OverviewFibeRio Technology Corp. ("FibeRio" or the "Company") has developed revolutionary Forcespinning™ technology to produce nanofibers at commercial scale. This Forcespinning approach has the potential to replace 50+ year old electrospinning technology which is an order of magnitude less producti…
Overview FibeRio Technology Corp. ("FibeRio" or the "Company") has developed revolutionary Forcespinning™ technology to produce nanofibers at commercial scale. This Forcespinning approach has the potential to replace 50+ year old electrospinning technology which is an order of magnitude less productive, over 4x more expensive, limiting in terms of materials and volume capabilities, and results in hazardous waste and disposal issues. The market and applications for nanofibers is expected to grow dramatically over the next 10 years across almost every industry (filtration, energy, textiles, biomed, pharma, hygiene, medical devices, etc.). To reach this potential the industry requires a technology which can deliver high volumes, be produced at dramatically lower prices, deliver greater consistency, offer the ability to work with a wider variety of materials and be customized for specific applications (conductivity, strength, hydrophobic, antimicrobial, etc.), and which is environmentally friendly. Forcespinning uniquely delivers these transformative capabilities and due to its unique approach has filed for broad patent protection. Further, FibeRio has the ability to develop new and unique nanofibers and processes which can also be patented. FibeRio offers the only nanofiber production technology with both melt and solution process capability. FibeRio is currently selling and shipping its initial manufacturing scale machine. It has delivered over 170 product samples to more than 50 industry leaders, has hosted more than 30 site visits, has sold and shipped systems to 4 continents and is in due diligence and contract negotiations with premier customers from around the world. Due to the unique cost and material advantages that FibeRio represents, the Company has been successful in introducing a highly leveraged business model which combines the traditional machine sale with a metered revenue stream on the volume of product produced. This creates an annuity stream to the Company on every unit deployed. The Company has been selling its initial Cyclone™ Lab Scale unit since January 2011. The primary client base for this unit is universities and research labs that play a crucial role in validating production methods and new materials for large industrial users. By introducing the lab scale unit to this user base, the Company has gained valuable endorsement from these gatekeepers that industry turns to before adopting new technologies. In addition, this strategy is seeding research to develop new product applications that feed directly into the Company's metered use revenue model. Demonstrations of the initial production line units, the Cyclone™ Fiber Engine and Fiber System, are regularly scheduled in the McAllen facility. Recurring revenue is generated from each gram of material processed after installation, incremental to the initial equipment payment. Thus, as the installed base of equipment grows, the annuity of usage fees increases as well. Additionally, maintenance fees and exclusivity fees will further add to the Company's revenue base. The revenue model and market take-up is validated by initial purchase orders, customer interactions, industry data, market trends, and from feedback from the Company's Customer Advisory Panel (CAP), comprised of large industrial buyers in a number of industry segments, that have indicated they will be early adopters.
FibeRio owns the world-wide exclusive licenses from the University of Texas, and has developed its own patent portfolio covering the intellectual property surrounding the processes, equipment and methods of this technology. Market Opportunity Nanofiber technology is the fabrication of very small fibers with an outer diameter below 1,000 nm and an aspect ratio-the ratio between the fiber's length and width-greater than 1,000. The properties and attributes of these materials change when formed into nanofibers. Among these changes is a dramatic increase in the surface area. This can increase their tensile strength and enhance their thermal, electric, chemical delivery, or permeability properties. These attributes are highly desired across an array of lucrative commercial product sectors. Leading commercial enterprises across the world are actively engaged in incorporating nanofibers into their products. The Company is primarily focused on the needs of the $30 billion nonwovens industry, the $34 billion wound care and medical device industry, the $70 billion battery industry and the $30 billion ceramics industry. Based on customer feedback and market research, the Company estimates that the nanofiber segment of these markets could reach $4 billion by 2020. In addition, due to the cost-effective and environmentally friendly Forcespinning™ technology, several customers are evaluating the technology for the larger microfiber market requirements.
Customer Value Proposition Forcespinning™ technology is a radical new way to fabricate nanofibers. The Company's Forcespinning™ equipment offers the following advantages: • Output capacity- The single biggest obstacle to the widespread use of nanofibers is lack of a production method capable of producing sufficient fibers cost-effectively. FibeRio's Forcespinning™ technology produces, at a minimum, an order of magnitude more fibers than existing methods. FibeRio products are configured for continuous feed operation.
• Controllable process- FibeRio equipment provides the ability to easily control the manufacturing process by using mechanical forces versus electrostatic or chemical methods. The limited number of manufacturing variables includes material viscosity, rotational speed, orifice size, and melt temperature. The mechanical force used is well understood and can be modeled in contrast to existing methods, which leads to more consistent fiber output. Furthermore, this technology controls the occurrence of fiber beading, which is a significant process control issue for other processes.
• Cost effective- In addition to volume production in a controllable environment, power consumption is low and solvent usage is reduced or eliminated, resulting in a cost-effective "greener" and safer process. For research use, the same tool can be used for both solution and melt processing using a wide variety of input materials. In industrial scale operations, melt processing decreases dependence on costly solvents that are expensive to handle and dispose of.
