This is NOT investment advice. Investing in startups is risky whether it is via StartEngine or any of the other platforms. Liquidity may or may not be an option for an extended period of time.
Let's see if we can toss out a few names on a monthly basis for people to debate and evaluate and see if this is useful. At times, we have only one name or zero. We understand some may feel the need to "do something" or "pull the trigger" or "just buy something to allocate and diversify" but we don't see it that way.
The types of firms that typically catch our attention are generally based on seeking a potential "bet a little, win a lot" approach where we seek potential "winner takes all or most" outcomes. We tend to focus on those and avoid battles with low barriers to entry UNLESS the firm is simply executing at a very high level and clearly advancing to a few different potential exits.
Hylio is interesting and we're willing to take a shot.
Not a big fan of investing in general drones or drone related businesses where the objects are flying around civilian life. Not so sure about that just yet. Willing to miss it. Drones and/or airborne robotics make a ton of sense to me however in an agricultural environment.
Revenue - $3.2M to $8.3M from 2022 to 2023 so the company is already into its growth ramping in revenue. The company states it already booked $7.8M for revenue in 1H2024. Let's say they do $16M for all of 2024. Growing nicely for sure.
Balance Sheet - nothing alarming and I avoid anything that already looks like it could choke on debt. Not the case here.
- Is it hardware or software/service long term or both? Their strong market share to date suggests the service component is huge so I like their play on that plus the software. Everyone in the space will say "we're really a software play" but Hylio may have a strong early lead in customer relations and support and software/hardware.
- The Chinese competition might get bumped out by Trump. That's very bullish.
- They have over $10M in lifetime revenue having only raised $1.6M. Hungry and efficient - I like that.
- Hylio is the first and only firm FAA approved for "swarming" and carrying 55 lbs and up - more machines and software and revenue
- rejuvenation of domestic manufacturing and agriculture in America a meaningful tailwind for this investment
Valuation - Is it too high? Is it too low? It must be way too high right? The truth is I do not know what the correct valuation is and neither do you. It looks about 12 times sales and it's a little baby right now. Publicly traded companies growing rapidly fetch 50 times revenue! (not defending/supporting 50x sales just pointing it out). The real factor here is that I am MUCH, MUCH more concerned with viability. Is this thing gonna work or not? Will this business exist in 5 years? Can they make money and survive? I think the answer to that is more than likely yes and they have a real nice start going for themselves now.
The last opportunity to invest in AtomBeam as an individual is likely wrapping up. Recent AtomBeam analysis.
Browser Extension to Get Bitcoin Cashback Shopping
