The intelligent energy control system. We save companies on electricity bills and CO2 emissions.
Business overview
| Location | London, United Kingdom |
|---|---|
| Social media | |
| Website | gridduck.com/ |
| Sectors | Energy Digital B2B |
| Company number | 09545657 |
| Incorporation date | 16 Apr 2015 |
Business highlights
- Running in 187 sites, managing 514 appliances
- Enables companies to cut energy costs and CO2
- Rushlight Energy Reduction Award 2020
- Backed by Veridian Ventures
Learn more about convertible campaigns.
Idea
Introduction
Energy has been in the news lately. Last year, the price of electricity tripled, while the carbon price doubled.
Companies waste a lot of energy, losing money and causing unnecessary emissions. UK businesses could save £6bn a year through improved energy efficiency by 2030, yet only 14% of commercial buildings have a Building Management System. The remaining 86% don’t have the means to automate and manage their appliances. They are our target market.
With GridDuck, companies can save energy, monitoring and switching appliances on/off remotely. Our wireless, cloud-based energy management system is cost-efficient and easy to install. We have built an intuitive dashboard, an intelligent software back-end and software interface (API) for 3rd party systems, alongside integrating a range of wireless sensors and switches.
Our service has also grown to include gas and water monitoring, alongside integrating existing meter data. With our Advanced Rules, users can also set up custom automations.
Substantial accomplishments to date
2016
· Innovate UK grant (Energy Catalyst 2) to develop a Demand Response prototype
2017
· Initial energy management prototype tested in two fuel stations
· Innovate UK grant (Energy Game Changer and Global Co-operation)
· Runner up, Energy Innovation Awards
2018
· Energy management trials in the UK and Thailand
2019
· Commercial launch in April 2019
· Grants from BEIS to trial heat pumps, air conditioning units and electric vehicle chargers
· ISO27001 certified for cybersecurity. Penetration Test
· Commended, Business Green Technology Awards
2020
· Green light to install in government buildings (after an 18-months procurement process)
· Winner, Rushlight Energy Reduction Award
2021
· Seed fund raise with Veridian Ventures and Seedrs
· Hired 4 new people in sales & marketing
· Successful installs at & repeat orders from agriculture & manufacturing clients
· Partner in a government grant project with British Gas and Gengame
·(As promised in our last raise): Interface allowing customers to create their own rule sets to suit their businesses
· (As promised in last raise): System to support time-of-use tariffs, demand response and local balancing with renewables
· (As promised in last raise): dedicated mobile app for installers
Monetisation strategy
Sales approach:
We successfully switched to manufacturing and farming, mainly through cold calling and referrals
Before COVID-19, most of our sales came via energy consultants and facility managers in hospitality and offices. So we had to get into new sectors
· Over time, we plan to build up indirect and online channels, focusing our direct sales team on large opportunities.
· We have increased our marketing activities, including events and online (blogs, ppc, lead magnets). Web traffic has more than doubled since April 2021
Pricing: We charge a mark-up on the hardware, plus a monthly fee per appliance.
· Installation is charged extra
· Additional functionality that we develop will be priced on top
· We are offering hardware, software, installation and support in a 2-year deal
Use of proceeds
We aim to grow our revenues with the proceeds. We will use the government grant budget to further evolve our technology.
Growing revenues:
To target large customers we will focus on cold-calling and networking to build our pipeline.
2 new graduate sales staff in Oct 2021, adding 1 more experienced sales person to 3-strong team.
After our first sales achieved in France and Ireland, we plan to expand in Europe.
Indirect channel: recruitment plan for installers and consultants
Online channel: e-commerce channel for installers
Marketing:
• Events: attending sector trade shows and organising webinars
• Online tools (e.g. savings calculator) to drive paid search traffic
Publishing our own calculation of energy waste by sector.
Product development (paid from grant):
· Developing gas & water metering
· Improving dashboard to include benchmarks and comparisons for multi-location clients (ratings, traffic light system etc.)
· Platform: enabling partners to connect with us via APIs
Key Information
Advance Subscription Agreement - Key Terms
This investment round is being raised by way of a convertible equity investment structure, in this case, an 'Advanced Subscription Agreement'.
The key terms that apply to the Company’s advanced subscription agreement are set out below. See also the attached Key Terms document for further details.
Discount – 20%
Valuation cap - £4,000,000
Default valuation - £3,000,000
Conversion is triggered by:
(1) An Equity Fundraise – defined as the Company raising investment capital of at least £300,000 from one transaction or a series of transactions, in exchange for the company issuing equity shares;
(2) A Change of Control of the company (transfer of more than 50% of the share capital) or IPO
(3) Longstop Date - 21.08.2022
(4) Winding up event
On conversion upon an Equity Fundraise, Change of Control or IPO, the convertible will convert into the highest class of shares at the lower of (i) a 20% discount to the price of the relevant trigger event and (ii) the price a share would be if the pre-money valuation was equal to the Valuation cap.
On conversion at the Longstop Date or on a winding-up event, the convertible will convert into the highest class of shares at the lower of:
(i) the lowest price of any shares issued after the advance subscription agreement is signed; and
(ii) the price a share would be if the pre-money valuation was equal to the Default Valuation.
Debt
The company has a bounce back loan from TSB Bank for a total of £50,000, which was provided on June 11, 2020. The company pays £887 per month in interest (2.5%) and will need to repay the loan by July 2026.
The company also has a shareholder loan, provided by founder Gregor Hoefter in the amount of £113,411. The loan is accruing interest at 6% and will be repaid only once the Company generates a pre-tax profit of at least £10,000 per calendar quarter, for two consecutive quarters.
None of the funds raised will be used to repay these loans.
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