Soteria Battery Innovation Group

Soteria Battery Innovation Group

Growth Stage

Inherently Safe Batteries Everywhere

Inherently Safe Batteries Everywhere

Overview

Raised to Date: Raised: $305,934

Total Commitments ($USD)

Platform

StartEngine

Start Date

08/16/2023

Close Date

11/14/2023

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

$498

Security Type

Equity - Common

Series

Series B

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$4.15

Pre-Money Valuation

$50,086,101

Rolling Commitments ($USD)

Status

Active

Reporting Date

09/26/2023

Days Remaining

49

% of Min. Goal

2,040%

% of Max. Goal

25%

Likelihood of Max
unlikely
Avg. Daily Raise

$7,462

# of Investors

245

Momentum
warm.svg
Create a free account today to gain access to KingsCrowd analytics.
Year Founded

2018

Industry

Energy, Power, & Natural Resources

Tech Sector

Hardwaretech

Distribution Model

B2B

Margin

High

Capital Intensity

High

Location

Greenville, South Carolina

Business Type

Growth

Soteria Battery Innovation Group, with a valuation of $50.09 million, is raising funds on StartEngine. The company has developed its lithium-ion battery safety technology to prevent fires in commonly used devices. Soteria Battery Innovation Group’s technology addresses battery ignition by stopping the flow of energy when a short circuit occurs. The company uses thermally stable separators and metalized film current collectors to ensure battery stability. Brian Morin founded Soteria Battery Innovation Group in January 2018. The current crowdfunding campaign has a minimum target of $14,998.10 and a maximum target of $1.23 million. The campaign proceeds will be used for research and development, inventory, company employment, and working capital.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$1,149,952

$785,821

COGS

$284,889

$78,853

Tax

$2,039

$6,249

 

 

Net Income

$-2,378,437

$-1,541,087

Summary Balance Sheet

FY 2022 FY 2021

Cash

$1,340,108

$1,679,012

Accounts Receivable

$173,200

$243,733

Total Assets

$3,281,609

$2,693,873

Short-Term Debt

$551,302

$512,134

Long-Term Debt

$1,982,637

$1,792,844

Total Liabilities

$2,533,939

$2,304,978

Financials as of: 08/16/2023
Create a free account today to gain access to KingsCrowd analytics.

Upgrade to gain access

Pay Monthly
Annually (Save 17%)

Edge

$25 /month
billed annually
Free portfolio tracking, data-driven ratings, AI analysis and reports
Plan Includes:
Everything in Free, plus
Company specific KingsCrowd ratings and analyst reports
Deal explorer and side-by-side comparison
Startup exit and failure tracking
Startup market filters and historical industry data
Advanced company search ( with ratings)
Get Edge Annual
Already a member? Log in here.

Ratings KingsCrowd Startup Rating Methodology Article

Blurred Ratings Bars Blurred Ratings Bars

Founder Profile

Brian Morin and Soteria’s Vision for Safer Batteries

Soteria Battery Innovation Group has developed a technology designed to significantly mitigate the risks of fire incidents, ushering in a new era of secure and reliable energy storage. We sat down with the brain behind Soteria, Brian Morin, to uncover the motivations driving his endeavor, the collaborative approaches shaping the industry's safety dialogue, his visions for the future of battery safety, and much more.

Read Founder Interview

Analyst Report

BETA

Synopsis

Lithium-ion batteries power many devices we use daily, from smartphones and laptops to electric vehicles. However, these batteries have a significant safety issue: they can catch fire if damaged or improperly charged. This risk has led to numerous product recalls and accidents, including the infamous Samsung Galaxy Note 7 recall in 2016, which cost the company an estimated $5.3 billion.

Soteria Battery Innovation Group has developed a technology to prevent lithium-ion battery fires. The company's solution stops the flow of energy when a short circuit occurs, preventing the battery from overheating and catching fire. This technology could significantly improve the safety of lithium-ion batteries, making them a more reliable power source for a wide range of devices.

Soteria's technology has already created a consortium with over 100 members, including industry leaders like NASA, Lenovo, and DuPont. It also already has three licensees: Glatfelter, Ahlstrom, and Delfort.

