Investment Opportunity

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Ahead of the Curve

 Investment Opportunity

Vision, Mission & Intro

Our vision is of a low-carbon high-wellbeing future where all buildings are sustainable. In service of this, our mission is to provide zero-carbon biophilic modular buildings to multiple key markets. 

The unique zero-carbon PassivPod offers comfort, connection to nature & energy independence with flexibility for living, leisure & learning.

The design is uniquely beautiful and utilises state of the art biophilic and passivhaus design techniques, both trends which are growing in market share and are recognised as key innovations for next-generation buildings.

As an original and flexible design for what will become numerous high-value real estate assets, early investment in PassivPod is a high-growth opportunity.

 

Market Opportunity

There are three core social and environmental challenges that all iterations of PassivPod help to address.

  • Climate change. 20-30% of global carbon emissions come from constructing and operating buildings. The UK’s Climate Change Act 2008 and the global Paris Agreement 2015 legally require a swift transition to a net-zero carbon economy. PassivPod is powered by 100% renewable energy and its construction minimises waste and embodied carbon.
  • Energy costs. Energy costs are rising and 2.4 million (around 10%) UK households are in fuel poverty. For businesses and institutions, reducing utility costs increases profit margins or allows more budget for productive investments. PassivPod is extremely energy and water efficient, and the minimal amount of energy required is generated on-site with renewable technologies. This reduces utility costs to almost zero and makes users independent from grid failures.
  • Unhealthy buildings. Europeans spend 90% of their time indoors, so having a built environment that promotes health and wellbeing is crucial. But indoor air quality is often worse than at street level, causing numerous health problems. Research shows that buildings rich in daylight, fresh air and nature enhance health and wellbeing. Biophilic Design principles are at the heart of PassivPod, with its natural materials, organic shape, extensive glazing and ventilation system.
  • Inefficient construction. Traditional construction takes a relatively long time, often a year or more, and generates a lot of waste. Using prefabricated manufacturing, modules can be manufactured in factory conditions with minimised waste and energy use, transported to site and assembled in a matter of weeks.

 Investment OpportunityOther problems and benefits are specific to the target markets:

Leisure

  • Sensitive eco design to get planning approval in protected natural sites
  • Brings sustainable development, jobs and income to disadvantaged rural areas
  • Provides capacity for nature tourism, the fastest growing segment of tourism globally
  • Wellbeing benefits for tourists from connecting with nature
  • Inbound tourism is growing, partly enhanced by the low value of the pound
  • Perfect as a Visitor Centre or Tourism Office

Residential

  • Improves affordability and living standards with almost zero utility bills and independence in the case of grid failures
  • Energy efficiency features increase resale and rental property value
  • Health and wellbeing benefits from natural materials and superior internal air quality and
    daylighting
  • Ideal as a 15 sq metre home garden office to reduce work travel and enhance quality of life

Education

  • Learning in spaces rich in daylight with window views and indoor plants has been shown to improve attendance, mental function and focus
  • Pupil numbers are set to exceed eight million by 2023, with the equivalent of 2000 extra schools needed. PassivPod classrooms are a quick and sustainable way to add capacity
  • PassivPod is a perfect compliment to the Eco-Schools programme, an awards scheme to which 70% of England schools and 40,000 schools worldwide have registered
  • Our Built to Learn report explains how using green design can be used to boost student engagement, achievement and wellbeing.

Commercial Offices

  • More productive, due to better staff retention, easier recruitment, less sick days and higher productivity and staff morale
  • PR, marketing and branding opportunities from innovative sustainable design
  • Adaptable off-grid location siting for business and science parks to maximise returns on space

 Investment Opportunity

Our Product

PassivPod is a zero-carbon modular passivhaus combining comfort with sustainability.
It addresses diverse social and environmental needs with flexible sizes: a home to reduce utility costs; eco-lodge to bring tourism to deprived rural areas; office to improve productivity; classroom enhancing cognition and sustainability education.

