Trevi Systems is offering Common Equity in its current funding round. The pre-money valuation for the company is set at approximately $120 million, with a price per share of $0.80. The company has a 57x revenue multiple based on the $2.1 million in revenue the company already generated in 2024, indicating that it is overvalued. However, Trevi booked $15 million worth of contracts this year, letting investors hope that this valuation will soon be in line with its revenue. With 65 patents, Trevi’s IP is strong enough to justify a premium on its valuation.

Investing through common equity provides shareholders with ownership stakes in the company, typically including voting rights. Common equity holders can benefit from the company's growth and potential exit events. However, they are last in line to receive any proceeds in the event of liquidation after debt holders and preferred equity holders are paid. This structure can offer significant upside potential if the company performs well but comes with higher risk compared to preferred equity, which often includes preferential treatment in terms of dividends and liquidation preferences.

The global market for water desalination and purification is driven by key factors such as population growth, increased industrial water demand, and rising urbanization, all of which place significant pressure on existing water resources. As water scarcity intensifies across various regions, the need for efficient, sustainable water purification solutions becomes more critical. Trevi Systems, with its low-energy Forward Osmosis (FO) technology, is well-positioned to address these challenges, offering an environmentally friendly alternative to traditional water treatment methods.

A major market trend is the shift towards sustainable energy sources for water desalination, driven by government policies aimed at reducing carbon emissions. This aligns with Trevi’s zero-carbon FO technology, which leverages renewable energy such as solar and geothermal power. As regulatory bodies emphasize the adoption of green technologies, Trevi stands to benefit from these shifts by providing a solution that minimizes both energy use and environmental impact.

Trevi Systems is also well-positioned to tap into niche, high-value markets. The global oil industry represents a $195 billion per year opportunity, as oil fields require significant water purification. Similarly, the mining sector offers a $224 billion annual market for Trevi’s resource recovery solutions. The rapidly growing lithium extraction industry, particularly in California's Salton Sea, holds immense potential, with an estimated $540 billion worth of lithium available. Additionally, data centers, which use vast amounts of water for cooling, and agriculture, where farmers need access to clean water for irrigation, are emerging markets for Trevi’s technology.

The overall water desalination equipment market is valued at $15.5 billion, growing at 9.4% annually. While Trevi may initially appeal to niche segments within this broader market, its focus on renewable energy-powered brine minimization and resource recovery differentiates it from traditional desalination players. The company's technology is well-suited to industries like oil fields, mining, agriculture, data centers, and industrial wastewater treatment, where its energy-efficient and sustainable solutions can drive growth.

Despite the favorable trends, Trevi faces competition from established players using commoditized reverse osmosis technologies, which are often selected based on low cost rather than environmental impact. To succeed, Trevi must effectively demonstrate the long-term cost and environmental benefits of its FO technology. However, with growing demand for sustainable water solutions and strong potential in niche markets, Trevi is strategically positioned to capture significant opportunities.

Trevi Systems' leadership team comprises experienced professionals with diverse backgrounds in engineering, product development, finance, and business development. The team's expertise is critical to driving the company's goals of advancing Forward Osmosis technology and expanding its market presence.

John Webley, the Founder, Director, Chairman, and CEO, brings over 40 years of engineering experience across electrical, mechanical, and chemical disciplines. Webley has a proven track record of building successful companies, including Advanced Fibre, which grew to a market capitalization of $6 billion, and Turin Networks, which was sold to Dell for $700 million. His extensive background in technology commercialization and leadership is vital for steering Trevi Systems toward its strategic objectives.

Michael Greene, the Vice President of Engineering, has over 30 years of experience in product development and manufacturing systems. Greene's expertise in Lean Manufacturing, Six Sigma, and Continuous Improvement principles has been instrumental in managing and launching high-volume production systems. His role at Trevi Systems focuses on advancing Forward Osmosis water purification systems, ensuring they meet high standards of efficiency and reliability.

Igor Kiryakin, the Chief Technology Officer, has over four decades of expertise in water desalination and conditioning technologies. Kiryakin's extensive experience includes designing and implementing over 200 industrial water purification systems globally. His deep knowledge of both conventional and disruptive water technologies is crucial for Trevi Systems' innovation and technological advancements.