The company is raising funds on StartEngine to finance research and development, inventory, employment, and working capital. It has already raised $8.3 million in prior funding rounds, demonstrating investor interest in its technology.

Next Section: Price

Price

Soteria Battery Innovation Group is offering equity at a valuation of $50.09 million. At first glance, this valuation may seem 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, which helps justify its $50.09 million valuation.

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's high margin level further supports its potential for solid profitability.

Next Section: Market

Market

Soteria Battery Innovation Group operates in the global lithium-ion battery market, experiencing significant growth. According to Grand View Research, the industry was valued at $48.1 billion in 2021, and it's projected to grow at a compound annual growth rate (CAGR) of 18.9% from 2021 to 2028. The automotive sector, rapidly adopting electric vehicles (EVs), is a primary driver of this growth. 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. The market growth is also driven by the significant adoption of electric bikes in the United States.

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. In addition, city-level policies are also promoting 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.

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

Next Section: Team

Team

CEO Brian Morin leads Soteria Battery Innovation Group. Morin is a seasoned entrepreneur with over 12 years of relevant industry experience. He has successfully raised significant funding for the company and has strong managerial skills. Morin has a track record of leading teams and driving growth in the industry. 

The R&D Manager at Soteria Battery Innovation Group is Dr. Drew Pereira. Dr. Pereira holds a Ph.D. in Chemical Engineering from the University of South Carolina, where he focused on battery modeling. He gained valuable experience through internships at GM and a fellowship at NREL. With his expertise in battery technology and research, Dr. Pereira plays a crucial role in developing Soteria's lithium-ion battery safety technology.

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.

Dr. Juergen Kellner is the Managing Director of Soteria Europe GmbH. He holds a Doctorate of Chemistry from the Technical University of Munich and has international experience in R&D, innovation, and business development. Dr. Kellner's expertise and coordination of material actions support the European consortium members and contribute to the overall success of the Soteria Battery Innovation Group.

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.

Next Section: Differentiation

Differentiation

Soteria Battery Innovation Group differentiates itself in the lithium-ion battery safety technology market by offering a unique solution to prevent fires in commonly used devices. 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 patent-pending inorganic ceramic separators made from a custom-formulated zeolite material for lithium-ion batteries (LIB) and a set of inorganic separators for lithium-metal batteries (LMB). These separators not only enhance safety by preventing thermal runaways, fire, and dendrite breakthroughs but also improve battery performance and longevity at higher charge-discharge rates by up to three to five times. Additionally, Soteria's technology allows for the use of 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. While these competitors provide innovative solutions, Soteria's technology offers a comprehensive approach to battery safety, addressing multiple aspects of potential hazards.

Although the competitive landscape in the lithium-ion battery safety technology market is getting competitive, Soteria Battery Innovation Group's high-quality differentiation and unique solution position it favorably against its peers.

Next Section: Performance

Performance

Soteria Battery Innovation Group 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. This indicates a consistent demand for lithium-ion battery safety technology to prevent fires in commonly used devices.

The company has secured three licensees, Glatfelter, Ahlstrom, and Delfort, 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.

Moreover, 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.

However, despite these positive indicators, Soteria remains in the pre-profit development phase, with a monthly burn rate of approximately $198,203.08. The company has raised $8.3 million in previous funding rounds, and it must continue to secure additional funding to maintain its operations and drive its growth strategy.

In conclusion, Soteria Battery Innovation Group has demonstrated promising growth and has an innovative product offering that addresses a significant need in the market. However, its ongoing pre-profit status and high burn rate underscore the importance of securing further investment to ensure its continued growth and eventual profitability.

Next Section: Risk

Risk

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

While the company has developed innovative safety technology for preventing fires in devices, competitors such as Nuvola Technologies, Amionx, and Safe-Li exist in the market. This competitive landscape challenges Soteria in gaining market share and securing partnerships.

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 and face potential hurdles due to the changes and capital costs usually associated with new licensing agreements.

Financially, Soteria has a negative net income and high burn rate, indicating a reliance on external funding to sustain its operations. The company's overvaluation raises concerns related to investors' returns. Soteria would need to exit at a minimum of $509 million - without considering dilution, for investors to hope to get a 10x return.

