis Cor, SQ4D, and Hive3D. Madco3d seeks to raise funds for research and development, plant, property, equipment, inventory, company employment, and working capital.

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Madco3d on StartEngine 2023
Platform: StartEngine
Security Type: Equity - Common
Valuation: $29,850,916
Price per Share: $3.95

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