Michael Hurst · Tue, 11/23/2010 - 00:54
Business
Business Overview:
As one of San Diego's newest entrants into the cleantech space, ChloroFill has created superior tree-less agri-fiberboard products, which will serve as a green alternative to particleboard, plywood and other engineered products for the building, architectural, interior design and furniture industries. Unlike traditional particleboard, ChloroFill products have zero added urea-formaldehyde while offering significant aesthetic and structural advantages. ChloroFill products are made from agricultural residues, many of which are normally burnt, thus reducing the amount of black carbon that makes it into the atmosphere. Strong data support the view that the green building sector will continue its rapid growth trajectory despite the recent overall contraction in U.S. housing starts. ChloroFill has a protectable, sustainable and profitable technology that will enable it to address and stake out a powerful position in a huge and exploding market.
Project Type:
Industry:
Project Website:
http://www.ChloroFill.com What are your future milestones, and how much capital will you need to achieve each of the milestones outlined?:
Begin generating Contract Manufacturing operation by Feb 2011. Revenue from first two containers will generate revenue to finance next two containers as well as send samples to awaiting customers/ This will require $500,000 USD.
What is your total and operating cash burn (the amount you're spending) per month? :
With this round of funding, burn rate will be approximately 50,000 per month.
How many future rounds of financing do you project? :
2
Who is the Customer?:
We will sell or products to the building, architectural, interior design and furniture industries.
What is the Customer Pain that you are solving?:
1) California alone loses over $45B per year in healthcare costs and lack of productivity due to bad indoor air. The carcinogen formaldehyde, which off-gasses from most office furniture, cabinets and other sources, is a major contributor to this unnecessary expense. 2) Deforestation. We do not contribute to deforestation to make our superior treeless wood products. 3) CA and soon Federal Mandates for the drastic reduction of formaldehyde in wood products.
Names of any current or recent customers:
While we are not yet selling product, we have been contacted by architectural firms such as Gensler and other large potential customers such as Starbucks.
What is the Target Market?:
We will sell or products to the building, architectural, interior design and furniture industries.
How big is the Target Market in terms of Annual Sales?:
$5B-$50B
Sales/Marketing Strategy:
We have three product lines. All of which target a specific market segment al meet coming state and federal mandates. One panel is a green alternative to particleboard for the non-structural market, one a green plywood for the structural and non structural market with the beauty of a bamboo panel. The last is a green Structural Insulated Panel (SIP) which uses our panels to sandwich a partner company's rigid spy-based foam. We will sell directly to large office furniture manufacturers. They will save money by buying direct and self-storing the product. To second tier office furniture manufacturers, architects and designers, we will sell through distributors who already have established sales channels in this space. To home and commercial builders, we will sell through our structural products distributor and we are currently in talks with a large home improvement chain who wants to sell our products as well.
Provide use cases :
Aesthetic plywood product uses: Office furniture, flooring, wall paneling, modular construction. Green particleboard uses: Office furniture, flooring underlayment, cabinetry, door cores Structural Insulated Panel uses: Modular construction to replace stick-built, thus drastically reducing labor costs.
Competition:
Green fiberboard manufacturers: Kirei Particleboard manufacturers Boise Cascade, Roseburg
One-line Pitch:
ChloroFill: Superior treeless wood products with zero added formaldehyde.
Business Model:
Our model is using an agricultural residue to create high value wood products. ChloroFill has created superior tree-less agri-fiberboard products, which will serve as a green alternative to particleboard, plywood and other engineered products. Unlike traditional particleboard, ChloroFill™ products have zero added urea-formaldehyde while offering significant aesthetic and structural advantages.
Technology
What makes the technology/business unique and have a defendable competitive advantage?:
Made in USA. No deforestation. Working with ethanol companies to address their disposal issues. Also networked with national farming groups, and rural areas where raw materials are inexpensive and green manufacturing jobs can be created. Many tax incentives for doing this work in such areas.
Describe in detail the technology used in the Project - Address the innovation in significant detail :
Use agricultural residues with high cellulosic content to produce wood panels without the use of formaldehyde. Contact company for more detail.
What are the principles of the technology? :
Waste to wealth paradigm.
What, if anything, has been proven (and how far is this from a commercial scale)? :
Proven market. A distinct market awareness. Physical specifications which have been proven to be equal to or superior than traditional materials. Also, no Volatile Organic Compound off-gassing.
What challenges/risk does the technology face for commercialization?:
Funding.
Patent Numbers (Filed/Approved):
filed.
Team
| Name | Title |
|---|---|
| Michael Hurst | CEO |
| Louis Hess | COO |
Dr. Dong Zhou
Jeff Martin
Dr. Vikram Yadama
Current Investors:
Financials
Amount Sought:
$500,000 If raising funds, what shall the funds be used for?:
Contract manufacturing Seeding market and filling initial orders $20,000 R & D $20,000 Legal $25,000 Travel $200,000 Contract Manufacturing $5,000 QC $15,000 Warehouse & Shpg labor $20,000 Insurance $25,000 Compensation $30,000 Marketing $25,000 Blue Prints $115,000 Working Capital
Pre-Money Valuation:
$3,800,000
Amount invested by Founders:
$200,000
Funding Stage:
Pre-Revenue Funding History:
| Funding Round | Funding Type | Funding date | Funding Source/ Investors | Amount | Pre-Money valuation |
|---|---|---|---|---|---|
| Series A | Equity | 12/27/10 | OnGreen community | 500000 | 3800000 |
| Series B | Equity | 7/30/11 | VC (identified, very interested) | 5000000 | 5000000 |
Internal Rate of Return (IRR):
60% Testimonials
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