HEVO Power: A world without wires
Over the next few weeks, we’re going to share stories about a few compelling startups that are using digital technology to unlock resource efficiency. The first entrepreneur we’re featuring is Jeremy McCool, founder and CEO of HEVO Power. HEVO’s software and wireless technology make managing and charging commercial electronic vehicle (EV) fleets smarter and easier.
We talked to Jeremy about his vision and motivations for starting the company. Through HEVO’s story, you can see how creating better customer experiences is a critical part of addressing resource challenges. You will also see the creative lengths to which Jeremy had to go to fund HEVO to date. Providing startups like this better access to capital, human-centered design, and customers is core to why we’re launching SuperCollider.
Why did you start HEVO Power?
After my service in military, I saw firsthand the issues with fossil-based energy systems. I made a decision to do whatever I could to reduce dependence on fossil fuels that were coming from insecure sources. I saw EVs as a potential option, but realized they required better infrastructure — specifically universal and ubiquitous charging infrastructure. I saw what was needed and the complete solution wasn’t there so I said to myself “if not me then who else”
What pain point is HEVO power solving for?
I spent a lot of time talking to stakeholders in the EV space and consistently saw that cords and plug-in stations wouldn’t be viable for public areas in cities. I saw the same problem with operators of commercial fleets, which is where we are focusing our efforts. Cords are cumbersome. They create a variety of hazards. They get run over and break. Our wireless solution allows a driver to simply park and power up. Our software empowers managers with services and data about their fleet. In the future, we see our solutions embedded and seamlessly integrated curbside in cities and commercial garages everywhere.
How did your customer discovery process evolve?
Whenever you’re starting a blue ocean technology company like this, there are infinite possibilities. We had a lot of different types of people coming to us to investigate whether or not our solution would work for them. What you have to determine at a very young age of a company, “what is your core competency and core market?” It’s hard because you want to pursue opportunities and gain momentum, while not strangling your ability to do so.
Our end users are organizations that have over 30 EVs in their commercial fleets already. We’ve engaged directly with those types of customers but we’re now more focused on companies that are already deploying plug-in technologies because they have the infrastructure. We wholesale or license our technology to them and they’re responsible for installation, integration, service and repairs. In addition to providing the core technology, we support them with software and data services.
We’ve identified a pathway for distribution and sales by focusing on key partnerships with companies that can deliver our technology to the end user. Our customer discovery process is much simpler. Find companies that can deliver 10s of thousands of units per year to end users. It could be an EV charging company that already has plug-in stations. Or it could be a tier 1 supplier to automotive OEMs.
How have you bootstrapped the company?
When you’re starting a company like this, you either have a lot of money or a lot of gumption. We had gumption, but not a lot of money. In the beginning, there were a lot of hungry nights.
The first money that came in was through a grant from the Veterans Affairs administration to build the proof of concept. We entered the Cleantech Open which proved to be a big help. We won $15,000 in prize money and connected to an angel who made a $30k investment. We were then awarded a $240,000 grant by NYSERDA in early 2014. Since then, additional angels and a family office invested $260,000 [DISCLOSURE: one of SuperCollider’s partners is an investor] and we secured prizes of 150,000 pounds from the UK and 150,000 euros from Italy. We have since won an additional grant from NYSERDA.
We’ve had to find capital in creative and sometimes challenging ways, but we now feel that we have enough runway to get commercialization of our technology and services.
What does your market look like in five years?
We are focused on catalyzing 3–10 relationships to get to 100,000–1 million units per year. We already have 3 customer relationships to build from, which we believe gets us to 100,000 by 2020. There is potential to get in the millions.
Thanks to Jeremy and his team for taking the time to chat with us. Stay tuned for more startup stories in the coming weeks.
