Soteria Battery Innovation Group is offering equity at a valuation of $50.09 million. At first glance, this valuation seems high compared to the company’s revenue of $1.5 million in the last 12 months. Indeed, the median revenue-to-valuation multiple of public green and renewable energy companies is 7.79x, way lower than Soteria’s multiple of 33.39x.

However, when considering the median revenue-to-valuation multiple in the Energy, Power, and natural Resources industry on equity crowdfunding platforms, which is around 54.5x, Soteria is raising at a fair valuation relative to similar deals in the industry. It’s important to note that Soteria has already raised $8.3 million in previous funding and holds over 80 patents protecting its technology. The value of its numerous patents itself justifies its $50.09 million valuation.

KingsCrowd investment team had access to Soteria’s financial projections. The revenue that the company could generate in the next couple of years would allow investors to get a 10x return on their bet. Soteria’s licensing business model gives it a high margin and supports its potential for solid profitability.

While the current valuation may not offer the best deal for investors, it aligns with the significant funding already raised by the company and the valuable intellectual property it possesses. 

Soteria Battery Innovation Group operates in the global lithium-ion battery market, valued at $68 billion in 2023, and projected to grow at a compound annual growth rate (CAGR) of 18.9% from 2023 to 2028. The automotive sector, rapidly adopting electric vehicles (EVs), is a primary driver of this growth. The market growth is also driven by the significant adoption of electric bikes in the United States. As the number of EVs and lithium-ion battery storage systems increases, the risk of fire incidents also rises, underscoring the need for Soteria’s safety technology. 

Furthermore, supportive federal policies, such as the Inflation Reduction Act of 2022, which establishes tax credits for purchasing electric vehicles, are propelling the adoption of EVs, especially in the U.S. Such policies, coupled with the presence of several key players in the U.S. market, are expected to drive product demand and increase the need for lithium-ion batteries safety. 

Soteria is targeting a niche within the lithium-ion battery market: safety. Soteria’s licensing deals cost its customers between 1-2% of battery revenues in royalties.

The increasing spread of lithium-ion batteries is increasing the interest in battery safety. City-level policies also promote safer use of lithium-ion batteries. For instance, New York City’s Electric Micromobility Action Plan, announced by Mayor Eric Adams in March 2023, focuses on promoting safe battery use, educating users, advocating for additional federal regulation of these devices, and expanding enforcement against high-risk situations. These policies could significantly influence the acceptance and adoption of Soteria’s technology.

Soteria’s technology has a lot of potential for applications where battery fires could be difficult to implement and have terrible consequences, like in space, underground, or maritime environments.

In conclusion, with the growing demand for lithium-ion batteries and the increasing concerns over battery safety, Soteria Battery Innovation Group appears well-positioned to capitalize on these market trends.

Soteria Battery Innovation Group’s execution is one of the key elements that convinced KingsCrowd Capital to invest in the company. 

Soteria has shown steady growth and significant achievements in its sector. Between 2021 and 2022, the company has seen a steady % revenue growth of 44%, reaching $1.15 million. This growth has continued since the company’s 12-month trailing revenue reached $1.5 million. Soteria’s revenue comes from two main sources: its licenses and its consortium.

The company has already secured three licensees with large corporations: Glatfelter ($1.1 billion in revenue), Ahlstrom (€3.1 billion in revenue), and Delfort (€793.3 million in revenue), further demonstrating the market’s acceptance of its innovative technology. This, combined with the company’s strong patent portfolio of over 80 licensed and granted patents and 60 pending patents, positions Soteria well in the competitive landscape.

Last but least, Soteria’s consortium of over 100 members, including industry leaders such as NASA, Lenovo, and DuPont, provides a robust network to support the commercialization of its technology. Soteria’s consortium allows it to distinguish itself as an authority in the industry. It also is a way for companies to use Soteria’s technology in their research and development efforts – which can lead them to license Soteria’s technology as they start commercializing batteries using its patents.

Soteria’s execution has been impressive so far, leading us to expect a bright future for this company.

Soteria Battery Innovation Group’s technology is simple, smart, and works. 

While a few startups are attempting to tackle the same problem, such as Safe-Li Amionx and Nuvela Technologies, Soteria’s technology stands out due to its patented nanofiber-based nonwoven separators reinforced with fibrillated aramid (Kevlar(TM)) for lithium-ion batteries (LIB). These separators enhance safety by preventing thermal runaways, fire, and dendrite breakthroughs and improve battery performance and longevity at higher charge-discharge rates by up to three to five times. Additionally, Soteria’s technology allows using a fire-retardant liquid electrolyte, further reducing the fire risk.

Comparatively, Amionx has developed a safety process that acts as a circuit breaker, slowing down the battery’s energy release. Nuvola Technologies offers a special polymer coating, SafeCoat DDS, to prevent contact between the anode and cathode and minimize fire risk. But Soteria’s competitors are not a threat. Indeed, their technology is compatible with Soteria’s solutions, lowering the market’s competitiveness, enhancing collaboration, and ultimately helping Soteria achieve better results.

When it comes to costs, Soteria has a strong competitive advantage. Licensees do not face any capital costs to implement Soteria’s technology, and they save on operational costs as a copper collector is 25% cheaper than what is normally used. Therefore, the only cost left for licensees is the 1-2% royalty fee to pay to Soteria, a rate that lowers as the licensees increase their use of the technology.

Scrapiness, humbleness, and passion. Soteria’s CEO Brian Morin has the key qualities of a great leader. 

