Oceanvolt Oy

Short profile

Company Data

Company history

The passion for sailing was the driving force behind the story of Oceanvolt. The founders saw sailing as a green way to travel but identified one hurdle: the motor. In practice, it is almost impossible to sail without an engine as one needs aid in docking and undocking a sailboat. Usually, this aid is a combustion engine which, besides being noisy, uses fossil fuels that pollute our environment.

The people behind Oceanvolt imagined always sailing in silence, hearing nothing but the sea. In 2004, Oceanvolt decided to make this a reality and the company was founded. The vision was to turn the tide on green boating, and it was a success. The company’s electric motors have now powered sailors around the world for 18 years. Oceanvolt is the leading manufacturer of clean electric power and propulsion systems for boats.

Today Oceanvolt'’s award-winning motor systems have been installed worldwide on hundreds of boats ranging from daysailers to 80 ft catamarans. The systems are not only suitable for everyday cruising and sailing, but also for circumnavigating the globe in tough conditions.

Oceanvolt has created several innovations to make sailing even more ecological. In addition to being green, Oceanvolt’s technology also makes sailing safer, quieter, and more pleasant. Oceanvolt’s propulsion systems can charge the boat’s batteries while sailing and this energy can then be used onboard to power the electronics and appliances or charge devices. Alternatively, the motor can save the energy gathered on a windy day to be used on a later day. This was earlier only possible with a separate diesel generator.

The products

Oceanvolt’s clean electric power and propulsion systems cater for many different use cases from daysailers to cruising monohulls, racing catamarans and non-planing motor boats. 

Oceanvolt ServoProp – Award winning variable pitch sail drive

The patented Oceanvolt ServoProp variable pitch sail drive combines a high efficiency sail drive with the most powerful hydro generation on the market. ServoProp’s unique feature is the ability to turn the propeller blades more than 360 degrees.

The software-controlled variable pitch sail drive adjusts the pitch of the propeller blades automatically. This means that the power generation and power output are optimal. Combined with uniquely designed blades, it delivers optimal efficiency. And with the blades set to neutral sailing position, the propeller creates extremely low drag similar to the drag of a feathering propeller.

A normal fixed propeller does not by nature have the blades ideally shaped for hydro generation and generates less than half of the power of ServoProp at a given boat speed. ServoProp can generate more than 1 kW at 7–8 knots and 3 kW at 11–12 knots. The generated power can be used to power both the propulsion system as well as all the electronics on board without a need for a separate generator. With reference to this, Oceanvolt has reason to endorse the possibility of a completely self-sufficient cruiser.

The ServoProp is suitable as a propulsion motor for monohulls up to 50 ft and multihulls up to 60 ft. It can also be used as a hydro generator in boats up to 100 ft.

Oceanvolt AXC – Modular shaft drive motor systems

The Oceanvolt AXC series provides higher performance, greater durability and more comfort than ever before. The Oceanvolt AXC series is a modular system available in three power configurations: 12 kW, 24 kW & 36 kW (available Q1/2023). The most powerful configuration provides power to the equivalent of up to 120 hp.

The motors have been designed for the benefit of customers operating larger, heavier displacement boats including charter catamarans, non-planing motorboats, heavy duty commercial boats, and small passenger ferries.

Oceanvolt SD & AX

In addition to the above-mentioned motor series, Oceanvolt also has two other more basic product lines to cater the smaller size range of boats. The Oceanvolt SD sail drives have a power range between 6 kW to 15 kW. The SD motors are specially designed for folding propellers. They feature a patented mounting method which reduces vibrations and can be installed directly onto existing Volvo Penta and Yanmar mounting beds. This makes retrofitting the motors as simple as possible and increases the potential market size for these motors.

The Oceanvolt AX series of shaft drive motors (3–8 kW) are compact, easy to install and maintain, and perfect for daysailers, small cruisers, and multihulls or racing boats.

Awards & press

References to Oceanvolt in Yaching World

The business model

The team

Oceanvolt has a skilled team that combines experience from electric propulsion, boating, the marine industry and other core business functions. The team and board are experts and can cover varied fields such as electric propulsion, international business, foreign trade, intellectual property rights, software, marine industry, sales and marketing. Oceanvolt has 22 employees and 4 board members.

