Valo

Valo

Growth Stage

Hydrofoils unleashing a new era of water transportation

Hydrofoils unleashing a new era of water transportation

Overview

Raised to Date:
$181,763 - RegCF
$1,965,610 - Total

Total Commitments ($USD)

Platform

Wefunder

Start Date

12/19/2023

Close Date

06/30/2024

Min. Goal
$50,000
Max. Goal
$1,235,000
Min. Investment

$100

Security Type

SAFE

Series

Seed

SEC Filing Type

RegCF / RegD 506(c)    Open SEC Filing

Early Bird Val. Cap

$32,500,000

Valuation Cap

$50,000,000

Discount

0%

Rolling Commitments ($USD)

Status

Active

Reporting Date

04/30/2024

Days Remaining

60

% of Min. Goal

364%

% of Max. Goal

15%

Likelihood of Max
unlikely
Avg. Daily Raise

$1,367

# of Investors

197

Momentum
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Year Founded

2018

Industry

Transportation, Automotive, Aviation, & Aerospace

Tech Sector

Hardwaretech

Distribution Model

B2B/B2C

Margin

High

Capital Intensity

High

Location

Alameda, California

Business Type

Growth

Valo, with a valuation of $50 million, is raising funds on Wefunder. The company is revolutionizing water transportation with its hydrofoil electric vessels. Valo is leveraging its Hydrofoil Technology Platform and entering the market with its Valo Hydrofoil, mid-sized hydrofoil systems, and high-powered commercial hydrofoil systems. The business already has $3.5 million in hydrofoil watercraft pre-sales and $124 million in letters of intent with ferry groups, manufacturers, and Fortune 100 firms. Edward Tahdah Kearney founded Valo in April 2018. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $1.24 million. The campaign proceeds will be used for tooling for parts, manufacturing, assembling, testing, mechanical engineering work, R&D, salaries, marketing, and G&A.

Summary Profit and Loss Statement

FY 2023 FY 2022

Revenue

$149,663

$0

COGS

$0

$0

Tax

$0

$0

 

 

Net Income

$-964,452

$-1,826,872

Summary Balance Sheet

FY 2023 FY 2022

Cash

$265,102

$342,147

Accounts Receivable

$6,320

$0

Total Assets

$716,765

$941,500

Short-Term Debt

$443,761

$250,379

Long-Term Debt

$1,017,020

$706,019

Total Liabilities

$1,460,781

$956,398

Financials as of: 12/19/2023
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Founder Profile

Valo: Pioneering Hydrofoil Tech in Maritime Industry

Decarbonizing maritime transportation is a difficult task. While the easiest way to cut boats’ carbon emissions is through batteries, their energy requirements are too high to use batteries. Valo is solving the problem by decreasing the energy maritime engines need thanks to hydrofoil. The company is starting revenue generation thanks to the commercialization of a new electric-powered hydrofoil jet ski, a smart way to grow the company while working on decarbonizing larger boats. We reached out to founder and CEO Ed Kearney to understand Valo’s technology and strategy better


Read Founder Interview

Analyst Report

Synopsis

Water transportation has long been essential to global commerce and personal mobility. However, traditional gas-powered vessels are inefficient and contribute significantly to environmental pollution. With the rising concern for sustainable solutions in every industry, the need for eco-friendly water transportation is more pressing than ever.

Valo is stepping up to address this issue by developing hydrofoil electric vessels that are 90% more efficient than traditional gas-powered vessels. Hydrofoils are a type of boat that uses wing-like structures mounted on struts below the hull to lift the boat's hull out of the water, reducing drag and allowing greater speeds.

Valo's Hydrofoil Technology Platform is the driving force behind their innovative watercraft. The company aims to penetrate the market in three stages: personal watercraft, mid-sized hydrofoil systems, and high-powered commercial hydrofoil systems. This strategic approach allows Valo to cater to a wide range of customers, from individuals seeking personal watercraft to commercial entities requiring larger vessels.

Valo's efforts have not gone unnoticed. The company has already secured $3.5 million in hydrofoil watercraft pre-sales and $124 million in letters of intent with ferry groups, manufacturers, and Fortune 100 firms. This early market interest strongly indicates the demand for more efficient and sustainable water transportation solutions.

Valo plans to invest in tooling for parts, manufacturing, assembling, testing, mechanical engineering work, R&D, salaries, marketing, and general administrative expenses with the funds raised in this campaign. This investment will further bolster Valo's capacity to deliver on its promise of revolutionizing water transportation.

Next Section: Price

Price

Valo is raising funds on Wefunder through SAFE at a valuation cap of $50 million. Despite having a technology capable of revolutionizing water transportation with its hydrofoil electric vessels, Valo is still at the prototype stage. Therefore, a $50 million valuation seems high at this point. However, investors could still achieve good returns through this investment if the company successfully develops a commercial version of its hydrofoil.

Next Section: Market

Market

Valo operates within the global boat market, which is valued at $44.07 billion and is projected to grow at a rate of 7.6%. The market's growth can be attributed to the increasing personalization of transportation choices and the rise in the tourism and travel industries. Expanding international trade, particularly in developing countries, also propels market growth.

