Founded in January 2009 by Jay Harris, ISIS Power manufactures, markets, and sells advanced electrical systems for specialty vehicles including buses, coaches, limousines, fire trucks, armored vehicles, tactical vehicles, and recreational vehicles. Their solid-state electrical system is superior to traditional wiring harnesses and can be programmed for any special need or application. The company has produced revenue from “day one” and doubled revenue every year for the last 3 years.
PRODUCT/SERVICE: ISIS Power manufactures, markets, and sells advanced electrical systems for specialty vehicles including buses, coaches, limousines, fire trucks, armored vehicles, tactical vehicles, and recreational vehicles. Their solid-state electrical system is superior to traditional wiring harnesses and can be programmed for any special need or application.
VALUE PROPOSITION: The ISIS System is a microprocessor-controlled power distribution system and can be used as a stand-alone system or as an overlay to an OEM system. Instead of a central power distribution system with large wire harnesses, the company uses smaller, localized modules that reduce the amount of wire needed in a vehicle, reduce the overall complexity of the wire harnesses, and ultimately reduce the total installed cost of the electrical system.
MARKET SIZE: ISIS Power is targeting low to mid-volume manufacturers and estimates its TAM (Total Addressable Market) at $1.2 billion.
REVENUE MODEL: A standard retail kit sells for $1,550. On average, a vehicle will generate between $1,000 and $3,000 in revenue. A typical customer makes between dozens to hundreds of vehicles per year. ISIS Power can accommodate a customer up to 10,000 vehicles per year based on present production capacity.
MANAGEMENT TEAM: The company has 8 employees. The founder/CEO, Jay Harris, has an undergraduate degree in mechanical engineering from Purdue and a masters degree in engineering management from Northwestern University. He spent most of his career at Littelfuse leading teams that developed a wide range of automotive, telecom, and semiconductor products. He was promoted to Senior Leadership of the Automotive Division and held the roles of Global Director of Product Development, Global Director of Product Management, and Global Director of Business Development. In late 2008, Jay spun off ISIS Power from Littelfuse and began managing all parts of the business including product development, sales, and capital-raising.
COMPETITIVE ADVANTAGE: The solid-state electrical system has no moving parts and is easy to use, easy to install, easy to troubleshoot, and easy to maintain. It allows you to quickly identify problems without having to follow wires with your fingers and check every connection. It decreases wiring and trouble-shooting time by as much as 50%, lowers installation costs, reduces weight, improves reliability, enhances diagnostic features, removes complexity, controls the amount of power sent to any given circuit, and provides unlimited options for customization. Their biggest competitor is Vansco, a division of Parker, which targets high volume manufacturers. Other competitors include Intellitec, Spyder, and Weldon.
PROOF OF CONCEPT: ISIS Power began as an experimental project in late 2006 at Littelfuse. When the Great Recession hit, LIttelfuse put the project on hold. Jay Harris negotiated a deal and spun out ISIS Power from Littelfuse in late 2008. The company has been profitable from ‘Day One.’ ISIS Power has received TV exposure from the Speed Channel which appeals to racing fans, do-it-yourself mechanics, and car enthusiasts. ISIS Power has been featured in more than 40 articles and appeared in the following magazines: Hot Rod, Car Craft, and Rod & Customs.
CUSTOMERS/USERS: Currently, ISIS Power has 20 commercial customers and 1500 retail customers who dabble in race cars and refurbishing vehicles. They just closed a sale with a manufacturer in Ohio which will add $640,000 to revenue in 2013 and $900,000 in subsequent years. ISIS Power recently partnered with a large defense contractor in the Chicago area . The contractor will manufacture 70 pre-production vehicles in 2013 and approximately 1100 vehicles per year beginning in 2014. The average sales price is close to $6000 per vehicle. In August 2012, ISIS Power was awarded a contract for the GSA (General Service Administration). Every prime contractor awarded government business must sub-contract 35% of the contract’s dollar value to small businesses listed on the GSA schedules.
STRATEGIC PARTNERS: ISIS Power has a major distribution partner, an integration partner who supplies touch screens, and cross-promotion agreements with several other companies.
FUNDING: ISIS Power pitched to Cornerstone Angels, Irish Angels, Stateline Angels, the BNC Venture Capital Group, and VC’s on the West Coast. In February 2011, they raised $750,000 from 3 individual investors after pitching at the Funding Feeding Frenzy. The company is seeking an additional $560K to hire salesmen, develop new products, and improve its customer support capabilities.
SUMMARY: Despite a tough economy, ISIS Power continues to grow and accelerate revenue as its competition retrenches and falls back. The company is in a position to exploit new opportunities and seeks capital to hire salesmen, develop new products, and improve its technical capabilities. Current challenges include declining capital budgets, municipal cutbacks, and less spending by car enthusiasts until the economy upticks.