Calle Nyman
Sales Director
Calle is an experienced boating branch specialist and sailor from Helsinki. Calle started at Oceanvolt as Sales Director in August 2017. His main responsibility is to lead Oceanvolt’s global sales with focus on expanding the sales network and presence in the key markets of Oceanvolt. Before joining Oceanvolt, he worked with boat brand XO Boats as the sales and marketing manager and at Volvo Penta in the accessories and spare parts business.

Marko Mäki
Customer Support Manager
Marko leads Oceanvolt’s customer support and after sales team. Marko joined Oceanvolt in March 2015, having previously worked for different telecom operators and in the development of marine generators.

Anna Hietanen
Marketing Manager
Anna joined Oceanvolt in Summer 2012 with a degree in advertising and business communications. She manages Oceanvolt’s online and social media marketing activities as well as organizes events and tradeshows for Oceanvolt worldwide. Furthermore, she supports Oceanvolt's agent and partner network with marketing best practices.

Mikael Aho
Production Manager
Mikalel is responsible for customer projects, production management, and inventory. Determining quality control standards and overseeing production processes have been his key role. His experience is from paper mill industry and high volume manufacturing of electromechanical products, where he has held managerial roles. In addition to manufacturing, Mikael has several years of experience from strategic purchasing and he is a trained Lean-methodology implementor.

Sami Ruotsalainen
R&D Manager
Sami leads Oceanvolt’s research & development projects and software development. Sami holds an M.Sc degree in automotive and electronics engineering from the Helsinki University of Technology. He has a diverse background and experience in various technology and EV companies. Sami joined the team in 2021 to bring new knowledge and experience related to electric motors and their control systems. During his career Sami has been teaching Automotive Electrical and Electronics Engineering at Metropolia University of Applied Sciences where he also ran several successful EV development projects.

The Board of Directors

Ilkka Raiskinen
Chairman of the Board
Ilkka is the Chairman of the Board, since 2017 and is an important advisor for Oceanvolt. He started his career in the 1980s as a research scientist, but soon moved on to IT solutions development, portfolio management, and business development, first at Digital Equipment Corporation, then GM Wireless Data. In 1994, Mr. Raiskinen joined Nokia, where he spent the next 15 years heading business units. His achievements at Nokia include a vast number of product launches, business acquisitions, and strategic deals – including the acquisition of Navtec, the largest Nokia acquisition to date. From 2013 to 2016, he was the CEO of Tecnotree. Under his leadership, Tecnotree grew its revenue and especially its profitability and moved from project driven software design to agile and product driven methodologies.

Mats Wolontis
Board Member
Mats became an Oceanvolt board member in 2020. He started his professional career in IT sales and was recruited to Nokia Mobile Phones in the mid-nineties. Over the next 18 years he was heading different business units and country organizations (e.g. the UK, Finland, Russia and many African countries). Mats has been involved in more than ten startup companies as a CEO, Chairman of the Board or Board Member. Mats has overseen a number of company exits, acquisitions and financing rounds during this time.

Jan Österman
Board Member
Jan has been a board member in Oceanvolt since 2012. Jan is also a passionate sail racer. He has 18 years’ experience in working with start-ups and growth companies. He is also equipped with a special skill set in supply chain management, sales and marketing, as well as fundraising and investor relations.

Riku Niemelä

Board Member
Riku is a board member since 2021, has an eMBA from the University of Oulu. He is also the CEO of Grainsense and has a decades worth of experience of board member and CEO positions in various industries and companies. +15 years of CEO experience in internationally operating companies. Experience in business development and building growth from different industries, e.g. ICT, logistics & manufacturing.

Company structure

Oceanvolt group consists of two companies: Oceanvolt Oy and its fully owned subsidiary Oceanvolt USA Inc.

Distribution of the company shares

Oceanvolt Oy has 1,066 shareholders. The four largest shareholders in the comany are listed in the table below.

Developments at Oceanvolt since the last crowdfunding year 2020

The company has been investing in growth through product development, creating the sales and refit network and scaling the organisation to growth.

