Arco FC 2

The patented technology for electric mobility, which allows an autonomous range of up to 1,000 km with a recharge in just 3 minutes

Society: ARCO FC S.R.L.
Arco FC 2 41 days remaining Invest

Target

€ 500.000

Raised

€ 1.221.041

For 3,1% equity

Equity

1,3%

Valuation

€ 38.000.000

Premoney

41 days remaining
244%

Project type

Equity

Min. investment

€ 500

Company type

Startup Innovativa

Quota type

A (20.000), B
20 years of experience in fuel cells and battery
40 million euros of investments in research and development in the past few years
Partnerships with international clients
Exclusive patented technology (+15% in efficiency, +20 % in savings)

Description

This campaign represents the second round of equity crowdfunding by the company Arco FC Srl, which in 2020, on CrowdFundMe, raised 1 million euros at a pre-money valuation of 8 million euros. The current capital increase aims at the consolidation of technology, technical certifications and the construction of a high-level production and managerial structure, provides for a total capital increase of 8 million euros, 5 million of which through crowdfunding (maximum allowed), and the remaining 3 million will be destined for some institutional and industrial investors, at the pre-money valuation of 38 million euros.

Arco FC is an innovative startup from Bologna that owns a technology for electric mobility that allows for an autonomy of use of up to 1000 km – with a recharge in just 3 minute.

La società nel 2020 ha fatturato circa 1 milione di euro, con un EBITDA di poco al di sotto dello zero. Questo grazie anche all’attività di prototipazione e sviluppo di progetti con importanti partner nel settore automotive, navale, aeronautico, ferroviario e industriale, volte alla realizzazione di mezzi ad emissioni zero.

In 2020 the company had a turnover of around 1 million euros, with an EBITDA just below zero. This is also thanks to the prototyping business and developing projects with important partners in the automotive, naval, aeronautical, railway and industrial sectors, aimed at creating zero-emission vehicles.

Why invest

World trend: Globally, the energy transition sees mobility as one of the main players for reducing CO2 emissions. The new generation of electric vehicles is now a reality and it has generated a demand for storage and electrical generation systems that is higher than the current supply.
The European Commission’s Green Deal has had a tremendous acceleration as a result of the pandemic by allocating a large portion of the Recovery Fund to our technology with an important focus on hydrogen. Within the Recovery Fund, the Italian Government recently allocated 3.2 billion on the development of new hydrogen technologies.

Expanding market: market analysts predict an average annual growth in volumes in the global fuel cell market (CAGR, compound annual growth rate) of 66.9% from 2019 to 2026 (source: Alliedmarket)) and 20.1% in the Lithium Battery sector from 2021 to 2026 (source: Researchandmarkets)

Exit: There are very few companies on the market with the necessary technology;.Arco FC therefore represents a particularly attractive company for M&A transactions, in a field with a high Exit rate. In the last period we have seen the acquisition of almost all these companies by giant companies such as Amazon, Bosch, Iveco, and Cummins.

Partnership: In the last year Arco FC has signed partnerships with important industries:

  • in the industrial vehicle sector with Prinoth,
  • in the naval sector with Baglietto (Gavio Group)
  • in the aereonautic sector with Novotech.

For Toyota MH, Arco FC has developed an updated class of engines for forklifts with 80V voltage. The results of the tests performed indicate that the technology developed by Arco is able to guarantee, in that specific application, superior performance compared to the state of the art, all with recharging times of only 3 minutes and zero CO2 emissions

IPO: Arco is an innovative startup in form but in essence it is a New.Co created also on the recommendation of its largest customer. 20 years of previous activity and 40 million euros invested in the Fuel Cells sector are the dowry that Arco brings to the market; without any type of IP (Intellectual property) usage limit. In the last 12 months, the stock market capitalisations of companies such as Arco, n terms of technology have doubled and a significant increase in business compared to previous years. The company’s strategic plan foresees in the short term an IPO aimed at supporting the investments necessary to sustain the expected growth. The purpose of this crowdfunding is to consolidate the company with the consequence of creating an important multiplier effect on the valuation that will be beneficiary for the investors in view of the future IPO.

Results achieved

Among the main results achived by Arco FC we can find:

  • Development of the ALFA 1 Module with power between 50 and 200KW;
  • A signed collaboration agreement with Prinoth Spa for the development of special vehicles – Hydrogen fueled Snow mobile
  • A signed collaboration agreement with Baglietto Spa (Gavio Group) for the development of a marine module for the propulsion of Mega Yachts

In its growth, the company was able to consolidate and protect its intellectual property:

  • 2 international PTC pending patents pending + 3 being defined
    ◦ Direct Link
    ◦ Hydrorec
    ◦ Turblow
    ◦ SCS
    ◦ BICS
  • over 20 years of experience and managing industrial secrets:
    ◦ Fuel Cell manufacturing & process;
    ◦ MEGA – membrane electrode gasket assembly;
    ◦ CCM – catalyst coated membrane process;
    ◦ BPP – composite bipolar plate.

The company has seen both revenues and margins grow very rapidly, in an atypical manner with respect to technology manufacturing and R&D projects.

Covid-19 impact

The company found itself having to change its strategic direction due to the general crisis linked to the current pandemic (Covid-19) which sidetracked its plans and objectives. The trade fairs in the Arco FC sector, on which Arco had the highest expectations in terms of orders for FCH and Battery systems, were all canceled. Ongoing negotiations for orders from potential customers that were expected to have an economic impact in the years 2020-2021 have been postponed. In such a context, the company has decided to invest in the new development of strategic products capable of creating and maintaining its competitive advantage, thus transforming a potentially negative period into an opportunity. Following this thought, the new Alfa Module was created, commissioned by a large industrial partner, which gives the Company a distinctive know-how on high-power FCH systems. The strategy undertaken will also characterize the year 2021 where the focus will always be on the development of products (FCH stacks and modules) allowing Arco, once the market reopens, to create and offer innovative solutions compared to the competition. This is expected starting from the second half of the year 2021.

Use of proceeds

This crowdfund aims towards three main objectives:

  • Technological consolidation and product certification;
  • Creating the necessary production capacity (in terms of assets and technical personnel) to start and support the production and sales plan listed in the business plan;
  • Establish the proper level of management that will have the objective of increasing the company value in order to arrive effectively to the future IPO.

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The information on the offer is not subject to approval by Consob. The bidder is solely responsible for the completeness and truthfulness of the data and information provided by the same. The investor\'s attention is also drawn to the fact that the investment, including through OICR or companies that mainly invest in financial instruments issued by small and medium-sized companies, is illiquid and characterized by a very high risk.

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