Valo's hydrofoil electric vessels have the potential to revolutionize water transportation, offering a 90% efficiency improvement over traditional gas-powered vessels. The company's innovative use of Hydrofoil Technology positions it well to meet the increasing demand for more efficient and sustainable options. As the company prepares to enter the market with its personal watercraft and larger commercial vessels, it already reports $3.5 million in hydrofoil watercraft pre-sales and $124 million in letters of intent from ferry groups, manufacturers, and Fortune 100 firms.

While the market does have established competitors like Candela, N30, and WaveFoil, the high market acceptance of new and innovative transportation options, combined with Valo's proprietary Hydrofoil Technology Platform, suggests a high market potential for the company. However, as the market is regulated, Valo must navigate the complexities of compliance to successfully bring its products to market.

Despite the challenges associated with the high capital intensity level required to develop and manufacture its vessels, the company's potential to significantly disrupt the market and drive the next revolution in water transportation should not be underestimated.

Next Section: Team

Team

Valo is spearheaded by Founder and CEO Edward Kearny, who has been at the forefront of the company's vision to revolutionize water transportation through the development of hydrofoil electric vessels. Kearny's diverse background in entrepreneurship and advisory role at Snappr Inc. demonstrates his ability to contribute to strategic direction and innovation. His tenure as Co-founder and Head of Operations and Marketing at GownTown Pty Ltd showcases his capability to establish and grow a customer-focused retail business.

Kearny's creative endeavors as Founder and Creative Director of TahDah Productions and his marketing strategy and content direction roles at GoFar and The NSW Greens highlight his versatile skill set. These experiences and his academic research on airborne lidar at UNSW Australia Water Research Laboratory provide a unique blend of technical knowledge and business acumen.

With seven years of relevant industry experience, Kearny has demonstrated high-level managerial skills, evident from his successful fundraising efforts for previous companies, totaling $13,160,000, and achieving two exits. His participation in the YCombinator accelerator program and the backing of venture capital investors such as Soma Capital, Fifty Years VC, Climate Capital, and Metaplanet Holdings further solidify his credibility as a leader capable of steering Valo through its growth phase.

Although small, with only two members, Valo's team is driven by Kearny's vision and leadership. The company's significant pre-sales of $3.5 million in hydrofoil watercraft and $124 million in letters of intent with various stakeholders reflect the market's confidence in Valo's innovative technology and business strategy. With a valuation of $20 million, Valo is poised for expansion, leveraging Kearny's experience and the team's dedication to transforming the water transportation industry.

Next Section: Differentiation

Differentiation

Valo differentiates itself in the water transportation market with its revolutionary hydrofoil electric vessels. The company's Hydrofoil Technology Platform allows it to develop highly efficient and sustainable watercraft that are 90% more efficient than traditional gas-powered vessels.

Valo offers a range of hydrofoil electric vessels, including the Valo Hydrofoil, mid-sized hydrofoil systems, and high-powered commercial hydrofoil systems. These vessels have already generated significant traction, with over $3.5 million in hydrofoil watercraft pre-sales and $124 million in letters of intent from ferry groups, manufacturers, and Fortune 100 firms.

Valo faces competition in the market, including companies like Candela, N30, and WaveFoil. However, these companies are still at an early stage of development, and Valo still has a chance at taking large market shares when it launches its product.

Next Section: Performance

Performance

Valo, a revolutionary company in the transportation industry, is disrupting water transportation with its hydrofoil electric vessels. Leveraging its Hydrofoil Technology Platform, Valo is entering the market with its Valo Hydrofoil, mid-sized hydrofoil systems, and high-powered commercial hydrofoil systems. The company has already achieved significant traction, with over $3.5 million in hydrofoil watercraft pre-sales and $124 million in letters of intent with ferry groups, manufacturers, and Fortune 100 firms.

Financially, Valo has demonstrated stability and prudent financial management. The company has a cash balance of $220,290.97, indicating a healthy cash position. Valo has not reported any recent monthly burn, indicating that it has been able to manage its expenses effectively. Additionally, Valo had cash and cash equivalents of $342,147.00 at the end of its most recent fiscal year. This financial stability positions Valo well for future growth and development.

Valo operates in the transportation, automotive, aviation, and aerospace industries, which are highly competitive. However, Valo has a unique value proposition with its hydrofoil electric vessels, which are 90% more efficient than traditional gas-powered vessels. This competitive advantage sets Valo apart and positions the company for success.

With its strong traction, innovative product offerings, and solid financial position, Valo is well-positioned for growth. The company's partnerships with ferry groups, manufacturers, and Fortune 100 firms demonstrate the market's confidence in Valo's hydrofoil technology. This, combined with the company's strong pre-sales and letters of intent, indicates a promising future for Valo in the water transportation industry.

Next Section: Risk

Risk

Investing in Valo presents several risks as the company aims to revolutionize water transportation with its hydrofoil electric vessels.