PassivPods will be factory-prefabricated and transported to site in modules for quick assembly with our design-and-build service.

The innovative pod-shaped design uses passivhaus and biophilic principles. It is100% renewable-powered, highly energy-efficient, generating solar power on-site with a wood-burner for ambiance. A sustainable timber structure minimises embodied emissions.

The original design for PassivPod was a commended finalist in the Sunday Times Eco-Haus Competition 2014.

See Design and Technical Information for a fuller explanation of the product.

Our Progress Status

Initial designs and 3D models for leisure, and domestic versions of PassivPod and the floorpans for the educational classroom and garden office versions have been completed.

Trademarks and all visible designs are registered, which also allows for international licensing of designs. NDA’s in place with partners, staff and agents. Web domains are owned.

Our next steps are to do full costing and start raising capital to build full-sized prototypes.

We are seeking expressions of interest from landowners interested in a subsidised prototype, and have already had interest from schools and lodge park owners.

We aim to build a prototype in 2018 and be ready to start trading in late 2018.

 Investment Opportunity

Competition and uniqueness

We know of no other suppliers offering multi-purpose modular off-grid zero-carbon elliptical two-storey buildings. PassivPod is unique with registered IP.

The UK’s rural eco-lodge rental market has grown substantially in the last few years with 2-3 bedroom properties costing £1000-£2000 per week depending on the season. With 70% occupancy this averages £1500 per week, for 36 weeks this generates £54,000 per year revenue for one lodge.

Leisure-Park eco-lodges abroad cost £1m-£3m. PassivPod, three bedroom lodges will be priced £380,000 and four bedroom lodges at £500,000. Classrooms sale price is estimated at around £115,000 and garden office sale price is estimated £33,000.

Unlike most modular prefab offerings, PassivPod’s shape mimics natural forms. A spiral- shaped central stairwell leads to an upper floor with a sensor-operated skylight and balcony. Passivhaus standards require almost no energy for heating or cooling. The building fabric uses natural materials, such as sheep’s wool insulation and natural paints for superior internal air quality, avoiding toxic chemical off-gassing.

 Investment Opportunity

Revenue Model

Our revenue model is to sell a design and build service to clients, where we provide the PassivPod modules and manage the fabrication on-site by a contractor. Clients will pay us a 10% deposit on sign-off, and the full payment on completion. We have the option to also sell licenses to developers with them managing manufacture and on-site fabrication, which will create cost-effective highly scaleable growth for international sales.

2018 will be spent finalising the technical designs, raising investment and building a full-sized prototype. We expect to start trading in late 2018. In the first 12 months of trading we expect to sell off-plan four PassivPods: one each for a classroom, an eco-lodge, an office and a private home.

In year 2 with one pilot build complete in each key sector we expect increased sales to a minimum 14 units up to year 2. In year 3 we expect to sell 30 units, rising to 140 units by year 5. This aggregates a total gross revenue of £40M and total net profit of £9M for UK only. International sales are expected 5-10 times higher.

Growth Strategy

Our marketing strategy is focused on digital marketing, networking and earned media coverage, with a minimal role for traditional advertising. A planned crowdfund campaign will attract international awareness from public and private investors.

Tools and tactics will include:

Social media – Posting to Twitter, Facebook, LinkedIn, Slideshare and Youtube about the unique design of PassivPod and its benefits, using targeted hashtags

 Investment OpportunityWebsite & email – Providing details and news about PassivPod on an SEO optimised website with a form for leads to sign up for email updates and join our database

Competitions – Entering design and innovation competitions and awards to increase credibility and media recognition

Media outreach – Pitching stories and submitting press releases about PassivPod to media outlets with business and/or sustainability audience

Live events – Attending networking events, exhibiting and presenting at investment, innovation and sustainability events. When our prototype is built, guided tours will be a key marketing tool

Promotional resources – Printable resources such as concise flyers and in-depth brochures for each of our four models, to be downloadable on our website, emailed to leads and handed out at live events

The Team

The venture will be led by design and technical director Mark Pellant and commercial director Clive Bonny, who both have entrepreneurial experience and strong professional credentials. Additionally PassivPod Ltd will benefit from design and marketing support from the Koru Architects office team. The support team has award-winning skills in entrepreneurship, technology and innovation, with proven architectural and planning experience in eco-design for commercial and domestic construction.

