Sirocco Energy Raises Over $500,000 for Urban Wind Energy

By TRUiC Team | Sunday, 05 December 2021 | Startup, Sustainability and Environment

Sirocco Energy, a wind energy startup business based in Palo Alto, has raised more than $560,000 for its wind energy technology. Berkeley Hills Capital led the investment round.

Wefunder

The startup business is currently focused on raising funding through the Wefunder platform. Berkeley Hills Capital invested $100,000 in the current round, and more than 450 other investors have also invested in the company. The startup company plans to use its new funding to develop iOS and Android apps, improve its wind turbine, grow its business development capability, and the business development function. Additionally, the new capital will allow Sirocco to expand its administration and cover Wefunder expenses.

The current investment terms give Sirocco Energy a $5 million valuation cap. The business has $110,500 cash on hand, $110,400 in short-term debt, and zero revenue.

Currently, the three Sirocco Energy founders in the business hold 88% of the voting power in terms of shares. Oleksandr Pryjmak, the chief technology officer, has 35.2% of the voting power. Anna Pryjmak, the chief operating officer, and Taras Vodyanyy, the chief executive officer, each hold 26.4% of voting shares. The startup company was established in Delaware in May 2021.

Low Noise Wind Energy

Sirocco Energy is focused on developing wind energy technology suited for urban environments. "The mechanical noise is very low, less than a sound of an air conditioner," said Anna Pryimak. Specifically, a Sirocco wind turbine typically produces a sound level of 41 dB, equivalent to light rain in sound. In addition, Sirocco Energy is focused on creating wind turbines that have minimal vibration.

The startup estimates that a wind turbine producing 1kW, will cost between $2,000 to $2,500. The startup company plans to offer its wind turbines for lease and purchase. Furthermore, Sirocco plans to start production for pilot projects in 2022.

Sirocco Energy has developed wind technology that can operate in lower wind speed environments. “Our turbines were designed to work in a low and turbulent urban wind with a high aerodynamic efficiency reaching 50%. Traditional wind turbines work best in the strong wind of 12-18 m/s,” Vodyanyy commented.

US daily wind speeds vary from 6 to 12 miles per hour throughout the year, according to Sciencing.

B2B Focus

The startup company is currently accepting pre-orders on its website with a 15% discount. “Pre-orders from the website are coming from B2C customers, so they are requesting small installations, up to 10 kW. Our main focus is B2B,” Vodyanyy told Startup Savant in an interview.

Manufacturing and factories are expected to be key markets for the company. “Factories are one of the largest consumers of electricity, which consume around 620MW annually. The leasing of Sirocco wind turbines will allow them to save almost half the cost of electricity,” Vodyanyy said.

Growing Demand for Wind Energy 

Sirocco Energy is positioned to grow as the global demand for wind energy and other renewable energy sources increases. According to the Office of Energy Efficiency & Renewable Energy, 16,836 megawatts of US wind capacity were installed in 2020. Wind energy provides over 30% of electricity production in Iowa, Kansas, Oklahoma, South Dakota, and North Dakota. In addition, there are more than 35,000 megawatts of offshore wind energy now in development in the US.

About the Author

Bruce Harpham

Bruce Harpham is an author and marketing consultant based in Canada. His first book, "Project Managers At Work," shared real-world success lessons from NASA, Google, and other organizations. His articles have been published in CIO.com, InfoWorld, Canadian Business, and other organizations. Visit BruceHarpham.com for articles, interviews with tech leaders, and updates on future books.