Michael Breen · Wed, 12/01/2010 - 13:56
Business
Business Overview:
k Power is a tethered wind capture company that has developed the innovative cost-effective technology to enter the low-altitude wind market. Low altitude (<1,000 ft) wind has an average wind speed that is twice the wind at turbine height (300 ft) and 3 times the consistency. This results in a reduced levelized cost of energy (“LCOE”) than traditional wind turbine power.
Project Type:
Industry:
Project Website:
http://www.kpowerinc.com What are your future milestones, and how much capital will you need to achieve each of the milestones outlined?:
Technology Validation - in process begets
Series A $1.5M to $3M 2011 to get working utility scale unit begets
Series B $5M to $7M 2012 to get multiple customers & manufacturing established begets
Series C $10 + or acquisition by major 2012 or 2013 to launch global delivery
What is your total and operating cash burn (the amount you're spending) per month? :
Currently $0. 2011 $120,000 expected
How many future rounds of financing do you project? :
as above 2 -3 rounds until acquisition or major capitalization
Services Desired:
Accounting
Human Capital/Recruiting
Grant Writer
Who is the Customer?:
Wind Project developers worldwide who have secured or in the process of securing PPA agreements.
What is the Customer Pain that you are solving?:
We can delivered more power with a smaller real estate requirement across a greater geographic region with a lower cost and higher reliability.
Names of any current or recent customers:
Beta Customers in Austin Area
What is the Target Market?:
Global.
Phase I Start in US, Texas, California, Iowa, Michigan.
Phase II Move to Europe, Spain, Germany, Italy.
Phase III Rest of World
How big is the Target Market in terms of Annual Sales?:
$2B-$5B
Sales/Marketing Strategy:
New technology requires early adopters. Early adopters need to be reassured from a technical point of view and see deliberate financial incentives. K Power will work with early customers on a collaborative basis to participate in a mutually shared benefit pricing and incentives.
Competition:
Several groups are working on developing the next generation of wind technology.
MAKANI POWER
KITE GEN
WINDLIFT
AMPYX POWER
One-line Pitch:
Unique tether wind generation targets wind where it is strongest and most consistent.
Business Model:
k Power is a tethered wind capture company that has developed the innovative cost-effective technology to enter the low-altitude wind market. Low altitude (<1,000 ft) wind has an average wind speed that is twice the wind at turbine height (300 ft) and 3 times the consistency. This results in a reduced levelized cost of energy (“LCOE”) than traditional wind turbine power. We will manufacture and sell our products to Wind Developers
Product/Services Overview (what does it do):
K Power will deploy in 2011/2012 a utility-scale system that is available in a self-container standard ISO shipping container. Each unit will be able to produce approximately 250kW per hour. Typical installation will be in matched sets of 6 or 8 with a on-sight control system used to smooth the power generation signal.
Technology
What makes the technology/business unique and have a defendable competitive advantage?:
The most visible competitors are launching expensive equipment and running electricity down the tether, our patents provide a way to keep the expensive equipment safely on the ground.
Describe in detail the technology used in the Project - Address the innovation in significant detail :
3 Patents on utilizing Kite-like airfoils to produce power on the ground based equipment.
What are the principles of the technology? :
We are pursuing a push pull with a positive net generation of power. We have 4 ares of technology we are pursuing: Meteorological, Electromechanical, Aerodynamic, and Controls.
What, if anything, has been proven (and how far is this from a commercial scale)? :
Small scale prototype (<10kw) has been successfully deployed, operated and generated electricity. Technology validation is underway with a 3rd party renewable energy lab.
What challenges/risk does the technology face for commercialization?:
There are major well-funded wind turbine technologies with multi-billion R&D budgets industry wide. The challenge will be to bring a product to market that can meet the industry standard of reliability.
Team
| Name | Title |
|---|---|
| Michael Breen | CEO |
| Craig Varrichio | President |
Steve Smaha
Mitch Jacobson
Dave Culp
Financials
Amount Sought:
$3,000,000 If raising funds, what shall the funds be used for?:
Utility Scale demonstration. Current Prototype is undergoing a 3rd party evaluation at Southwest Research Institute (http://swri.org/) upon completion of the technology validation I will be looking to close on Series A round. Use of Proceeds will be Utility Scale demonstration and beta installation.
Pre-Money Valuation:
$2,000,000
Funding Received to Date:
$250,000
Amount invested by Founders:
$250,000 Testimonials
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