Morin is a seasoned entrepreneur with over 12 years of experience in the battery storage industry. He demonstrates a true sense of mission and a determination to make his industry safer, giving him the qualities to stick to leading his company, no matter the difficulties. His commitment also makes him a humble leader, putting his employees and the safety of batteries before his success. He is also scrappy and built a unique consortium with major industry names like NASA, Mercedes, and Motorola, to become an industry leader and implant his technology into large corporations. This unique growth strategy will be key to the company’s success.

Morin surrounded himself with a team of experts.

Soteria’s R&D Manager is Joe Turner. Joe has over 20 years of lithium ion battery development and production experience, working with producers in Asia and the USA and commercializing batteries for the US military and many other applications.  Joe shares his time also with Nanotech Energy, a key battery producer partner of Soteria.

Kelsey Cook serves as the Marketing Manager at Soteria Battery Innovation Group. Cook has a solid strategic communication and marketing background, receiving her degree from The Ohio State University. She also has prior experience in the battery industry as a former Product Manager at Techtronic Industries (TTI). Cook’s expertise in marketing and her knowledge of the battery industry contribute to the company’s marketing efforts and growth.

The Soteria Battery Innovation Group team comprises 20 members, including the founders. The team’s expertise in battery technology, research, marketing, and business development positions the company for growth and success in the global lithium-ion battery market.

Soteria Battery Innovation Group faces several risks as it aims to establish itself in the highly competitive lithium-ion battery market.

Even if Soteria’s technology is compatible with its competitors, it still can be a threat as companies fight for market share. Competitors like Nuvola Technologies, Amionx, and Safe-Li already exist in the market. This competitive landscape makes it more challenging to license to companies only willing to sign with one safety company.

Additionally, Soteria’s business model relies heavily on licensing its technology to industry leaders. The success of this model depends on industry adoption, which may take time as safety may not be a must-have for most customers. Soteria’s first customers will be willing to pay its royalties for applications where safety is critical, like in space, underground, or at sea. Going over these first applications will require considerable education and marketing efforts from Soteria.

Financially, Soteria has a negative net income and high burn rate, indicating a reliance on external funding to sustain its operations. The company still expects to lose a couple million dollars in the next 2-3 years, which makes its access to capital critical to its success.

Soteria Battery Innovation Group has developed a revolutionary lithium-ion battery safety technology that addresses a critical issue in the industry – preventing fires in commonly used devices. With its thermally stable separators and metalized film current collectors, Soteria’s technology ensures battery stability. It stops the flow of energy in the event of a short circuit, preventing potential fires. This breakthrough innovation has significant implications for the global lithium-ion battery market, expected to exceed $200 billion by 2030.

Soteria Battery Innovation Group has already gained traction by building a consortium with over 100 industry leaders, including major players such as NASA, Lenovo, and Mercedes. These members improve the company’s reputation, and network, and are potential commercial licensees. Additionally, the company has successfully raised a significant $8.3 million in funding, including venture capital backing from Keiretsu Capital.

The market potential for Soteria’s technology is high, given the growing demand for safer and more reliable lithium-ion batteries. The company’s recurring revenue model further enhances its growth prospects as it establishes long-term relationships with B2B customers. With a strong margin level and a track record of annual revenue growth, Soteria is well-positioned to capitalize on the increasing demand for battery safety solutions.

Furthermore, Soteria Battery Innovation Group has a clear competitive advantage with its patented technology, creating high barriers to entry for potential competitors. Its 80 patents justify its $50 million valuation and further validate the uniqueness of its technology.

Soteria Battery Innovation Group’s groundbreaking technology, established partnerships, and strong market potential made it the right candidate for an investment from Kingscrowd Capital.

Soteria Battery Innovation Group operates in a highly competitive space, with direct and indirect competitors vying for market share. Companies like Nuvola Technologies, Amionx, and Safe-Li offer safety solutions for lithium-ion batteries. While Soteria Battery Innovation Group claims to have a unique and effective technology to prevent fires in devices, it remains to be seen whether their solution can outperform or differentiate itself enough to capture a significant portion of the market. Soteria’s reliance on royalties exposes it to loss of revenue from patent theft and legal battles.

Furthermore, Soteria Battery Innovation Group is a capital-intensive business. It lost $2,378,437 in 2022, and its annual loss should increase for 2-3 years as the company spends to grow and acquire market shares. This shows that the company relied heavily on external funding to sustain its operations. If investors were to stop backing the startup, it could be complicated for it to sustain itself.

Soteria’s mission is to make the lithium-ion battery industry safer.

The company’s patented technology prevents fires before they occur in commonly used devices by stopping the flow of energy when a short circuit occurs. Soteria’s built a consortium of over 100 industry leaders, including NASA, Lenovo, and DuPont, providing a robust network for the commercialization of its technology in a market expected to surpass $200 billion by 2030.

Soteria has shown promising traction with a steady revenue growth of 44% between 2021 and 2022 and a trailing 12-month revenue of $1.5 million. The company has already raised $8.3 million in previous funding and has more than 80 patents licensed and granted, with 60 patents pending.

Soteria faces competition from companies like Nuvola Technologies, Amionx, and Safe-Li. But competition could be an asset for the startups. It demonstrates market demand and could grow the adoption of battery safety technology.

The company’s innovative solution to a significant problem in the lithium-ion battery market and its strong partnerships and steady revenue growth make it a compelling investment opportunity.