Michelle Kim, the Financial Controller, is a Certified Public Accountant with over 25 years of experience in accounting, auditing, and taxation. Kim has worked for public accounting firms and tech companies, overseeing accounting, finance, and human resources at Trevi Systems. Her financial management skills are essential for maintaining the company's financial health and supporting its growth initiatives.

Shan Yong, the Vice President of Business Development, has over 20 years of experience in business development, innovation, and project management roles globally. Yong has worked with global water technology conglomerates and startups, bringing valuable insights into market expansion and customer acquisition strategies. Her expertise is key to driving Trevi Systems' business development efforts and securing new contracts.

The skills and experience of Trevi Systems' team members align well with the company's goals of pioneering Forward Osmosis technology and expanding its market presence. Webley's leadership and track record in technology commercialization, combined with Greene's and Kiryakin's engineering expertise, provide a strong foundation for product development and innovation. Kim's financial acumen ensures sound financial management, while Yong's business development experience supports market expansion and customer acquisition.

Trevi Systems operates within a competitive arena dominated by established players in the water desalination and purification sector, including Veolia, SUEZ, and IDE Technologies. These companies primarily utilize traditional reverse osmosis (RO) technology for water treatment, which often requires substantial energy inputs. Veolia stands out as a global leader, renowned for its extensive portfolio and execution of large-scale projects that provide high-quality desalination solutions across municipal, industrial, and commercial sectors, leveraging its considerable resources for a competitive advantage.

Similarly, SUEZ is a key player in the water treatment landscape, delivering comprehensive solutions for water and wastewater management. Their desalination offerings, based on RO technology, have earned them a solid reputation for reliability and efficiency. With significant assets and a broad global presence, SUEZ is well-equipped to undertake large projects and cater to a diverse customer base. IDE Technologies focuses on innovative approaches to desalination, utilizing both RO and thermal technologies, and is recognized for its competitive pricing in the market.

What sets Trevi Systems apart is its proprietary Forward Osmosis (FO) technology, which harnesses renewable energy sources such as solar and geothermal power. The FO system utilizes a specially formulated draw solution to draw water through a membrane, purifying it before separating the water from the draw solution—similar to the process of oil separating from water—through the application of heat. This innovative approach allows Trevi to purify water using exclusively renewable or wasted energy, presenting a sustainable and energy-efficient alternative to conventional RO systems. With a robust portfolio of 65 granted patents and an additional 11 pending, Trevi is uniquely positioned as a leader in the full-spectrum forward osmosis landscape, particularly within the industrial water segment.

One of the critical challenges Trevi faced was developing an energy-efficient method for extracting water through its membranes. The company's breakthrough lies in its switchable draw solutions, which have effectively addressed the previously high energy requirements for recharge, thereby enhancing the system's overall efficiency. Furthermore, Trevi’s emphasis on minimizing brine and recovering valuable minerals like lithium and nickel during the purification process reinforces its competitive edge.

Trevi Systems primarily serves industrial facilities, municipalities, and agricultural operations seeking efficient and eco-friendly water purification solutions. Its technology is particularly applicable in sectors focused on zero liquid discharge and mineral recovery, making it ideal for industries managing substantial volumes of wastewater and brine. Although Trevi Systems is smaller compared to its more established competitors, its specialized technology and commitment to sustainability provide a compelling value proposition, positioning the company to capture a distinct niche within the broader water desalination market.

Trevi Systems has demonstrated impressive growth and performance in the water desalination market. The company reported annual revenue of approximately $2.1 million in 2024, a significant increase from $877k in 2023, with expectations to reach $6 million by year-end. This growth reflects the successful execution of its business strategy and the ability to secure valuable contracts, including $15 million in new bookings this year. These achievements illustrate Trevi's capacity to expand its market presence while addressing the critical demand for sustainable water solutions.

The operational success of Trevi Systems is underscored by its ongoing projects, such as the Hawaiian desalination plant, which has been operational since 2019 and operates at 100% carbon neutrality. This plant represents a $4 million contract over ten years, generating annual revenue of $400k, showcasing the company's capability to deliver reliable and eco-friendly solutions. Additionally, the development of a plant near a Tesla nickel mine in Minnesota is expected to yield around $3 million annually with a 40% margin, further enhancing Trevi’s revenue potential.

