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Convertible

Investing via convertible bonds gives you the right to convert the invested amount into share certificates of this company in the future

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Faris Nizamic team 11
Faris Nizamic Groningen, NL

Sustainable Buildings

Invest in Sustainable Buildings to scale up both Energy Monitoring System and Smart Heating Control in more buildings. Be part of climate change solutions.

$16,371 INVESTED
7%
$232,884 55
Minimum target amount Days left
€ 600.000 7.00%
Maximum target amount Interest rate
The concept

  • Sustainable Buildings BV is a Software, Data & Services Company
  • Dutch company, founded in Groningen (2016)
  • Spin-off from University of Groningen with 10 years of field research
  • Highly-innovative, knowledge-based company
  • Expertise in monitoring, real-time data processing, algorithms & control
  • We build technology that accelerates energy transition.

    Our mission: Making buildings smart, energy efficient & sustainable

    Our vision: Become the leading provider of building energy management software for organizations and companies in the Netherlands and wider.


    Buildings responsible for 36% of CO2 emission because they consume about 40% of our total energy consumption. About 30% of energy in buildings is unnecessarily used and could be saved. For that reason, buildings are a part of the climate change problems, however they could become a part of the climate change solutions.


    The problem is that building owners and managers who want to become more sustainable lack useful insights and actionable information about energy usage of their buildings. With many of the current tools, building owners don’t have a proper overview about building energy information, all in one place. For examples, where or when energy is wasted, in what ways energy waste could be prevented, or which energy saving measures could be taken, etc. Therefore, building owners don’t know how to make their buildings more sustainable. As a consequence, energy efficiency does not get sufficient attention and support within their organization.


    At Sustainable Buildings, we develop a smart building platform that not only gives actionable insights, uncovers savings and improves building performance, but also provides control solutions to reduce operating and energy costs while delivering user comfort.


    Firstly, Sustainable Buildings (SB) provides a powerful energy management system (EMS) and supporting services to help building owners and managers make their buildings smarter, more energy efficient and sustainable. The EMS helps organizations and companies gain visibility into their energy usage and prioritize actions to reduce their operational costs. The application leverages machine learning to analyze building energy data, detect anomalies, predict energy savings opportunities, and help facilities managers take action in near real time.


    Secondly, Sustainable Buildings provides smart control solutions for buildings. Firstly, we start with Smart Heating Control (SHC) solution that drives heating operations of a building at room level. The SHC optimizes heating using sensor information, such as room occupancy and temperature, weather forecast. With the sensor information, the SHC adjusts temperature set points per room and intelligently turns itself to saving mode when heating is less needed. That way, energy is automatically saved without a need for human intervention.


    Summary of the issuance

    Potential investors should read this summary as an introduction to the information memorandum. Every decision to invest should be based on studying the full information memorandum, including the attachments.

    • Issuing entity: Sustainable Buildings B.V.
    • Website issuing entity: https://sustainablebuildings.nl
    • Type of issuance: Convertible bond
    • Issuance amount: minimum amount € 200.000 and maximum amount €600.000
    • Minimal nominal value per participation: € 200,-
    • Issue price: € 200,-
    • Conversion option: Under certain circumstances the bond can convert to shares of issuing entity
    • Conversion discount:
      • 15% when conversion is within 1 year after the start of the convertible bond
      • 20% when conversion is after one year but within 18 months after the start of the convertible
      • 30% when the conversion is after 18 months after the start of the convertible
      • Only when conversion is within 3 months after the start of the convertible there will be no conversion discount.
    • Use of funds: invest in marketing and sales strengthening to scale up of clients, buildings and smart heating projects, as well as improvement of energy management system to bring more benefits and savings to the clients
    • Risk profile: High (grower existing longer than 3 years, find out more about our risk profiles)
    • Interest: 7% (single)
    • Collateral: None
    • Repayment: After 5 years, but issuing entity has option for extension of another 2 years
    • Early repayment option: No
    • Symbid costs issuing entity: 1.5% success fee (Excl. VAT) on the privately funded amount and 5% success fee on the publicly funded amount
    • Symbid costs investor: 1% administration fee (Excl. VAT)
    • Target group issuance: Retail investors
    • Expected return: Not fixed, depends on performance issuing entity

    Unique Selling Points

    The powerful energy management platform to help companies and organizations make their buildings more energy efficient and sustainable. One platform for all stakeholders.

    1. High-performing software platform processing real-time data from a large number of measurement points, developed with the latest technology.
    2. Highly user friendly interfaces - easy to use by any building owner, building manager, energy manager, or end user.
    3. One platform for multiple data streams (energy consumption/production, indoor climate, etc.).
    4. Leverages machine learning to analyze building energy data, detect anomalies, predict energy savings opportunities, and help facilities managers take action in near real time.
    5. Complete visibility into the whole building portfolio.
    6. Supporting the process of planning and tracking progress of saving measures.
    7. Compatible with control solutions (e.g., Smart Heating Control, etc.)

