Titrolyte
Finance
20 November 2013
Too Soon to IPO? Diane Ashton and Sundeep Lal are the creators of a revolutionary technology, which streamlines the production of titanium. Their company “Titrolyte”, in theory, will thrust them into the forefront of the titanium-based market. However, numerous obstacles stand in their way. Ashton discovered the extraction process, after performing a disrupted test with mixed materials. Surprisingly, she made a breakthrough. The “muddled” solution was extremely efficient and remarkably faster than the other electrolytes, and shared no obstacles that the former solution faced.
The cofounders sought to monetize their extraction process, soon after their discovery. They found an investor in Dick Rahilly, of Courtney, Wills & Rahilly. Following the demonstration, Rahilly immediately invested $20 million and helped them develop a business plan. In the two months following, Titrolyte had an impressive $40 million first round of investment.
Titrolyte has branched out into materials testing services, as a way to raise additional funds. This could work in theory, but in the long term the company is neglecting their current problems. This could result in a loss of identity, if they become known for their testing services instead of their extraction process.
The testing service has been forecasted at generating $10 million in revenues for their first year. A bright spot in an increasingly darkening situation, the ten million still falls short. Currently, Titrolyte is spending about $30 million per annum. So even if they were to sell $5 million in Titanium and the $10 million forecasted comes through, they will still run out of money within the year. It is because of this, that an IPO is so enticing.
On the surface, an IPO seems like a great option, given the benefits the company will receive. They will receive a strong influx of revenue to work with, fulfilling the dire need holding them back. The initial buzz that an (successful) IPO
20 November 2013
Too Soon to IPO? Diane Ashton and Sundeep Lal are the creators of a revolutionary technology, which streamlines the production of titanium. Their company “Titrolyte”, in theory, will thrust them into the forefront of the titanium-based market. However, numerous obstacles stand in their way. Ashton discovered the extraction process, after performing a disrupted test with mixed materials. Surprisingly, she made a breakthrough. The “muddled” solution was extremely efficient and remarkably faster than the other electrolytes, and shared no obstacles that the former solution faced.
The cofounders sought to monetize their extraction process, soon after their discovery. They found an investor in Dick Rahilly, of Courtney, Wills & Rahilly. Following the demonstration, Rahilly immediately invested $20 million and helped them develop a business plan. In the two months following, Titrolyte had an impressive $40 million first round of investment.
Titrolyte has branched out into materials testing services, as a way to raise additional funds. This could work in theory, but in the long term the company is neglecting their current problems. This could result in a loss of identity, if they become known for their testing services instead of their extraction process.
The testing service has been forecasted at generating $10 million in revenues for their first year. A bright spot in an increasingly darkening situation, the ten million still falls short. Currently, Titrolyte is spending about $30 million per annum. So even if they were to sell $5 million in Titanium and the $10 million forecasted comes through, they will still run out of money within the year. It is because of this, that an IPO is so enticing.
On the surface, an IPO seems like a great option, given the benefits the company will receive. They will receive a strong influx of revenue to work with, fulfilling the dire need holding them back. The initial buzz that an (successful) IPO