Despite initial financial challenges, such as a monthly burn rate of approximately $387k and a net loss of around $4.6 million, the company's recent performance reflects a shift toward profitability. The prior year's losses were driven primarily by heavy investments in resource recovery and brine concentration technologies, necessary for long-term growth. However, Trevi's substantial government grants—totaling $13 million across 14 awards—have supported its development efforts, mitigating some financial pressures.

Looking ahead, Trevi Systems plans to pivot from traditional equipment sales to a business model focused on providing water and brine minimization services under long-term contracts. This strategic shift aims to generate more stable and recurring revenue streams, financed through project financing rather than equity to minimize shareholder dilution. The success of this transition will depend on securing project financing and effectively managing service contracts.

In summary, Trevi Systems is well-positioned to capitalize on the growing demand for sustainable water purification solutions. Its ability to generate significant revenue, secure new contracts, and execute large-scale projects reflects a company on the path to scaling its operations. With a solid foundation and a clear strategic direction, Trevi has the potential for continued growth in a market that increasingly prioritizes innovative and eco-friendly water solutions.

Investing in Trevi Systems comes with several specific risks that potential investors should consider. One of the key risk factors is the company's early-to-market status, which brings adoption risks. Trevi Systems' Forward Osmosis technology, while promising, is still relatively new and unproven in widespread commercial applications. The company must successfully educate and convince potential customers of the benefits and reliability of its solution to achieve market acceptance.

The company’s financial performance also indicates ongoing operational challenges. Trevi Systems reported a significant net loss of approximately $4.6 million for the most recent fiscal year, up from a loss of $3.7 million in the prior year. These losses are primarily due to heavy investment in product development, field trials, and manufacturing expansion. While these investments are necessary for future growth, they also underscore the importance of achieving revenue generation to offset ongoing expenses.

Trevi Systems' business model pivot from equipment sales to service-based revenue through long-term contracts introduces execution risk. The company plans to sell water or brine minimization services instead of selling equipment, which will require securing project financing. There is no assurance that Trevi Systems will successfully obtain such financing or that the pivot in its business model will be effective. This shift also necessitates strong customer relationships and the ability to manage long-term service contracts, which may be new competencies for the company.

Another risk factor is the capital-intensive nature of Trevi Systems' operations. The company's technology and manufacturing processes require significant fixed assets and inventory investments. This capital intensity requires financing each project with a mix of debt and equity. Thus bringing the need to look for new capital regularly. Additionally, scaling production to meet growing demand will require efficient management of resources and operational execution.

Lastly, Trevi Systems faces a competitive landscape with established players in the water desalination and purification market. While the company believes its Forward Osmosis technology offers superior cost-effectiveness and environmental benefits, it must continually innovate and differentiate itself to maintain a competitive edge. The presence of incumbents and potential new entrants claiming to have similar technologies adds to the market challenge.

As global water scarcity intensifies, Trevi Systems emerges as a transformative force in the water purification industry. Its innovative Forward Osmosis (FO) technology addresses the pressing need for sustainable desalination and provides an eco-friendly alternative to conventional, energy-intensive methods. Unlike traditional desalination techniques, Trevi's systems utilize renewable energy sources, enabling efficient water purification while significantly reducing environmental impact.

The company’s recent contracts worth $15 million in 2024 showcase its strong sales momentum, underscoring a growing demand for its solutions in sectors like agriculture and mining, where access to clean water is critical. With a pre-money valuation of approximately $120 million and 65 patents, Trevi’s intellectual property positions it for significant growth in high-value markets, including the burgeoning lithium extraction industry.

Under the leadership of John Webley, a seasoned entrepreneur who successfully funded two companies that achieved market caps of $6 billion and $12 billion upon their stock market entries, Trevi is poised to capitalize on market trends favoring sustainable technologies. The transition to a service-based revenue model promises recurring income, enhancing financial stability and shareholder value.

Investing in Trevi Systems represents an opportunity to engage with a company that stands at the forefront of sustainable water solutions, addressing urgent global challenges while tapping into lucrative market segments. With its innovative technology and proven management team, Trevi is well-positioned for future success.