    Revenue model

    Our revenue model consists of three components: 1) One-off setup fee, 2) Recurring subscription fee, and 3) Advisory fee.

    1. One-off setup fee: For EMS, customers pay a one-off onboarding fee per building and data point connected. For Smart Heating Control, customers pay one-time costs of the projects that that cover hardware and installation, project management, and software update and maintenance for 5 years.
    2. Recurring subscription fee: For EMS, customers pay a yearly subscription fee for the EMS software as a service. For Smart Heating Control, after the first 5 years, from the 6th year, customers pay recurring yearly service and maintenance fee for the software.
    3. Advisory fee: There is also revenue coming from hourly fee for energy advising & coaching services since customers often ask for such assistance along their process of improving their building energy efficiency.

    Achieved so far

    Check out our FULL video (10 minutes) that summaries our achievements thus far as well as our plans for the time to come.


    Products

    The EMS services are fully developed, market-ready and deployed at hundreds of our customers.


    The first version of automated control product Smart Heating Control, is market-ready, launched and being offered to our existing clients from October 2019.

    • The SHC is deployed in 2 buildings of our clients:
      • Coehoornsingel building (36 rooms) of the Gemeente Groningen: €27,000
      • Fudura Zwolle building (40 rooms): €27,000.
    • The SHC is requested and will be deployed in January in 3 more buildings:
      • Stadhuis of Gemeente Stadskanaal (8 rooms): €6,000
      • Stadhuis of Gemeente Westerwolde (49 rooms): €25,000
      • Stadhuis of Gemeente Oldambt (22 rooms): €17,000


    Customers

    In October 2019 we have 165 paying clients, 305 buildings connected to EMS. We managed to achieve 6x growth in number of buildings in 2019: From 51 buildings in January to 305 building in October 2019.


    Partners

    • The year 2018 has been an important year for Sustainable Buildings. In 2018, we joined forces with Fudura, a daughter company of Enexis Groep. Fudura is the market leader measuring company in the Netherlands. One of the main reasons for joining forces with Fudura was to scale up within Fudura client base, enabling access to necessary energy meters, as well as faster data acquisition from measuring companies and energy network operators.
    • We established several important reseller channels, which keep on increasing number of clients and buildings (Innova Energie, Energie Inspectie, etc.)
    • We also strengthened our cooperation with hardware providers and installation partners, so we can provide a wide range of quality equipment, devices, and installation service to our customers.


    Main prizes and recognitions

    • Winner of the Green Mind Award 2012 - €100,000 grant for implementation of “Sustainable Bernoulliborg” research project
    • Runner-up of the Green Mind Award 2014 - €100,000 grant for implementation of “SensibleHeating system” research project
    • SURFsara 2015, Community Award at the Pioneers Festival 2015, Startup FastTrack Winner 2016, Winner of Start In Residence (SIR) The Hague 2018, Winner of SIR Groningen 2019: €30,000 total prize money
    • Publications in Financieel Dagblad, BNR Nieuwsradio, RTL7, Dagblad van het Noorden, and many more.


    Investments already attached

    • In 2016 we raised a first investment round through Symbid crowdfunding: €133,120 from 153 investors. With this we have been able to take the first, important steps for the product development of our solutions.
    • In 2017, a private investor invested €250,000 in our company. We used this investment to establish our Sales & Marketing team.
    • In 2018, with our EMS and the scaling up clients in the Northern provinces, we were able to establish the strategic partnership with Fudura. By joining forces with Fudura, we were able to scale up within Fudura client base, enabling access to necessary energy meters, as well as faster data acquisition from measuring companies and energy network operators. Fudura invested €530,000 in the company (out of which €315,000 up-front and the remaining part via an earn out construction).
    • We also received a loan of €150,000 in 2019 under very favorable conditions from the current shareholders.

    Required investment and purpose

    In the coming period we will:

    • Strengthen our marketing and sales activities to attract more Smart Heating Control projects.
    • Realize 20 smart heating projects in 2020, 40 in 2021 and 60 in 2022.
    • Improve Smart Heating Control algorithms, to increase savings to 25% or even higher. This means large financial savings for our existing and new clients.
    • Improve our Energy Management System to automatically provide more useful insights and actionable information.
    • Make more buildings smart by providing them with the whole package consisting of smart control solution and energy monitoring service.
    • As we already have 300 buildings connected we are aiming at 1000 buildings in 2022.

    For these purposes, our financial need is in between €200,000 - €600,000. With this investment, we will ensure the runway from 10 to 18 months of runway in order to realize our plan, specifically on Sales and marketing, Product improvements, and Profitability.

    Risk

    General risks associated with SME investing

    • Risk of competition in markets where the issuing entity is active.
    • Negative impact through changes in rules and regulations by political decisions.
    • Changes in macroeconomic conditions.
    • Performance of issuing entity is dependent upon functioning of board members.
    • There is a risk the issuing entity may go bankrupt.
    • Tax risks through changes in regulations, new regulations or political decisions.