Next Section: Bullish Outlook

Bullish Outlook

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 $162 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 DuPont. These members provide a strong support network for commercializing Soteria's technology. 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. The company's capital-intensive nature and technological innovation add further credibility to its market position.

Soteria Battery Innovation Group's groundbreaking technology, established partnerships, and strong market potential make it an attractive investment opportunity. The company's focus on addressing a critical safety issue in the lithium-ion battery market positions it for continued growth and success.

Next Section: Bearish Outlook

Bearish Outlook

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. The barriers to entry in this industry are high, and competition is only expected to increase as more players enter the space.

Furthermore, Soteria Battery Innovation Group is currently valued at $50.09 million, which may be overvalued given its current financial position. The company reported an annual revenue of $1,149,952 in 2022 but also incurred a net loss of $2,378,437. 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.

Next Section: Executive Summary

Executive Summary

Soteria Battery Innovation Group is a technology company focused on enhancing the safety of lithium-ion batteries. 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 technology is supported by 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 $400 billion by 2030.

Despite being in the pre-profit phase, 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.

However, Soteria faces a moderately competitive landscape with competitors like Nuvola Technologies, Amionx, and Safe-Li. Additionally, the company's valuation of $50.09 million appears high, which could limit potential returns for investors. Despite these challenges, the company's innovative solution to a significant problem in the lithium-ion battery market, coupled with its strong partnerships and steady revenue growth, make it a compelling investment opportunity. Competition could be an asset for the startups. It demonstrates market demand and could grow the adoption of battery safety technology.

Disclaimer

The AI-enhanced analyst reports ("AI reports") provided by KingsCrowd are experimental in nature and may exhibit certain limitations and uncertainties. These reports are generated in part or in whole by artificial intelligence algorithms, which have the potential to hallucinate (e.g. generate fictitious information), interpret data incorrectly, omit information, or reference sources of data that may contain inaccuracies.

While we strive to provide reliable and accurate information, it is essential to understand that the AI reports should not be solely relied upon as the basis for making investment decisions. We strongly advise all users to exercise caution, conduct thorough due diligence, and verify data and facts independently before making any investment decisions.

The AI reports are intended to serve as one of the tools in your investment research process, offering additional insights and perspectives, and exposing more of our dataset to customers by transforming that data into natural language. They should be used in conjunction with other sources of information and professional judgment. KingsCrowd does not assume any liability for the accuracy, completeness, or reliability of the AI reports or any investment decisions made based on them.

Investing in startups and early-stage companies involves inherent risks, and it is essential to consult with qualified professionals and seek independent financial advice before making any investment decisions.

By accessing and using the AI reports, you acknowledge and accept the experimental nature of this feature and agree to use it at your own risk.

Please note that this disclaimer may be subject to updates and revisions as we continue to enhance our AI algorithms and improve the accuracy and reliability of the generated reports.

Create your first portfolio

Create your own startup investment portfolio on KingsCrowd.

Track all of your startup investments in one place using our state-of-the-art portfolio tracker tools. To begin, create your first portfolio below.

Add to portfolio
Soteria Battery Innovation Group on StartEngine 2023
Platform: StartEngine
Security Type: Equity - Common
Valuation: $50,086,101
Price per Share: $4.15

Follow company

Follow Soteria Battery Innovation Group on StartEngine 2023

Buy Soteria Battery Innovation Group's Deal Report

Soteria Battery Innovation Group Deal Report

Get KingsCrowd’s comprehensive report on Soteria Battery Innovation Group including:

  • How our proprietary algorithm rates their current capital raise (1-5 stars)
  • Detailed price, market, team, differentiators, performance, and risk ratings
  • Whether Soteria Battery Innovation Group is undervalued or overvalued
  • Scores on the founding team and key personnel's background and expertise
  • Our deep-dive analyst report reviewing the deal's investment potential and bullish vs. bearish outlook

Buy the Soteria Battery Innovation Group deal report for only $10!

Email address:
Looking to buy more than one deal report? Get unlimited reports by upgrading to Edge