YouSolar

YouSolar

Growth Stage

Power Your Life. Independently.

Power Your Life. Independently.

Overview

Raised this Round: Raised: $706,055

Total Commitments ($USD)

Platform

StartEngine

Start Date

07/16/2023

Close Date

09/04/2024

Min. Goal
$15,000
Max. Goal
$1,470,000
Min. Investment

$350

Security Type

Equity - Common

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$0.49

Pre-Money Valuation

$38,998,008

Year Founded

2010

Industry

Energy, Power, & Natural Resources

Tech Sector

Cleantech

Distribution Model

B2B/B2C

Margin

Low

Capital Intensity

High

Location

Emeryville, California

Business Type

Growth

YouSolar, with a valuation of $39 million, is raising funds on StartEngine. The clean-energy company has created PowerBloc, a solar and battery system that delivers clean power to the modern world. PowerBloc uses modular power architecture to integrate solar, utility, and generator power to run an entire house or business. The system is easy to install and stores solar energy from the Sun. YouSolar has been a National Finalist in the 2018 CleanTech Open and has made multiple sales in California to power high-end homes. Arnold Leitner founded YouSolar in May 2010. The current crowdfunding campaign has a minimum target of $14,999.88 and a maximum target of $1.47 million. The campaign proceeds will be used for sales and marketing, research and development, and operations.

Summary Profit and Loss Statement

FY 2023 FY 2022

Revenue

$171,566

$273,713

COGS

$256,960

$581,112

Tax

$0

$0

 

 

Net Income

$-2,401,605

$-1,950,302

Summary Balance Sheet

FY 2023 FY 2022

Cash

$6,980

$85,345

Accounts Receivable

$275

$12,881

Total Assets

$914,314

$1,295,303

Short-Term Debt

$2,097,464

$2,078,412

Long-Term Debt

$4,266,247

$3,447,388

Total Liabilities

$6,363,711

$5,525,800

Financials as of: 07/16/2023
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
YouSolar 09/03/2024 StartEngine $38,998,008 $706,055 Equity - Common Active RegCF
YouSolar 03/14/2023 StartEngine $49,863,814 $1,387,539 Equity - Common Funded RegCF
YouSolar 08/12/2020 StartEngine $10,000,000 $1,069,846 Equity - Common Funded RegCF
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Revenue History

Note: Revenue data points reflect the latest of either the most recent fiscal year's financials, or updated revenues directly from the founder, at each raise's close date.

Valuation History

Price per Share History

Note: Share prices shown in earlier rounds may not be indicative of any stock splits.

Employee History

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Synopsis

The renewable energy industry is growing rapidly, with solar energy leading the way. According to the International Energy Agency, solar energy is the cheapest electricity in history. In the United States, the solar industry has grown an average of 42% per year since 2010, according to the Solar Energy Industries Association. The trend towards renewable energy is clear, but the challenge lies in making these technologies accessible and manageable for everyday consumers.

YouSolar aims to overcome this challenge with its PowerBloc system, a solar nanogrid that provides reliable and clean power to homes. The system uses a constant direct current (DC) architecture at 400 V, which YouSolar claims offers significant advantages over traditional solar-battery systems. The PowerBloc system integrates solar, utility, and generator power to run an entire house or business, storing solar energy for use when needed.

Since its inception, YouSolar has raised over $6.5 million and has been a National Finalist in the 2018 CleanTech Open. The company has also made multiple sales in California, powering high-end homes with its innovative solution. The company is currently raising funds on StartEngine, with plans to use the proceeds for sales and marketing, research and development, and operations.

Next Section: Price

Price

YouSolar is offering equity at a valuation of $39 million. This valuation is a decrease from the company's previous valuation of $49.9 million, which closed in March 2022. While the current valuation is still considered overvalued, it presents a better deal for current investors compared to previous investors. This is particularly attractive considering YouSolar's early product-market fit and the company's traction in the market.

YouSolar has installed eight PowerBlocs, generating a total revenue of $300,000. Additionally, the company has received five recent orders totaling over $897,000 after tax. YouSolar is also establishing partnerships with builders and architects in Northern California, which further indicates the company's growth potential.

YouSolar's PowerBloc is a solar and battery system that delivers clean power to homes and businesses. The system utilizes a constant direct current (DC) architecture at 400 V, providing significant advantages over traditional solar-battery systems. YouSolar has already made multiple sales in California, particularly to power high-end homes.

While YouSolar's revenue is still relatively low, the company's valuation suggests high expectations for future growth. Investors should consider the potential of the California residential solar market and the increasing demand for clean energy solutions. However, given the current valuation and the company's margin level, investors should carefully assess the risk-reward profile of this investment opportunity.

Next Section: Market

Market

YouSolar operates in the residential solar market, specifically within California, an addressable market that's currently valued at $1.3 billion. As the state with the highest solar penetration in the US, California presents a significant opportunity for YouSolar. The residential solar market is expected to grow at a CAGR of 16.3% over the next few years, propelled by supportive government policies, incentives, and tax benefits, as well as the increasing demand for clean, renewable energy sources.