Product development since the last funding round with Invesdor has been concentrating on ServoProp development, launching new AXC-motor, software development for remote support of the systems and several product upgrades for improved quality and reliability. New R&D project for HighPower ServoProp was started late 2021. These actions are strenghtening Oceanvolt’s position in its market segments.

Oceanvolt has added new agents and representatives to its global network for example in Spain, UK, Netherlands and Germany. In USA the company has contracted a new installation partner in Florida and added one person to its sales team.

Oceanvolt has invested in its team in Finland by adding resources in sales, production team, R&D team and product support.

Use of funds

Read more about the use of funds Scenario IV €1,2M funding collected in the financing round in the update section.

Read more about the use of funds Scenario V €1,4M funding collected in the financing round in the update section.

Read more about the use of funds Scenario VI €1,6M funding collected in the financing round in the update section.

Oceanvolt’s diversity provides the company a good market position

Oceanvolt's electric power and propulsion systems are suitable for a wide range of boats, from daysailers to cruising monohulls, racing catamarans and non-planing powerboats. This diversity gives Oceanvolt a good position in the market.

Environmentally friendly solutions are in increasing demand in various fields - and traffic is no different. Electric-powered solutions are entering the market with increasing numbers for cars, bikes, planes - and also boats. There are already regulations and legistlation in favour of electric boating. Major lake areas in Germany, Germany, Switzerland, Austria, Hungary and the Great lakes in the US do not approve new combustion engines, all boats in the Amsterdam waterways should be electric by 2025, Lake Balaton has banned all combustion engines and there is a tax benefit on electric propulsion in the State of Washington, US. Major boatbuilders are also joining the electrification trend. Electric models on the boat market fall into two categories;

• e-boat models where electric propulsion has been taken into consideration and implemented already in the boat’s original design;
• and boat models where the electric propulsion alternative is offered as an option instead of diesel.

Oceanvolt’s competition on the market

Currently, electric propulsion still holds only a small slice of the global recreational boating market. In 2022, the company estimates that the potential addressable global market for electric propulsion is approximately 750M€ per year for sailing yachts and non-planning motor boats including the light commercial boats . Within the sector, Oceanvolt is often seen on par with three other manufacturers, Torqeedo, ePropulsion and Bellmarine. Traditional diesel engines still remain the biggest competitor to Oceanvolt even over other electric motor manufacturers. The market is, however, undergoing a major change: combustion engines are experiencing a downturn in popularity, while electric motors are on the rise.

Oceanvolt’s key markets across the world are as follows:

• The Nordics: Finland, Sweden, Denmark and Norway
• Europe: UK, Spain, Germany, Netherlands, Belgium, France and Italy
• North America: the United States & the Caribbean region
• Africa, Australia & Oceania: South Africa, Australia and New Zealand

Issuer key figures (actual and forecast) All figures are rounded to the nearest thousand and presented in thousands of euros.

Further explanations regarding the financial figures

The financial figures for 2019 to 2021 are based on audited figures by PricewaterhouseCoopers Oy.

The basic assumptions of the financial planning are based on the results of the past years and the experience of the managing directors. The calculation is based on an investment by the crowd of € 215,000. By raising additional external funds, there is the possibility of faster growth.

Review

In 2021 Oceanvolt’s revenue grew significantly with 47,99% and reached 2,35 MEUR excluding inventory changes and financial subsidies related to Covid-19. The positive trend has continued throughout 2022 with new orders expected to reach 3MEUR, showing growth in orders of 50% compared to previous years. The total revenue for 2022 is expected to reach 2,76 MEUR with a gross margin of 36%. The financial year ends in December 2022. Oceanvolt’s strong growth in revenue continued throughout the COVID-19 pandemic and the company was able to continue its path to profitability. Oceanvolt received financial subsidies related to the COVID-19 pandemic of 69 thousand euros in 2020 and 30 thousand euros in 2021 respectively. The company's net profit increased from –1,4 MEUR in 2020 to –1,2 MEUR in 2021 and is expected to further increase to –1,08 MEUR in 2022. Oceanvolt’s management expects the company to become cash flow positive by Q4, 2023 excluding R&D.

