Analyzing Metafuels’ $8 million seed deck for climate technology

Approximately 2% The world’s CO₂ emissions come from pressurized, jet-driven sausages traveling through the air. Earlier this week, he covered Metafuels, a startup that believes it has a solution to reducing aircraft emissions.

I also negotiated with the company’s founders to provide them with pitch materials for their $8 million seed round, allowing me to take a closer look at the materials the company used to raise money.

We’re looking for more unique proposal decks, so if you’d like to submit your own, you can do so in the following ways:

This deck slide

Metafuels was kind enough to share its entire deck with TechCrunch+ for this teardown. There are some minor edits, but the majority of this slide deck remains intact.

1. cover slide
2. Market size slide
3. Product/Technology Slide 3
4. product manufacturing slides
5. Unit economics (large scale production numbers)
6. unique selling point
7. technology roadmap
8. Business model slides (production version)
9. Business model slide (license)
10. Commercialization slide
11. Market traction slide
12. team slide
13. end slide

3 things to love

If you’ve been reading my Pitch Deck Deconstruction article, even just skimming the list of slides above, you’re probably thinking, “Oh, Haje won’t be happy with this, there’s a ton of information missing!” . And yes, you would definitely be right. However, this is an interesting challenge for deep tech startups. If it takes a long time to get your product to market, by definition you’re missing a lot of things.

Is it a bird? Is it an airplane?No, the market size is skyrocketing

It takes special chutzpah to say “all aviation fuel” is your market, but that’s what Metafuels is doing here.

Currently, the market size for sustainable aviation fuel (SAF) is quite limited. According to the International Air Transport Association (IATA), around 300 million liters of sustainable aviation fuel will be produced in 2022, doubling to more than 600 million liters this year. This is equivalent to a drop in the ocean of all the fuel used in the world. Although there was a significant drop during the pandemic; Approximately 360 billion liters of fuel were used by commercial airlines in 2019.

In other words, SAF represents approximately 0.17% of the total aviation fuel consumed.

It is therefore no surprise that Metafuels has decided to start forecasting from 2030. That’s when the company really ramps up production, and that’s when the market is likely to take off. A major enforcement feature is the RefuelEU aviation regulation, which sets targets for blending sustainable fuels with petroleum-compatible fuels.

Metafuels tells its story well. It provides a comprehensive picture of a rapidly growing market, in which the company has established itself as a key player.

From this slide, you can learn how to connect the “why now” part of your story to broader macro changes. If you know which way the wind is blowing, you can set up your company to make the most of it.

Let’s get geeky about technology

When building a deep tech company, the tallest pole in the tent will always be the technology itself.what do you have you Did you notice that no one else has been able to identify it?

[Slide 4] Oh yeah, talk about nerdy stuff, baby. Image credits: meta fuel

Metafuels has discovered one exception to the “investors don’t care about your product” rule. Metafuels is a deep technology company, and its failure or success will be based entirely on its ability to deliver on the technology side. Refreshingly, the three-slide set (slides 3-5) explains the process itself, how it works at scale, and how the company can produce fuel at an affordable price. is.

clear roadmap

[Slide 7] I like the clarity of Metafuels’ plan. Image credits: meta fuel

Make it work, then make it work on a small scale, then scale it to production scale. This is a very obvious route, but it’s rarely explained this clearly. Slide 10 details how the company scaled up from his 50 liters per day to 700 million liters per day. This is a tremendous scale operation.

The main takeaway from this part of the deck is to look to the future and how it can be expanded upon. In particular, having a clear understanding of unit economics (i.e., how the financials of your product change as you start increasing volumes) is often a key part of the story.

Here, Metafuels is talking about producing 1-2 liters per day and scaling it up to 700 million. That’s… a tough job. And while the manufacturing processes and factories to produce that much fuel will be more expensive, the cost per liter will be significantly lower. Metafuels tackles that beautifully with this deck.

In the rest of this teardown, we’ll take a look at three things Metafuels could have improved or done differently, as well as its full pitch deck.