Sylfen’s Post

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Let's speak about money! A hardware start-up burns cash. To develop products and services that will generate margins and sustainable growth later on. Sylfen is in this case. In the past years of activity, the company invested approx. 9 M€, including 1,1 M€ in prototypes, 500 k€ in infrastructure and 7,4 M€ in know-how. Turnover was starting to raise: 90 k€ in 2021, 490 k€ in 2022, 1 020 k€ in 2023. Honesty demands not to communicate growth rates in % with such figures!! Anyway, the dynamics was launched, and the plan was to surpass 2 M€ turnover in 2024 and then accelerate much faster with the development of our Medium Power product. A 6,2 M€ contract was won in Spain, that we couldn't sign because we were missing a financial guarantee. But it is still an open opportunity. How much has to be invested in a take-over plan? It will depend much on the existing assets and strategy of the buyer. A few figures to share orders of magnitude: - 2,8 M€ was the volume of the financial bridge we were negociating in october 2023, for one more year operation before raising funds. - 20 M€ was the target of the next round of equity raise we were planning, to scale-up, expand in Europe and industrialise: an ambitious plan! - 9 M€ is a possible total amount of equity needed to reach a positive EBITDA with the medium power product in 2027. - 3,9 M€ is the total grant or loan expected in a new project focused on the Medium Power product development and qualification (for a total budget of 7,5 M€) that was in the final steps of evaluation at BPI-France when we got bankrupted and entered the present phase of operation under the protection of the court of commerce. Thanks Novanexia for your support in preparing this project and the previous one for EIC Accelerator! In the money jungle, cash is king... A few millions have yet to be invested to get Sylfen to a mature product's stage and make it cash positive. And then several millions more to go full industrial if one chooses to do so (alternative being a labless model, but that would be a pity). But of course, several national and European funding sources, co-development partnerships, pilot projects and so on can be leveraged to co-finance the next years of development of Sylfen: a lot has been prepared and can be reused by new owners to cross the money jungle! Stay tuned for more insight about Sylfen!

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Camel Makhloufi - PhD

Power-to-X and CCUS - Hydrogen/Ammonia/Fertilizer/SAF/DRI/methanol

4mo

Congrats guys for the work you’ve done over the years and thanks for the transparency. Sylfen is a very innovative company with great people. A trailblazer in France and in Europe when it comes to enabling green hydrogen technologies. I wish you the best in your industrial journey.

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