Forecast

The management expects that Oceanvolt reaches EBITDA of –118 thousand in 2023 driven by a substantial increase in revenue to 4,4 MEUR, up 60% from 2022, as the new HighPower ServoProp is launched. The HighPower ServoProp will allow Oceanvolt to enter the high-end market of sailboats over 50 feet. The pricepoint in this market is substantially higher which will allow Oceanvolt to increase its markets ultimately driving both revenue and profitability. The strong growth in both revenue and profitability is expected to continue throughout 2024 with a total revenue of 6,6 MEUR. The management expects Oceanvolt to become profitable in 2024 with EBITDA of 749 thousand, EBIT of 216 thousand and a net profit of 187 thousand euros. The strong expected growth in both revenue and profitability is driven by the launching of the new HighPower ServoProp and by selling existing products to new markets. The new product represents 8% of the total estimated revenue in 2023 and 21% of revenue in 2024 respectively. For the years 2025 and 2026 the figure is 24% and 30%.

Expected higher revenue and profitability

The HighPower ServoProp allows Oceanvolt to tap into the market of sailboats above 50 feet. The estimated accessible market for sailboats above 50 feet HPSP is valued at 38MEUR annually. Customers in the high-end market for sailboats over 50 feet are usually less price sensitive which allows for higher price points ultimately driving higher revenue and profitability. The management also expects that tapping into the +50 feet sailboat market will allow for greater visibility which in turn will increase Oceanvolt’s brand recognition and thus drive sales also for current products which are targeted towards sailboats starting from 30 feet. The financial estimates do not include the figures for Oceanvolt USA INC. The figures for Oceanvolt USA INC are disclosed in the document section.

Preliminary rendering of Oceanvolt HighPower ServoProp

Loans outstanding

Oceanvolt has a total of 765 thousand euros in outstanding loans to Valtiokonttori.  Oceanvolt additionally has a total of 164 thousand euros in outstanding loans to Nordea Bank secured by Finnvera. Oceanvolt has a capital loan of 50 thousand euros with an interest rate of 3,5% P.A outstanding to Janne Kjellman. This loan had accrued interest of 23 334 euros as of December 31st 2021.

Oceanvolt has business mortgages worth 750 000 euros securing the loans. The total amount of outstanding long-term debt is 980 356 euros.

The capital gathered in this share issue will be recorded as invested unrestricted equity. The share capital of the company is €12,274 and the invested unrestricted equity fund was €12,364,390 per December 31 2021.

All figures are rounded to the nearest thousand and presented in thousands of euros.

On 28.11.2022, the company had invoices due for payment of approximately € 125,000. According to the company, invoices are paid daily, new invoices are also due daily and some invoices are awaiting action from the supplier. As of 22.11.2022, the company had short-term trade receivables of approximately € 191,000 and an invoice of approximately € 50,000 from its subsidiary Oceanvolt USA Inc. to the company was being processed. The company does not expect to incur any significant credit losses as the advance payments received on customer orders accumulate towards the end of the year, which will help the company's liquidity. The company's working capital is mostly tied up in its inventory, which the company values at more than € 1,000,000, and if necessary the company can also balance its financial situation by drawing on its inventory.

Growth factors

The financial forecast has been made by the management of Oceanvolt based on strategic analysis of the market. Based on the market analysis the management of Oceanvolt has found five clear growth drivers for the market.

Company valuation

The company’s pre-money valuation in this funding round is approximately €12,3M. The valuation represents the company board’s view of the current fair market price and is in line with comparable other companies in the market. The 12,3 MEUR valuation equals a revenue multiple of 5,2 for 2021 while the revenue multiple is 4,4 based on 2022 revenue. The forward revenue multiple for 2023 is 2,7 and 1,8 for 2024 respectively which is in line with the long-term market average for established companies in the industry. Oceanvolt has a forward EBITDA multiple for 2024 of 16,4 while the multiple is projected to decrease to 8,3 by 2025.

