Carnot Compression

Sustainable oil-free air compressors

Carnot Compression

Sustainable oil-free air compressors

Scotts Valley, CA
Clean Technology
Carnot Compression has patented a method for solving the ‘heat of compression’ problem, and in the process has developed a means to drastically cut down on billions of dollars worth of wasted operating costs across a bevy of industries.

$71,606

raised
133
Investors
52
Days Left
$1.00
Price per Share
$11.3M
Valuation
Equity
Offering Type
$250.00
Min. Investment

$71,606

raised
133
Investors
52
Days Left
$1.00
Price per Share
$11.3M
Valuation
Equity
Offering Type
$250.00
Min. Investment

Bonus Rewards

Get rewarded for investing more into Carnot Compression

$250+
Investment
StartEngine Owner’s Bonus
This offering is eligible for the StartEngine Owner’s 10% Bonus program. For details on this program, please see the Offering Summary section below.
$500+
Investment
Investor Community Access
Receive periodic updates from our executive team on key developments and major milestones.
$2,000+
Investment
20 Horsepower
Receive 3% bonus shares.
$5,000+
Investment
50 Horsepower
Receive 5% Bonus Shares + 30-minute call with our executives to discuss the company.
$10,000+
Investment
100 Horsepower
Receive 5% Bonus Shares + $1,000 rebate on a future compressor purchase.
$25,000+
Investment
250 Horsepower
Receive 5% Bonus Shares + $1,500 rebate on a future compressor purchase.

Reasons to Invest

Compressors driven by electric motors consume $227B every year in electricity; Carnot has a roadmap for reducing these costs by 20% or more
Carnot has assembled leading experts from all over — including engineering PhDs, compressed air marketing veterans, and product development professionals
Huge Market - Compressed air will soon be a $40.43B market

The Problem


12% of U.S. electrical consumption goes to powering industrial air compressors


Oil-free compressed air is a must-have for many facilities in sectors like manufacturing and scientific research, automotive painting, food and beverage, and more. In several of these places, their air purity is of the utmost importance, as any small presence of oil could cause massive damages in lost product, contamination, downtime, and other setbacks.

Traditionally, people who only need low horsepower oil-free air compressors (especially the 5-30 horsepower range) are limited to machines with so many moving parts that maintenance is extremely difficult — this means the machines themselves do not last very long.


Carnot's proprietary technology cuts down on the total cost of ownership; eliminating the need for frequent routine service visits. The minimal amount of moving parts reduce service costs and increase uptime.


Compressors are also massive drains on companies' finances — guzzling an estimated $227B every year in energy costs. Additionally, our oil-free air compressors eliminate the possibility of oil contamination in the air, saving companies the worry of possible leakages that could cause product contamination.

The Solution


We’ve found a more efficient and reliable solution that should cut costs by 20% or more

Carnot has developed a patented process that is capable of compressing air in an isothermal manner. This allows for a constant temperature and improves the technology to one, single moving part.


By efficiently capturing the heat from compression, we’re able to greatly reduce the operating cost — and thanks to the simplicity of our design — total costs of ownership are driven down, allowing our customers to focus on their core competencies.

The Market


The potential for widespread applications for our technology means access to multiple markets

Air compressors make up a growing market that's projected to pass $40B by 2025, with the oil-free compression segment representing around a third of the sector. Worldwide, it is estimated that compressors account for over 30% of electricity demand for electric motors

Our Traction


A robust IP portfolio and commercial validation

Since forming the company in 2014 we’ve steadily developed our technology through a series of component tests, prototypes, and patents, leading to a pre-commercial prototype that is currently being tested under a grant from the California Energy Commission.


Our progress has been fueled by multiple million-dollar grants from the National Science Foundation and the California Energy Commission (in partnership with the Gas Technology Institute),  Funding from these grants has helped accelerate our development to its current near-commercial state. Additionally, we have invested in filing five patents to protect our intellectual property. 

