Neighborhood Sun

Neighborhood Sun

Growth Stage

A tech-enabled community solar platform dramatically expanding solar access

A tech-enabled community solar platform dramatically expanding solar access

Overview

Raised this Round: Raised: $184,461

Total Commitments ($USD)

Platform

Wefunder

Start Date

05/09/2024

Close Date

04/30/2025

Min. Goal
$50,000
Max. Goal
$618,000
Min. Investment

$250

Security Type

SAFE

Series

Series A

SEC Filing Type

RegCF    Open SEC Filing

Early Bird Val. Cap

$23,000,000

Valuation Cap

$25,000,000

Discount

30%

Year Founded

2016

Industry

Energy, Power, & Natural Resources

Tech Sector

Cleantech

Distribution Model

B2B/B2C

Margin

Medium

Capital Intensity

High

Location

Silver Spring, Maryland

Business Type

High Growth

Neighborhood Sun, with a valuation of $25 million, is raising funds on Wefunder. The Energy-as-a-Service company has developed a community solar technology platform to bring solar power to everyone. Sun Engine, the advanced technology platform of Neighborhood Sun, is customizable, flexible, transparent, accessible, and responsive. Neighborhood Sun has 136 community solar farms under management across seven states and generated $4.8 million in revenue in 2023. Gary Skulnik founded Neighborhood Sun in November 2016. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $618,000. The campaign proceeds will be used to expand into new markets, build out the IT platform, and hire senior management.

Summary Profit and Loss Statement

FY 2023 FY 2022

Revenue

$4,889,506

$1,906,242

COGS

$2,316,881

$742,342

Tax

$0

$0

 

 

Net Income

$-1,622,860

$-2,754,645

Summary Balance Sheet

FY 2023 FY 2022

Cash

$232,621

$735,234

Accounts Receivable

$696,429

$620,671

Total Assets

$7,889,187

$8,355,618

Short-Term Debt

$1,021,776

$2,346,511

Long-Term Debt

$203,381

$247,943

Total Liabilities

$1,225,157

$2,594,454

Financials as of: 05/09/2024
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
Neighborhood Sun 04/29/2025 Wefunder $25,000,000 $184,461 SAFE Active RegCF
Neighborhood Sun 09/15/2022 Wefunder $27,500,000 $920,433 Convertible Note Funded RegCF
Neighborhood Sun 01/11/2021 Wefunder $15,000,000 $801,546 SAFE 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

Solar energy stands out as a unique solution that reduces energy costs for consumers,, boosts company profits, and mitigates climate change.

Community solar is an ideal way to share solar energy’s benefits. This model allows multiple participants to enjoy the advantages of a single solar power installation through subscriptions without needing to install solar panels on their own properties.

Neighborhood Sun Benefit Corp is a notable player in the community solar market, with strong potential for good investor returns.

With its tech-enabled platform, Sun Engine, Neighborhood Sun democratizes solar energy, making it accessible, transparent, and responsive to everyone, regardless of location or economic status. This innovative approach aligns with environmental concerns and meets the rising demand for renewable energy solutions.

Founded in November 2016 by Gary Skulnik, Neighborhood Sun has shown impressive growth. The company has partnered with 136 community solar farms across seven states, demonstrating a scalable and effective model for expanding solar access. In 2023, Neighborhood Sun generated $4.9 million in revenue, highlighting its platform’s commercial viability and customer acceptance. The company aims to reach $7 million in revenue in 2024. With a valuation cap of $25 million, Neighborhood Sun offers an attractive deal to investors. KingsCrowd Capital believes the company has a high chance of being acquired by a larger competitor, providing investors with a generous return within the next five years.

Next Section: Price

Price

Neighborhood Sun is raising funds through a SAFE on Wefunder, presenting an appealing investment opportunity. The company’s revenue grew from $1.9 million in 2022 to $4.9 million in 2023, demonstrating significant financial growth. With a valuation cap of $25 million and a 30% discount for early investors, this is a compelling entry point for potential investors looking to capitalize on the expanding US solar power market. With a 5.1x valuation-to-revenue multiple, the company’s valuation is fair for investors.

Next Section: Performance

Performance

Neighborhood Sun’s revenue grew by 156.50% from $1.9 million in 2022 to $4.9 million in 2023, showcasing its team’s sales capabilities and the increasing demand for community solar solutions. The company has already grown its Q1 2024 revenue by over 180% compared to Q1 2023, indicating a high chance of reaching its 2024 revenue goal of more than $7 million.

Managing 136 community solar farms across seven states, Neighborhood Sun holds a 30% market share in Maryland and 20% in Colorado. The Sun Engine software platform’s development, launch, and utilization have been pivotal in achieving this scale, enhancing operational efficiency and driving customer acquisition and retention.

With a monthly burn rate of approximately $101,823 and $435,223 in cash on hand as of April 2024, Neighborhood Sun’s financial management strategies will be crucial in sustaining its growth trajectory. The company’s successful fundraising efforts, totaling $6.7 million to date, underscore investor confidence in its business model and growth prospects.

Next Section: Differentiators

Differentiators

Neighborhood Sun has two competitive advantages: a great platform and a low price.

The company is more affordable than the grid, offering solar farm managers at least 20% higher revenues and reducing customers’ bills by at least 5%, often more. It also supports the development of new solar farms, which decarbonizes the energy used by Americans.