The valuation is based on the following aspects:

1. Future business potential driven by global green transition

Electrification of vehicles has been a megatrend for more than a decade and is increasingly gaining momentum in the boating industry. In addition to consumer demand, tightening regulation supports environmentally friendly solutions such as electric power in traffic. This trend is expected to drive demand for Oceanvolts products and the boating industry at large. The total addressable market for Oceanvolt has been estimated to be worth 750M€ annually.

2. New product launch in 2023

The launch of the new HighPower ServoProp propulsion unit in 2023 allows Oceanvolt to tap into new market segments on larger sailing yachts where price points are substantially higher. The new HighPower ServoProp will substantially increase Oceanvolt’s growth potential and further strengthen the company's position as a single supplier for boat builders and re-fitting companies.

3. Positive trend in the business and pipeline

Oceanvolt closed a record number of deals in Q1 to Q3 in 2022. Oceanvolt’s orderbook was 694 thousand euros as of October 31st, 2022. The strong dealflow is estimated to continue throughout 2023 and the management expects that Oceanvolt will become operationally cash flow positive during Q4 2023 as a result.

4. Scalability

Oceanvolt has achieved outstanding results in product development and is now gearing up for increasing output and entering serial production. Based on the positive signs and feedback from the market both regarding existing products and the new HighPower ServoProp the management estimates that Oceanvolt is very well positioned to enter the next level of growth. Serial production and scalability are strong drivers of Oceanvolt’s ability to increase profitability substantially.

5. Patented key technology

Oceanvolt has a competitive edge through its intellectual property rights: the company holds five patents for its key technologies in strategically selected market areas (United States, the Netherlands, France, Germany, United Kingdom, Finland).

6. Development of a global partner network

Sales through Oceanvolt’s partner network represent an increasing proportion of Oceanvolt’s total sales volume. Oceanvolt has seen significant growth from agents such as eNave (France) and signed new agents for Germany, Netherlands, United Kingdom, Spain, Norway, and the United States.

Example of an Oceanvolt customer: Water taxi in Buges, Belgium

Exit Scenarios

Unlisted growth companies are high-risk investments. Various risk factors associated with investing in the company may be significant if realised. Many of the company’s risk factors are part of the nature of its business and are typical for the industry. Each risk may have an essential effect on the company's business, profits, and the potential ability to achieve its financial objectives. The risks presented are not ranked in order of importance nor does the order in which they are presented, reflect the likelihood of their occurrence.

Risks related to the share issue and the company's shares

• Various risk factors and circumstances can lead to a fall in the market price of a share, and therefore there is a risk of losing some or all the capital invested.  
• There may be no return at all on the investment.  
• The company's shares are not publicly or multilaterally traded on any marketplace; therefore, there is no active or liquid secondary market for the shares. The risk, in this case, is that the security may not be sold at the desired time or at all or that the price offered may be lower than its subscription price or actual value.  
• The transferability of the shares is limited by a redemption clause in the Articles of Association and by the obligation to enter into a shareholders' agreement with the company.  

Macroeconomic risks

• Boat building is a cyclical industry, as is the whole maritime industry. In general, revenues and sales tend to be higher during periods of economic prosperity and lower in economic downturn. Also changes in the security markets or, for example, in interest rates are likely to affect the company’s sales. The spread of the COVID-19-virus, which started in 2019 and grew into a pandemic in 2020, has had major effects on global economic growth and through that, the boat building and sales sectors. The full scale and longevity of COVID-19’s effects on the global economy still in 2022 remain, however, difficult to predict.

Risks related to the company's business

• Failure in marketing may adversely affect the company's customer relationships and product demand.   
• The company may be unable to implement its expansion strategy and take full or timely advantage of new business opportunities.   
• The company may raise less capital than planned. This may result in the company not being able to successfully implement its business activities due to a lack of funds.  
• If the company is unable to compete effectively with existing and potential new competitors or to respond to changes in the competitive environment, it may adversely affect its turnover, profitability, and customer loyalty. Competition may become significantly more intense if competitors with more capital enter the market.  
• There is a risk that the company will get negative media attention. This may lead to significant sales decline and losses for the company because there is insufficient demand for the company's products because of the negative media attention.  
• The demand for the company's products and, thus, its business performance is affected by, among other things, the general global market situation, the competitive position, and technological developments. Therefore, the company and its business are exposed to market risks independent of the company's actions.  

