Bemærk: Dette Springboard afholdes på engelsk.
The company have been building up the business for 4 years now with an organic growth strategy. The are now looking to scale this in a rapid way by bringing on board external capital, new competences and market access. They are strong on the technology aspects but are looking for sparring and advise with the following:
1.How to develop a marketing plan for a yet to mature market
2.How to source and retain good talent moving forward – what works and what does not
3.How to keep growing the valuation of the company and be strategic about it
4.Explore new business model and value creation in other domains
They need help
1.To connect to more customers – esp companies that have global scale
2.To attract some additional capital to close the forthcoming round. They have found the lead investor but need complimentary funding to syndicate (aprox 2mEUR).
3.With access to certain labs/facilities e.g Acoustics, RF, etc to speed up their development
Branche: Miljø, Klima, Hardware, Software/SaaS
Udviklingsstadie: Proof of Scale
The company offer environmental intelligence as a service monitoring & modeling air quality & noise in cities. They reduce deployment complexity, dramatically lower cost (by many orders of magnitude) and streamline data collection and analytics for city officials to keep track of their environment.
They offer this as a managed service to enable new type of data enabled business e.g autonomous vehicles, optimise buildings, new healthcare services etc. and has been co-developed with the city of Copenhagen and takes into consideration needs of municipal stakeholders and citizen engagement.
The company have been building up the business for 4 years now with an organic growth, but have started to scale the solution to various cities in Europe, Mexico & India and building on high growth rate in revenues and traction (approx 5mio. DKK in 2016-17).
Afsætning & Distributionskanaler
Finansiering & Kapitalrejsning
Strategi og vækstplaner
Virksomhedsdrift & Handlingsplan
Problem / Need
According to WHO, 4.3 million people a year die prematurely from illness attributable to the air pollution. Cities around the world are struggling with pollution and quality of life as more and more people are moving to cities. Currently Air quality and Noise is measured in a few location with very expensive equipment and hardly gives any insights as the data is historic and sparse, even though the equipment meets compliance standards and costs upward of 200,000 Euros per location. We are on a mission to change this by making it easy to measure the air quality & noise levels in high detail and showing the sources, relationships and forecasting at a hyper local level. We deliver a low cost, rugged and accurate sensor node combined with cloud software that runs various air quality and noise models. This is designed to empower both citizens and governments to take action and get real-time feedback.
The Product / Service
We offer sensing as a service for monitoring air quality & noise in cities. We reduce deployment complexity, dramatically lower cost (by many orders of magnitude) and streamline data collection and analytics for city officials to keep track of their environment. We deliver hardware and software via a fully managed service. We run a cloud based subscription - per node / month typically and provide matched hardware and access to a API and dashboard with both historical and real-time data giving customers deep insights. In addition we offer insights on the data via micro services that are tailor made to enable cities to mitigate issues. Examples of such services are via ITS (intelligent traffic systems) and mobility services on public transport. The offering has been co-developed with the city of Copenhagen hence the name "CPH" sense and takes into consideration needs of municipal stakeholders and citizen engagement. We have started to scale the solution to various cities in Europe, Mexico & India and building on high growth rate in revenues and traction (approx 5mio. DKK in 2016-17).
The global environmental monitoring market is estimated to reach USD 19.56 Billion by 2021, growing at a CAGR of 7.7% during the forecast period. We target smart city projects typically and we are forecasting that to grow to about 7-80 cities within the EU. We hope to take 8-10% market share in the segment and the expected addressable market would be atleast 100-120 million EUR by 2021. Furthermore, there are other overlapping industrial applications that could increase the total addressable market significant.
Our sales strategy is based on channel sales via key integration partners. We already have deals in place with CISCO, telecom players like T-mobile and utilities entering the smart city markets e.g Lyse in Norway and NrGI in Denmark.
Most of our competition are the legacy laboratory systems instrumentation companies that offer very expensive and large size solutions (20 foot container at 10 times cost) e.g . http://teledyne.com/ or https://www.thermofisher.com/
We are seeing a new emergence of machine leaning only based startups that might become serious competition to us e.g https://breezometer.com/ or https://aclima.io/
In addition, there are numerous smaller companies building low cost but unreliable sensors mostly focused on indoor application. Our strategy is build a dual hardware (actual data) and software based solution (prediction) that takes the best of both worlds and makes it much more affordable.
Our the technical side our defeasibility is based on methods we have developed for drift monitoring, humidity and temp compensation and neural networks based calibration methods. One the commercial side we have built protection via pre-integration to large smart city players e.g CISCO & T-mobile making it go faster to market.
Sales & Marketing
Currently the bulk of the sales is via direct sales of our team with key cities in Nordics. A secondary sales channel has been our global partnership with CISCO which is projected to overtake direct sales this coming quarter. In addition we are creating bundled sales with other smart city projects and companies e.g street lighting companies, utilities and environmental consulting companies. In the coming year we also plan to setup dealerships in Asia and US markets via existing environmental sensing companies. We have several paying pilot customers globally e.g Denmark, Norway, Mexico, Austria etc. We have also bundled our solution with CISCO via a partnership agreement and thus are using their channel to develop further markets. In addition we have participated in several trade shows for direct sales and are currently establishing partnerships with outdoor lighting companies like Schréder Group & Zumtobel group along with dealers in many Asian countries. We land new customers due to the simplicity of our offering and the dramatic reduction in total cost of ownership. In addition we are helping our customers with insights rather than just sensors and data, which is highly appealing to less technical customers.
We offer sensing as a service. We run a cloud based subscription of 500 Euros per node / month typically and provide matched hardware and access to a dashboard with both historical and real-time data giving customers deep insights. We run a fully managed service that includes various value addition like calibration, benchmark data and EU standards for additional revenues. This fee is a considerable reduction in total cost of ownership over 24 months to our customers and thus we do not foresee major challenges in uptake. We currently have 4-5 new customers per quarter and we expect this to raise to 10-12 new customers in the coming year, yielding about 400-500 recurring subscriptions in the coming 24 months which in turn translates to approx. 250,000 EUR per month. We are already cash flow positive in the current scale but we expect to scale our solution quite rapidly to create growth and break even in 36 months.
Currently we are in the midst of a funding round with numerous investors in negotiation. We are seeking 7.2 million EUR (aprox 50 mDKK) for a series A that will be primarily be used to validate the business model of sensing as a service in a full city scale (incl Capex costs). We plan to deploy our sensors in key European cities and create a pervasive service in the coming 24 months. The funding will be used to scale the technical team, maintain hardware inventory and offer fully calibrated data services along with developing new sales channels. Currently we have commitment from ABB Ventures for 2mEUR and other ongoing discussions with IKEA ventures, Bruel & Kjaer, Emerald Ventures, Chrysalix venture etc to make a syndicated investment. We are also looking for Danish VC’s / family offices to compliment the funding.
We are looking to setup an advisory board ASAP and a more formal board once the funding round is closed. We are looking for senior leaders and outstanding people who can help open doors, shape strategies and be tactical once in a while.
Questions for the panel
5. How to develop a marketing plan for a yet to mature market
6. How to source and retain good talent moving forward – what works and what does not
7. How to keep growing the valuation of the company and be strategic about it.
8. Explore new business model and value creation in other domains e.g Healthcare, Facilities management, Industrial use cases etc.
4. We need help to connect to more customers – esp companies that have global scale
5. We need to attract some additional capital to close the forthcoming round, we have found the lead investor but need complimentary funding to syndicate (aprox 2mEUR).
6. We need help with access to certain labs/facilities e.g Acoustics, RF, etc to speed up our development process and keep costs low. Connected to it is experience with certification needs etc.