Highlights

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Traction

- $4M ARR with line of sight to $36M of annual revenue in 2024.

- Six Contracts with the US Department of Defense

- Tactical Shelters with US Army via Soldier System Center at NATICK, Heat Shields with US Navy via NAVSEA, Cold Chain with US Air Force via Arctic Spark/ JBER, etc.

- Over 15 partnerships with leading consumer brands, including Helly Hansen, Merrell, Cabela's, LL Bean and others.  

- Alium Batteries (Batteries), Mayo Clinic (Cold Chain Packaging) and more.

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Founders

Michael Markesbery - Co-founder & CEO - Recipient of Astronaut Scholarship via NASA

Rithvik Venna

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Raise & Terms

- $30M Series B @$70M pre-money

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Investors

- Airbus Ventures: Series B Lead Investor

- United States Innovative Technology Fund ($5B Fund founded by Thomas Tull)

- Enlightenment Capital: Leading investor in Government, Defense & Aerospace

- In-Q-tel (Venture Arm of CIA)

- Jeff Jordan (General Partner at A16Z)

- Mike Brown (Former CEO of the Defense Innovation Unit)

-REI (Large Outdoor Equipment Retailer)

- Atlantic Dive Supply (13^th largest government contractor for the US Department of Defense)

- Jim Ryan (Former CEO of WW Grainger)

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MEMO

Insulation is a huge market, used in everything from our clothes to batteries to aerospace to buildings and more. Which is why we're excited to share the opportunity to participate alongside a fairly diverse array of prominent investors this round including:

• Airbus Ventures.
• In-Q-tel (Venture Arm of CIA)
• Jeff Jordan (General Partner at a16z)
• REI (Large Outdoor Equipment Retailer)
• And more

What separates Oros' tech (Solarcore) is ease of use and durability- as the founder puts it

"Aerogels have been around for a long time... Aerogel blankets pre-date Solarcore. Aerogel blankets are the first generation of flexible aerogel and utilize the brittle silica aerogel on a fiber mat. The aerogel blankets provide great thermal performance, but shed aerogel particles (so you have to encapsulate it, think "Ziploc Baggie" around the aerogel blanket), are super expensive (over 4x Solarcore foam price) are not very durable (if you cut the encapsulation aerogel dust goes everywhere).

On several occasions (for example, when recruiting our Chief Technology Officer or when first discussing Solarcore with the US Department of Defense) we had to explain that we are the next generation of aerogel materials (not based on silica aerogel blankets). Our CTO and the US Department of Defense would not have partnered with us otherwise, due to the innate challenges of working with aerogel blankets."

Oros has already seen a wide range of interest and success across multiple industries and is poised for significant expansion.

• US Senate allocates $9M of R&D capital towards their Government Programs - Oros' Tactical Shelter program was appropriated $7M by the US Senate in their FY24 mark-ups. And, Oros received Senate support on a SECOND program: their Heat Shield program with the Navy ($2M line item in Senate Mark-Ups).
• Three new contracts with the Air Force -  All new contracts are SBIR Phase I Contracts with the US Air Force
• Solarcore powers Merrell's Top-of-the-line Footwear - This Fall, Merrell is launching a Solarcore-enabled boot, the Thermo Rogue 4.
• The Thermo Rogue 4 has won gold at one of the largest sports retail shows in the world. Merrell is planning to expand SOLARCORE across multiple footwear collections within their Fall 2024 line. The Merrell Partnership is expected to grow a minimum of over 400% y-o-y, and Management is planning for Solarcore to insulate one of their most popular styles, the Moab. Merrell does $1B/year in footwear sales.
• Alium Batteries is utilizing Solarcore Foam to extend battery life in cold weather environments. They estimate purchasing 25,000 square meters of Solarcore Foam (~$450,000) in year one, with room for growth in their annual purchasing in following years.

On exit potential, the founder explains:

"Our most likely exit option will be an acquisition by a strategic acquirer (3M, Dupont, GORE, etc...) or by a financial acquirer (materials focused PE firm). A good example is the transaction in 2022 where Victor Capital Partners sold PrimaLoft to Compass Diversified.  Press release: HERE. The deal was at a $530M valuation at approximately a 7x revenue multiple and a 16x EBITDA multiple. This deal is a great example of how there's good exit value for materials technology companies, even for a company like PrimaLoft that has solutions that are narrowly capable in one industry (consumer goods) vs Oros Labs which sells its technology across consumer goods, Government/ DOD and commercial applications."