GET A PIECE OF CARNOT COMPRESSION
Sustainable oil-free air compressors
$133,046.53 Raised
Reasons to Invest
- Huge Market - Compressed air will soon be a $40.43B market
Proprietary Technology – Carnot has multiple patents, trademarks, and trade secrets protecting the technology.
Customer Traction – Carnot has identified an addressable market opportunity to provide oil-free air for robotic milking systems and is currently beta testing a device for this market.
overview
Carnot Compression: Delivering low-temperature, oil-free compressed air
At Carnot®, our simple, robust compressor provides a low-maintenance, long operating life product, all to give our customers…
Cost Savings – Carnot has a roadmap to reduce lifetime costs from compressors.
Clean Technology – Carnot eliminates oil contamination and disposal and has the potential to dramatically lower energy consumption from compressors.
With a team supported by world-class institutions including Munro & Associates and Oak Ridge National Laboratory, we believe Carnot’s technology is well positioned to reduce carbon emissions across a variety of industries.
The Problem
12% of U.S. industrial sector electrical consumption goes to powering 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.
According to our research, people who only need low horsepower oil-free air compressors (especially the 5-30 horsepower range) are limited to machines with many moving parts and frequent maintenance requirements. Often, the machines do not last very long when operated in demanding conditions, in our view.
Carnot's proprietary technology has the potential to lower total cost of ownership all through:
- Reduced energy consumption
- Eliminating the need for frequent routine service visits
- Eliminating downtime
- Eliminating the need for oil and filter changes
- Having a longer operating life compared to incumbent technologies
Compressors utilize a massive amount of energy—estimated at $227 billion every year in energy costs (source).
Approximately ⅔ of air compressors are oil-flooded. Plus, conventional oil-free compressors under 100HP are typically more costly and less efficient. Our goal is to offer an oil-flooded alternative with a lower lifetime operating cost than oil-flooded compressors.
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 with a single moving part for compression–a spinning drum.
By efficiently capturing the heat from compression, we believe we have a path to dramatically lower lifetime ownership costs, allowing our customers to increase their business’s operating profits.
*Products shown in this image are in the prototype phase, the Carnot Compressor is not currently available on the market.
Our Product
*The features listed in this graphic are anticipated features of the Carnot Compressor. The Carnot Compressor is in prototype stages and is not available on the market.
The Carnot® Compressor uses a centrifugal process to a compress a 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 oil-free compressed air with a low output-temperature, which gives us a path to high operating efficiency.
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 $40 billion by 2028 (source), 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 (source).
*Products shown in this image are in the prototype phase, the Carnot Compressor is not currently available on the market.
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, patents, alpha testing at a customer location, and beta-testing at a customer location in a beachhead market.
Our progress has been fueled by multiple million-dollar grants from the National Science Foundation and the California Energy Commission. Funding from these grants has helped accelerate our development to its current near-commercial state. Additionally, we have invested in filing and receiving multiple patents for intellectual property, and have trademarked the Carnot® Compressor.
In March 2022, Carnot began a $2 million project with the California Energy Commission, providing a non-dilutive funding runway to further develop and test the technology.
We are currently testing a beta version 10HP compressor designed for robotic milking systems. Our testing partner is an installer of dairy automation systems in the western US, and represents an early sales channel partnership opportunity. We believe that once we complete our beta test program, we will have sufficient orders to transition to a production launch.
Current oil-free air compressors in the 10 horsepower range sell for upwards of $20,000 (source). After our market entry, we believe that a successful operating history and low maintenance costs will enable us to build customer loyalty at a price point that we feel will generate attractive operating margins.
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 Carnot® 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.
*Products shown in this image are in the prototype phase, the Carnot Compressor is not currently available on the market.
After our market entry we believe that consumers may quickly adopt the Carnot® Compressor, and this may give us an opportunity to be one of the leaders in the oil-free market.
Our first offerings will be in the 5-25 horsepower range and we plan to scale up to 100+ horsepower. Our goal is to offer an oil-free alternative with lower lifetime costs and higher reliability than current oil-free compressors. In our view, meeting this goal will enable us to dramatically lower the carbon footprint from air compressors and gain significant market share.
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 temperature rise, with a 100% duty cycle machine.
We believe the Carnot® Compressor will be an attractive product for customers in all industries due to our ability to help minimize total ownership costs of the fifth utility.
Our product is protected by a deep IP portfolio of issued and filed patents, trademarks, and trade secrets.
Invest today!
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ABOUT
HEADQUARTERS
5610 Scotts Valley Drive, Ste. B513
Scotts Valley , CA 95066
WEBSITE
View Site
Carnot Compression has developed an innovative, patented compressor technology that solves many of the problems with existing compressors. The Carnot® Compressor’s unique, oil-free process has an opportunity to dramatically lower lifetime costs of ownership for compression across industrial, agricultural, and commercial applications. The Carnot Compressor is in the prototype stages of development and is not currently available to the general public.
