MicroPower Global has, this week, launched a crowdfunding campaign via the popular Kickstarter website. The money raised would enable the production of 100,000 sample energy efficient chips for potential end users. Kickstarter is the largest and most successful crowdfunding platform and therefore it will enable the company to get the word out to as many people as possible. Many of the successful campaigns on the site have been creative projects but it also has a great record with technology and design projects with some initiatives attracting more than 50,000 backers, and support close to $10m.
Crowdfunding is a novel method of funding specific projects that is increasing in popularity. The approach utilises established crowdfunding websites in order to attract the backing of many individuals in the form of pledges, usually small sums of anything from $1 to $5,000, in return for a modest ‘reward’ which usually takes the form of something that enables each individual to feel as if they part of the project and that they would not be able to find anywhere else.
MicroPower’s semiconductor chips can efficiently and cost-effectively convert heat, including waste heat, directly into electricity, leading to significant energy savings in a number of industrial and consumer applications. The technology builds on standard thermoelectric principles in a novel way to deliver breakthrough levels of efficiency. The company is confident that the ability to harvest heat at temperatures ranging from 200°C to 600°C will make their chips the new thermoelectric standard for waste heat recovery.
Although the current thermoelectric market is relatively small at approximately $300 million annually MicroPower will be able to open up already identified new global markets worth many billions annually. The technology has already been patented internationally and independently verified and a working partnership with Texas State University has been in process since 2009.
“We have a great technology that can have a major impact on the world in terms of improving energy efficiency and reducing harmful emissions” said MicroPower’s Chairman, Max Lewinsohn. “We’re also now at a stage where our technology is ready to enter the commercial world – the efficiency of our MicroPower Chips is at a level that is suitable for early applications and all we need is additional funding to allow us to ramp up our operations, so that we can create thousands of samples for the many people in industry who are patiently waiting for us to deliver.”
The company has been privately funded so far but it felt that now was the time to appeal to a wider audience. In most circumstances, ordinary people are unable to invest in or support small private companies because of investor regulations but crowdfunding provides an alternative route through which they can do just that.
“The second reason for launching on Kickstarter is that now is the right time to spread the word about our technology and the role it can play, and a crowdfunding campaign is an excellent way of letting people know what we’re all about,” added Lewinsohn. “Hopefully, some of the people who learn about our project will be connected to organisations who could really benefit from working with us, and that can only be a good thing.”
MicroPower is aiming to raise a minimum of $250,000 which would enable the company to manufacture 100,000 sample chips. These would then be distributed to a range of potential end users from automotive manufacturers and power companies to battery makers and consumer goods producers. MicroPower not only hope to reach the target but also go well beyond it. This would enable the company to accelerate its activity towards commercialization in a variety of ways. Alongside crowdfunding, MicroPower is continuing to pursue other fundraising methods including private placements which it hopes to secure through discussions with private investors and family offices. Other possible avenues include strategic partnerships conducted either by industry or geography.
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