Veer

Veer

Early Stage

More Speed. More Power. More Range.

More Speed. More Power. More Range.

Overview

Raised to Date: Raised: $105,151

Total Commitments ($USD)

Platform

StartEngine

Start Date

09/28/2023

Close Date

12/28/2023

Min. Goal
$10,000
Max. Goal
$616,998
Min. Investment

$499

Security Type

Equity - Common

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$1.20

Pre-Money Valuation

$15,042,560

Rolling Commitments ($USD)

Status

Active

Reporting Date

12/09/2023

Days Remaining

19

% of Min. Goal

1,052%

% of Max. Goal

17%

Likelihood of Max
unlikely
Avg. Daily Raise

$1,460

# of Investors

52

Momentum
hot.svg
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Year Founded

2016

Industry

Transportation, Automotive, Aviation, & Aerospace

Tech Sector

Hardwaretech

Distribution Model

B2C

Margin

Medium

Capital Intensity

Low

Location

Novato, California

Business Type

Growth

Veer, with a valuation of $15.04 million, is raising funds on StartEngine. The company makes bomb-proof carbon belt drivetrains that replace the traditional chain drives for light electric vehicles. Veer’s carbon fiber belt, The Split Belt, boosts the durability, range, performance, and affordability of bicycles. The business generated $523,000 in sales in 2022 and is growing 2-3 times per year in the light electric vehicle market. Sean Hacking founded Veer in July 2016. The current crowdfunding campaign has a minimum target of $9,999.60 and a maximum target of $616,998. The campaign proceeds will be used for company employment, marketing, operations, research and development, and inventory.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$522,757

$238,140

COGS

$302,633

$157,001

Tax

$0

$0

 

 

Net Income

$-435,438

$-564,241

Summary Balance Sheet

FY 2022 FY 2021

Cash

$103,737

$76,606

Accounts Receivable

$635

$0

Total Assets

$283,575

$232,772

Short-Term Debt

$273,573

$335,505

Long-Term Debt

$259,322

$17,641

Total Liabilities

$532,895

$353,146

Financials as of: 09/28/2023
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
Veer 12/28/2023 StartEngine $15,042,560 $105,151 Equity - Common Active RegCF
Veer 04/19/2022 StartEngine $7,540,000 $922,151 Equity - Common Funded RegCF
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Analyst Report

Synopsis

As the world grapples with the effects of climate change, there's a growing demand for sustainable transportation solutions. Light Electric Vehicles (LEVs) are emerging as a popular choice due to their minimal environmental impact and convenience. However, traditional chain drives on these vehicles often lack durability and performance, limiting their appeal.

Veer is a company that aims to impact the LEV market with its carbon fiber drivetrains. Veer's product, the Split Belt, replaces traditional chain drives, enhancing the durability, range, performance, and affordability of bicycles and other LEVs. The Split Belt is designed to withstand harsh conditions, offering a more reliable and efficient alternative to chain drives. This makes LEVs powered by Veer's technology a more appealing option for urban commuters and enthusiasts alike. Veer has already generated over $523,000 in sales in 2022.

Next Section: Price

Price

Veer is raising funds on StartEngine at a valuation of $15.04 million. While Veer has shown good growth, especially in the light electric vehicle market, the valuation might be considered high given the company's current revenue and stage of development. Veer generated over $523,000 in sales in 2022. With a revenue multiple of 28.78, the valuation seems inflated compared to the company's current revenue.

Next Section: Market

Market

The global light electric vehicles (LEVs) market, which is the addressable market for Veer, is growing rapidly due to rising demand for sustainable and low-emission transportation options, advancements in battery technology, and increasing government incentives for purchasing electric vehicles. This market includes electric bicycles, scooters, motorcycles, and other similar forms of transportation. These vehicles are typically smaller and lighter than traditional automobiles and are powered by electric motors and rechargeable batteries.

The global LEVs market is anticipated to grow significantly in the coming years. This growth is driven by increasing concerns about air pollution and climate change, encouraging consumers and governments to embrace electric vehicles to reduce greenhouse gas emissions and improve air quality. This trend is further propelled by government incentives, such as tax incentives, rebates, and subsidies, which steadily increase the affordability and adoption of electric vehicles.

Next Section: Team

Team

Veer is led by its founder and CTO, Sean Hacking. Hacking has worked on Veer for over seven years and is a first-time founder. He has a background in bioengineering. 

Veer's team is very small, with only four employees, and none of them has any experience in the lightweight electric vehicle industry except for Kelly Burr, the new CEO. Most importantly, Veer misses a mechanical engineer on the team. Sean Hacking doesn't have the right training to ensure continuous innovation in the company.

