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Investment opportunity
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Start up in the airborne survey technology market
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Airborne Geophysics is the most cost effective and time efficient technology for sub-surface resource explorations worldwide. The process involves mapping of diverse Geophysical properties (Magnetic, Gravity, Radiometric and Electromagnetic) of underground elements by remote sensing sources, placed on-board an aerial platform such as an aircraft or a helicopter.
The market for Airborne Surveys is about US$2 Billion per year. Further, the airborne survey technology market is divided into two business models:
1. Contract Survey: In this model, the survey companies earn revenues by way of executing survey contracts for Oil & Gas or mining exploration companies for a specified basin/concession owned by them. The revenue collected by the survey company is a one- time fee and once that has been paid, all rights of the data belong to the exploration companies owning the property.
2. Proprietary Survey: In this model, the survey company enters into an agreement with the Government of a country for carrying out surveys for concessions/basins of their own choice within that country and at their own cost. In return for this investment, the Government allows the survey company to sale multiple licences of the above data to all interested exploration companies worldwide, over a defined period of time. Under this model, it is also feasible for a survey company to own a part of the actual concession/producing field, by way of a "carried interest".
The proprietary business model is much more rewarding and contains upsides with windfall returns, and is the basis of this proposal.
The promoters, together with their partners and associates, have more than 100 years of combined experience in this niche industry. They have an existing Joint venture company in the UK, in partnership with an UK based technology group, who owns IPR's and patent rights for two unique airborne survey technologies - one of them has been in operation for more than a decade, and has an excellent track record. The other partner in the JV Company is a UK based consulting firm for oil & gas projects and is bringing in projects with present market value of US$10 Million to start with.
Finally, the promoters have an agreement with the oldest and the most reputed Geo-science establishment in the UK for identifying new and prospective areas.
The promoters are looking for an investment of US$6 Million for purchase of Capital assets (Geophysical equipment and aircraft) and working capital for the existing JV, as well as for new projects. The investment will have a lock in period of 3 years and will yield an Average Annual ROI of 42% by the end of Year 3.
This ROI for Angel Investors does NOT include the windfall returns from the carried interest. |
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| Total Funding Required: |
£4,000,000.00 |
| Min. per Investor: |
£250,000.00 |
| Industry: |
Natural Resources/Mining |
| Sec. Industry: |
Energy |
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| Region: |
Outside UK |
| Proposal ID: |
2717 |
| Investment Reason: |
Start-Up |
| Proposal Status: |
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Angel Investors Raising Business Finance Small Business Grants Business Funding Venture Capital
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