Climate & Energy resilience with AI for hydropower and energy trading optimization.
Business overview
| Location | Trélex, Switzerland |
|---|---|
| Social media | |
| Website | wegaw.com/ |
| Sectors | SaaS/PaaS Digital B2B |
| Company number | CHE-155.570.566 |
| Incorporation date | 26 May 2016 |
Business highlights
- Secured 1.7x 2023 revenues for 2024
- Achieved 89.46% Gross Profit growth from 2022 to 2023
- € 2.4M* of CARR of proposals in play in CA, NO & CH
- € 4M* funding raised from ESA & Swiss government
Key features
Learn more about convertible campaigns.
Pitch
About the Campaign
Wegaw helps governments, energy companies, and traders forecast water availability for hydropower by assessing mountain snow levels. With outdated models and climate change making weather forecasts less reliable, predicting future water availability for hydropower production is challenging.
After successfully piloting the solution in 8 countries with 20 different clients, Wegaw is ready to commercialize the solution in international markets.
Market Opportunity
Wegaw is targeting the hydropower, water and power trading industry. With initial markets of Nordics, central EU and North America, Wegaw plans to push its international expansion further from 2025 onwards.
After a bottom-to-top analysis, with +200 accounts reviewed, we calculate the snow & water monitoring alone represents € 1.03B market opportunity for Wegaw.
Starting at an average ticket size of €264k (ARR based on 3 proposals), we intend to upscale it with a target ARR opportunity of €20M by 2030.
Traction & Key Accomplishment
Wegaw achieved 89.46% Gross Profit growth from 2022 to 2023, realizing its first commercial revenues in the same year.
We have already secured 1.7x 2023 revenues for 2024.
These are a few of the highlights of the last 18 months:
- Closed €1.4M contract with the Swiss government.
- Closed first 3-year contracts in Turkey and Canada.
- Renewed contract with the Andorran Government.
- 2.4M CARR (committed annual recurring revenue) of proposals in negotiation with listed companies in Canada, Switzerland and Norway.
- 2 partnerships developed in Turkey and Japan.
- Business case published with the city of Vancouver (serving 2.8M people water and energy) on operational cost reduction.
* revenues are in various currencies and have been converted into Euros at the exchange rate of 26/06/24.
Team
Wegaw is composed of a world-class team with hires from the top universities in the world (like Imperial College, UCL & EPFL). We have a multinational (5 nationalities) and a multidisciplinary team composed of hydrologists, environmental engineers, telecommunication engineers, geospatial technologists and AI/ML experts.
Wegaw's leadership is composed of seasoned professionals with experience from institutions such as CERN, the United Nations, and HP.
Business Model
Wegaw offers a 3-year data subscription contract to our clients. The pricing varies from €9k to €12k per asset per annum, depending on the client's region and several other factors (installed power capacity, region, etc.).
On average, our current proposals in the negotiation stage have €264k in ARR, with a 3-year contract commitment.
Larger companies with 3,000+ MWh under management are targeted at € 1M - € 2M ARR deal size for Wegaw, according to our market research.
Use of Funds
This CLA round is part of our Series A round, to be used as follows:
• 75% Sales: Hiring sales team in our key selected markets like Canada, Norway & the US to further pursue our commercial growth.
• 15% Development: To improve data & service quality and integration with currently used platforms to provide better service to our current & future global clients.
• 10% Sales enablement: Ensuring Wegaw’s brand & marketing capabilities create a global footprint across new & existing key markets worldwide.
Key Information
Convertible Key Terms
Investments in this Campaign will be made under an Advanced Subscription Agreement (“ASA”). Under an ASA, investments convert into shares upon the occurrence of a future specified trigger (at a price dependent on the type of trigger). Please also refer to the “Key Terms” document attached to this Campaign in the Documents section for more detailed information.
If the Company completes a capital increase yielding gross proceeds of at least CHF 1,000,000, including conversion of convertible investments and any other indebtedness, that will constitute a “Qualifying Equity Fundraise”.
If there is a Qualifying Equity Fundraise or more than 50% of the voting rights attaching to the shares of the Company are sold (a “Change of Control”), then the ASA will convert at a share price calculated as follows:
• If the valuation of the Company is less or equal to CHF 8m, at a 20% discount to that valuation divided by the fully diluted equity of the Company; or
• If the company's valuation is higher than CHF 8m, the share price will be equal to CHF 8m divided by the fully diluted equity.
If there is no Qualifying Equity Fundraise or Change of Control prior to the Longstop Date, or there is a winding-up or cessation of business by the Company of any kind prior to any such event, then the ASA will convert into shares assuming a discount of 20% on a fully diluted pre-money valuation of CHF 8,000,000.
Shares issued on conversion will be the most senior class of shares issued pursuant to the Qualifying Equity Fundraise or in issue in the Company at the Longstop Date, Change of Control or Winding-Up Event.
Outstanding Convertible
The company has the following outstanding convertible loans, which may convert to equity after this round and dilute existing shareholders:
1. €100,000.00 loan from Sabadell Bank, with the following key terms:
• Interest rate: 0%
• Conversion trigger: an IPO, a change of control, any payment of proceeds or distribution of profits and/or reserves, on winding up and any round of investment at the lender’s discretion.
• Conversion price: CHF 0.57 share price
• Valuation Cap: N/A
• Share class: Ordinary shares
• Repayment date: Jan 2027
Material debt
The company has the following outstanding loans:
1. €117,794.00 loan from Raiffeisen at a 2.250 % interest rate, guaranteed by the Canton Vaud. The loan is being repaid CHF 4,900 every quarter, plus interest.
2. €1,024,340.00 credit line from UBS at a 2.8% interest rate, guaranteed by the Swiss Environmental Agency. Payment terms are flexible, but the overall ruling is that 20% of the credit will need to be amortized by 2026 and 100% in 2030.
The funds raised from this investment round will not be used to repay these loans. Funds are for operational growth and company development.
Exchange rate
Direct investments in the round from investors outside of Seedrs investing 95,000 Swiss Franc are reflected in the campaign at an indicative exchange rate of 1:0.975 CHF to EUR.
Investments on Seedrs are in EUR.
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