Despite the promising innovations offered by Trevi Systems in the water purification sector, several significant risks raise concerns for potential investors. The company’s Forward Osmosis (FO) technology, while innovative, is still in the early stages of commercial adoption. This unproven status poses adoption risks, as Trevi must convince potential customers to invest in its technology.

Financially, Trevi Systems reported a substantial net loss of approximately $4.6 million, up from $3.7 million the previous year. These losses primarily stem from heavy investments in product development and operational expansion, raising concerns about the company's path to profitability.

Although John Webley has a track record of funding companies that reached market caps of $6 billion and $12 billion, the water purification industry has more energy-intensive but established competitors. The company’s ability to extract lithium at a price satisfying buyers is also dependent on the price of lithium in the entire market, which fluctuates. If it were to be too low, Trevi would have difficulties getting contracts to extract lithium from salty waters.

Furthermore, the capital-intensive nature of Trevi’s operations necessitates regular financing using project finance strategies, increasing reliance on external funding. With an already high valuation relative to its revenue and the potential for market volatility, investing in Trevi Systems carries significant risks that may outweigh the potential rewards, particularly in a sector under constant economic fluctuations.

Trevi Systems is a technology company specializing in Forward Osmosis (FO) water purification systems. The company targets industrial facilities, municipalities, and agricultural operations with its sustainable and energy-efficient solutions. Trevi Systems' primary customers are those requiring efficient water purification, brine minimization, and resource recovery in sectors such as mining and industrial wastewater treatment.

The water desalination equipment market, valued at $15.5 billion with a growth rate of 9.4%, presents substantial opportunities for Trevi Systems. Key market drivers include growing population, urbanization, and rising water scarcity. The trend towards sustainable and renewable energy solutions aligns well with Trevi Systems' zero-carbon FO technology. However, the competitive landscape includes established players like Veolia, SUEZ, and IDE Technologies, which poses challenges for market entry and differentiation.

Trevi Systems has demonstrated progress in securing commercial orders and government grants, with $15 million in orders year-to-date and $6 million for 2024. The company already generated $2.1 million in revenue this year, a great increase from last year’s $877k. 

Trevi Systems differentiates itself through its patented FO technology, which uses renewable energy sources and focuses on brine minimization and resource recovery. This unique value proposition targets environmentally conscious customers in niche markets. The company's technology offers a sustainable and cost-effective alternative to traditional reverse osmosis systems, which is crucial for competing against established players.

Investing in Trevi Systems comes with specific risks, including the company's early-to-market status, high debt levels, and significant net losses. The capital-intensive nature of operations necessitates continuous fundraising efforts and introduces execution risks. The competitive landscape also poses challenges for market differentiation and customer acquisition.

Overall, Trevi Systems operates in a growing market with strong demand for sustainable water purification solutions. The company's zero-carbon FO technology aligns well with market trends, and its progress in securing commercial orders and government grants demonstrates market interest. The experienced leadership team and unique value proposition provide a solid foundation for growth.

Investing in Trevi Systems represents a rare opportunity in the water technology sector, especially with a company already securing substantial contracts in massive markets. In 2024, Trevi reported $15 million in contract bookings, such as a Tesla-affiliated nickel mine in Minnesota, projected to generate $3 million annually with a robust 40% margin.

Trevi is not any desalination company - it has the right strategy to grow. In the US, it is working with private companies instead of public entities, thus bypassing long approval processes and lowering its competition. 

The market potential is immense, with Trevi poised to tap into a $400 billion opportunity in oil fields and mining alone. Founder John Webley’s impressive track record—having successfully exited two telecom companies for $6 billion and $12 billion—instills confidence in Trevi's scaling capabilities and ability to secure significant contracts.

Trevi’s forward osmosis technology, supported by 65 issued patents and 11 pending, distinguishes it from traditional methods by being less energy-intensive and more effective in treating brackish water and industrial wastewater. This positions Trevi as a leader in addressing critical global water challenges. 

With proven technology, growing revenues, and a strong market presence, Trevi Systems offers investors an exceptional opportunity to invest in a sustainable future. That’s why Kingscrowd Capital invested $20,000 in its current round.