(Extract from investor pitch made at Clean Equity Monaco 2014. Download the presentation here.)
Assignment: Investor Pitch and PPT Presentation
Vecor delivers a highly profitable solution to an unresolved environmental problem presented by coal ash.
About a billion tonnes of coal ash is produced every year, around 50% is being utilised, mainly by the cement industry, leaving 500 million tonnes annually being landfilled as waste.
To our knowledge no company in the world has yet succeeded in commercialising a coal ash based ceramic product.
Vecor’s technologies are verified solutions for the entire manufacturing cycle from the collection of coal ash waste to finished product.
We have a business that we believe ticks all the right boxes for cleantech investors, and I’ll quickly run through the key points:
- First, we have a game changing solution for multiple ceramic industries, as our technologies save money by using less resources.
- Second, our business model can scale rapidly, as there are multiple mainstream applications for our raw materials, and multiple sources of revenues, in multiple territories.
- Third, operational risk and upfront capital investment are minimized by forming JVs with local, experienced industry players in each market for each product, — Finally, from inception, we position our JVs for a trade sale or IPO within 3 to 5 years of formation.
Our business model is designed to reach multiple markets for all of our products. And here is how we plan do it.
First we form an exclusive Joint Venture with a local industry partner in a specific territory for a given product. This JV then builds and operates a commercial-scale factory showcasing the technical, financial and environmental viability of our technology.
Based on the operation of showcase, the local JV sells identical turnkey production lines and technical management
services to other industry participants, and expands across the territory. The JV will have upfront and on-going revenue streams from each of these installations.
Finally, Vecor exits the JV by trade sale or IPO 3 to 5 years. We have embarked on this path with our first JV.
Once our technology and business case is proven in the territory for a given product, we form other JVs in other territories with local industry partners using the same model, but without the need for building a new showcase factory.
Our JV based roll out plan has been designed to grow our company with minimal CAPEX. This business model can be
easily upgraded to faster growth once we have access to greater levels of capital.
Our first JV is established for the manufacture of ceramic tiles in China, but we have 6 product categories and identified 15 markets around the world where coal ash is abundantly available and there is significant economic activity. In each of these 15 territories we envisage at least 3 joint venture opportunities for our various ceramic products.
I will talk in greater detail about our first JV a bit further on…