    Company specific risks

    • Price of gas and/or electricity become lower than the current price
    • Delay in delivery of suppliers or partners occurs
    • Dutch laws and regulations regarding building energy efficiency, CO2 emission reduction become less strict or reinforced
    • A new competitor on the market


    Product specific risks associated with investing through convertible bonds

    • The lender agrees that its claims against the borrower under the convertible bond agreement used on the Symbid platform rank below all other, non-subordinated, claims against the Lender as referred to in Section 3:277.2 Dutch Civil Code (‘BW’).
    • Borrower issues a (subordinated) convertible bond, which the lender can convert at a later stage to depository receipts to become a shareholder of the company. Lender expects an (exponential) growth of value of the company with the possibility to sell the depository receipts with a capital gain. However, in most situations, such capital gains do take more than an additional five years after conversion to be realized. In exchange for the possibility of a high return in case of a scenario of exponential growth of the value of the company, there is a risk the investment will be lost in case the company is not doing well.
    • Order of payment: Payment of returns will happen after payments to creditors and redemptions have been done. There is a risk that the issuing entity has inadequate liquid assets to pay the returns. This means that (a part of) your return can't be paid, if this occurs. In case of a bankruptcy, the following payments have priority over the payments of the returns of this convertible bond: Outstanding creditors and existing loans. This means that in case of a bankruptcy the return on the convertible bond cannot be paid.
    • There is no formal secondary market for the convertible bonds, hence options for trading these convertible bonds are limited. It may be that there is no buyer in case you wish to sell your convertible bond(s). This means there is a risk you can't get your money on the desired moment and have to hold on to your investment or sell the convertible bond for a lower price.
    • Repayment in cash of the convertible bond can only be on the initiative of the borrower, taking in consideration the subordinated status applicable to the convertible bond. Also the lender agrees conversion can take place early in certain circumstances resulting in lower or no conversion discounts.
    • A conversion discount will not be applicable for lender in all conversion scenario's, this might have a negative impact on the financial return.

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    Faris Nizamic
    CEO & Co-Founder

    Faris is the company CEO, responsible for leading the company and for business development. He strongly believes that bringing advanced IT solutions to built environment will have a great impact on environmental sustainability as well as on the well-being of us, building users. Faris holds a PhD in Computer Science from the University of Groningen. Prior to his PhD he successfully led an organization of 200 members.

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    Tuan Anh Nguyen
    COO & Co-Founder

    Tuan is the COO, overseeing ongoing operations within the company. He manages the product development and ensures the projects run smoothly. Tuan believes that the Internet of Things combined with Artificial Intelligence solutions will significantly change the future of buildings. Tuan holds a PhD in Computer Science from the University of Groningen.

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    Guido Aris
    Business development Lead

    Guido's motivation to join Sustainable Buildings was because of the powerful, enthusiastic and motivational way the two founders presented their plans to reduce CO2 emissions. Before, Guido worked for a new start up, Catawiki where he combined business development and sales. After that, Guido moved to the University of Groningen to work as business developer, then he joins Sustainable Buildings.

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    Andrija Curganov
    Tech Team Lead

    Andrija’s background is in IT and AI, in particular Human-Machine Communication. He is responsible for the infrastructure the software is running on, from hardware to Cassandra clusters and everything in between. As the Tech team lead, Andrija is responsible for the team developing our products, feature planning performance and quality of our products.

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    Kristy Suurmeijer
    Marketing & Customer Experience

    With a background in software consultancy & communication and having a intrinsic appreciation for efficiency & hospitality, Kristy can perfectly combine these areas in marketing activities for Sustainable Buildings. Marketing is much more than communicating what and who you are. It has everything to do with managing customers expectations and being a good host for your customers.

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    Henk Haan
    Operations Engineer

    Henk has a diverse background in different branches: in sales, as an entrepreneur, as a client contact coach and a trainer. At SB, Henk takes care of the processes between sales and delivery to customers. His goal is to deliver satisfying products and services. His motivation of joining SB is to work on energy transition, one of the biggest challenges of our generation.

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    Sybren Gjaltema
    Software Developer

    Sybren is responsible for designing a highly appealing and responsive front-end for our services. He has broad experience in UI design and front-end implementation, as well as additional backend experience. He is highly motivated by the current environmental state of the world, and is determined to make a positive impact to reduce climate change. Also he likes memes.

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    Wouter Menninga
    Software Developer

    Wouter is the main backend developer, working on the development of the backend services used by our products. On top of that, Wouter is also working on the data analysis software, which is providing aggregates, predictions and uncovering data anomalies that can be used to get more insight into the energy consumption of a building and help to identify opportunities for saving energy.

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    Miriam Beintema
    UX/UI Designer

    Miriam is a young and professional graphic designer. Her goal is to make great designs which are easy and intuitive for our customers. Besides that she takes care of showing our corporate identity in all of our expressions. Together with our team we make buildings smarter, energy efficient and sustainable.