Next Section: Differentiation

Differentiation

Veer offers bomb-proof carbon belt drivetrains that replace traditional chain drives. The company's carbon fiber belt, known as The Split Belt, enhances the durability, range, performance, and affordability of bicycles.

One of Veer's key differentiators is its high-quality carbon fiber drivetrains, designed to modernize light electric vehicles and cater to the evolving urban transportation landscape. The company has also established itself as a leader in the market by securing multiple patents for its innovative drivetrain technology. These patents create a barrier to entry for potential competitors, further differentiating Veer from the competition.

Next Section: Performance

Performance

Veer has demonstrated strong performance and growth in the light electric vehicle market. In 2022, the company generated over $523,000 in sales. This growth can be attributed to the company's innovative product offerings and solutions.

Veer's success is further evident in its recent equity crowdfunding campaign, which raised over $914,000 from 921 investors. These funds have been instrumental in expanding the company's product lines, growing the sales team, and investing in production cost reduction.

The company has also made notable progress in developing partnerships and acquiring new customers. Since its last fundraising round in 2022, Veer has secured eight new vehicle manufacturers as customers. This expansion of its customer base demonstrates the growing demand for Veer's carbon fiber belt drivetrains in the light electric vehicle market.

Next Section: Risk

Risk

Veer has several risks that potential investors should consider.

One of the main risks is the competitive landscape. Veer operates in a slightly competitive market with direct competitors such as Stacyc, KMC, TAYA, YBN, and Shimano. This competition could pose challenges for Veer regarding market share and differentiation.

Additionally, Veer's long sales cycle could impact its revenue growth. This means it may take a significant amount of time to convert leads into actual sales, which could affect the company's financial performance.

 Lastly, Veer's valuation appears to be on the higher side, which suggests that the company may be overvalued compared to its financial performance and market position. Investors should carefully evaluate these risks and consider them before making an investment decision.

Next Section: Bullish Outlook

Bullish Outlook

Veer's flagship product, The Split Belt, offers a bomb-proof alternative to traditional chain drives, improving durability, range, performance, and bicycle affordability. With a strong focus on sustainability and environmental impact, Veer is well-positioned to capitalize on the growing demand for electric transportation solutions.

Veer has an excellent early revenue as it generated $523,000 in sales in 2022. With the global market for light electric vehicles expanding rapidly, Veer has a significant addressable market to tap into.

Furthermore, Veer has established partnerships and collaborations that enhance its growth prospects. The company's participation in the San Diego Sports Accelerator provides valuable support and resources to fuel its expansion. These partnerships not only provide access to new markets but also validate the market potential and value proposition of Veer's products.

Next Section: Bearish Outlook

Bearish Outlook

Veer operates in a slightly competitive landscape, with competitors such as Stacyc, KMC, TAYA, YBN, and Shimano. Veer could face challenges in standing out from its competitors.

Although Veer generated $523,000 in sales in 2022, its valuation of $15.04 million seems inflated. Veer's valuation-to-revenue ratio stands at approximately 28.8x, which is relatively high for a company in the early stage of development. Investors should carefully consider whether the potential upside justifies the current valuation.

Furthermore, Veer reported a net loss of $435,438 in the most recent fiscal year. While it is not unusual for early-stage companies to operate at a loss as they invest in growth and product development, investors should be cautious about the company's ability to achieve profitability in the near future. Veer's monthly burn rate of $36,286.50 further highlights the ongoing cash outflow and the need for continuous funding.

Next Section: Executive Summary

Executive Summary

Veer designs carbon fiber drivetrains to replace traditional chain drives for light electric vehicles (LEVs). The company's flagship product, The Split Belt, is a carbon fiber belt that significantly enhances the durability, range, performance, and affordability of bicycles. Veer's innovative approach to drivetrain technology aligns with the growing trend toward sustainable and low-emission transportation options. The global LEVs market, which includes electric bikes, scooters, and motorcycles, continues to expand due to advancements in battery technology and the availability of government incentives for purchasing electric vehicles.

In 2022, Veer generated over $523,000 in sales. The company has also successfully raised over $914K from 921 investors in its previous equity crowdfunding campaign. This funding has enabled Veer to expand its product lines, grow its sales team, and invest in reducing production costs. Notably, since its last funding round in 2022, Veer has acquired eight new vehicle manufacturers as customers, doubled its sales team, and developed more products.

Despite these achievements, Veer is still in the pre-profit phase and reported a net income of -$435,438 for the most recent fiscal year. The company's monthly burn rate is $36,286.50, which appears to be overvalued with a pre-money valuation of $15.04 million.

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Veer on StartEngine 2023
Platform: StartEngine
Security Type: Equity - Common
Valuation: $15,042,560
Price per Share: $1.20

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