As tomorrow is the last day of our campaign we thought it would be helpful to recap the top 10 questions we have received from our investors and followers.
1. Do you anticipate the company to eventually go public or you rather hope for big acquisition?
We have no preference on the form of exit and will consider all options in the interest of all our stakeholders. Each exit has its own characteristics and need to be considered at that juncture, even as to who the acquirer is, but rest assured that we have had experience in being acquired, going public, or even being acquired after going public
2. What is the projected value of the company?
Our plan is to launch in the Pacific Northwest as our test market and move our way down to California, the largest market in America. As we make progress we expect our valuation to increase but I don’t think we are allowed to speculate what that might be. However, we believe that we have the characteristics of several of the economy-sharing companies that have gone before us such as Uber, Airbnb, Ring, and Waze. Our plan is to be at a revenue run rate of at least $50M in 5 years. In that regard, it might be useful to note that there are about 1M EVs in America and various analysts project the industry growth to be between 50% to 80% annually for many years. At the very least we expect to grow with the industry, which hopefully will translate into healthy valuation multiples.
3. Who pays for the cost of ePort hardware, the company or the “Heroes” (Hosts)?
The cost of hardware will be covered by a user upgrading to a premium level subscription. The cost of hardware will be amortized and absorbed into the price. Our manufacturing partner, Arrow Electronics, will build and deliver the product directly to subscribers and additionally assist us in financing options for the components.
4. You state in your campaign that there is no quick charging yet some companies claim, including Tesla, that they have DC Super Chargers.
We state there is no “quick charging” because the fastest you can charge a car is 30 minutes. When you compare that to filling up on gas, many drivers would find it unacceptable to sit in a gas line for that long. Which is why we focus on charging everywhere you would want to park, so you can constantly top off and extend your range.
5. Do you take into consideration that your hardware may need to be updated pretty often to keep up with the industry standards?
The J1772 connector on chargers (except Tesla) is a North American standard that took some time to take hold and all EVs in America either uses that plug or can adapt to it, including Tesla. We believe that the standard is not going to change any time soon, particularly given the hundreds of millions of investment by all participants in the industry. Also, our ePorts control the electrical outlets to which the chargers plug into, and our Cameo fits over the J1772 connector so we think that we would be relatively immune to industry standards changing any time soon.
6. You also state that you are the only P2P company in the space. Do you have any proprietary solutions/ patents that will make it more difficult for competition to develop similar platform?
We claim to be the only “dynamic” P2P charging platform. There are others that try to do this, but they are glorified listing apps, and the process of booking a private station is manual and tedious . . . certainly not an option when running out of juice in a pinch. Imagine if when using your Uber app, you had to reach out to all the drivers individually to arrange your ride. Our platform is designed to intelligently assess availability of stations and allow drivers to see and book available stations with the push of a button; a big leap forward in this space. Our IoT components will make charging more dependable, much easier and automated. That is where we are focusing the bulk of our patent work - the ePort and Cameo.
7. When will the app and hardware be released?
We plan on testing and releasing beta apps as early as November, with a full app launch in Q1 of 2019. Hardware will be delivered later in 2019.
8. How will your partnership with Verizon work?
As part of the Verizon Partner Program, we will work through several stages of Verizon support. First development. Verizon will help us develop our hardware and certify through FCC, greatly reducing time and cost to market. Then they will offer resources to help us develop sales tools and media. When launched, we will be able to sell alongside Verizon. This will allow their substantial sales force to generate leads (inside and outside reps), while providing a portal to track leads through closure. Eventually, as we grow we will also be able to take advantage of co-branding opportunities. We feel this will be most valuable on the B2B side, identifying landlords, businesses, and retailers who can benefit from our IoT hardware to link their electricity sources to our cloud platform. This will help them generate revenue, attract customers, and keep employees happy. We are excited about partnering with Verizon and also Arrow Electronics who helped take the inventors of the Ring doorbell into market. We feel our early partnerships set us apart from other small players entering this space.
9. How much money does a Hero (host) make? How do you get around utility restrictions for reselling electricity in certain places?
Heroes are primarily opening their home charging station to help EV drivers in need. It isn’t a lucrative revenue source. Hosts will typically charge $1-$2 per hour to recoup electricity costs. Notwithstanding, some commercial operators charge more than $10 per charge so there may be opportunities for our Heroes to make more with customization of the amenities they offer, such as WiFi access, etc. If 5% of Level 2 owners open their driveways to the public then we can more than double the amount of charging stations available and make a big impact in rural areas.
Heroes get free access to the entire network and all of its features. They are also are able to take advantage of our Power Hero Perks program which can save them over $2,000 per year in dining, travel and entertainment.
Our Heroes do not sell electricity. They rent parking with complimentary use of a charging station. Therefore regulations around selling electricity do not apply.
10. Will you manufacture charging stations?
This is not in our current plans. By not manufacturing a charger, we won’t compete with charger manufacturers. It would be more valuable to become the central platform on which all chargers integrate for reservations. That is our long-term goal.
Vice Chairman & Co-Founder