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VoltSafe Blog Team – November 13, 2024
The engineering team at VoltSafe is committed to providing the world with a safe, simple, and smart way to connect to high voltage electricity. The benefits of VoltSafe’s patented deep tech will result in greater accessibility to high voltage power for those with physical disabilities, homeowners and business owners manage their energy usage to ease growing pressure on the electrical grid and a reduction of electrocution deaths and injuries. It doesn’t stop there. The technology is scalable and can be developed for use across many platforms and verticals.
Due to the value this solution presents to the global population, the market risk is low. In fact, several industries have reached out to VoltSafe to provide a solution for their electrical connection needs. From emergency response and medical services, warehouses, electric vehicles, aerospace, farming and marine economies as well as artistic production companies, the technology allows a safe connection to power and delivers both financial and energy savings. The intellectual property of the technology also presents incredible value for the company and investors. Since the tech is so unique, the first and one and only of its kind out there, competition is non-existent.
As great as that sounds, deep tech hardware startups, like VoltSafe, face challenges attracting Canadian venture and institutional investors to help take their product to market. One of the primary hurdles is securing sufficient funding and investment to expand the workforce to fulfill manufacturing needs and conduct research and develop products from prototype to market.
Most institutional and private equity firms and investors are reluctant to invest in hardware because most investors in Canada have only been exposed to sales as software or cloud based tech companies that see returns on investment that have short timelines for a return on investment.
This is why Canadian hard tech startups often rely on government grants, early venture capital and seed funding to bridge the gap required to take a product to market. Funding is required for acquiring and retaining talent, R&D and manufacturing and distribution.
Funding is vital for training and retaining skilled talent. Retaining talent in Canada will help drive innovation. While Canada has strong educational institutions, many top graduates are lured by larger tech hubs like Silicon Valley, where opportunities and compensation are often more attractive. To address these challenges, initiatives such as the Canadian Technology Accelerators (CTAs) provide valuable support, including mentorship, networking opportunities, and market entry strategies to help Canadian tech companies expand globally and overcome development obstacles. However, the funding available for research and development in Canada is still lacking compared to the USA and Asia. Capital investment is required to build and test prototypes. Without the ability for students to put their learning into practice in a research and development environment after graduation, the ability to expand their skills is hampered. This is why most students end up working for American or foreign tech companies that would offer more resources to learn and develop their skills.
Along with having the talent to carry out the research and testing of prototypes, it is crucial for hardware based tech companies to have the tools and space necessary to carry out the research. Like Silicon Valley and New York, Canada has its own tech hubs in cities like Vancouver and Toronto. Unfortunately, the lack of financial resources directed toward these hubs to attract the talent pool required for collaborations as well as research and development makes it difficult for local hardtech companies to grow and expand their business in Canada. Capital investment in Canadian hardware companies can help set up R&D labs to attract the talent pool in Canada needed for crucial collaboration and resources required to take a product from pilot to commercialization stage. Everyday Canadians can help finance pilot programs to test products and fulfill initial purchase orders to deliver them to the end user.
While there are several accelerators available to help with research, testing, business strategy, and introductions to investors, Canadian hardtech companies don’t have the backing from investors that companies in the USA and Asia enjoy.
The competitive global market, with established tech giants from the USA such as Apple and Microsoft, and Asian tech companies like Samsung and LG, often leaves Canadian tech companies overlooked. Since there are investors overseas that are eager to invest in Canadian tech but regulations limit those investments coming into Canada, this eventually pushes many hardtech firms to seek growth opportunities on international shores.
Fulfilling purchase orders efficiently would require establishing manufacturing facilities. Establishing these facilities along with required equipment and hiring specialized labour to deliver the product would require significant investment. Recently Tesla and Honda announced the establishment of manufacturing facilities in British Columbia. Meanwhile, VoltSafe has utilized contracted manufacturers to assist with manufacturing its products. But this path hampers efficient delivery of products as well as the rapid growth potential in order to remain competitive in the industry.
VoltSafe will need the skilled labour as well as the manufacturing facilities to assist with fulfilling the waitlist of POs for marinas.
VoltSafe received funding from the Canadian Electric Propulsion Acceleration Coalition (CEPAC), which is one of Canada’s Ocean Supercluster Projects in May of this year. The $7
million project with a $2.7 million contribution from Canada’s Ocean Supercluster Project and the remainder from project partners, will help the company integrate VoltSafe’s hardware and software solutions with electric propulsion systems.
At the beginning of September, $7 million was awarded to The Port of Friday Harbor by the Washington State Department of Transportation’s Port Electrification Grant Program. The harbors partnership with Photon Marine will include the installation of VoltSafe Marine units on its docks. The funds will be used to finance their expansive carbon reduction projects. Photon Marine, a company that designs electric propulsion systems, is partnering with the harbor on this project and has engaged VoltSafe Inc, to produce units of the VoltSafe Marine system for the project.
This is why early venture capitalists and everyday investors, especially Canadian investors, can have a great impact on the growth of hardtech companies like VoltSafe Inc. The previous successful campaign with Frontfundr enabled the company to build VoltSafe Marine pedestals for its pilot program. Currently capital is required to fulfill multiple purchase orders from marinas eager to install Voltsafe Marine on their docks to replace aging and outdated pedestals that no longer meet necessary safety requirements. VoltSafe has been invited to participate in hubs in Asia and New York that would offer access to resources such as development labs and collaborations with other hardware tech companies, government authorities and investors. That would help foster growth of VoltSafe in those locations but in order to grow the tech locally and introduce the technology to Canadians, more investment into the development of the hardware would have to come from Canadian investors. To learn more about the company’s FrontFundr campaign, click here. If you would like to invest directly with VoltSafe, you can do so by connecting with us at invest@voltsafe.com.
About VoltSafe Inc.
VoltSafe Inc. is changing the way people connect to power. Headquartered in Vancouver, BC, the Canadian tech startup has reinvented the electrical plug by eliminating prongs, adding magnets and an “electrical fingerprint”. Using patented technology, VoltSafe has created the world’s safest, simplest, and smartest plug design since electricity came into homes more than 140 years ago. The company’s product pipeline includes magnetic plug replacement solutions for household, commercial, industrial, marine, electric and autonomous vehicles, emergency services, data centres and more.