An eco-friendly alternative to soaring electricity rates with 230% growth
Brief: Revel Energy develops custom renewable energy systems for commercial businesses. Revel’s offerings include commercial rooftop solar systems, carport solar systems, LED lighting installation, and other energy-related services. After being founded in 2017, the company is growing fast with 228% in reported revenue growth from 2018 to 2021.
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View on StartEngine: Term Sheet
Security Type: Common Equity
Amount Raised: $32,514
Minimum Investment: $496.92
Here's what I like: Non-renewable sources make up 80% of grid electricity in the US. Those non-renewables -- like coal and natural gas -- contribute to climate change. That represents an incredible opportunity for early investors (and for the climate). Score one for TAM ✅
What I like most about this deal (other than market size) is the fact that it’s priced remarkably fair at just under $40 million -- less than 4x of Revel Energy's revenue in 2021. Additionally, I prefer investing in deals that involve stock purchase over investing in a capped note... There is just something about knowing my position at the close of a round that makes me feel good.
Lastly, Revel Energy has actual revenue, generating $12 million in 2021. And it did so profitably! That's a rare bird by modern startup standards.
Here's what I don't love: While I love the significant revenue numbers in both 2020 and 2021, Revel Energy’s growth rate fell below the 21.7% solar market growth rate over the same period. This doesn’t spell doom, but it will only get more challenging to maintain growth as new entrants join an already crowded market.
Beyond this, the only real nit-to-pick is with the team’s experience. First, I’d like to see more tech muscle, despite the fact Revel Energy is a general contractor more-so than a tech solution. Secondly, Revel Energy’s CEO Alan Lee previously started ecoSolargy. That company currently does not have an active website, and what few reviews I could find for it were mostly negative. 🤷♂️
That said, just because a past company didn’t succeed doesn't mean the next one won’t. And you have to appreciate the years of experience both Alan Lee and his co-founder Paul Bakhoum (also a former exec at ecoSolargy) have in the renewables space.
Who should invest and why: The investment opportunity in renewable energy is massive -- there’s literally a new energy fund popping up every few weeks and it’s no surprise why. Between cost savings and tax credits, large organizations and commercial developers stand to generate billions in potential revenue.
What’s more -- depending on what news channel you watch -- renewable energy is good for the environment! (Sorry, I couldn’t help myself.)
Given that this deal is for equity and has minimums nearing $500, this might be an aggressive deal for a first-time investor. But if you’ve invested in startups before and see the tremendous upside Revel Energy has, this could be a strong contender!
As always, startup investing is super high-risk, and anything can happen. Don't invest anything you can't afford to lose.
Invest in Revel Energy here 👉 Term Sheet
DM’s open on Twitter 🤳 @kitun.