Mark Pellant, Design and Technical Director

Mark Pellant is an experienced architect specialising in contemporary sustainable design. Mark became inspired to set up Koru Architects in 2000, after travelling the world and viewing widespread environmental destruction first hand. The practice has since won several awards, including being commended for the RIBA Sustainable School Ideas Competition 2000, winning the RIBA Download Prize for Sustainability 2011, being commended for the Eco-Haus Design Competition 2014 and most recently winning gold in the international Green Apple Award for the Built Environment 2016. Before setting up his own successful practice, Mark worked for several internationally acclaimed practices including Conran & Partners and Sheppard Robson. Mark serves on the Architects Design Review Panel for Eastbourne Borough Council and has been a fully chartered and registered architect for over 25 years.

Clive Bonny, Commercial Director

Clive Bonny is an professionally qualified management consultant, having set up his own consultancy Strategic Management Partners in 1990. Clive is an expert in business strategy, risk management, business environmental policy, fundraising and intellectual property protection. His consultancy has achieved Gold Award for national Responsible Business Standards 2012-2015, won the 2016 Corporate Vision Technology Innovation Award, and the 2016 Emerging Technology Excellence Award from Corporate Live-Wire. Clive has managed business support projects in the construction, leisure, government, education and environmental sectors, including Brighton University Green Growth Platform, South East Construction Consortium, Organic Roofs, Cliff House Park, Osea Leisure Park and others.

See Meet The Team to learn about the other four team members.

Endorsements

Nigel Greenwood, Managing Director of So Sussex:

“So Sussex is a leading outdoor education and events company and the creators of the award winning Elderflower Fields Festival. Our new Spithurst Hub rural business hub is allowing ourselves and other local businesses, start ups and home workers to develop the rural economy, create tens of new jobs and showcase the importance of environmental awareness and sustainability. We are very keen to include PassivPod structures as part of our business hub and to be a showcase and catalyst for further growth.”

Mr M Taylor, 
Director of Alumnae Relations and Development at Roedean School:

“Roedean School has exceeded DFE standards as the highest performing girls school in Sussex, Kent and Hampshire for grades AAB in two facilitating subjects. We are equally known for our excellence in delivering a rounded education. 

We are very excited at the opportunity from PassivPod to become a leading early adopter of the scientific benefits of biophilic classroom design. Providing students with an environment which can enhance their cognitive skills and improve students and teachers physical wellbeing will bring substantial long-term benefits to their quality of work and life. The PassivPod team have already actively supported our student entrepreneurial skills and environmental knowledge. We hope the development of their unique biophilic designs will be given the financial support they deserve.” 

Lorraine Bell, Business Support Manager at Green Growth Platform:

“The University of Brighton Green Growth Platform is a UK leader in supporting the sustainability of over 700 low carbon businesses in the last 3 years, including PassivPod.

PassivPod has significant international growth potential as a unique elliptical multi-purpose zero-carbon biophilic building. 

The business model, team and marketplace are a perfect fit for profitable development and, from our proven expertise in low carbon technical design and engineering, we are well qualified to support and encourage its future success.”

Please view other endorsements here.

If you have any questions regarding PassivPod, please read our Q&A document here.

Investment Opportunity

Currently the two directors, Mark Pellant and Clive Bonny, own 100% of the equity. They are liaising with major crowdfund platform providers for a further £350K equity share for initial classroom and garden office buildings, and international marketing.

If you are interested in investment opportunities with PassivPod, or would like to know more about our project, please contact us on 01273 204 065 or email info@passivpod.co.uk.

You can view more information about our investment offer here.

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