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Offered by First Democracy VC

Primo Wind

Residential and commercial micro-grid solar/wind systems

281%

Investors

428

Time to Invest

Security Offered

Convertible Debt

Minimum Investment: $100

  • Patented blade technology and rotor design that delivers power at common wind speeds of 5 to 15 miles per hour

  • Its most powerful system, the EnergiTree, was designed to withstand Category 2 hurricanes and can easily be lowered in the event of more severe weather

  • The Wind Energy Foundation estimates small, off-grid turbines generally cost $4,000 to $9,000,i  Primo Wind's solutions will be priced at about $5,995


Terms

Security Type: Crowd Note

Round Size: Min: $50,000 Max: $500,000

Valuation Cap: $5 million

Discount: 20%

Conversion Provisions: In connection with an equity financing of at least $1,000,000, the Company has the option to convert the Crowd Note into shares of non-voting preferred stock (Conversion Shares) at a price based on the lower of A) a 20% discount to the price paid per share for Preferred Stock by the investors in the Qualified Equity Financing or (B) the price per share based on a $5 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.

Overview

Opportunity

Renewable energy's share of overall U.S. energy consumption has doubled since 2008, with 18% of all electricity in the U.S. produced by renewable sources in 2017 - up from 15% in 2016. This growth has been driven by new solar and wind projects, which accounted for roughly 62% of new power construction in 2017.ii  Beyond the U.S., the decreasing costs of installation as well as advancements in technology have contributed to the rapid expansion of wind and solar projects worldwide.iii  

Founded in 2012, Primo Wind designs and manufactures micro wind systems and hybrid wind and solar designs for off-grid power. Its systems provide power for areas with limited access to traditional power sources, or areas without electricity at all such as: off-grid housing, remote villages, remote research stations, and disaster relief areas. Primo Wind is dedicated to changing how the world uses wind energy, so it has designed products that are aesthetically pleasing but still produce the maximum amount of energy with the smallest environmental footprint possible.

Most small wind devices use lift blades and need fairly high winds to produce power. Lift blades may begin to turn at lower wind speeds but don't generate power. Primo Wind's system is different. Its patented technology utilizes a high-torque drag system that operates in very light wind speeds (5 to 15 mph) and can generate power through its custom generators as soon as they begin to spin.

Product

Primo Wind's Force Micro Turbines make up all of its wind systems. The turbines are well suited as stand-alone systems for both off-grid installations and micro-grid solutions. The Primo Wind turbine creates accelerated wind flow and is designed to provide power directly to the structure on which it is mounted. The rotor design is patented along with a proprietary generator and a pole that telescopes for compactness. The design is set to maximize ease of assembly and can also be lowered in the case of severe weather.

 EnergiPlant

The EnergiPlant is a free-standing nano-grid power unit that combines wind, solar, and batteries. It can provide security, lighting, and more for schools, parks, transit ways, and other public areas. The flower-shaped wind turbine is equipped with bench seating, solar panels, lighting, and USB ports for charging phones or tablets. The self-charging EnergiPlant does not require electrical connections and can be installed anywhere. It also provides on-site security with an installed camera and dynamic streaming for up to a 50-foot radius. The three benches offer an opportunity for advertising along the bottom similar to benches at bus stops.

EnergiTree

The EnergiTree is a more powerful system than the Energiplant. It uses a 1,650-watt proprietary generator and Primo Wind's patented blade and rotor design. The solar unit is upgraded to 500 watts and includes additional battery storage.

The EnergiTree was designed to withstand Category 2 hurricanes and can easily be lowered in the event of more severe weather. It uses T-7071 aircraft aluminum, stainless steel powder-coated materials, and generators made to IP 66 and IP 67 standards, which means they are moisture proof and dustproof with a projected lifespan of 20 years. The blades are composed of a biomimetic thermoplastic for durability and efficiency.


Intellectual Property

Primo Wind currently has three patents for power-generating devices: a variable-wing venturi generator, a high-torque wind turbine system, and the rooftop exhaust collector power generator. Primo Wind also has patents pending for variations of the EnergiPlant design and patents in European countries.  

Use of Proceeds and Product Roadmap

If Primo Wind raises the maximum amount of $500,000, it estimates using the proceeds primarily for manufacturing ($150,000), marketing ($100,000), engineering ($90,000), and general working capital ($72,500). At the minimum raise of $50,000, most of the proceeds will go towards engineering costs ($46,500).

Business Model

Primo Wind will sell direct to customers through distributor channels and U.S. Government General Service Administration (GSA) contractors. Vendor agreements are in place with 3fficient and ADS, a GSA government contractor, to market to areas recently impacted by natural disasters and the military. Primo Wind may also license its technology to established industry leaders. Lastly, Primo Wind will continue to work with cities, universities, and parks where it already has market traction.

User Traction

Primo Wind began selling units in 2017. Customers range from the U.S. Navy and Marines to cities and universities.

