For Our Investors
Our start-up company is the result of a research program that addressed the safety factor of removing fossil fuels aboard recreational sailing vessels. It became obvious that the solution was in management rather than technology. This led to the creation of the CMG app. There is a significant need, as nobody else has been able to realise the solution. We propose that the app is released free of charge and open source so that it will spread widely through the market and make it ineffective to compete commercially with us.
We require €17,000,000 to be raised with a first call of €7,000,000 and will offer 45% of our company. Because the app is currently available for testing the remaining start-up costs are tightly constrained to the cost of the demonstration vessel (5m), and legal protection (1m) and OH.
The risk is acceptable because the app is suitable for any technical solution and all those costs are borne by the yacht owner, not our company. The app is suitable for small to large yachts, with all electric or electric hybrid systems. Also it can accommodate any form of energy storage and driveline so long as the technology is sufficiently understood, reasonable predictions of performance can be made. The market will develop rapidly with the transition away from fossil fuels and the open source licence allows OEM and large scale industry players to copy, migrate, or reform the app in any way they see fit, so long as the licence travels unaltered. None of the future costs of the energy transition will impact the use, or applicability of the CMG App.
The revenue model is highly specialised to the unique nature of the app operation. The annual renewable energy generated while app is operating is reported back to the commercial entity which uses the SDG’s Gold Standard existing methodology to convert the output in kWh into the kgCO2 eqv. This enables carbon certificates for the production of renewable energy to be issued in the name of CMG Charge Made Good GmbH. These certificates can be traded to offset emissions on other production or sold on the open market. The price for GS certificates is expected to rise from the current 75€/tCO2eqv. to around 500€/tCO2eqv. by 2050 (IMF forecast). Because emissions are cumulative – each vessel continues to generate new certificates each year based on use – revenue flows for at least 25 years once the app and its updates are installed.
The yacht owner gets all the benefits of the app but does not need to pay for the app itself and has no access to the carbon credits it garnishes. This leads to potential revenues with good market penetration of 10’s billions € every year. We estimate 1:10 return on investment in 8-9 years and 1:100 in 12 years based on cashflow alone. With the future value well established in years 3-5, we expect venture capital exits available within 5 years in the order of 300% to 500%.
Important Notice: This call for investment is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy any securities. Any investment in the company mentioned in this call carries significant risks and is suitable only for sophisticated investors who are capable of evaluating the risks and merits of an investment in the company. Any decision to invest should be made only after careful consideration of the company’s offering materials, including risk factors and financial statements. The company makes no representation or warranty as to the accuracy or completeness of any information provided in this call or otherwise, and any reliance on such information is at your own risk. The company reserves the right to reject any investment for any reason, and there can be no assurance that any investment will achieve its objectives or provide any return on investment.”
This disclaimer serves to inform potential investors that investing in a startup involves significant risks and that any decision to invest should be made only after careful consideration of the offering materials provided by the company. It also highlights that the company makes no representation or warranty regarding the accuracy or completeness of any information provided and that there can be no assurance of any return on investment.