    Legal structure

    The provider is not the issuer of the Convertible bond. The issuer Sustainable Buildings B.V. is a private company, established on 29-06-2016 and located in Groningen under the Chamber of Commerce number 66375096. The address of the issuer is Zernikepark 12, 9747AN Groningen, The Netherlands.


    The company website: https://sustainablebuildings.nl/


    Contact persons for investors:

    Faris Nizamic, faris@sustainablebuildings.nl, +31611846048

    Tuan Anh Nguyen, tuan@sustainablebuildings.nl, +31611846048


    The issuing entity is managed by Shatro B.V. (the holding of F. Nizamic) and Kanava B.V. (the holding of T. A. Nguyen).


    40.00% of the shares in the issuer are held by Fudura B.V.

    28.47% of the shares in the issuer are held by Tufama Holdings B.V.

    8.21% of the shares in the issuer are held by Troost Holding B.V.

    8.61% of the shares in the issuer are held by A. Lazovik

    6.50% of the shares in the issuer are held by Saccargia B.V

    4.69% of the shares in the issues are held by Sustainable Buildings Coöperatie U.A.

    1.76% of the shares in the issuer are held by I. Georgievski

    1.76% of the shares in the issuer are held by B. Setz

    Human development

    In 3 years, from the start with the Faris and Tuan, we have built solid team consisting of rockstar Development and Operations team, very creative and hands-on Marketing and Sales team, and highly motivated Management team.


    • Our Development and Operations team consists of PhD, MSc, and Bachelors graduated from the University of Groningen, who are building innovative and state-of-the-art software platform and solutions over more nearly a decade. We are developing a leading platform for building energy management system using machine learning and artificial intelligence. The platform is also capable of providing smart control to the building equipment in order to automatically optimize building operations, saving costs while ensuring user comfort and productivity.
    • The Sales & Marketing team is built with enthusiastic, experienced, and hands-on members who have a track record.
    • We also work with an expert in building management, who has managed a portfolio of 150 buildings.

    The product

    Sustainable Building develops and provides a smart building platform that not only gives actionable insights, uncovers savings and improves building performance, but also provides control solutions to reduce operating and energy costs while delivering user comfort.


    Firstly, Sustainable Buildings provides a powerful Energy Management System and supporting services to help companies and organizations make their buildings more energy efficient and sustainable. Our EMS helps organizations and companies gain visibility into their energy usage and prioritize actions to reduce their operational costs. The application leverages machine learning to analyze building energy data, detect anomalies, predict energy savings opportunities, and help facilities managers take action in near real time.

    Secondly, Smart Heating Control solution drives heating operations at room level of a building. The SHC optimizes heating using sensor information, such as room occupancy and temperature, weather forecast. With the sensor information, the SHC adjusts temperature set points per room and intelligently turns itself to saving mode when heating is less needed.


    For more details and information about our Products, please visit: https://sustainablebuildings.nl/en/products/


    Energy Management System:

    • The EMS helps organizations and companies gain visibility into their energy usage and prioritize actions to reduce their operational costs. The application leverages machine learning to analyze building energy data, detect anomalies, predict energy savings opportunities, and help facilities managers take action in near real time.
    • The EMS services range from delayed data from measuring company up to real-time monitoring of energy consumption and production, as well as indoor environment.
    To see our demo of EMS product, please visit our product screen recording, or check out some of EMS tutorials from our colleague Kristy via this link.




    Public Dashboard (PD):

    We also developed a Public dashboard is a self-service narrowcasting software especially designed for public spaces with a goal of sharing information both internally with colleagues, and externally clients and visitors.

    With our PD, users can keep employees and visitors well-informed, give real-time feedback to building users, increase the visibility of sustainability and other projects or initiatives, etc.

    The PD can display energy and indoor climate data, for example electricity and gas consumption, solar production, as well as temperature, air quality and humidity of working space. Users can also display your messages or images regarding everything that the company or organization finds relevant, for example, company mission, sustainability goals, welcome to new colleagues, etc.


    To see our demo of Public Dashboard product, please visit our product screen recording.


    Smart Heating Control:

    Optimizing the heating of your building at room level and automatically generating savings up to 25%. With our smart heating solution you avoid wasting energy on heating of rooms that do not need to be heated.

    The Smart Heating optimizes heating using wireless sensor information on occupancy, room temperature and weather forecast. With this sensor information, the Smart Heating Control adjusts temperature set points per room & intelligently turns itself from comfort mode to economic mode when the heating is less needed.


    How it works

    We install smart thermostatic valves for room radiators. In each room or location we also install a room sensor that measures room presence and temperature.

    With the sensor information, the smart thermostatic valves automatically turn down room radiator when the room is warm enough or when the room is empty. When the room is used, the radiator is automatically turned up.


    Client benefits

    • Save up to 25% on your heating bill
    • Provide better heating & indoor climate conditions for building occupants
    • Make building occupants more aware & engaged in energy saving actions

    Unique Selling Points

    The powerful energy management platform to help companies and organizations make their buildings more energy efficient and sustainable. One platform for all stakeholders.
    • Fully developed high-performing software platform processing real-time data from a large number of measurement points, developed with the latest technology.

