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Magnetic Inertia System: Fundraising Business Model

Magnetic Inertia System: Fundraising Model

Back to Home Request Data Room
Round: $10M Seed+ / Series A
Instrument: Preferred Equity w/ 1x non-participating
Pre-Money Valuation: $45M
Minimum Check: $250k (lead sought at $3M+)
Why Now

Rapid electrification, grid instability, and diesel replacement mandates create a once-per-decade opening for resilient, zero-emission storage. Our magnetic inertia platform pairs battery-like response times with turbine-like durability, positioning Ioncore as the premium choice for critical power.

Executive Summary

Vision & Mission

Transform the global energy landscape by commercializing a breakthrough magnetic inertia generator—delivering uninterrupted, efficient, and green power to critical sectors.

Value Proposition

Fundraising Ask

Investment Snapshot

Customer Pipeline

12 qualified deals (>$18M TCV) across healthcare, data centres, and EV charging—3 in contracting.

Unit Economics

Blended 42% gross margin on first manufacturing run; path to 55% with volume magnet pricing.

Resilience Advantage

Sub-1 ms response + 20-year design life yields >30% lower TCO vs. lithium for critical loads.

Climate Impact

Each MW replaces ~1,200 tons CO₂ annually versus diesel; aligns with ESG procurement criteria.

Traction & Milestones

DateMilestone
Q1 2024Completed lab-scale prototype testing (99% round-trip efficiency)
Q3 2024Secured first Letter of Intent (LOI) from a major hospital chain
Q1 2025Demonstrated continuous 48-hour off-grid operation in pilot site
Q2 2025Filed two additional patents on cooling and control algorithms
Q4 2025 (Proj.)Commission first 250 kW commercial installation; begin leasing pilot

Market Analysis

Total Addressable Market (TAM)

Serviceable Obtainable Market (SOM)

Year 1–3 focus: North American healthcare + data centres (~USD 5 billion).

Customer Personas

Competitive Matrix

FeatureMagnetic InertiaLithium-Ion BatteriesFlywheelsDiesel Generators
Round-Trip Efficiency98–99%85–90%85–95%N/A
Cycle Life> 50 000 cycles~ 3 000 cycles~ 20 000N/A
Carbon EmissionsZeroLow (manufacturing)ZeroHigh
Maintenance Interval5 years1–2 years3 years6 months
ScalabilityModules to MWModules to MWLimitedUnlimited

Product Description

System Architecture

Key Benefits

Use Cases

Deployment Playbook

Rapid Pilots

90-day pilot template with pre-engineered interconnects and remote monitoring to prove ROI fast.

Financing Flexibility

Blend of capex sales, PPAs, and energy-as-a-service, letting customers choose opex vs. capex.

Scalable Stack

Standardized 100 kW blocks networked via microgrid controller; MW-scale deployments in weeks.

Business Model

Revenue Streams

Pricing Illustration

ModelCapacityPurchase PriceLease PPA Rate
Residential100 kWUSD 120 000USD 2.50/kWh over 7 yrs
Commercial Small250 kWUSD 280 000USD 2.20/kWh over 10 yrs
Data Centre1 MWUSD 1 millionUSD 1.80/kWh over 10 yrs

Capital Efficiency Logic

Marketing & Sales Strategy

Brand Positioning

“The world’s cleanest, most reliable energy storage.” Leverage case studies and performance data to build credibility.

Go-to-Market Phases

  1. Phase 1 (2025): Pilot installs with LOI customers; publish whitepaper.
  2. Phase 2 (2026): Regional sales offices; partner network activation.
  3. Phase 3 (2027+): Scale to MENA and Asia via OEM licensing.

Operational Plan

Manufacturing

Supply Chain

R&D Roadmap

Funding Timeline & Catalysts

  1. Q2 2025: Secure lead investor term sheet; lock magnet and power-electronics volume pricing.
  2. Q3 2025: Deploy two 250 kW commercial pilots; publish verified uptime data.
  3. Q4 2025: Close round; expand manufacturing cell; commence 1 MW data centre build.
  4. 2026: Launch OEM licensing program in MENA + APAC; achieve 55% gross margin.

Investor Alignment

Governance

Quarterly board with climate/infra expertise; independent seat reserved for lead investor.

Reporting

Monthly KPI pack covering uptime, backlog conversion, burn, and cash runway; portal access for LPs.

Compliance

ISO 9001 manufacturing in process; UL 9540 + CE/CSA roadmap underwritten by third-party labs.

Financial Plan

Use of Proceeds

CategoryAmount (USD)% of Raise
Manufacturing Scale-Up4 000 00040%
Pilot Project Deployment2 000 00020%
R&D & IP Protection2 000 00020%
Sales & Marketing1 500 00015%
Working Capital500 0005%

5-Year Financial Projections

Revenue: USD 50 million
EBITDA margin: 25% by Year 5
Break-Even: Mid-Year 3

Capital Deployment Roadmap

Manufacturing

Automate rotor balancing and stator winding to double throughput while holding workforce flat.

Pilots to Recurring

Convert 4 paid pilots into 8-year PPAs; target 75% conversion through performance guarantees.

IP & Moat

Expand patent family to include control firmware and thermal topologies; initiate trade-secret program.

ESG Impact

Intellectual Property & Regulatory Strategy

Team & Advisors

Leadership

Advisory Board

Investor Opportunity & Exit Strategy

Return Drivers

Exit Pathways

Risk Analysis

Risk CategoryMitigation
TechnologyRigorous pilot validations; third-party testing partnerships.
Market AdoptionEarly adopter incentives; strong case-study evidence; referral discounts.
Supply ChainDual-sourcing; buffer stock; long-term supply contracts.
RegulatoryEarly engagement with cert bodies; dedicated compliance team.

Appendices & Next Steps

Ioncore Energy Ioncore Energy Magnetic Inertia Systems