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.
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.