    • Highly user friendly interfaces - easy to use by any building owner, building manager, energy manager, or end user.
    • One platform for multiple data streams (energy consumption/production, indoor climate, etc.).
    • Leverages machine learning to analyze building energy data, detect anomalies, predict energy savings opportunities, and help facilities managers take action in near real time.
    • Complete visibility into the whole building portfolio.
    • Supporting the process of planning and tracking progress of saving measures.
    • Compatible with control solutions (e.g., Smart Heating Control, etc.)

    Revenue model

    Our revenue model consists of three components: 1) One-off setup fee, 2) Recurring subscription fee, and 3) Advisory fee.
    1. One-off setup fee: For EMS, customers pay a one-off onboarding fee per building and data point connected. For Smart Heating Control, customers pay one-time costs of the projects that that cover hardware and installation, project management, and software update and maintenance for 5 years.
    2. Recurring subscription fee: For EMS, customers pay a yearly subscription fee for the EMS software as a service. For Smart Heating Control, after the first 5 years, from the 6th year, customers pay recurring yearly service and maintenance fee for the software.
    3. Advisory fee: There is also revenue coming from hourly fee for energy advising & coaching services since customers often ask for such assistance along their process of improving their building energy efficiency.


    Scalability

    Enterprise building energy management system is a huge growth market – In the Netherlands alone, according to RVO, there are around 125,000 organizations are obliged to have an EMS for their buildings. In terms amount of buildings, this number is around 2 Million buildings. Looking wider, our solution has the potential to expand to other countries as well. In Western Europe alone, this niche is already worth hundreds of Millions of euros, and as we continue to grow we can serve a variety of neighboring global markets that are several Billion euros in size. 

    Current status

    • We established several important reseller channels, which keep on increasing number of clients and buildings (Fudura, Innova Energie, Energie Inspectie, etc.)
    • In October 2019 we have 165 paying clients, 305 buildings connected to EMS. We managed to achieve 6x growth in number of buildings in 2019: From 51 buildings in January to 305 building in October 2019
    • Our first version of automated control product Smart Heating Control, is market-ready, launched and being offered to our existing clients from October 2019
    • The SHC is deployed in 2 buildings of our clients: Coehoornsingel building of the Gemeente Groningen and Fudura Zwolle building.
    • The SHC is requested and will be deployed in January 2020 in 3 more buildings: Stadhuis of Gemeente Stadskanaal, Stadhuis of Gemeente Westerwolde, and Stadhuis of Gemeente Oldambt.

    Planned developments

    Energy Management System:

    New features that will provide more useful insights and actionable information.

    • Better analysis and suggestions saving potentials and opportunities
    • More and better notifications, including real-time notifications
    • More benchmarking methods to evaluate building performance
    • Better KPIs to track and evaluate measures implemented
    • Wider integration to cover more hardware systems within buildings
    • Mobile version
    • Invoice checking and validation
    • Energy labelling management

    Smart Heating Control:

    • Improve Smart Heating Control algorithms, to increase savings to 25% or even higher. This means large financial savings for our existing and new clients
    • Improve the control dashboard to provide more insights into heating system at room level as well as provide occupancy and space usage analysis as value-added services to customers
    • Integrate with other branches of hardware to more options for customers to choose depending on specific situations of each building, and this way make the business case clearer with a shorter payback time of the project

    Target group

    We offer our products and services via both direct sales and resellers.

    The target groups of our direct sales:

    • Municipalities 
    • Schools
    • MKB 
    • Care institutions
    • Real estate 
    • Hotels

    The target groups of the resellers:

    • Measurement companies
    • Consultancy / Energy advisors 
    • Engineering companies 
    • Omgevingsdiensten

    Market size

    Firstly, within the Dutch market, Sustainable Buildings has identified the companies and organizations who have to compliant with Informatieplicht, energiebesparingsplicht, Europese Energie-Efficiency Richtlijn (EED) as our beachhead market. This group covers the above mentioned specific target groups. According to the RVO, there are 125,000 companies and organizations are covers by these laws and regulations. These accounts to around 2 Millions buildings within the Netherlands alone.

    As a jump start we can approach and offer our solutions to more than 25,000 existing customers of Fudura. 

    In addition, we see that the market is moving in our direction. More attention is paid to sustainability, CO2 emission reduction, and improvement of building performance. Sustainable Buildings is therefore on the right side of trends in a large and growing market.

    Competition

    One might assume that Sustainable Buildings solutions compete with building management systems (BMS) provided by big enterprises, such as Siemens, Johnson&Johnson, or Priva. However, that is not the case.

