MF Fire

MF Fire

Growth Stage

Transforming Wood Heat Into Clean Energy

Transforming Wood Heat Into Clean Energy

Overview

Raised this Round: Raised: $201,386

Total Commitments ($USD)

Platform

StartEngine

Start Date

12/07/2023

Close Date

03/06/2024

Min. Goal
$14,999
Max. Goal
$617,494
Min. Investment

$398

Security Type

Equity - Common

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$1.55

Pre-Money Valuation

$17,962,821

Year Founded

2014

Industry

Energy, Power, & Natural Resources

Tech Sector

Cleantech

Distribution Model

B2C

Margin

Medium

Capital Intensity

Low

Location

Baltimore, Maryland

Business Type

Growth

MF Fire, with a valuation of $17.96 million, is raising funds on StartEngine. It is a clean tech company transforming wood heat into a source of clean energy. MF Fire uses its patented technology, fire science, and engineering excellence and uses AI and machine learning to create wood stoves with improved performance and air quality. The MF Fire products are available with hundreds of retailers across the US and Canada and have averaged more than 100% year-over-year growth since 2018. Paul LaPorte founded MF Fire in November 2016. The current crowdfunding campaign has a minimum target of $14,999.35 and a maximum target of $617,493.65. The campaign proceeds will be used for product development, inventory, and working capital.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$2,348,034

$1,325,855

COGS

$1,311,944

$881,285

Tax

$0

$0

 

 

Net Income

$95,386

$448,083

Summary Balance Sheet

FY 2022 FY 2021

Cash

$112,427

$231,863

Accounts Receivable

$580,200

$271,488

Total Assets

$1,965,278

$1,229,095

Short-Term Debt

$1,727,610

$1,255,616

Long-Term Debt

$224,989

$56,200

Total Liabilities

$1,952,599

$1,311,816

Financials as of: 12/07/2023
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
MF Fire 03/05/2024 StartEngine $17,962,821 $201,386 Equity - Common Funded RegCF
MF Fire 04/29/2021 StartEngine $12,659,391 $498,201 Equity - Common Funded RegCF
MF Fire 08/15/2016 SeedInvest $7,000,000 $171,800 Convertible Note 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

Wood heating is a traditional and popular home heating method, especially in colder climates. However, conventional wood stoves have been linked to air pollution and health problems due to releasing harmful particulates and gases. These emissions contribute to air pollution inside and outside the home, leading to potential health risks for those exposed.

MF Fire is a clean-tech company that aims to transform wood heat into a clean energy source. The company uses patented technology, fire science, and engineering excellence to create wood stoves with improved performance and air quality. It also uses artificial intelligence and machine learning further to enhance the functionality and efficiency of its products.

MF Fire's products are available through hundreds of retailers across the U.S. and Canada. The company has averaged more than 100% year-over-year growth since 2018, reflecting strong market demand for its innovative technology. The crowdfunding campaign will help MF Fire develop its product offerings, increase its inventory, and provide working capital to support its ongoing operations.

MF Fire's mission to transform wood heating into a clean energy source could have significant environmental and health benefits. By reducing the harmful emissions associated with traditional wood stoves, MF Fire's products could help improve air quality and reduce health risks associated with wood heating.

Next Section: Price

Price

MF Fire is raising funds at a valuation of $17.96 million. With a revenue multiple of 7.65x, MF Fire appears to be reasonably valued compared to its annual revenue of $2.35 million.

The valuation is fair for investors since the company developed a high-tech product while achieving great traction. The company has achieved impressive revenue growth, with a 100% year-over-year increase for three consecutive years. MF Fire has also received two US Department of Energy grants totaling $2 million in non-dilutive research funds. The company has also been recognized for its innovation, winning the ICE Award, MIT Clean Energy Prize, and multiple Wood Stove Design Challenges prizes. Furthermore, MF Fire's patented technology, combined with AI and machine learning, has enabled the development of wood stoves with enhanced performance and improved air quality.

Next Section: Market

Market

MF Fire operates within the North American wood heating stoves market, a dynamic sector valued at $600 million. The market is projected to grow at a compound annual growth rate (CAGR) of 7.5%. This growth is largely driven by the increasing importance of sustainability and renewable energy sources, with wood being seen as an eco-friendly and renewable heat source. The growing emphasis on energy efficiency also plays a significant role, as contemporary wood heating stoves offer remarkable energy efficiency, lowering fuel consumption and heating costs.

