Rayton is a Title III - Regulation Crowdfunding Campaign and is actively accepting investments.
$500.00 minimum investment

Rayton

Evolving the Semiconductor Industry

Regulation Crowdfunding
Van Nuys, CA
Clean Technology
Accepting International Investment
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Join the 4,000 other investors who invested $5.5M in Rayton on StartEngine.

Company Description

Rayton uses patented, particle accelerator-based technology to produce engineered wafers that can serve as the basis for next generation electronics impacting industries such as automotive, aerospace, 5G, LED, and solar.


Many current and next-generation electronic-based technologies require either fast speeds, high power or both (1). While, silicon-based semiconductors are insufficient in these regards, semiconductors made from gallium nitride (GaN), gallium arsenide (GaAs), and silicon carbide (SiC) can serve as the foundation on which high-speed, high-power electronics will be built (2).

Rayton believes that its unique fabrication method for semiconductors will yield more wafers from a single bulk wafer than current industry production methods, thereby allowing the price of these wafers to potentially be reduced by as much 25 percent when compared to current market prices. Management believes that the reduced price point could help the growth of 5G infrastructure, advanced automotive electronics, cellular technology, etc. and help Rayton potentially gain market leverage as it hopes to serve the companies building these burgeoning technologies.

(Sources: 1, 2)

Key Highlights

  • Awarded two patents for our groundbreaking solar wafers and the processes required to manufacture them.
  • Manufacturing process can yield 100 times the material as conventional methods
  • Featured by numerous media outlets, including Fast Company, Inc., Forbes, and many more!
  • Backed by over 4,000 investors

Offering Terms

Security Type

Convertible Promissory Note

Converts to Common Stock

Minimum Investment

$500

Conversion Trigger

$5M

Maturity Date

12/31/2020

Valuation Cap

$50M

Discount Rate

30%

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.

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Evolving the Semiconductor Industry

"With over 4,000 investors Rayton was the most successful equity campaign on StartEngine in 2017. Previously, we envisioned using the technology for solar, which had a good cost advantage. But, our technology has so many uses in addition to solar. 

 

We have now found a revolutionary new way of impacting multiple markets.

 

Everything you are doing right now involves some kind of semiconductor. Rayton is pushing the limits of cost effective production for these materials. We plan to use our technology to create lower cost Gallium Arsenide wafers for the semiconductor industry as a whole, which can be used in automotive, aerospace, 5G, and LED, as well as in solar applications.

 

The material we create serves as the foundation for all of these high-tech devices. Rayton intends to lower the cost of gallium arsenide material and then sell the wafers to the people who make these electronic devices.

 

We believe that this pivot as a company gives us the path of least resistance and strengthens our market positioning. We believe it is good for business and good for our investors. The advantage given by our technology will generate significant revenue for our shareholders and at the same time bring us into a more advanced technological age."


Andrew Yakub

CEO





Rayton's New Direction

Silicon has played an essential role to the semiconductor industry to-date. However, we are now entering an age where certain applications require more expensive semiconductor material than silicon. In the high-frequency and high-power regimes, silicon is not suited to play a strong role.


Thus, Rayton has developed a unique technology that has the potential to reduce the price point for next-generation electronics by up to 25 percent. Because of this, Rayton can play a vital role in expediting the growth of 5G infrastructure, advanced automotive electronics, cellular technology, solar cells, and more. By lowering supply costs, Rayton achieves considerable market leverage, as we seek to supply all companies fabricating electronics on these advanced materials.


The vast majority of current and next-generation electronics require fast speeds, high power or both (1, 2, 3, 4). The material properties of silicon are insufficient to meet the demands for these applications. 


Semiconductors such as gallium nitride, gallium arsenide, and silicon carbide (GaN, GaAs, and SiC) have better electronic properties than silicon, and are currently used in the manufacturing of high-speed, high-power electronics. (1) However, the material costs for GaN, GaAs and SiC are magnitudes higher than silicon. 


Rayton stands poised to flip that equation on its head, utilizing a unique manufacturing process that efficiently uses these materials.


