Outsail
Setting the Scene
The maritime sector, traditionally reliant on fossil fuels, is facing a significant challenge in reducing its carbon footprint.
However, switching to carbon-neutral fuel creates a few problems:
For long passages batteries are too bulky and expensive.
Alternative fueling creates a chicken-and-egg infrastructure problem.
Competing sail technologies are too large to fit on most ships.
This week’s company leverages wind energy to provide a cost-efficient and sustainable solution in the shipping industry.
In a Sentence
Outsail manufactures a retractable, autonomous windsail, advancing the decarbonization of the shipping sector.
Retractable: The wing sail's retractable design enables compact storage, enhancing maneuverability and aerodynamics for ships of all sizes.
Autonomous: The wingsail requires no management from captain or crew and can be engaged with a single button press.
Bulleted Version:
- Outsail adapts the hybrid car principle for the seas, trading gasoline for wind to power.
The Basics
- Headquarters: Redwood City, California
- Employee Count: 4
- Investors:
Y Combinator, Climate Capital, Collab Fund, Venture Hacks Fund , Sandhill Investments, Hephaestus Ventures, Balaji Srinivasan, Alan Rutledge.
- Funding amount: $1.1 million Pre-Seed
- Business model: B2B2C- Broker the yacht deal, sell the wing
- Early traction: $32M in LOIs from major yachtbuilders and leading customers in commercial shipping, plus two versions of our deployable wingsail tested on the water
Due Dilligence
WHAT WE LIKE
Market Opportunity: Positioned at the intersection of shipping, leisure, defense, and military sectors, Outsail taps into a large market eager for decarbonization solutions.
Sustainability: Outsail's innovations align perfectly with global regulatory shifts towards decarbonization, positioning the company as a pivotal player in helping the maritime industry meet stringent environmental standards.
Additionally, in adverse conditions, vessels equipped with Outsail’s wings harness solar energy to charge their batteries, ensuring motor operation if needed.
Proprietary Technology Advantage: Outsail's retractable and autonomous wingsail technology, capable of fitting any vessel, sets a new industry standard for efficiency and adaptability, distinctively placing it ahead of competing sail technologies that are limited by size and scope.
POTENTIAL RISKS
Technological Integration: Integrating Outsail's advanced wingsail technology with existing maritime vessels and infrastructure requires overcoming significant technical and logistical barriers.
Market Adoption: The success of Outsail hinges on its ability to convince an industry traditionally resistant to change to adopt its innovative wingsail technology, a task that may prove challenging despite the clear environmental and economic benefits.
Long Sales Cycles: The inherently long sales cycles of the maritime industry, driven by high capital expenditures and lengthy decision-making processes, could slow Outsail's growth and extend the time to profitability.
Founder Profile
Arpun Rau, CEO: Previously designed hardware for NASA and SpaceX.
Comps
Bound4Blue: Backed by EIT Climate, GTT Strategic Ventures, and the European Innovation Council
Norsepower: Backed by Valve Ventures, VNT Management, Business Finland, and the European Innovation Council
Ayro: Backed by Ocean Zero, GO Capital, and BPI France
BAR Technologies: Acquired.
Why Outsail
Outsail has the potential to change the winds of its industry by pioneering the future of sustainable ships and differentiating from competitors with wind sails that can fit on any vessel.