Our Product


Oil-free compression with low operating cost and continuous operation

The CarnotTM Compressor uses a centrifugal process to compress gas/liquid emulsion, separating out the compressed gas and recycling the working liquid, while keeping a low internal temperature.


The low temperature means that our system is able to generate a large amount of compressed air with high operational efficiency.

Stage of Development

Industrial machinery takes time to develop. Our team has steadily developed the technology from benchtop proof of concept of the compression principle to a fully-integrated oil-free air compressor prototype. 3rd-party validation of the disruptive potential of the technology is evidenced by grant funding from the National Science Foundation and the California Energy Commission.

The progress made to date has positioned us to apply the lessons learned from the current test phase to the next design iteration, which we anticipate selling directly to customers.  

The Business Model


We will sell to niche markets and help them dramatically cut costs

Within the next year we plan to enter into niche markets around the country and begin selling directly to customers. We believe that our value proposition will enable us to gain traction in a premium-priced market.

Current oil-free air compressors in the 10 horsepower range sell for upwards of $17,000. After our market entry, we believe that a successful operating history and low maintenance costs will enable us to offer premium pricing and build customer loyalty.

How We Are Different


Nobody else has our isothermal process

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We set ourselves apart from all competitors with our patented platform technology. Our process is capable of achieving high pressure rises in a single stage of compression, at low heat, and on a 100% duty cycle.


The CarnotTM Compressor will be an attractive product for customers in all industries due to our ability to help minimize total ownership costs of the unavoidable, fifth utility.


This competitive advantage is protected by a deep IP portfolio of issued and filed patents, pending trademarks, and trade secrets.

The Vision


The most reliable, cost-effective option on the market

After our market entry we believe that consumers will quickly develop a heightened awareness of the CarnotTM Compressor, as the best product in the oil-free market.

 

Our first offerings will be in the 5-25 horsepower range and we will scale up to 100 horsepower in the next five years.

Our focus will also include finding the right market-fits for a broader range of applications within the life science, semiconductor, and food industries.

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Our Team


Bringing together industry vets and visionary engineers

Our personnel is made up of a diverse group with decades of complementary experience, ranging from 25 years of Finance and Corporate Development (CEO Todd Thompson), operations management (COO Hans Shillinger), product development (VP Engineering Chris Finley) to a Stanford post-doc (Senior Engineer Dr. Christophe Duchateau). 


We’ve also brought along direct industry experience with our Sales and Marketing Director, Kurt Schoeller, who spent 15 years in the air compressor sales and service realm. 


With this level of inside knowledge, innovative expertise, and business experience, we have been able to successfully drive our product to market, and are positioned to make a major splash in the next year.

Why Invest


Innovative product with multi-faceted market potential, all backed by an adept team

We believe the dynamic nature of our key technology allows Carnot the opportunity to disrupt the current state of our initial target market, while simultaneously penetrating a variety of other sectors. The many available industry applications will allow Carnot Compression to generate a steady cash-flow and rapidly scale.


Carnot Compression has built a team and product that are situated to conquer the compressed air market. The revolutionary and impactful CarnotTM Compressor, combined with our exceptional team will be a huge upset to a stagnant market that has been in need of some fresh ideas for years.   

Offering Summary


Company

:

Carnot Compression Inc.

Corporate Address

:

5610 Scotts Valley Drive, Ste. B513, Scotts Valley, CA 95066

Offering Minimum

:

$10,000.00

Offering Maximum

:

$1,070,000.00

Minimum Investment Amount

(per investor)

:

$250.00











Terms


Offering Type

:

Equity

Security Name

:

Common Stock

Minimum Number of Shares Offered

:

10,000

Maximum Number of Shares Offered

:

1,070,000

Price per Share

:

$1.00

Pre-Money Valuation

:

$11,332,182.00











*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below.