(Sources: 1, 2, 3, 4)



How Rayton Changes the Semiconductor Equation

Particle Accelerator Technology

We use a high-current, high-voltage proton particle accelerator from Phoenix Laboratories to slice GaAs wafers, reducing waste by up to 50%. Our accelerators cost less and operate with less energy compared to competing particle accelerator methods. Because of this, our particle accelerators are capable of making up to 100 times as many wafers with the same amount of semiconductor material as our competitors use to make just one wafer.

Manufacturing Efficiency

Diamond wire saws are currently the standard for cutting semiconductor materials for the electronics industry. The conventional method involves cutting raw materials with a diamond wire saw and wastes half the processed materials and cannot cut materials down to the two micron wafer thickness without significant yield loss or breakage.



The Market for Rayton's New Technology

The markets for products created with our methods are diverse and increasing in demand. For example, in the blossoming 5G network, high-power coupled with high-frequency transistors are necessary in transmission towers and mobile handsets. GaN is particularly well suited for such applications. Further, the high-speed receivers in cellular phones will likely be built on GaAs wafers. (2)


The high-speed and high-bandwidth requirements for the 5G cellular network will require the superior properties of GaAs and GaN. These materials are also used for a wide array of cellular components. In addition, they're necessary for many other products such as proximity sensors, Wi-Fi modules, flood illuminators, and dot projectors for facial recognition (VCSEL).


The wafers used for fabrication of all these components can seamlessly be replaced by our engineered wafers without any modification of downstream equipment. Thus, Rayton’s end-product can be plugged into existing fabrication facilities, reducing material costs for those manufacturers.

There are additional high-potential growth markets that our engineered wafers will significantly impact. These include automotive, aerospace, LEDs, and solar. For instance, modern automotive technologies such as RADAR, LIDAR, 3D Imaging, blind-spot detection, and 5G-based ‘vehicle-to-x’ communication -- many of which are critical for autonomous vehicles --rely upon devices built on GaAs wafers. (4, 5, 6, 7)


(Sources: 2, 4, 5, 6, 7)



Solar Applications

Rayton intends to continue servicing the solar industry by providing a cost effective solution to high-efficient and light-weight solar cell manufacturing. The record for single junction solar cell efficiency is held by GaAs based solar cells at 28% while silicon solar cells average about 21% in production volumes. These high-efficient GaAs-based solar cells are made using Metal Organic Chemical Vapor Deposition (MOCVD) equipment. A GaAs wafer is placed in a reactive MOCVD chamber, and the solar cell is grown on top of this GaAs wafer. The initial GaAs wafer can be reused, but this step has proven to be a bottleneck in the process. Rayton believes that by bringing down the cost of this initial “building block” wafer, it will reduce the cost of the entire process and unlock these types of solar cells for commercial applications. Rayton plans to sell lower cost GaAs wafers to the companies who utilize MOCVD equipment for their products. There are applications of these high-efficient and light-weight solar cells which serve the cause of transforming the world to a fully renewable source of energy. 


To the right is a concept picture of an electric car with high-efficient GaAs-based solar cells that can extend the range of the car by up to 35 miles/day.



Where Rayton Fits In

Where does Rayton fit into the manufacturing vertical? We would buy GaAs wafers in bulk from producers like Freiberger, and Sumitomo. We would then conduct our process to lower the cost of the GaAs wafer. We would then sell our engineered GaAs wafers to the foundries like VPEC and IQE who grow devices on the wafers. They then sell these devices to the chipmakers who turn them into products used in the retail electronics we are all familiar with. 

About Our Fabrication Process

First, protons are accelerated within our particle accelerator and implanted a few microns deep into a semiconductor wafer (e.g. GaAs, SiC, or GaN). Second, the implanted wafer is bonded to a less expensive, compatible carrier wafer. For example, sapphire is a good option as the carrier wafer for GaAs bonding. Third, with a thermal annealing process, a thin layer of the semiconductor material is exfoliated from its original wafer, while maintaining the bond with the carrier wafer. This process can be used to produce an engineered wafer that has a device layer of a few microns on a carrier wafer. For instance, two-micron thick layers of GaAs on sapphire can be produced. The advantage of this process is that the original wafer can be reused more than 100 times which produces over 100 engineered wafers for each source wafer.

Rayton's unique fabrication process makes use of a one-of-a-kind proton implanter jointly designed and built by Rayton and Phoenix Nuclear Labs.