In addition to being eco-friendly and energy-efficient, wood stoves are often seen as a budget-friendly heating option, as wood is frequently less expensive than alternative heating fuels like electricity or natural gas. This makes wood heating stoves a popular choice for consumers on a budget. Furthermore, they provide a source of emergency heating in areas prone to severe weather and power outages, enhancing their appeal.

Wood heating stoves are also prevalent in rural and off-grid locations where access to conventional heating fuels or power may be limited. With urban dwellers moving to the countryside, the demand for wood heating stoves in these areas could increase.

Next Section: Team

Team

MF Fire was founded by Taylor Myers and Ryan Fisher. While Fisher is still involved in the company as the COO, Myers is simply an advisor to the startup. Indeed, the company has been led by CEO Paul LaPorte since 2015. LaPorte's long career gave him a mix of experiences in technical and marketing roles. He was previously a CEO at Fusion SmartBand, which gives him the right experience to lead MF Fire.

While the team at MF Fire is relatively small, comprising 6 members, they have demonstrated strong growth and expertise in their field. The founders' dedication to the company's mission and the support from notable investors position MF Fire for continued success in the clean-tech industry.

Next Section: Differentiation

Differentiation

One of MF Fire's key differentiators is its patented technology, combining fire science, engineering excellence, AI, and machine learning. This unique approach allows MF Fire to create wood stoves with improved performance and air quality. The company's products are EPA-certified and available through hundreds of retailers across North America.

While the wood stove market has established competitors, like RUTLAND, Watchman, Lopi, Drolet, or Pleasant HeartMF Fire has managed to carve out a niche with its innovative technology. The company's sensor and app can help its customers lower greenhouse gas emissions, manage their heat, and protect their health. This could add value to a traditional wood stove - if the customers build the habit of using it.

Next Section: Performance

Performance

MF Fire has demonstrated impressive performance and growth in recent years. The company has achieved 100% year-over-year revenue growth for three consecutive years, indicating its ability to capture a larger market share and increase sales. This growth is a testament to the strong demand for MF Fire's clean-tech wood stoves and the effectiveness of its patented technology in transforming wood heat into clean energy.

Furthermore, MF Fire has received significant recognition and validation for its innovation and achievements. The company has been awarded two US Department of Energy grants totaling $2 million, providing non-dilutive research funds to support its development efforts. In addition, MF Fire has been honored with the ICE Award for innovation, the MIT Clean Energy Prize, the Grand Prize, and two Low Emissions prizes at Wood Stove Design Challenges. These accolades highlight the company's commitment to advancing clean energy solutions and its industry-leading position.

MF Fire has also made substantial progress in its product development and market presence. The company's wood stoves are available through hundreds of retailers across the US and Canada, including major distributors such as Wayfair, US Fireplace Store, and eFireplaceStore.com. This broad distribution network has contributed to the company's impressive revenue growth and customer acquisition.

Financially, MF Fire has achieved profitability, with two years of positive earnings. The company's annual revenue reached $2.35 million, representing a strong growth rate of 77.27% since the last funding round. This growth is a result of the company's ability to attract and retain paying customers and its successful expansion into new markets.

Regarding funding, MF Fire has raised $3.79 million in prior financing rounds and has a current valuation of $17.96 million. The company has also secured significant grant funding, totaling $4.02 million, supporting its research and development efforts.

MF Fire's performance is highly encouraging, with substantial revenue growth, profitability, and industry recognition. The company's innovative technology and strong market presence position it well for continued success in the clean-tech industry.

Next Section: Risk

Risk

Investing in MF Fire comes with several risks that should be considered. Despite being a profitable company and experiencing significant year-over-year growth, there are still potential challenges ahead.

Firstly, the competitive landscape in the wood stoves industry is extremely competitive, with established players such as RUTLAND, Watchman, Lopi, Drolet, and Pleasant Heart. This level of competition can make it difficult for MF Fire to gain market share and maintain its growth trajectory.

Additionally, the wood stove market has low barriers to entry, which means that new competitors could easily enter the market and disrupt MF Fire's position. This increases the risk of market saturation and potentially impacts the company's revenue and profitability.

Furthermore, MF Fire needs to scale its production and distribution capabilities to meet the growing product demand. Scaling production and distribution can be challenging, requiring significant infrastructure, inventory, and operational efficiency investments. Any delays or issues in scaling these aspects of the business could impact the company's ability to meet customer demand and hinder its growth potential.

Overall, while MF Fire has shown promising growth and profitability, investors should be aware of the competitive nature of the industry, the potential for market saturation, the challenges of scaling production and distribution, and the risk of technological advancements from competitors.