Moreover, the current energy crisis, with escalating prices and supply uncertainties driven by geopolitical tensions, is prompting more consumers to consider independent power solutions, such as solar panels, for their homes. The shift towards net-zero initiatives and the reduction of carbon emissions are further driving the adoption of solar power systems.

The competitive landscape in the solar industry is intense, with several established players such as Enphase Energy, Sunpower, SolarEdge, and Sunrun. However, YouSolar's product, PowerBloc, differentiates itself by being a nanogrid that integrates solar, utility, and generator power. This allows it to run an entire house or business, providing a significant value proposition in terms of reliability and efficiency.

However, given the capital-intensive nature of the industry and the high level of competition, YouSolar will need to strategically position its offerings and continually innovate to maintain and increase its market share. The company's track record so far, including being a National Finalist in the 2018 CleanTech Open and making multiple sales in California, indicates that it is making headway in this challenging but rewarding market.

Next Section: Team

Team

YouSolar is led by CEO and President Arnold Leitner, a solar and clean-tech pioneer with a wealth of experience in the industry. Leitner has an impressive background, having designed and built one of Germany's first super-efficient passive houses. He has also worked as a consultant for S&P Global, where he authored a study for the U.S. Department of Energy on fuel from the sky. Leitner founded SkyFuel, a company that re-invented concentrating solar power technology, and won an R&D Award. SkyFuel raised a total of $30 million, according to Crunchbase. After SkyFuel's successful exit, Leitner founded YouSolar to build a solar nano-grid with a highly innovative power architecture. He holds a Ph.D. in Physics from the University of Colorado Boulder and an MBA from Columbia University.

Assisting Leitner is CTO Bob Rutter, who brings nearly 20 years of experience in automotive, aviation, industrial, and consumer product development. Rutter has worked for Motorola and Freescale in various roles, including as the European Director of Analog and Mixed Signal Division Product Development. With his extensive experience, Rutter is well-equipped to contribute to YouSolar's technological advancements.

The YouSolar team is relatively small, with eight members. The team has not experienced significant growth since the last funding round. However, the team's expertise in solar and battery systems is evident, and they have successfully made multiple sales in California to power high-end homes.

Overall, YouSolar's team, led by experienced industry professionals, is well-positioned to drive the company's growth in the clean-energy market. With their innovative PowerBloc system and strong sales track record, YouSolar has the potential to impact the California residential solar market significantly.

Next Section: Differentiation

Differentiation

YouSolar operates in a highly competitive California residential solar industry market. The company faces established competitors such as Enphase Energy, Sunpower, SolarEdge, Sunrun, and Green Home System. Despite this competition, YouSolar differentiates itself through its high-end solution and unique technological advantage: stackable battery storage.

Unlike its competitors, YouSolar offers a stackable battery storage system that allows users to upgrade and personalize their storage capacity based on their specific needs. This modular power architecture sets YouSolar apart from traditional solar-battery systems and provides significant advantages. Additionally, YouSolar's PowerBloc operates on a constant direct current (DC) architecture at 400 V, further distinguishing it from other solar nanogrids in the market.

While YouSolar's technological differentiation is notable, the company must demonstrate an efficient sales strategy to compete against billion-dollar companies like Sunrun. YouSolar's solution is positioned as high-end and more expensive than its competitors. This positioning may attract customers who prioritize quality and customization, but the company must effectively communicate the value proposition to potential buyers.

Furthermore, YouSolar has established partnerships with builders and architects in Northern California, which can help expand its market reach and increase sales opportunities. These partnerships demonstrate a proactive approach to collaborating with key stakeholders in the industry.

Overall, YouSolar's stackable battery storage and unique DC architecture provide a high level of differentiation in the competitive California residential solar market. However, the company needs to execute a strong sales strategy and effectively communicate the value proposition to compete against established players in the industry.

Next Section: Performance

Performance

YouSolar's performance in 2022 fell short of expectations. Despite claims of signing contracts worth $1 million in early 2022, the company's revenue for the year was less than $300,000, only one-third of projections. Additionally, the claim of having five recent orders totaling more than $897,000 after tax is similar to the earlier claim of $1 million in sales. This raises questions about the actual sales made by YouSolar in 2022 and early 2023, as well as the timing of revenue recognition.

However, YouSolar has shown some progress in terms of installations and partnerships. The company has installed eight PowerBlocs, generating a total revenue of $300,000. It is also establishing partnerships with builders and architects in Northern California, which could potentially drive future sales.

The PowerBloc, YouSolar's main product offering, is a solar and battery system that delivers clean power to homes and businesses. It uses a modular power architecture to integrate solar, utility, and generator power. Despite the disappointing sales figures, YouSolar has made multiple sales in California to power high-end homes.