Neighborhood Sun is smaller than its community solar competitors but offers lower platform fees, making it more attractive to solar farm partners. This price advantage positions Neighborhood Sun as a likely acquisition target in the industry’s future consolidation.

The Sun Engine platform is customizable, flexible, transparent, accessible, and responsive, contributing to significant revenue growth and operational efficiency. Automation within Sun Engine has been a key factor in this productivity increase, demonstrating Neighborhood Sun’s commitment to leveraging technology for operational efficiency and customer satisfaction.

Neighborhood Sun’s focus on making solar power accessible to everyone, especially those most vulnerable to climate change, positions it as a socially responsible player in the energy sector. This emphasis on inclusivity and empowerment through clean energy aligns with growing consumer and investor interest in sustainable and ethical business practices.

Next Section: Team

Team

Under the leadership of CEO Gary Skulnik, Neighborhood Sun is making significant strides in the community solar industry. Skulnik, a seasoned clean energy entrepreneur and climate advocate with 20 years of experience, brings a wealth of knowledge to the company. His previous success with Clean Currents highlights his deep commitment to renewable energy and his entrepreneurial spirit.

John Wilson, the Chief Technology Officer (CTO), brings nearly two decades of product and software experience, particularly in the solar sector. He leads the development of the Sun Engine software platform, showcasing his expertise and innovative approach to technology in the solar power industry.

Cara Humphrey, the Chief Revenue Officer (CRO), oversees the Community Partnership Program and other campaigns. Her background in commercial energy efficiency and the hybrid vehicle industry equips her with the skills to drive Neighborhood Sun’s revenue growth and expand its market reach.

Emily Tokarowski, Vice President of Marketing, has shown remarkable progression within Neighborhood Sun, advancing in various roles over nearly five years. Her leadership in marketing and her educational background position her as a key player in promoting Neighborhood Sun’s mission and services to a broader audience.

Next Section: Risks

Risks

Even the best investment opportunities carry risks.

Neighborhood Sun has demonstrated impressive revenue growth, but it is not yet profitable. The company currently burns $101,823 every month. While the founder aims for profitability within two years, no competitors have achieved this yet. This opens the possibility of Neighborhood Sun being acquired, but profitability remains uncertain.

The competitive landscape poses another risk. Although described as “slightly competitive,” notable competitors like Solstice, Nexamp, Arcadia, and Ampion could limit Neighborhood Sun’s market share growth or pressure pricing strategies.

Sales and technology expenses make the company capital-intensive, requiring ongoing access to capital for growth and operational sustainability. This poses a risk if capital markets become less favorable or operational efficiencies are not achieved as planned.

Next Section: Bullish Outlook

Bullish Outlook

Neighborhood Sun presents a strong investment opportunity due to its growing market, fast-growing revenues, strong acquisition potential, and mission to mitigate climate change.

The Sun Engine platform positions Neighborhood Sun at the forefront of the renewable energy sector. By making solar power more accessible, customizable, and transparent, the company taps into the growing demand for clean, sustainable energy solutions, providing cheaper energy than the grid to its customers. It also offers better rates to small solar farms, enhancing its attractiveness.

The company’s impressive progress since its last raise in 2022, managing 136 community solar farms across seven states and generating close to $4.9 million in revenue in 2023, indicates strong product-market fit and growing adoption of renewable energy solutions.

Next Section: Bearish Outlook

Bearish Outlook

Neighborhood Sun faces two significant risks that could hinder its progress if not managed properly.

The competitive landscape, with competitors like Solstice, Nexamp, Arcadia, and Ampion, could limit Neighborhood Sun’s market share growth and pressure profit margins and market expansion efforts.

The company’s impressive revenue growth contrasts with a substantial net loss of $1,622,860 at the most recent fiscal year-end. This discrepancy may raise concerns about the company’s pathway to profitability, especially if expenses continue to outpace revenue growth.

Next Section: Executive Summary

Executive Summary

Neighborhood Sun, an innovative Energy-as-a-Service company, has shown remarkable progress in the community solar sector with its proprietary technology platform, Sun Engine. This platform has significantly contributed to the company’s impressive revenue growth from $1.9 million in 2022 to $4.9 million in 2023, marking a 156.50% increase. Managing 136 community solar farms across seven states, Neighborhood Sun addresses the growing demand for affordable, renewable energy sources in the US.

The company’s business model combines transactional and recurring revenue streams, capitalizing on the high market potential of solar power in the US. This potential is further supported by the rising demand for clean power generation and incentives for solar PV system installations through the Inflation Reduction Act.

Despite competition from entities like Solstice, Nexamp, and Ampion, Neighborhood Sun’s unique value proposition lies in its advanced, customizable, and user-friendly technology platform, Sun Engine. This platform enhances productivity through automation fosters transparency, accessibility, and responsiveness, setting Neighborhood Sun apart from its competitors.

With a fair valuation of $25 million, Neighborhood Sun is raising funds on Wefunder to fuel its next growth phase. The company’s strong growth trajectory, backed by institutional investors like TEDCO, ImpactAssets, and Chesapeake Bay Seed Capital Fund, suggests a compelling investment opportunity in the renewable energy sector.

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Neighborhood Sun on Wefunder 2024
Platform: Wefunder
Security Type: SAFE
Valuation: $25,000,000

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