TEAM
Todd Thompson
CEO and Co-founder
Hans Shillinger
COO and Co-founder
Sean Kilgrow
Director
Sean spends approximately 1 hour per week on Carnot.
Wayne Hagan
Director
Wayne spends approximately 1 hour per week on Carnot.
Larry Leis
Director
Chris Finley
VP Engineering
Christophe Duchateau
Principal Engineering Scientist
M Iffat Hassan
Intern
Kurt Schoeller
Sales & Marketing Director
Kurt has been recalled to active duty with the US Army and currently spends 1-2 hours per week with Carnot.
TERMS
Carnot Compression
Overview
PRICE PER SHARE
$1.60
DEADLINE
Feb 4, 2023
VALUATION
$22.25M
FUNDING GOAL
$10k - $3.2M
Breakdown
MIN INVESTMENT
$320
MAX INVESTMENT
$3,200,000
MIN NUMBER OF SHARES OFFERED
6,250
MAX NUMBER OF SHARES OFFERED
2,000,000
OFFERING TYPE
Equity
ASSET TYPE
Common Stock
SHARES OFFERED
Common Stock
Maximum Number of Shares Offered subject to adjustment for bonus shares
*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.
Investment Incentives & Bonuses*
Loyalty Bonus | 15% Bonus Shares
Previous investors receive 15% bonus shares. Eligible investors will also receive the Loyalty Bonus in addition to other eligible bonuses.
Time-Based:
Friends and Family Early Birds
Invest within the first 72 hours and receive 20% bonus shares
Super Early Bird Bonus
Invest within the first week and receive 15% bonus shares
Early Bird Bonus
Invest within the first two weeks and receive 10% bonus shares
Amount-Based:
$1,000+ | 1K Club
3% bonus shares + Access to Carnot Compression’s Investors Club
$2,000+ | 2K Club
5% bonus shares +Access to Carnot Compression’s Investors Club
$5,000+ | 5K Club
10% bonus shares + Access to Carnot Compression’s Investors Club
$10,000+ | 10K Club
15% bonus shares + Access to Carnot Compression’s Investors Club
$25,000+ | 25K Club
20% bonus shares + Meet with Management (In-person or Virtual)
*All perks occur when the offering is completed.
The 10% StartEngine OWNers' Bonus
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 $1.60 / share, you will receive 110 shares of Common Stock, meaning you'll own 110 shares for $160. 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 canceled or fail.
Investors will receive the highest single bonus they are eligible for among the bonuses based on the amount invested and time of offering elapsed (if any). Eligible investors will also receive the Owner’s Bonus and 15% Loyalty Bonus in addition to the aforementioned bonus.
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: Vendor payments. Salary payments made to one’s self, a friend or relative. Any expense labeled “Travel and Entertainment”.
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Stack Owner's Bonus & Rewards!
Members get an extra 10% shares in addition to rewards below!
REWARDS
JOIN THE DISCUSSION
0/2500
Timothy Kammerer
8 months ago
It has been mentioned that there are fewer parts associated with the compressor, however there are some that can and will eventually fail. That being said, most of your compressors will ship over a very large geographical area. Know this might require an extensive service area, have you considered having some of the parts able to be 3D printed? I am an investor in your first round, and look forward to seeing your success.
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Richard Koch
9 months ago
In today's atmosphere, where everyone is trying to minimize the use of carbon sourced energy consumption, can convincing cases be made that these compressors, in fact, use less power? Do you have metrics and results to prove to potential buyers that Carnot is indeed the only choice from a power consumption and oil avoidance point of view? Thus, given society's newfound abhorrence of the carbon molecule regardless of cost, is this the only environmentally sound choice? Are you disruptive enough in the industry?
Also, are you talking about industrial compressors all the way down to pancakes that contractors use to bend nails or shoot paint?
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David Svarrer
a year ago
This is very encouraging. I understand what Christopher Z is saying, however, in my humble view, I am continuing. It does not matter very much whether or not I lose my investment - I see your project as a startup - and if we do not continue backing you up - through thick and thin - we are failing you.
I do not even have any worries about any "impending insolvency". It is our role, as your early startup funders, to keep you well afloat and alive.
I am a seasoned investor in startups - and you can count on my participation to the very sweet or bitter end, and no hard feelings if you go down, and many lovely thoughts to you for you to succeed.
Dammit, you would not be on startengine.com if you were a fully fledged, operational, super-profitable outfit, now would ya'?
So. Count on me, and from your progress, on the technical scope - I admire your progress!
Keep it up, guys.
On a more practical note, I would like some more updates, where you maybe share some daily thing you are going through. Maybe I need to sign up somewhere for newsletters, I don't know.
On IP - I would stick to Christopher Z's comment here - maintain your IP - until you are floating and way above the red figures :-)
Well done!
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Richard Koch
8 months ago
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