The high current of this proton implanter and a unique set of magnets to shape the proton beam, allowing for a potential throughput that is much higher than the current industry standard and producing an estimated $30M USD in annual revenue per production line. We believe Rayton will be well situated in the supply chain for the aforementioned high-speed, high-power electronics industry.

 Specifically, we will fill the role of providing engineered substrates to epitaxy foundries and fabrication companies that will further develop the electronic components necessary for the 5G network, advanced automotive, cellular components, and other applications.



Rayton's Use of Proceeds

Rayton plans to use this fundraising round for the advancement of our beta phase production. During this phase, Rayton will produce engineered wafers in-house to sample out to epitaxy and wafer foundries for high-speed high-power electronic components. 


With sales agreements finalized, Rayton will then move onto single-line production. Once in revenue, Rayton will invest in more equipment to increase the throughput of the single accelerator line to reach the maximum production capability of the full-line production phase. 


A breakdown of estimated costs and revenue for these three phases can be found below:

Rayton's Planned Course

Beta Phase

The Beta phase will bring us to a full proof-of-concept where we can begin marketing our product. We need to make the final payment on the accelerator once testing is complete. This is in the amount of $954K. We have already paid about $1.4M on the accelerator. The rest of the proceeds will go towards operating the company to create samples, and prepare us to raise additional capital, potentially through another Regulation A+ offering.

Phase One

We will need to buy additional semiconductor processing equipment to move into a high volume manufacturing phase which will bring us into revenue. We will need about $14M to get the company into a revenue phase that can generate approximately $9M per year or 120,000 wafers per year.

Phase Two

We need to add on the additional semiconductor processing equipment in order to increase the throughput of the full manufacturing line. By adding this additional equipment, we can increase to the maximum throughput attainable for one accelerator of 432,000 wafers per year. This will generate an estimated $32M per year in revenue. Expenditures on the capital equipment could be reduced through the lease or purchase of used equipment.



Invest in Rayton

Your investment will help Rayton to develop a full proof-of-concept, which will, in turn, allow us to begin marketing our product. Looking forward; by diversifying the applications of our products, we will be able to strengthen ourselves for market entry. 


Solar will continue to be a product at our core, and we will continue to service the high-efficiency solar cell industry. We believe that initially bringing down the cost of GaAs wafers will have a ripple effect in bringing down the overall cost of GaAs-based solar cells.


The markets for our product are diverse and increasing in demand. The GaAs wafer market was $650M in 2017 and is growing at an eleven percent (11%) compound annual growth rate. We would like to enter this market with a “product zero” engineered GaAs wafer that we believe can be sold to the market at a twenty-five percent (25%) discount to competitive prices.

 

Our technology is positioned to have major impact in many industries. We are getting closer every single day. We have the machine, we have the patents, and we have the process flow. We are making history as one of the first democratically-funded technology companies.

 

Join the 4,000 other StartEngine investors, and help us to bring the costs of next-generation tech down with our unique technology. Invest in Rayton Solar.



In the Press

https://www.fastcompany.com/3066337/this-startup-uses-a-particle-accelerator-to-make-solar-panels-much-much-cheaper
December 19, 2016

The cost of solar panels is dropping exponentially, and solar power is now 80% cheaper than it was in 2010. A new startup plans to make it even more of a threat to fossil fuels, while also making panels much more efficient.

Phoenix Nuclear Labs signs deal to slice silicon for solar panel manufacturer
May 12, 2017

Phoenix Nuclear Labs, Monona, has been saying its technology is cutting-edge. Now, the company can prove it. Phoenix has signed a long-term contract with Rayton Solar, a Santa Monica, California, company that plans to use Phoenix’s proton accelerators to help make solar panels.

Rayton Solar tries to revolutionize wafer production
September 20, 2016

The goal of Rayton is to facilitate cost-efficient solar panel production in the United States that can compete with Chinese solar panels, cutting out waste in the solar cell production process.

Bill Nye-backed startup is using particle accelerator tech to make U.S. solar power more accessible and economically viable.
March 1, 2017

After hitting more than $7 million in reservations as part of a Reg A+ equity crowdfunding campaign and getting a stamp of approval from celebrity scientist Bill Nye, Santa Monica-based solar company Rayton Solar has some big plans for the future.

