- € 200.000
- Min. investment
- € 500
- Company type
- Quota type
- A (€ 20.000), B
Arco FC is a company specialized in the production of hydrogen fuel cells and lithium batteries power packs. The company has patented a unique technology that gives electric vehicles an autonomy of operation, up to 1,000 km of travel with a recharge time of only 3 minutes and zero emissions into the atmosphere, already tested by Toyota Material Handling.
Arco FC can count on a background of intellectual property, more than 20 years of experience and 40 million euros invested in previous operations in the batteries and fuel cells sectors. Today the activity was both financed by the founding members and by the customers, commissioning R&D activities and supply of complete systems to Arco FC. The company is currently working on system development for the automotive, heavy vehicle and aerospace sectors, and for the material handling market.
For the development of its systems, ARCO FC has ongoing collaborations with the University of Modena and Reggio Emilia and with the ENEA body. In addition, Arco FC is part of the H2IT association and the Greentech Cluster of Emilia-Romagna.
Reference markets – The transition from the traditional combustion engines vehicle technology to the electrical one is now a matter of fact and has generated a strong demand for storage systems and electricity generation systems; higher than what the current market offers. Market analysts forecast an average annual volume growth (CAGR, compound annual growth rate) of 16% in the lithium battery sector and 19% in the fuel cell sector (2015-2030) in the two reference markets.
Growing turnover – The final balance of 2018 invoices boasted only customer accounts; the 2019 balance instead already bears revenues deriving from the delivery of the first samples with a forecasted closing value of 400,000 euros.
Concrete exit possibilities – There are very few companies on the market with similar technology, and in the last 6 months we have witnessed the acquisition of almost all these companies by giants:
Amazon acquired 23% of PlughPower for $73 million;
Bosch bought 11.35% of Power cell;
CNH (FCA group) took 6.25% of NIKOLA for $250 million;
Cummins acquired 81% of Hydrogenics for $290 million.
In this scenario, the real possibility of being the subject of interest for an M&A is not excluded. The company’s strategy is to generate the maximum value in business terms and align itself with comparable transactions which have had multiples of nothing less than 10x.
Important partnerships – Current partnerships are in place with Toyota Material Handling. Arco FC also collaborates with ENEA, the University of Modena and Reggio Emilia, and is part of the Green Tech Energy and Sustainability cluster of Emilia-Romagna and the H2IT association.
Product strength – The system has unique world features and is suitable for all types of vehicles (cars, agro-industrial machinery, ships, trains, planes, etc.). The outcome of the tests performed by Toyota M.H. indicates that the FCH hybrid system developed by Arco is able to guarantee absolutely top performance in that specific application, with just 3 minutes refilling time and zero CO2 emissions.
Know How – Arco FC is a startup in the sense that it has been reincorporated recently but at its core, it is a company that brings more than 20 years of previous activities and 40 million euros invested in the Fuel Cells sector, without any limitation to use its IP (intellectual property).
Among the main results achieved, the company features:
- 2 new filed patents: Hybrid modules completely integrated with DIRECTLINK ™ & HYDROREC ™;
- 3 patents pending;
- 48V class validation in progress at Toyota M. H .;
- Delivery of 80V class to Toyota M.H .;
- Delivery to the customer SIMAI SPA the first 5 different models of lithium batteries for material handling;
- Development and delivery of a hybrid aircraft propulsion system to Novotech;
- Realization of the HUSTON CONTROL platform for remote global monitoring of all ARCO machines on the market;
- Agreement for the deployment of the American market with StorEn Inc .;
- Start of the establishment of a global commercial network.
Use of proceeds
The capital raised will be used as follows: 30% for product certifications, 40% for working capital and 30% for the establishment of a global commercial network.
More specifically, a share of the amount raised will be allocated to the development of the existing network in order to significantly increase the international market share, with consequent positive returns on turnover.
Additionally, besides further developing the commercial network in place nowadays on a national level, Arco FC intends to strengthen its image and position through its participation in Research and Development projects, as well as its collaboration with scientific and academic partners.
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.