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Verv Energy

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Where Sustainability Meets AI to Revolutionise Heating and Cooling.

135%
 - 
Funded 26 Mar 2024
£700,014 target
£1,003,855 from 518 investors
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Business overview

Location London, United Kingdom
Social media
Website verv.energy
Sectors Energy Digital B2B
Company number 07179872
Incorporation date 5 Mar 2010
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Investment summary

Type Equity
Valuation (pre-money) £12M
Equity offered 7.30%
Tax relief

EIS

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Business highlights

  • 13 patents granted in USA, Europe, China and UK
  • IP sales of $1million to global technology firm
  • Over £850k of grant funding secured in last 2 years
  • A mission to eliminate 4% of energy wasted in HVAC
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Key features

  • Secondary Market
  • Nominee investment min. £39.56 +
  • Direct investment min. £50,000.00 +

Idea

Introduction

Verv is a leader in HVAC innovation with its Smart Isolator, cutting energy use and predicting faults in AC units. As air conditioning comprises 10% of global energy consumption (2016), Verv's role is pivotal, especially with projections indicating a tripling by 2050, akin to China's current electricity demand.

Based in the UK, Verv has been serving blue-chip clients worldwide, aiding in ESG and Net Zero targets while reducing maintenance costs. We calculate that implementing Verv's Smart Isolator in just 1% of global AC units could annually save 126,000 tonnes of CO2 emissions, equivalent to powering nearly 2% of UK homes for a year or nurturing over 63 million tree seedlings for a decade.

Substantial accomplishments to date

Verv is advancing the energy efficiency landscape with our innovative Smart Isolator units, demonstrating significant achievements and establishing promising new trials. To date, Verv has successfully sold over 550 Smart Isolator units, marking a significant milestone in our journey towards energy efficiency.

Notable Achievements and Trials:

• Our inaugural trial with Mitsubishi Electric showcased a remarkable 32% energy saving from a single Smart Isolator unit. Encouraged by these results, Mitsubishi Electric has expanded the trial to include multiple units across its headquarters.

• Legal & General (LGIM) now has over 450 isolator units installed in their flagship head office in Cardiff. There are live discussions for further trials with LGIM more widely amongst their real estate portfolio of nearly £20bn of assets.

New Collaboration:

• We're excited to announce a new trial partnership with Cross Group, a global leader in the air conditioning sector, known for their expertise in VRV & VRF technologies. Cross Group works across various market sectors, including residential, commercial, and retail, with significant contributions to the hotel industry.

• For this trial, Cross Group will be testing five Verv Smart Isolators, with the potential for wider implementation across their extensive client portfolio, which includes companies like Premier Inn, Marriott Group and The Hilton Group.

Industry Recognition:

• Verv has participated in several high profile accelerator programmes, including Rockstart, PwC, Google, Cambridge University and CMS.

• Verv was honoured with the Air Conditioning Product of the Year: Components and Peripherals Award at the RAC Cooling Industry Awards in 2022. This prestigious accolade underscores the industry's confidence in our technology and our team's commitment to excellence.

Monetisation strategy

Verv has the great fortune of receiving income from multiple sources. There are more traditional revenue sources such as IP Sales - in 2023, Verv grossed over $1m from the licencing and sale of IP to a large, global technology business - and Grant funding - we have received over £850,000 in funding over the last two years.

In addition, we have both hardware and software sales, which is the focus of our efforts moving forward as we look to support the global built environment with their efforts to hit their net-zero targets. Verv offers isolator units at the same price as a traditional isolator, meaning the industry has additional net zero benefits at no extra cost.

Use of proceeds

There are three core areas of focus after the fundraise.

* 50% of funds will be deployed to support further sales and marketing efforts

* 25% will be used on stock purchases to open up volume pricing models

* 25% will be used to support our market entry into North America.

Primarily, the funds raised from this investment round will be used to support our recently appointed CEO in further expanding the sales and marketing teams and their global reach.

The money will also allow the company to buy more stock in volume to reduce the cost of each unit created.

Finally, with our recent market entry into the North American market and promising initial steps, we will use some of the proceeds to explore this market further.

With a new CEO in place, this round of funding is aimed at accelerating Verv’s sales and revenue and driving the business into its next stage of growth.

Key Information

Founder Interests:

Peter Davies, Founder and Chairman of Verv Energy is also involved with Austin Consultants Ltd (06352633), and Crimson Global Ltd (14018900).

- Austin Consultants Ltd (ACL) is a system integration company, of which Peter Davies is the Founder and Non-Exec. Peter attends a board meeting each quarter. ACL built the original Verv software infrastructure and continues to provide software services to Green Running Limited.

- Crimson Global Ltd relates to Peter’s personal hobbies and has no impact on his work at Verv.

Material Debt:

The company has the following outstanding loans:

1. £40,000 Bounce Back loan from Santander at an interest rate of 2.5% per annum. The loan was entered into in September 2020 and is to be repaid in monthly instalments until 29th September 2026. The current outstanding balance stands at £27,500.

The funds raised from this investment round will not be used to repay these loans.

Company Structure & Background:

Investors in this round are investing into and will become shareholders of Green Running Limited, company number 07179872.

The company was set up by the founder, Peter Davies, in 2009 as an energy consulting company and to store some IP created. The founder ran their first revenues through it in 2012 and in 2015 switched to being a product led company focused at the Smart Home. After raising a Series A round in 2019 and working his contract, the founder left the company to pursue other ventures. After the major investor/shareholder went into liquidation and with the company struggling through Covid, the founder made the decision to come back and, in partnership with SFC Capital, they bought out the major shareholders and proceeded with the current product for air conditioning.

Green Running Limited is the holding company which the investment will be going into and owns all the patents and IP and the entity they operate from. They have a wholly-owned subsidiary called Vlux that they were going to use at one point which is now dormant and doesn't contain any IP or value. The tech has been developed continuously since the first patents.

Share Multiple:

The share price for this round is £0.01978, investors can purchase lots of 1,000 shares at £19.78.

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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

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 Verv Energy has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 14 February 2024 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 £12,047,486

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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Custodian

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Secondary market

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Direct investment

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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

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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.

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