Rayton Solar: Bill Nye ‘The Science Guy’ Presents Thin Solar Panel Innovation That Is Less Expensive, Has Less Waste, But Does More For Green Energy
February 21, 2019

Bill Nye “The Science Guy” recently presented a new green energy company and their solar panel innovation that will surely take the solar energy industry by storm. It is called Rayton Solar and they have created a thin solar panel that produces less waste, costs less, but does more for green energy.

The Company That’s Turning Bill Nye into The Solar Guy
September 12, 2016

Sometimes, the boldest, most important technological advances are the ones that facilitate something we already have at our disposal. The name of the “inventor” of the automobile is not a name most Americans can remember, but Henry Ford...

How This Bill Nye-Endorsed Startup Plans to Upend the Solar Industry
February 21, 2019

Solar energy might very well be the way of the future--but it still has a ways to go. Less than one percent of all U.S. energy consumption comes from solar, a number that's remained low largely because consumers are scared off by the high initial costs and the aesthetics.

Bill Nye-backed startup uses particle accelerator to make solar panels 60% cheaper
February 21, 2017

A startup has created a method for using a particle accelerator to slice microscopically thin silicon wafers that reduce the cost to manufacture solar panels by more than 60% by eliminating waste material by 50 to 100 times.

How A Particle Accelerator Could Make Solar Power More Affordable
October 14, 2016

Solar power could become the world’s leading source of energy by 2050, according to a 2014 report from the International Energy Agency. That’s great news for the end of fossil fuel consumption, especially as our environment continues to bear the brunt of our reliance on unsustainable fuels.

Offering Summary


Company

:

Rayton Solar Inc.

Corporate Address

:

16112 Hart St., Van Nuys, CA 91406

Offering Minimum

:

$10,000.00

Offering Maximum

:

$1,070,000.00

Minimum Investment Amount

(per investor)

:

$500.00











Terms


Offering Type

:

Convertible Promissory Notes

Type of Equity Converted Into

:

Common Stock

Conversion Trigger

:

$5,000,000.00

Maturity Date

:

December 31, 2020

Valuation Cap

:

$50,000,000.00

Discount Rate

:

30.0%

Annual Interest Rate

:

10.0%
















What is a Convertible Note?

A convertible note offers you the right to receive Common Stock in Rayton Solar Inc.. The amount of Common Stock you will receive in the future will be determined at the next equity round in which the Company raises at least $5,000,000.00 in a qualified equity financing. The highest conversion price per security is set based on a $50,000,000.00  Valuation Cap or if less, then you will receive a 30.0% discount on the price the new investors are paying.  You also receive 10.0% interest per year added to your investment.  When the maturity date is reached, if the note has not converted then you are entitled to receive Common Stock equal to your investment and interest back at a price per security determined by dividing the Valuation Cap by the aggregate number of outstanding equity securities of the Company as of immediately prior (on a fully diluted basis).



*Annual Interest Rate subject to adjustment of bonsues. See 10% Bonus below

Early Investor Bonus

For the first 14 days following the initial filing of the Company’s Form C, investors will receive a 10% increase in the annual interest rate on Convertible Promissory Notes in this Offering.

The 10% Bonus for StartEngine Shareholders

Rayton Solar Inc. will offer 10% additional bonus interest for all investments that are committed by StartEngine Crowdfunding Inc. shareholders who invested over $1,000 or made at least two investments StartEngine's own offerings.

StartEngine shareholders who have invested $1,000+ in the StartEngine Reg A+ campaign will receive a 10% increase in the annual interest rate on Convertible Promissory Notes in this Offering. For example, if this individual invests their annual interest rate will be 11% instead of 10%.  

This 10% Bonus is only valid for one year from the time StartEngine Crowdfunding Inc. investors receive their countersigned StartEngine Crowdfunding Inc. subscription agreement.

Irregular Use of Proceeds

The Company will not incur any irregular use of proceeds.

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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

Notice of Funds Disbursement

3 days ago

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

Hello!

As you might know, Rayton 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 Rayton 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

Notice of Funds Disbursement

16 days ago

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

Hello!

As you might know, Rayton 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 Rayton 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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