    • On one hand, about 90% of existing buildings do not have a BMS. That is where an affordable IoT-based system like ours is very suitable. On the other hand, our solutions are good complement to buildings that already have a BMS, where our solutions integrate with the BMS, providing additional and value-added services by analyzing data, and furthermore providing better control to the BMS.
    • Our main competitors are other Energy Management System providers, such as ErBis from Van Beek, eSight Energy, or EnergieMissie in the Dutch market. However, we have got our unique selling points that open room for our solutions.
    • We consistently stand out from benchmarks based on state-of-the-art technologies and innovation. In terms of pricing, we have come to the point to have a very competitive price-value balance for our services.
    • In addition, we have Fudura as the strategic in providing our value-added services directly to their customers.
    • More important, out of all EMS competitors, we are unique in the way that we can also provide integrated, native smart control solutions together with our Energy Management System, which gives additional unique selling point to the clients who want to do a step more, make actual improvements and achieve energy savings and CO2 reductions. As the starting point, we are now offering the Smart Heating Control solution to our existing customers, as well as new customers.

    Customer feedback

    In October 2019 we are serving 165 paying clients, 305 buildings connected to EMS.  So far, we have achieved 6x growth in number of buildings in 2019: From 51 buildings in January to 305 building in October 2019.


    Some of our clients:

    • Provinces: Province Groningen, Province Friesland
    • Municipalities: Gemeente Groningen, Gemeente Den Haag, Gemeente Westerwolde, Gemeente Oldambt, Gemeente Stadskanaal, Gemeente Hattem, etc.
    • Schools: University of Groningen, ROC Friese Poort, BrederoSchool, NicolaasSchool
    • MKB: Archipunt, WerkPro, Kinepolis, Drie Gezusters
    • Care institutions: Nij Smellinghe Hospital, Zinn Zorg, Stichting Patyna
    • Real estate: Waarborg Vastgoed, Brivec Vastgoed
    • Hotels: Hotel Gemeentehuis
    • Measurement companies: Fudura
    • Consultancy / Energy advisors: Grunneger Power, Energie Inspectie
    • Energy companies: Innova Energie
    • Omgevingsdiensten: Greenbizz IJmond
    For more information about our Cases, please visit: https://sustainablebuildings.nl/en/cases-2/

    Customer feedback

    • Tim Graafsma, Waarborg Vastgoed: “With help of Sustainable Buildings, we started collecting real-time data in all buildings of our portfolio. Not only energy data, but also indoor environment data. Instead of three portals, now we have all information in one place - EMS.” (video)
    • Martijn van der Harst, Energie Inspectie: “Together with Sustainable Buildings, we managed to help about a hundred of companies and organizations to prepare and submit mandatory ‘Energy saving report’ on time, before deadline on the 1st of July 2019. Now we are looking in further possibilities how to help these clients further.” (video)
    • Peter Petersen, GrESCo, Municipality of Groningen: "Sustainable Buildings helps us make our employees and our citizens more aware of energy consumption and what they can do to save energy. We find that to be the first step towards making our buildings energy neutral by 2035." (video)
    • Dick Jager, University of Groningen, Sustainability manager: "Working together with Sustainable Buildings startup, helped our university to become the most sustainable university in the Netherlands."
    • Additionally: Esther Hehne from strategic partner Fudura: "Fudura has decided to cooperate with Sustainable Buildings because we wanted to take energy saving to the next level. Fudura has 25.000 clients and most of them already have a good insight into their energy consumption, however they also have to take one step higher." (video)

    New customers

    Our focus is to offer the Smart Heating Control solution firstly to our existing customers as an attractive upsell services. We currently have 165 customers with totally 305 buildings to offer.


    • 20 Smart Heating Control projects sold in 2020

    • 40 Smart Heating Control projects sold in 2021

    • 60 Smart Heating Control projects sold in 2022

    As for the Energy Management System, are targeting new customers within the target groups as well as via resellers. We have the support of Fudura to approach 25,000 business customers. Our target is to increase the number of EMS subscriptions from 305 to 1000 buildings in 2022.

    Sales pitch

    Energy Management System:

    Sustainable Buildings provides a powerful energy management system and supporting services to help companies and organizations make their buildings more energy efficient and sustainable.

    You want to reduce energy consumption and operation costs in their buildings so that eventually to reduce the CO2 emissions. On the other hand, you also want to improve tenant comfort and productivity. Which software will help you to take action and achieve your goals?

    The EMS helps organizations and companies gain visibility into their energy usage and prioritize actions to reduce their operational costs. The application leverages machine learning to analyze building energy data, detect anomalies, predict energy savings opportunities, and help facilities managers take action in near real time.

    Moreover, the EMS makes it easier and faster to transform your buildings and energy data into performance improvements that:

    • Eliminate energy waste
    • Save money
    • Improve your level of sustainability
    • SB - EMS is the ultimate tool on your road to energy neutrality


    Smart Heating Control solution:

    Buildings are unnecessarily heated for at least 30% of time.

    We should be able to manage heating easier in our buildings, even remotely, from any location. If we can change the way we manage heating in buildings, we can make a huge positive impact to our environment & your energy bill.