Volume risks

• The COVID-19 virus represents a potential risk to the sourcing of key commodities. Precautionary measures such as quarantines taken around the world to combat the spread of the virus can temporarily affect component production at local facilities and by subcontractors as well as lead to longer delivery times.
• The war in Ukraine may increase further availability shortages of materials and components, though the markets will start finding substitutive production
• As electrification remains a growing trend, there exists also a more general volume risk related to key components used in building electricity-powered systems and batteries. If the market demand for these technologies exceeds their supply, this may lead to several operators increasing their production volumes, which in turn could cause component manufacturers at least temporary or occasional challenges to keep up with the rising demand or lead to price increases with key components.

Risks related to management and staff

• The company is dependent on its management and qualified personnel, and the loss of such personnel could be detrimental to the business.   
• Failure to recruit and retain qualified personnel may adversely affect the company's business performance.   
• Increasing the number of staff may harm the company's profitability.   

Legal and regulatory risks

• Failure to comply with laws, regulations and general social responsibility relating to the company's activities and products may result in sanctions and damage the company's image with its customer groups.   
• The company has no pending lawsuits or other open litigation, but as the company's operations expand, legal risks become more significant.  
• The company may be subject to claims or lawsuits that could harm the company and require management resources.  
• The company's legal regulatory environment may change, potentially making it more difficult for the company to conduct its business. For example, the company is a globally operating export company and possible new barriers of trade and tariffs may hurt its business.
• The company has patented its key technologies, however there is always a risk that the company’s patents will expire or sued. Each of the company’s system houses a set of algorithms which are not patented but are crucial for the complete system’s ability to work as a system, not just as a collection of individual components. It is possible that new technologies arise and hamper the company’s competitive advantage.
• The commercialisation of intellectual property rights, the distribution of products and the launch of new products involve various liability risks, such as third party claims for alleged infringements of intellectual property rights.

Financial risks

• Fluctuations in foreign exchange rates may harm the company's operations.   
• The company is exposed to changes in interest rates on loans.   
• The company is exposed to credit and counterparty risks.   
• The company's financial projections are subject to risks, as forward-looking estimates, targets, and other statements always involve uncertainty, and they are only predictions, not guarantees of the future.  
• The company is not yet profitable and thus might need additional investments to operate and become profitable.
• The company’s working capital will not be sufficient to meet the company's needs for the next 12 months, and thus the company’s ability to continue as a going concern may be jeopardized if it does not obtain the necessary financing.

The risks listed above are not the only risk factors affecting operations of the company. Other risks and uncertainty factors that the company currently does not identify or currently considers to be irrelevant may also have an integral effect on the business operations, business result, and financial standing of the company.

Update 5.1.2023

Due to high demand, the Board of Directors of the Company has decided according to the issue terms to increase the round maximum to €1 600 020. The subscription period remains the same.

Scenario VI

€1,6M funding collected in the financing round

The additional funds will be used for commercializing the HighPower ServoProp.

Update 4.1.2023

Due to high demand, the Board of Directors of the Company has decided according to the issue terms to increase the round maximum to €1 400 040. The subscription period remains the same.

Scenario V

€1,4M funding collected in the financing round

The additional funds will further enable Oceanvolt to improve their customer support and technical network. The company’s vision is to create a network of Oceanvolt certified installation points where the customer can get an Oceanvolt system installed or service their existing system. This will require additional workforce, investments in tooling and an extensive training program to be implemented.

Update 16.12.2022

Scenario IV
€1,2M funding collected in the financing round

The additional funds will enable Oceanvolt to improve their customer support and technical network. The company’s vision is to create a network of Oceanvolt certified installation points where the customer can get an Oceanvolt system installed or service their existing system. This will require additional workforce, investments in tooling and an extensive training program to be implemented.

Update 15.12.2022

Due to high demand, the Board of Directors of the Company has decided according to the issue terms to increase the round maximum to €1.200.060. The subscription period remains the same.