You probably heard about Rayton Solar from Bill Nye the Science Guy, or some catchy social media ads. The company is currently selling shares, and a lot of Americans are wondering whether Rayton Solar is a good investment.
In this brief but fact-backed Rayton Solar investment review, we’re going to bring you up to speed on what this company is, and provide enough details so you can adequately answer the question ‘Should I invest in Rayton Solar’ all by yourself.
What is Rayton Solar
Rayton Solar is a clean energy company that endeavors to develop some of the most cost-effective energy sources in the world. Traditionally, silicon used in solar panels is sliced thin using blades, which results in a lot of wastage. Rayton Solar is making this process more efficient by introducing a particle accelerator into the solar energy manufacturing business. By using partical accellerators to make their silicon chips much thinner, Rayton hopes to reduce solar manufacturing costs by 60% and increase efficiency by 25%.
Rayton Solar Stock IPO
There’s no doubt that the inventors at Rayton Solar are talented chaps. The idea of introducing particle accelerators to increase efficient use of silicon in solar manufacturing is no doubt the turf of rocket science. But from a business perspective, potential investors in Rayton Solar need to know whether the numbers will add up.
It appears that this is not the first time Rayton Solar has made an attempt at crowd funding. Back in 2014, the firm launched an Indigogo fundraising drive that proved to be a massibe failure (raising only $5,300). The company has however polished its pitch and is now back with a bang.
Should I Invest in Rayton Solar?
If you’re a clean energy enthusiast, you might feel compeled to invest in Rayton Solar. But investment analysts and some members of our own team here at Solar Electrician have pointed at several red flags that should make you stop in your tracks – at least for now.
a) Red Flag #1 – Unethical, Unfriendly Terms
Rayton Solar – and Bill Nye by extension – are asking you to invest on terms that are unethical, especially at this early stage in the company’s development timeline. As Medium pointed out in their earlier review of Rayton Solar, the company’s investment terms allow for a situation where investors can spend part of the seed money instead of investing it in the technology/company. For instance, if a total of $10 million is collected in investment contributions from Americans, Rayton Solar owners can pocket $3 million, which leaves only $7 to be committed to building the company. Obviously, this is a big red flag. It may suggest that the owners are not confident enough the company will make it.
b) Red Flag #3 – No Investor Rush
One way to tell whether a young company’s shares are really valued is to see whether reputable investors are buying in it. In the case of Rayton Solar, that is not happening. There are no reputable solar investors that have been listed as supporting Rayton. That given, everyday Americans who wish to buy a stake in clean energy might be better off investing in a publicly traded index fund.
c) Red Flag #2 – Extremely High Prices
Compared to other technology-based ventures, Rayton Solar Inc Stock are notably overpriced, and this is another fact anyone who is eager to make this investment should think about. Typically, a technology company with technology that’s unproven in the market would be valued at less than $5 million in the first investment round. Possibly, expert investors could value the company at about $25 million if they thought it was really promising. But what Rayton Solar is doing right now is sell their shares ‘Post Money’. At a value of between $50 million and $200 million, we think that their shares are blantantly overpriced, which makes it a bad deal for investors.
d) Red Flag #4 – Smells Like a Hyped Pitch
A long deep look will tell you that Rayton Solar’s website homepage is one BIG PITCH. There’s more content trying to get investors onboard than there is inspiring confidence the business will work. There are a lot of social media ads running to entice folks to invest in the company. But as Reddit User Solar_Dark has pointed out, there’s a worrying trend in the way the company is handling its business, “They spam social media with any number of bot accounts. That alone tells me they are not a serious enterprise but more of a marketing entity. Buzz over substance. For that reason, I’ve never taken them seriously nor investigated their proposition much.”
Does Rayton Solar Have a Future in the Solar Industry?
Rayton claims that its approach to solar manufacturing will reduce costs by 60%, and increase efficiency by 25%. There’s very little argument to dispute the fact that their thinner silicon approach will result in increased efficiency. But when it comes to a 60% drop in costs, this is as good as just a bold claim on paper right now. And even if this were proved to be true, the company will still face a lot of capital costs and higher operating costs (running its machines) before we can get to the economies of scale level (where the firm is able to achieve proportionate savings in cost due to increased levels of production).
Is Rayton Solar a Good Investment? Here’s Our Stand at Solar Electrician
Based on an examination of the available facts and investment terms, we do not have enough confidence in this offering. To start with, we think that the shares are highly overpriced, and that that there’s more marketing than substance in the onboarding process. If you’re still convinced that you should invest in this business, make sure your decision is grounded in analysis, not a convincing pitch from Bill Nye.
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