Financially, YouSolar had cash and cash equivalents of $85,345 at the end of its most recent fiscal year. The company has raised a total of $6.6 million in prior rounds of funding. Its monthly burn rate is $162,525.17, indicating ongoing expenses.

Overall, while YouSolar has faced challenges in meeting its revenue projections, it has demonstrated some success in installations and partnerships. However, investors should closely monitor the company's ability to generate consistent and substantial revenue in the future.

Next Section: Risk

Risk

YouSolar faces several risks that investors should be aware of. First, while the company benefits from current market trends favoring clean energy solutions, it faces high competition from direct and indirect competitors. Competitors such as Enphase Energy, Sunpower, SolarEdge, Sunrun, and Green Home System have established players in the industry. This competitive landscape risks YouSolar's market share and growth potential.

Additionally, YouSolar faces a high financial risk, as evidenced by its 2022 financials. The company's cost of goods sold exceeded its revenues, indicating potential profitability challenges and inefficient operations. This financial performance raises concerns about the company's ability to generate sustainable and consistent revenue in the future.

Another risk for YouSolar lies in its need to scale production and sales. Despite market growth, the company must invest in sales and marketing efforts to reach customers.

In conclusion, while YouSolar benefits from market acceptance and has developed innovative clean energy solutions, it faces significant challenges in competition, financial performance, scaling production, and sales. Potential investors should carefully consider these risks.

Next Section: Bullish Outlook

Bullish Outlook

YouSolar's PowerBloc product offers a strong value proposition in the rapidly growing renewable energy market. The company's unique solution integrates solar, utility, and generator power, providing a versatile and robust power supply that could be beneficial in various contexts. Their system's modularity allows for easy installation and scalability, a huge advantage in the residential and small business markets. PowerBloc's ability to store solar energy also enhances its value proposition, enabling users to harness solar power even during periods of low sunlight.

Furthermore, YouSolar has already demonstrated market traction, with multiple sales in California for powering high-end homes. This confirms the commercial viability of its offering and proves its product-market fit within a state known for its commitment to renewable energy. It's also noteworthy that YouSolar was a National Finalist in the 2018 CleanTech Open, further validating the company's innovative approach and technology.

Another positive indicator for YouSolar is that it has secured VC backing from Meyer Global Management. This suggests that the company has convinced experienced investors of its potential, which is often a good sign of a firm's prospects. With the renewable energy market projected to grow substantially in the coming years, YouSolar is well-positioned to capitalize on this trend.

Next Section: Bearish Outlook

Bearish Outlook

YouSolar is operating in a highly competitive market with significant barriers to entry. The company faces competition from established players such as Enphase Energy, Sunpower, SolarEdge, Sunrun, and Green Home System. These competitors have already established their presence in the California residential solar market, making it difficult for YouSolar to gain market share. Additionally, while innovative, YouSolar's product offering, the PowerBloc, is not unique in the industry. Other companies offer similar solar and battery systems, such as Joule Case and gasoline power systems, as well as electric cars' energy storage options.

Furthermore, YouSolar's financial performance raises concerns. The company reported only $273,713 in annual revenue, with no growth since the last funding round. With a valuation of $39 million, YouSolar is considered overvalued, especially considering its low margin level and negative net income of -$1,950,302. The company's monthly burn rate of $162,525.17 also raises questions about its ability to sustain its operations and generate profits in the future.

Considering the highly competitive landscape, low revenue growth, and financial challenges, investors should cautiously approach YouSolar. The company must significantly improve its financial performance and market positioning to justify its current valuation and attract potential investors.

Next Section: Executive Summary

Executive Summary

YouSolar is a clean energy company that has developed PowerBloc, a solar nanogrid system designed to provide reliable and clean power to homes. The PowerBloc system integrates solar, utility, and generator power and is easy to install. The company has made multiple sales in California, primarily powering high-end homes.

YouSolar operates in a highly competitive market, with many established players offering similar solutions. However, the company differentiates itself with a unique design built on a constant direct current architecture at 400V, which it claims has significant advantages over traditional solar-battery systems. YouSolar has also secured several patents, further strengthening its competitive position.

Despite these strengths, YouSolar faces significant challenges. The company's revenue growth has been modest, and reported a net loss in the most recent fiscal year. Furthermore, the company's valuation appears high, given its current financial performance and the competitive landscape. The company's monthly burn rate is also substantial, which could pressure its financial resources.

However, the outlook for the solar industry remains positive, driven by increasing environmental concerns and supportive government policies. YouSolar's PowerBloc system is well-positioned to capitalize on these trends, and the company's ongoing efforts to establish partnerships with builders and architects could further drive growth.

In conclusion, while YouSolar faces significant challenges, its product offering and the positive industry trends could provide growth opportunities. Investors should carefully consider these factors when evaluating the investment opportunity.

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YouSolar on StartEngine 2023
Platform: StartEngine
Security Type: Equity - Common
Valuation: $38,998,008
Price per Share: $0.49

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