Voting Rights of Securities Sold in this Offering

Voting Proxy. Each Subscriber shall appoint the Chief Executive Officer of the Company (the “CEO”), or his or her successor, as the Subscriber’s true and lawful proxy and attorney, with the power to act alone and with full power of substitution, to, consistent with this instrument and on behalf of the Subscriber, (i) vote all Securities, (ii) give and receive notices and communications, (iii) execute any instrument or document that the CEO determines is necessary or appropriate in the exercise of its authority under this instrument, and (iv) take all actions necessary or appropriate in the judgment of the CEO for the accomplishment of the foregoing. The proxy and power granted by the Subscriber pursuant to this Section are coupled with an interest. Such proxy and power will be irrevocable. The proxy and power, so long as the Subscriber is an individual, will survive the death, incompetency and disability of the Subscriber and, so long as the Subscriber is an entity, will survive the merger or reorganization of the Subscriber or any other entity holding the Securities. However, the Proxy will terminate upon the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933 covering the offer and sale of Common Stock or the effectiveness of a registration statement under the Securities Exchange Act of 1934 covering the Common Stock.

COVID Relief

This offering is being conducted on an expedited basis due to circumstances relating to COVID-19 and pursuant to the SEC’s temporary regulatory COVID-19 relief set out in Regulation Crowdfunding §227.201(z).

Expedited closing sooner than 21 days.

In reliance on Regulation Crowdfunding §227.303(g)(2) A funding portal that is an intermediary in a transaction involving the offer or sale of securities initiated between May 4, 2020, and August 31, 2020, in reliance on section 4(a)(6) of the Securities Act (15 U.S.C. 77d(a)(6)) by an issuer that is conducting an offering on an expedited basis due to circumstances relating to COVID-19 shall not be required to comply with the requirement in paragraph (e)(3)(i) of this section that a funding portal not direct a transmission of funds earlier than 21 days after the date on which the intermediary makes publicly available on its platform the information required to be provided by the issuer under §§227.201 and 227.203(a).

Perks and Investment Bonuses*

Time-Based Rewards:

Visionary

First 72 Hours │15% Bonus Shares

Pacesetter

Next 4 Days│10% Bonus Shares

Trendsetter

Next 7 Days│5% Bonus Shares

 

Amount-Based Rewards:

$500+ | Investor Community Access

Receive periodic updates from our executive team on key developments and major milestones

$2,000+ | 20 Horsepower

Receive 3% bonus shares 

$5,000+ | 50 Horsepower

Receive 5% Bonus Shares + 30-minute call with our executives to discuss the company

$10,000+ | 100 Horsepower

Receive 5% Bonus Shares + $1,000 rebate on a future compressor purchase

$25,000+ | 250 Horsepower

Receive 5% Bonus Shares + $1,500 rebate on a future compressor purchase

 

*All perks occur after the Offering is completed.

The 10% Bonus for StartEngine Shareholders

Carnot Compression Inc. will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.

This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of common stock at $1 / share, you will receive 110 common stock shares, meaning you'll own 110 shares for $100. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

This 10% Bonus is only valid during the investors eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are cancelled or fail.

Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.

Irregular Use of Proceeds

The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Any expense labeled “Travel and Entertainment”. Salary payments made to one’s self, a friend or relative. Vendor payments.

Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$495,432.00 USD
$472,779.00 USD
Cash And Cash Equivalents
$8,581.00 USD
$17,004.00 USD
Accounts Receivable
$140,220.00 USD
$207,101.00 USD
Short Term Debt
$177,087.00 USD
$312,562.00 USD
Long Term Debt
$206,120.00 USD
$187,500.00 USD
Revenues And Sales
$811,760.00 USD
$972,258.00 USD
Costs Of Goods Sold
$618,456.00 USD
$665,403.00 USD
Taxes Paid
$0.00 USD
$0.00 USD
Net Income
-$15,625.00 USD
$87,255.00 USD

Risks

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.


Updates

Todd Thompson on NGV World Podcast

12 days ago

Over 100 investors and growing!  Thanks for all of your support.  If you would like to learn more about the Carnot story check out the NGV World Podcast hosted by Ricardo Carmona.  


http://ricardocarmona.io/episode20/ 


Best,


Todd

Notice of Funds Disbursement

25 days ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Carnot Compression has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Carnot Compression be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

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