    Smart Heating Control is a solution that optimizes heating at room level of a building and automatically generates energy savings.

    • Save 15 – 25% on your heating bill
    • Provide better heating & indoor climate conditions for building occupants
    • Make building occupants more aware & engaged in energy saving actions

    What has been done before

    The past period has been characterized by a strong professionalization of our company. In this period we have invested in several segments.

    • Energy Management System services are fully developed, market-ready and deployed at our customers.
    • Established several important reseller channels, which keep on increasing number of clients and buildings (Innova Energie, Energie Inspectie, etc.).
    • The EMS services have scaled to 305 buildings from 165 clients (October 2019 stats).
    • The first version of automated control product Smart Heating Control, is market-ready, launched and being offered to our existing clients from October 2019.

    Marketing & sales channels

    Looking forward, our marketing and sales efforts resulted in scaling up in number of clients (165) and buildings (305), however, not yet in significant increase in revenue since the initial focus was on the most affordable (first entry) product: EMS. Upselling of other higher value products is about to follow. Now, the sales of EMS solution keeps scaling up, our customer base is growing. The next step is to improve and upsell the control solutions, starting with the Smart Heating Control.

    Marketing and Sales for our EMS proposition take place in close collaboration with our partners: Fudura, Innova Energie, Energie Inspectie, IJMond.

    • Via Fudura we can approach more than 25,000 business customers. Most of them are obliged to the laws and regulations regarding energy monitoring as well as improving energy efficiency and sustainability.
    • We offer our EMS proposition through both direct sales and reselling channels. We are also improving our website in order to make our EMS more self-service and that way offer it via online channels.
    • We sell directly through in-person sales to large companies and organizations that fall within the aforementioned segments. The trigger is usually the combination of price / performance and the profit in sustainability. 

    As for the Smart Heating Control solution, we focus our Marketing and Sales effort on direct sales to our existing customers. We have been able to building lasting relationships with our customers, now we are able to upsell our Smart Heating Control solution, among other value-added services to our customers.

    Marketing objective

    To support our Sale funnel, we plan to generate leads in the following ways:


    1. Online Ads (Google, Facebook, etc.): We expect to generate 20 qualified leads monthly with online ads.

    2. Live educational events: We will organize offline education events, such as workshop on energy saving strategy for buildings, etc. We plan to organize such event bi-monthly. Expected leads generated are 30 qualified leads per event.  

    3. Organic marketing via social media such as LinkedIn: We plan to expand our networks organically by connecting with people in the target groups on LinkedIn and other channels. We expect to have 20 qualified leads generated monthly.

    4. Visiting fairs: We will visit fairs, such as Vakbeurs Energie, to meet prospects and expect to generate 25 leads quarterly from such events.

    5. Via reselling partners: With our reselling partners expanding, we can reasonably expect to have 25 qualified leads brought by our partners.

    To summarize, every month, we plan to have 100 qualified leads generated with our marketing activities.


    Partnerships

    We work closely with our partners, especially Fudura to reach our customers. We have access to the more than 25,000 customers via Fudura.

    We are expanding our reselling channels with more partnerships with:

    • Measurement companies
    • Consultancy / Energy advisors 
    • Engineering companies 
    • Omgevingsdiensten  


    Turnover so far

    The issuing entity is active since 29-06-2016. The following financial information is the most recent information available.


    P&L

    The following information applies to the book year 2018:

    • Revenues: € 49.306
    • Cost price of sales: €18.018 
    • Operational costs (including salaries, wage taxes): € 119.181
    • Other costs (including management fees, contractors, office rent, etc.): € 194.665
    • Interest expenses: €1.064
    • Tax benefit: € 56.501
    • Net profit: € (227.121)

    The following information applies to the results until september or 2019:

    • Revenues: € 88.345
    • Cost price of sales: € 7.947 
    • Operational costs (including salaries, wage taxes): € 177.218
    • Other costs (including management fees, contractors, office rent, etc.): € 115.896
    • Interest expenses: €351
    • Net profit: € (213.067)


    Balance sheet


    The balance sheet data per 31st december 2018

    Total equity equals €385.272, and consists of:

    • Issued capital:   € 171
    • Share premium: € 696.034
    • Legal and statutory reserves: € 160.157
    • Other reserves: € (471.090)

    Total liabilities equals €38.711, and consists of:

    • Non current liabilities:   € 2.935
    • Current liabilities: € 35.776


    The most recent balance sheet date is of september 2019

    Total equity is €172.204 and consists of:


    • Issued capital  €  171         
    • Legal reserves  €      696.034
    • Legal and statutory reserves € 168.948    
    • Other reserves   €   (692.949)        


    Total liabilities equals € 188.137 and consists of:

    • Non current liabilities  € 150.000
    • Current liabilities mid term   €      724
    • Current liabilities short term   € 37413


    The equity/debt ratio per 30 september 2019 equals 48/52. After the issuance of convertible bond with the minimum target of € 200.000 this ratio equals 31/69. After the issuance of the convertible bond with the maximum amount of €600.000 this ratio will be 18/82


    The following information is about the situation after issuance of the securities offered in this investment round. After the issuance of the convertible bond the working capital will be, with the minimum target amount of € 200.000, €272.758 and with a maximum target amount of €600.000 this will be €672.758. This contains of:

    • Cash: €283.859 with the minimal funding target (€683.859 with the maximum funding target)
    • Claims: €37.413
    • Stock: 0
    • Trade and other receivables: € 26.312


    Securities

    The issuing entity has not provided no securities to the investors in the convertible bond. Furthermore, no collateral has been provided to other current creditors.




