James Austin
Palo Alto, CA (USA)
Role(s):
VP/SVP/Dept Head
ZED Power Corporation
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Startup
Location:
Palo Alto
Industry:
Transportation
Year Founded:
1992
Number Employees:
1-10 people
Description:
ZED Power Corporation (Delaware) is headquartered in Silicon Valley, California. The company has developed a break-through engine technology to replace the 125 year old internal combustion engine used globally. ZED is the only alternate engine with the same power as a conventional engine, at the same cost of production, with up to double the fuel economy, and near-zero pollution. Unlike electric, hybrid or fuel cell alternatives, ZED engines are completely scalable with the same power, range and durability for motorcycles, cars, and trucks . High thermodynamic efficiency is attained with proprietary external combustion and bottom-cycle energy scavenging. ZED is a true MFC (multi-fuel capable) designated engine which can burn any carbon (gasoline, diesel, CNG, propane, methane, kerosene, biofuel, alcohol) or non-carbon fuel such as hydrogen. ZED engines can be built inexpensively on current engine assembly lines, and installed in current production vehicles for rapid market penetration with minimal retooling .
The business model is to license ZED technology to car and light truck manufacturers, and then to other engine manufacturers. A global search by NASA technology assessment Connecticut company NERAC ((URL removed)) engineers and lawyers verified the unique ZED design. Corporate counsel Wilson Sonsini Goodrich & Rosati of Palo Alto, California are corporate general counsel while patent lawyers Greenberg Traurig of Washington DC filed ZED domestic and global patent protection. Scientific support is also provided by the government National Research Council alternate fuels research lab in Vancouver, Canada.
Global production of light vehicles is projected to be 80 million in 2013. With a $750 licensing fee for autos and $1,000 for light trucks, the total addressable 2013 market for ZED engines is $65 billion, exclusive of the clean tech ZED engine market for heavy trucks, buses, farm, construction, industrial, motorcycle and military vehicles, or potential markets in the rail, marine and aviation industries. Projected 2013 revenue from 35,000 units is $30 million. In 2014 projected revenue is $100 million from 125,000 units (less than 0.0016% market share of cars and light trucks only). The 2050 addressable market is projected to be $3 trillion. Senior Japanese and American Board of Director and Executive auto manufacturers meetings confirm commercial production interest. ZED is a paradigm-changing solution for global transportation in respect to the high cost of petroleum, and motor vehicle pollution.
The company is raising $500,000 (up to $750,000 accepted) in Convertible Notes for conversion to Preferred Shares plus 20% warrant coverage. The company will also consider a minimum Series A equity investment of $2mm. Funds will be used to build and test a production-ready prototype vehicle at Roush Engineering (Livonia, Michigan), build the management and advisory team, expand global strategic partnerships, strengthen the patent portfolio, and pursue government grant opportunities.
ZED team members each have a minimum 20 years experience in automotive powertrain and engine technology, early stage, entrepreneurial and senior management.
Early-stage investment in the company currently exceeds $700,000. It is anticipated that 20 units at $25,000 each will be the last private offering by the company. This offering is only open to accredited investors.