One of the key risks for Valo is the need for significant capital investment to build and scale its hydrofoil electric vessels. The company is in the early stages of development and still needs to build its products and bring them to market. This requires substantial funding for tooling, manufacturing, assembling, testing, and research and development. The high capital intensity level of the business poses a risk as it may require continuous fundraising to support its growth and operations.

Valo also faces the risk of market acceptance and competition. While the company has secured pre-sales and letters of intent, the hydrofoil watercraft market is competitive, and Valo competes with companies like Candela, N30, and WaveFoil. The success of Valo's hydrofoil vessels will depend on market acceptance and its ability to differentiate itself from competitors.

Moreover, Valo's revenue generation is yet to be realized. The company reported no revenue in the most recent fiscal year, indicating that it has not yet generated sales from its hydrofoil electric vessels. This poses a risk as there is uncertainty about the market demand for these vessels and the company's ability to generate revenue and achieve profitability in the future.

Additionally, Valo's success relies on its ability to navigate legal and regulatory issues. The transportation industry is subject to various regulations and licensing requirements, and Valo must ensure compliance with these regulations to operate its hydrofoil electric vessels. Failure to meet regulatory standards or facing legal issues could delay or disrupt the company's operations and hinder its growth prospects.

Lastly, Valo must overcome barriers to entry in the hydrofoil watercraft market. While the company has a unique technology platform and has secured pre-sales and letters of intent, entering and establishing a strong market position requires overcoming barriers such as high development costs, competition, and customer adoption. These barriers pose challenges for Valo's growth and success.

Next Section: Bullish Outlook

Bullish Outlook

Valo is a disrupter in the water transportation industry with its innovative hydrofoil electric vessels. By leveraging its Hydrofoil Technology Platform, Valo is entering the market with a software-enabled hydrofoil jet ski that brings riders balance and pleasure all without avoiding noise and carbon emissions. The company's long-term vision is to develop mid-sized and high-powered commercial hydrofoil systems to decarbonize human and merchandise maritime transportation.

The company has secured $3.5 million in hydrofoil watercraft pre-sales and received $124 million in letters of intent from ferry groups, manufacturers, and Fortune 100 firms. This strong customer demand demonstrates the market demand for Valo's innovative solutions. Valo is well-positioned to capitalize on the growing demand for environmentally friendly transportation options by offering fully electric and highly efficient watercraft.

The company has a strong financial foundation, with prior rounds raising $5.7 million and a valuation of $20 million. Valo is backed by notable venture capital investors, including Soma Capital, Fifty Years VC, Climate Capital, and Metaplanet Holdings. The company's participation in the YCombinator accelerator program further validates its potential for success.

Next Section: Bearish Outlook

Bearish Outlook

While Valo presents an innovative solution in the water transportation industry with its hydrofoil electric vessels, it faces market competition and revenue generation challenges. The company's direct competitors, including Candela, N30, and WaveFoil, also offer hydrofoil technology solutions, creating a slightly competitive landscape for Valo.

Moreover, Valo is still in the pre-revenue phase, with no users or partnerships established. While the company has secured $3.5 million in hydrofoil watercraft pre-sales and $124 million in letters of intent, the actual conversion of these commitments into revenue remains uncertain. The absence of a proven revenue stream raises concerns about the company's ability to generate sustainable financial growth in the future.

While Valo's hydrofoil technology platform has the potential to disrupt the water transportation industry, investors should be cautious, given the company's current lack of revenue and the competitive landscape it operates in. This investment carries risks related to market competition, revenue generation, and financial sustainability.

Next Section: Executive Summary

Executive Summary

Valo is a transportation company developing hydrofoil electric vessels to revolutionize water transportation. The company's Hydrofoil Technology Platform is designed to make watercraft more efficient and sustainable while improving the on-water experience. Valo's product line ranges from personal watercraft to larger commercial vessels, leveraging the same underlying hydrofoil technology.

The company is currently in the pre-revenue stage, but it has already secured $3.5 million in hydrofoil watercraft pre-sales and $124 million in letters of intent with ferry groups, manufacturers, and Fortune 100 firms. These pre-sales and letters of intent demonstrate a strong market interest in Valo's products and point towards a potentially successful commercial launch.

Valo operates in a slightly competitive market with high barriers to entry. The company's primary competitors include Candela, N30, and WaveFoil. Despite this competition, Valo's unique hydrofoil technology and commitment to sustainability set it apart in the industry. The company's focus on personal and commercial vessels also allows it to address a broad market, increasing its potential for growth.

Valo seeks to raise funds to support various aspects of its operations, including tooling for parts, manufacturing, assembling, testing, mechanical engineering work, R&D, salaries, marketing, and general administrative costs. The company has already raised over $5.6 million in prior funding rounds, and it is backed by notable VC investors such as Soma Capital, Fifty Years VC, Climate Capital, and Metaplanet Holdings.

Given the increasing demand for sustainable transportation solutions and the strong pre-sales and letters of intent that Valo has secured, the company appears well-positioned for growth in the global boat market.

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Valo on Wefunder 2023
Platform: Wefunder
Security Type: SAFE
Valuation: $50,000,000

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