    Projected turnover

    • In the year 2020, we expect to get €661,320 in cash flow from sales. Of which, €61,320 would come from the EMS services, while the major part of €600,000 will come from 20 smart heating control projects.
    • In the year 2021, projected revenue is €1,291,090. EMS services contribute €91,090 while €1,200,000 are the contribution of 40 smart heating projects.
    • In 2022, revenue projections are €1,920,910. Smart heating control projects contribute €1,800,000. EMS services contribute €120,910.

    Assumptions

    • Subscription fee:
      • EMS: €10 per month per location
      • EMS-Real-Time: €17.5 per month per location
    • Size of a Smart Heating Control project: €30,000
    • Dutch laws and regulations regarding building energy efficiency, CO2 emission reduction remain at least as strict as currently
    • Price of gas and electricity will remain at least as the current price

    Invested so far

    • In 2016 we raised a first investment round through Symbid crowdfunding: €133,120 from 153 investors. With this we have been able to take the first, important steps for the product development of our solutions.
    • In 2017 an angel investor invested €250,000 in our company. We used this investment to establish our Sales & Marketing team. 
    • In 2018, with our market-ready Energy Management System and the scaling up clients in the Northern provinces, we were able to establish the strategic partnership with Fudura. By joining forces with Fudura, we were able to scale up within Fudura client base, enabling access to necessary energy meters, as well as faster data acquisition from measuring companies and energy network operators. Fudura invested €530,000 in the company (out of which €315,000 up-front and the remaining part via an earn out construction).
    • We also received a loan of €150,000 in 2019 under very favorable conditions from the current shareholders.

    Investment requirement

    In the coming period we will:

    • Strengthen our marketing and sales activities to attract more Smart Heating Control projects.
    • Realize 20 smart heating projects in 2020, 40 in 2021 and 60 in 2022.
    • Improve Smart Heating Control algorithms, to increase savings to 25% or even higher. This means huge financial savings for our existing and new clients.
    • Improve our Energy Management System to automatically provide more useful insights and actionable information.
    • Make more buildings smart by providing them with the whole package consisting of smart control solution and energy monitoring service.
    • As we already have 300 buildings connected we are aiming at 1000 buildings in 2022.

    For these purposes, our financial need is in between €200,000 - €600,000.

    With this investment, we will ensure the runway from 10 to 18 months of runway in order to realize our plan, specifically on Sales and marketing, Product improvements and Profitability.

    Purpose of investment

    With the target amount of €200.000 we will be able to invest in the following, in the order of investment priority:

    1. Sales: €65,000 (32.5%)
    2. Marketing: €35,000 (17.5%)
    3. Development and Operation (EMS, Smart Heating Control): €60,000 (30%)
    4. Office rent, administrative and legal support, and other operational costs: €37,000 (18.5%)
    5. Symbid success fee: €3,000 (1.5%)


    When we reach the maximum target amount of €600,000 we will additionally invest in order to speed up the growth target of the company:

    1. Sales: €210,000 (35%)
    2. Marketing: €162,000 (27%)
    3. Development and Operation (EMS, Smart Heating Control): €150,000 (25%)
    4. Office rent, administrative and legal support, and other operational costs: €48,000 (8%)
    5. Symbid success fee: €23,000 (5%)

    Return

    There are a number of scenarios in which exits become possible:

    • High return scenario:
    Sustainable Buildings is growing rapidly. To facilitate further growth:

    a) Sustainable Buildings goes public

    b) A number of large private investors take a majority stake in Sustainable Buildings

    c) Sustainable Buildings is taken over by an existing (energy) company


    If Sustainable Buildings grows to a company according to the projections, the valuation of the company in 2022 would be at least €5 million.

    • Medium return scenario:

    The business model works, but growth is difficult and new segments appear to be more difficult to enter than expected, although the CO2 savings generate a lot of interest. Scenarios b) and c) as described above are still possible, but the yield is correspondingly lower.

    • Low return scenario:

    Sustainable Buildings encounters unexpected problems when rolling out its service. Sustainable Buildings sells its developed technology and platform to an energy, measuring, ICT or other company. With this all loans can be paid off.


    The investor cannot derive any rights from any of the above scenarios.

    Risks

    The risks associated with this plan are presented in the summary section on this page.


    Finally, in case you have any questions, please post them here via the Symbid platform, and we will respond to them in a short notice!

    SB Team