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Carnot Engines

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Aiming to develop the most efficient, zero emission, multi-fuel engine to decarbonise heavy-duty power.

193%
 - 
Funded 30 Sep 2024
£500,001 target
£976,943 from 709 investors
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Business overview

Location London, United Kingdom
Social media
Website carnotengines.com/
Sectors Automotive & Transport Non-Digital B2B
Company number 12179870
Incorporation date 29 Aug 2019
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Investment summary

Type Equity
Valuation (pre-money) £20.2M
Equity offered 4.56%
Tax relief

EIS

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Business highlights

  • Over £12m raised to date in debt, equity & grants
  • £2m partnership with Mitsui O.S.K. Lines (MOL)
  • Over 2,600+ engines in pre-order commitments
  • Targeting to launch commercial pilots in January 2025
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Key features

  • No Secondary Market
  • Nominee investment min. £20.80 +
  • Direct investment min. £50,000.00 +

Pitch

About the Campaign

Join us for Carnot's second raise on Seedrs as we aim to decarbonise heavy-duty power in the Maritime, Off-Grid Energy, and Heavy-duty vehicles markets.

With £5.2m in UK Government grants secured, £2.8m in terms sheet commitments, Partnership & Investment from a top 10 global shipping company Mitsui O.S.K. Lines (MOL) who have also indicated their interest in co-developing over 2,600+ engines which we have secured on pre-order. Having achieved most of our goals from the last raise, we now need to accelerate our mission.

Invest now and join us on our mission to become the UK's next-generation engine manufacturer.

Market Opportunity

Our core markets, Road Transport and Shipping, account for 13% of global emissions and are facing increasingly demanding regulations.*
Off-Grid power has Stage V regulations and Marine the IMO GHG Strategy, requiring vessels to increase efficiency by 2030. Highly competitive industries cannot afford to adopt higher cost decarbonising solutions. Carnot technology is working on a solution which aims to reduce cost whilst decarbonising, giving us an advantage in a global engine market.

*Source: Ourworldindata.org (2020)

Traction & Key Accomplishment

Valuation: Our valuation has continuous increased since 2020. Now, we've secured investment at a £20m valuation (as of March 2024) —a 72% increase from last year. We consistently aim to deliver value for our crowdfunding shareholders and will continue to do so.*

*(Past performance is not a reliable indicator of future results)

Technology: We started with an idea in 2020, designed and prototyped in 2021-22, Successfully validated the core technology in 2023, working on transforming our prototype into a commercial pilot product in 2024 and have started to design our pilot production line for 2025.

Commercial: We have secured: 2 funded pilot trials; over 2,600 engine pre-order comitments; Approval in Principal (AIP ) process underway for regulatory approval for maritime products; 3 co-development partnerships including a major Global shipping fleet, Korean OEM and top British engine distributor.

Government Funding: £5.2m won to decarbonise maritime power, including a hydrogen port power solution, an ammonia marine engine, and a hydrogen range extender for vessels servicing offshore wind turbines.

Team

Archie Watts-Farmer CEO & Co-Founder - 15yrs experience developing aerospace engines with extensive experience using novel materials and production techniques.

Francis Lempp Co-Founder & CBO - Quantum Physicist by background and head of test and development at Carnot alongside fundraising & commercial responsibilities.

Nadiur Rahman Co-Founder & COO - Head of operations and designer. Previously developed engine concepts.

Business Model

Carnot will manufacture engines, selling directly to customers. We will collaborate with the existing supply chain for scalable component production while handling engine assembly in-house. We aim to sell bare engines for customers to integrate into their own products and complete generator products. Our initial product that we are developing is a 50kW single-cylinder engine, followed by 2 and 4-cylinder versions, culminating in a 500kW Marine APU model.

Use of Funds

The biggest priorities over the next 12 months are:

- Upgrading our R&D facility to accommodate higher power engines, testing equipment and overall capability.

- Deliver on our field trial commitments including sea trials for our hydrogen auxiliary power unit.

- Complete design of our pilot production line, for low volume manufacturing in 2026.

Key Information

Outstanding debt

A £22,000 Bounce Back Loan with HSBC charged at 2.5% interest. The loan is to be repaid by 28th July 2026.

Funds from this round will not be used to repay this debt.

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If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage is issued by Seedrs Limited (trading as Republic Europe) ("Republic Europe"), and has been approved as a financial promotion for the purposes of s.21 of the Financial Services and Markets Act 2000 by Prosper Capital LLP ("Prosper") which is authorised and regulated by the Financial Conduct Authority with firm reference number 453007 on 20 August 2024. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Republic Europe platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Republic Europe platform. It is not for distribution in the United States of America and all investment activities take place within the United Kingdom. Any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

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Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £20,236,945

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

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Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

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Nominee investment

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

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Secondary market

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Direct investment

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Payment options

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Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

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Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

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Security Token

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