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GridDuck

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The intelligent energy control system. We save companies on electricity bills and CO2 emissions.

117%
 - 
Funded 21 Jun 2022
£290,000 target
£367,130 from 357 investors
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Business overview

Location London, United Kingdom
Social media
Website gridduck.com/
Sectors Energy Digital B2B
Company number 09545657
Incorporation date 16 Apr 2015
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Investment summary

Type Convertible
Discount 20%
Tax relief

EIS

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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
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Key features

  • Secondary Market
  • Nominee investment min. £10.00 +

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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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

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 campaign for GridDuck has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 22 April 2022 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

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 Convertible

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

Investing in a convertible campaign allows you to invest today, with your investment converting into equity in the future, at a discount compared to other investors.

Learn more about pitch type on Seedrs

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).

Learn more about investing and pre-emption rights.

Nominee investment

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the 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.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Nominee investment). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

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

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.

Learn more here

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

This campaign offers the ability to pay for an investment by drawdowns.

Security Token

A security token is a digital asset that represents ownership or other rights. It is a digital form of traditional investments. In the future, you may be able to trade your investment through compatible exchanges.

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