Historical Financials

Primo Wind launched its product in 2017. In 2017, it generated $114,405 in revenue, with its largest sales coming in Q4. In 2016, the company generated $7,400 from a pilot installation for the City of Pittsburgh and the purchase of an installation kit by Creighton University.

Note: Monthly financials have not been audited or subject to financial review

In 2017, total expenses including costs of goods sold increased by 49% year over year to $958,078. Costs of goods sold totaled $181,370, and operating expenses totaled $776,708. Payroll was the largest cost, totaling $250,781, followed by professional fees (general attorney and patent attorney fees), which totaled $191,766.

Note: Monthly financials have not been audited or subject to financial review

In 2017, Primo Wind had a net operating loss of $843,673, versus a net operating loss of $636,157 in 2016.

Note: Monthly financials have not been audited or subject to financial review


Press

UC San Diego:New EnergiPlant Wind Turbine Provides Power and Public Space

San Diego Business Journal:ENERGY: Co.’s Wind Turbine Design Fill Gaps In Renewable Energy

Smart Cities World:Free charging for US public

Linkedin:Primo Wind is headed into the Arctic again. . .and more

Forbes:Rooftop Wind Turbine, Solar-Powered Mobile Device Charger Win At VERGE

East Bay Times:Rooftop windmill generating clean energy for Pittsburg Library

Industry

According to Grand View Research, the global small wind market is projected to reach USD 1.79 billion by 2025, a growth of 14.3%. Market factors propelling this growth in renewables include increased awareness, government regulations, pressure to reduce carbon footprints, increasing global population, and a rising energy deficit.iv  Also, advancements in technology and cheaper installation costs are reducing the per kilowatt price of wind turbines and increasing their demand.

The market for wind turbines is segmented by horizontal-axis or vertical-axis turbines. Both generate power via the wind but are suitable for different applications, such as urban or rural locations. Horizontal-axis wind turbines are the preferred axis type in the global small wind market. However, the vertical-axis wind turbine is fast gaining consumers' attention and is expected to grow at a higher rate. In terms of revenue, vertical-axis wind turbines are expected to grow at a compound annual growth rate (CAGR) of 18.7% between 2017 and 2025.v  

The off-grid segment of the market is expected to account for 59.58% of the global market share in 2025. The demand for off-grid wind turbines can be attributed to customers seeking energy alternatives to power their homes; however, this segment is predicted to decline due to government initiatives for grid connectivity. These initiatives will boost the on-grid segment of the market over the forecast period.vi 

Competitors

Strawberry Energy: Founded in 2011, Strawberry Energy develops solar urban furniture. It has several products, including the Strawberry Tree and Strawberry Smart Bench. The Strawberry Tree is a permanently installed solar urban device and a smart city platform, which provides free mobile phone charging, Wi-Fi internet, and LED lighting. The Strawberry Smart Bench offers charging for mobile devices, environmental sensing, free emergency calls, and local info in public spaces. Its installations are in 30 cities and 17 countries.vii  

EnGo Planet: Founded in 2016, EnGo Planet was started after Hurricane Sandy left New York City without lights for seven days. The company focuses on smart solar street lighting and produces two products: Smart Solar Street Lights and Smart Solar Benches.viii It produces lighting solutions for highways, pedestrian areas, universities, schools, security, and industrial areas. Additional features for both applications include smart cameras, sensors for collecting outdoor data, and a charging station for mobile phones.

Fortis Wind Energy: Founded in 1997, Fortis Wind Energy is a Dutch small wind turbine manufacturer. It produces and installs hybrid wind and solar on-grid or off-grid (micro-grid) solutions. It currently has three lines of turbines - the Passaat, Montana, and Alizé - that generate power in ranges of 1.4 to 10 kilowatts and come equipped with an integrated storage battery bank system.ix

Bergey Windpower: Founded in 1970, Bergey Windpower manufactures off-grid and on-grid connected wind turbines. The Bergey XL.1 is suited for small off-grid homes or cabins and is designed with high-efficiency blades to operate in low-wind areas. In 2017, Bergey Wind was awarded a federal grant of about $250,000 by the U.S. Department of Energy. The company said the funds will be used to develop a tower design that will allow customers to install home wind systems without the need for a concrete base.x

Team

Ned McMahon, Founder and CEO: Prior to founding Primo Wind, Ned founded Malama Composites Inc., a company that manufactures rigid polyurethane foam made from plant-based chemistry. Ned studied Marine Engineering at Texas A&M University and received a BS in International Business. He also completed an Executive MBA Certificate Program at Rice University's Jones School of Business. Ned is a published author and was invited to speak at the Wall Street Journal ECO-nomics conference on "green" technologies.

Bill Fitzmaurice, President: Bill has worked with several innovative agribusiness projects, including Premium Standard Farms and Iowa Select Farms. He began his career in the Equity Research Department of Prudential Securities, and he directed the early funding of MMFX Technologies Inc. More recently, he secured financing for Rangetree Strategies and UTC Financial in the insurance finance industry. He attended the University of California San Diego and received a bachelor’s degree in Economics.

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