Next Section: Bullish Outlook

Bullish Outlook

With its patented technology, fire science, and engineering excellence, MF Fire has developed wood stoves that provide improved performance and air quality. These innovations, coupled with the use of AI and machine learning, have positioned MF Fire as a leader in the market.

The company's products have gained significant traction, with availability in hundreds of retailers across the US and Canada. This widespread distribution has contributed to MF Fire's impressive financial performance, with annual revenue reaching $2.3 million and growing 77.27% between 2021 and 2022. The company's commitment to sustainable energy solutions has attracted impact investors, including TEDCO, Momentum Fund, and The Abell Foundation.

MF Fire's strong revenue growth and partnerships with reputable organizations, such as the U.S. Department of Energy and the U.S. Office of Energy Efficiency and Renewable Energy, highlight the company's credibility and potential for continued success. Its ability to achieve profitability during the development phase further demonstrates its effective business model and market potential.

While the competitive landscape in the industry is highly competitive, MF Fire's patented technology and focus on clean energy solutions provide a unique selling proposition. Additionally, the company has successfully raised substantial funds, including prior rounds totaling $3.8 million, grants amounting to $4.0 million, and notable investments from Baltimore Angels, the University System of Maryland Foundation, and the Bunting Foundation.

With a valuation of $17.96 million and a current crowdfunding campaign on StartEngine, MF Fire is well-positioned to continue its growth trajectory. The campaign's proceeds will support product development, inventory management, and working capital, allowing the company to expand its reach and solidify its position as a leader in transforming wood heat into clean energy.

Overall, MF Fire's innovative technology, strong financial performance, and commitment to environmental and social impact make it an attractive investment opportunity.

Next Section: Bearish Outlook

Bearish Outlook

MF Fire operates in an extremely competitive market with well-established players in the wood heating industry. Competitors such as RUTLAND, Watchman, Lopi, Drolet, and Pleasant Heart offer similar products and have already established a customer base. This competitive landscape poses a significant challenge for MF Fire, especially considering the relatively low barriers to entry in this industry.

While MF Fire has shown some growth in revenue and units sold, it is important to note that the wood heat market is relatively niche and limited in its potential for expansion. The industry as a whole is experiencing a decline due to the increasing popularity of heat pumps and other electrical heating systems, which are considered cleaner and more energy-efficient alternatives. This trend could hinder MF Fire's growth prospects and limit its market share.

Although MF Fire claims to have patented technology and uses AI and machine learning, it is unclear how these factors differentiate their products in the market. Without clear evidence of a substantial competitive advantage, it is difficult to justify the company's valuation of $17.96 million. This valuation may be inflated, especially considering the low capital intensity level of the industry and the limited revenue growth potential.

The fact that the founders of MF Fire are not dedicated to the company raises concerns about long-term commitment and leadership stability. This lack of dedication from the founders could impact the company's ability to execute its growth strategy and navigate the competitive landscape effectively.

Next Section: Executive Summary

Executive Summary

MF Fire is a clean-tech company transforming wood heat into a source of clean energy. The company uses its patented technology, fire science, engineering excellence, artificial intelligence, and machine learning to create wood stoves with improved performance and air quality. MF Fire's products are available with hundreds of retailers across the US and Canada, averaging more than 100% year-over-year growth since 2018.

The company has successfully raised funds, with $3,790,997 raised in prior rounds and $4,025,000 in grants. The company is profitable, with a net income of $95,386 and annual revenue of $2,348,034 as of 2022, showing a 77.27% annual revenue growth since 2021. The company also holds several patents, reinforcing its position in the market.

MF Fire operates in the North American wood stoves market, which offers high growth potential. The company's products provide an eco-friendly heating alternative, aligning with current sustainability trends. The company's wood stoves are not only a source of renewable heat but are also budget-friendly, efficient, and beneficial for off-grid locations.

However, it's worth noting that MF Fire operates in a highly competitive landscape. The company faces competition from RUTLAND, Watchman, Lopi, Drolet, and Pleasant Heart. Despite this, MF Fire's innovative technology and strong market position make it an interesting prospect for investors.

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Founder Profile

Pioneering Eco-Friendly Wood Stoves

Paul LaPorte, CEO of MF Fire, took over the company’s leadership after starting as an advisor to the initial founders. He tells us more about the company’s new product, Fire MAPS, which will help fire stove owners limit their greenhouse gas emissions, improve air quality, and potentially reduce their wood consumption.

Read Founder Interview

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MF Fire on StartEngine 2023
Platform: StartEngine
Security Type: Equity - Common
Valuation: $17,962,821
Price per Share: $1.55

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