• Output capabilities- FibeRio provides the only production technology with both melt and solution process capability. The Company's production systems are capable of manufacturing fibers in a variety of formats which allow the fibers to be easily incorporated into many end-product applications. They can also be integrated into the customers' production lines.
• New Capabilities- A variety of shapes of nanofibers can be produced which allow greater variety for expanded application. For example, core/shell and nanoparticle infused fibers can be produced in volume.
• Versatile- The elimination of dielectric property requirements found in electrospinning widens the range of raw materials that can be used to produce fibers. These include metal, ceramic, carbon, organic and inorganic polymers, and biopolymers (both biodegradable and biocompatible). This flexibility introduces new capabilities to pursue new applications.
• Conductive nanofiber production- Forcespinning™ does not rely on a high-voltage electrostatic field used in electrospinning, therefore, conductive polymers can be processed to produce conductive fibers enabling new markets.
• Environmentally Friendly & Safe- Safety is a concern in all nanotechnology fields. FibeRio technology is fundamentally safer, because the manufacturing process and collection process are controllable, ensuring that loose fibers are not floating free. Operator safety is assured because there is no need for a high-voltage field in either the lab or production versions of the tool. The technology is environmentally friendly because it eliminates the need for corrosive solvents that have handling and disposal requirements. Competition and Differentiation Electrospinning is the most prominent method of producing nanofibers today. A hypodermic needle, nozzle, capillary and movable emitter provide a liquid solution of polymer that is attracted to a collection zone by a high-voltage electrostatic field. Fibers are formed through a process of solvent evaporation as the solvents are pulled from the emitter and accelerated through the electrostatic zone. This is a very slow process that produces a largely two-dimensional structure that is fairly weak and can be damaged or dislodged. Electroblowing is a deviation of electrospinning that has gained popularity for achieving smaller fiber diameters, but is still hampered by the intrinsic limitations of high solvent usage, dielectric requirements, and low volumes. FibeRio has significant competitive advantages to displace this established technology. The most significant direct competitor is Elmarco, with headquarters in the Czech Republic. The Forcespinning™ technology, which was invented by researchers at The University of Texas, is protected by three pending patents covering processes and apparatus design. Through a licensing agreement with The University of Texas System, the Company has exclusive world-wide rights to manufacture equipment developed by researchers at the university, the exclusive rights to the method of creating nanofibers, and the exclusive right of first refusal to any new nanofibers as they are developed by researchers at the university. The Company continues to develop and protect its intellectual property through equipment, process and material patent filings, trade secrets and non-disclosure, with 6 additional patents currently pending. Investment Highlights Experienced Management Team- FibeRio's management team is a diverse team with extensive experience, has successfully positioned other ventures as disruptive technology leaders and launched initial products. The team brings this experience to bear to implement a strategy targeting high-volume production markets with substantial industrial customers. World Class Technical Advisory Board- Renowned technical talent in materials, engineering, nanofibers and equipment has been attracted to the Company's practical, platform technology. The breadth and diversity of applications and ability to generate new intellectual property in an unlimited market universe attracts the brightest thinkers. Demonstrated Product Launch- The Company has proven both the technology and the ability to develop and launch new products rapidly and effectively. The initial product was shipped to customers five months after the Company's initial funding was closed. Effective Product Development Strategy-The first commercial product was brought to market for under $2 million. The Company's strategy of outsourcing non-recurring product engineering while developing and retaining critical intellectual property in-house results in speed to market, effective expense control and focus of key technical personnel. Large, Rapidly Growing Market Opportunity- The largest companies in the world across a wide diversity of industries and markets are actively seeking solutions to their unfulfilled need for cost-effective production of nanofibers in volume. Numerous such market leaders are actively engaged in evaluating the Company's industrial scale equipment offerings. Recurring Revenue Drivers- The Company sells high-margin equipment to customers intent on strategic relationships. Unit growth increases with customers' end-product growth and integration into expanding product-focused production lines. Recurring revenue providing predictability and visibility grows with usage fees, maintenance fees and any exclusivity fees that accompany growth in the equipment installed base. Strong Intellectual Property Position- The Company is the leader in the new platform technology, the protection of which is a strategic priority. Patentability opinions have been secured. A very close relationship exists with the University of Texas system. The technology has been recognized as impactful by outside experts at both the Society of Manufacturing Engineers, the World's Best Technology Showcase, and the R&D 100 Award. Growth Upside From Materials- FibeRio is a technology company that, over time, will generate revenue from novel materials. The Company has the right of first refusal to all materials developed at UTPA using Forcespinning™, is positioned to work with world-renowned research and development organizations as they embrace the technology, and can selectively pursue high-return materials independently.
Team (2)
Sectors FibeRio Technology Corporation serves:
Industrials
Manufacturing
Materials
Life Sciences
Energy & Utilities
Technology
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