Investment FAQ

If you have any questions about our investment, you'll hopefully find the answers here. If not, please get in touch with us.

Why is PT such a good investment?

  • Power Transition’s business model is based on recurring revenue, so once our platform is deployed and licenced we will be earning revenue 24/7/365. 
  • Power Transition forecasts Monthly Recurring Revenue (MRR) of £100K by month 21; and we have predicted in our P&L the business expects to achieve significant top line revenue and bottom line EBIDTA in line with our anticipated pipeline. Please contact us directly to request this information.
  • The energy sector is about to go through the biggest revolution since the roll out of the National Grid a smart power revolution that could save customers up to £8 billion a year by 2030 in the UK alone. We believe digitilisation, decentralisation, democratisation and decarbonisation are central to this makeover and Power Transition is ready to support this transformation.
  • Well managed, purpose driven sustainable business solutions that enable the transition to renewable energy and a zero-carbon economy are a sound investment into our future and benefit from reduced medium to long-term risks.

What makes us stand out amongst our competitors?

  • Others might see us as competitors, but we are all potential collaborators! This is because we have the fastest, smartest and lowest cost DLT platform on the market. Other platforms based on Ethereum (or derivative networks), who currently use Proof of Work as the basis of their consensus protocol will face severe performance and efficiency issues, especially in a sector such as Energy. 
  • We are partnered with Hedera, a 3rd Generation DLT-Blockchain that uses Hashgraph technology as the basis of its consensus protocol. This is critical for a couple of reasons; we are many thousands of times faster than other cryptocurrency networks and use a fraction of the amount of energy for each transaction (Hedera 0.001kWh vs Ethereum 55kWh). 
  • Additional benefits out-of-the-box from Hedera Hashgraph include: global decentralised governance as well as guaranteed fairness and finality for all transactions. Security is also proven through COQ mathematical models to be 100% asynchronous Byzantine Fault Tolerance (aBFT), which makes us the most cyber secure DLT-Blockchain in the world.
  • We have developed our platform in response to the problems others are facing. We are able to interoperate with other DLT-Blockchain networks, such as Hyperledger Fabric, using the Hedera Consensus Services (HCS). All our Smart Contracts are developed using fully portable Solidity code on the Ethereum Virtual Machine (EVM). 
  • We have developed a fractal architecture enabling rapid scalability and are able to develop applications for multiple use cases at exceptionally low capital cost. All of this allows us to interoperate with existing applications and networks or develop new energy market applications.

Is there a tax incentive and downround protection for investors? What kind?

Yes, we are an EIS approved company – Entrepreneurs Investment Relief Scheme through HMRC. Please note this is a CrowdCube platform campaign and investors should refer to risk cautions as set out by CrowdCube.

What is the price of each share?

Power Transition is a privately owned company with a valuation of £2.8M and 1,128 shares, with each share priced at £2,486.70. The company value has been assessed using three different approaches, each arriving at roughly the same figure.

What is PT’s planned exit and timing?

We envisage an exit in circa 4 to 5 years. We are well positioned to capitalise on the digitalisation of the energy sector that is currently underway and as our platform is infinitely scalable we have the potential to handle millions of daily transactions. This is of great interest to the energy sector as it allows very granular management of energy throughout the energy supply chain.

How are we planning to spend the raised money?

We are reaching out to raise £300,000 through Crowd Cube by July, 2020.

In year one our total raise is £1.3M for development, marketing, technical support and administration as well as evolving our software platform from a residential to a commercial one.

£400,000 for further software and hardware development and IoT integration.

£100,000 to enable the first microgrid, peer-to-peer energy trading offering in the UK.

The remainder of the raise is to support sales, marketing, PR, back office, administration and technical support, IP and legal services and contingency.

How does PT generate revenue?

We generate revenues by taking a micro-transaction fee for every slice of data transmitted across our platform, occurring in real time. This means that the future company value could be quite significant even based upon projections using our current pipeline of projects.

In addition, we provide: 

  • Data and software subscriptions
  • Smart contracting
  • Billing and invoicing
  • A percentage of cost reductions
  • Advisory services

What further funding rounds and dilution is PT expecting after the current £1.3m?

The company requires a relatively low overhead to operate, however as we scale we recognise there will be a need for back office and technical support. We see the level of funding being sought as enough to get us to a point of organic growth with no further investment beyond the £1.3M, however depending upon speed of market penetration, we cannot completely rule it out. If that's the case it would be a nice problem to have and means our growth curve has exceeded expectation!

How is our IP protected?

Please refer to our IP and Escrow Deed.

How will we keep investors updated and in what form?

We are planning a monthly newsletter to go out to our investment community.

What is the size of the market?

The market is significant and set to grow. With or without disruptions such as Covid 19, there is a need to keep the lights on, future proof and decarbonise grid networks. Some of the market opportunities include:

  • Smart buildings and infrastructure - The Smart Building Market is valued at $8.66 Billion in 2018 and expected to reach $59.21 Billion by 2025 with the CAGR of 31.6% over the forecast period (MarketWatch, 2019).1
  • The Smart Building market in Asia is estimated to exceed $1,036 Billion by 2020 (BSRIA, 2019).2
  • EV leasing and infrastructure - the overall industry capacity forecast for 2030 is approximately 14 million units, currently sitting at 2 million units sold (Deloitte, 2019) with approximately 3.4% market share in the UK with a year on year increase of 158% (InsideEVs, 2019).3
  • United Kingdom electric vehicle market stood at $2.4 billion in 2018 and is projected to grow at a robust CAGR of more than 14% to reach $5.4 billion by 2024 (TechSci Research, 2019).4
  • Power Transition has the ability to support counter balancing and settlement across the United Kingdom, which is a market of £1.5billion.
  • Our platform can track millions of transactions per day in real time from multiple energy nodes, such as smart meters across the UK and beyond.

Opportunities exist for cost reduction in the flexibility market:

“Improvements in system flexibility have the potential to bring electricity system costs down by £3-8 billion/year by 2030 … and £16 billion/year by 2050 … by making better use of low-carbon generation.” Committee on Climate Change5

Our 'Business Plan' provides further detail on projected revenues from markets targeted.

  1. MarketWatch, 2019
  2. BSRIA Article, 2019
  3. Inside EVs, 2019
  4. TechSci Research, 2019
  5. Energy UK, 2020

What has PT achieved so far?

  • Our iMaaS platform is completed and live on our partner, Hedera Hashgraph’s public network.
  • We’ve developed applications for tracking, reporting and Peer-to-Peer and Peer-to-Grid energy trading so we are ready for changing regulations.
  • We have built an easy to use reporting dashboard.
  • Our technology is ready and demonstrated on a 47 zero carbon homes development in the UK, already providing smart home energy management.
  • Our iEda software platform is custom built and market ready. Site specific commercial applications are under development.
  • We have set up a global ‘Centre of Excellence’ to support innovation and attract new talent and ideas, based out of India.
  • We have developed significant strategic collaborations and partnerships in the energy sector that places us in a strong position to exploit the vast flexibility and smart energy solutions market.