Target Company Overview

Skysun is an independent energy production company founded in 2017 by Arthur Dawans and Léopold Coppieters, specializing in the development, installation, and management of solar panels for businesses. The company allows entities to install photovoltaic panels on their roofs, parking lots, land, and facades without upfront costs, offering a zero capital expenditure (CAPEX) and operational expenditure (OPEX) service. The generated electricity is used for self-consumption, with any surplus sold to energy communities or on the grid, ensuring a low-cost energy supply.

Having achieved profitability in 2022, Skysun is seeking to expand its operations in Belgium and France with a new growth plan aiming to cover the equivalent annual energy consumption of 200,000 households. The company has previously secured €5 million in subordinated debt to finance its projects with AG Real Estate. Its current €16.85 million Series A funding round is backed by the public fund Wallonie Entreprendre (WE) and the Paris-based infrastructure fund Andera Partners, which will be utilized to promote sustainable development through renewable energy parks for SMEs, industry, and the real estate sector.

Industry Overview in Belgium and France

The renewable energy sector in Belgium and France has been witnessing a significant transformation in response to global climate change initiatives and European Union mandates for greener energy solutions. Both countries have set ambitious targets to transition to renewable energy sources, particularly in solar, wind, and hydroelectric power. As a result, companies are increasingly looking for innovative ways to integrate sustainable practices into their operations.

In Belgium, the government has implemented various incentives to encourage solar energy adoption, including tax benefits and grants for businesses and homeowners. The country's strategic location and regulatory framework make it attractive for renewable energy investments. The Belgian solar market has experienced robust growth, with numerous projects being developed under supportive policies that promote energy autonomy for businesses.

Similarly, France has been proactive in fostering solar energy investment, with significant policies aimed at reducing carbon emissions. The French government is focused on achieving a substantial increase in solar power generation by 2030. This ambition presents a lucrative opportunity for companies in the solar energy sector, positioning firms like Skysun to capitalize on this growth trajectory within a favorable operating environment.

The demand for sustainable energy solutions continues to rise across both nations, indicating a thriving market for companies engaged in the development of renewable energy infrastructure. Skysun, with its innovative business model and strategic partnerships, stands to benefit amidst this momentum as it reinforces its market presence.

Rationale Behind the Deal

The decision to raise €16.85 million in this Series A funding round is a strategic move to enhance Skysun’s growth initiatives and facilitate its expansion within Belgium and France. The investment allows them to scale up operations, develop new expertise, and strengthen their market position in a rapidly growing renewable energy sector. Furthermore, having a mix of seasoned investors like Wallonie Entreprendre and Andera Partners, who have significant experience in their regional markets, will provide Skysun with valuable insights and guidance as they navigate their growth strategy.

This funding comes at a critical juncture where the demand for sustainable energy solutions is accelerating, and Skysun aims to increase its impact on the energy transition within Europe. The company intends to leverage this capital not only to expand its project portfolio but also to further innovate its offerings targeting SMEs, industrial players, and the real estate sector.

Investor Overview

Wallonie Entreprendre (WE) is a public fund dedicated to fostering economic growth and innovation within Wallonia, Belgium. With a focus on supporting sustainable enterprises, WE has made a strategic choice to invest in Skysun, recognizing the vital role of renewable energy in addressing climate change challenges. The fund's support aligns with its mission to promote initiatives that contribute to the decarbonization of local industries.

Andera Partners, based in Paris, is an infrastructure fund that specializes in promoting sustainable development through strategic investments in growth companies. With a strong track record in the renewable energy sector, Andera’s participation in Skysun reflects its commitment to supporting innovative firms that drive the energy transition. Their diverse experience offers Skysun access to a network of industry experts and potential partnerships that can accelerate their growth trajectory.

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The investment in Skysun is viewed as a promising opportunity, given the current transition towards sustainable energy solutions in Europe. Skysun’s unique business model, which allows companies to utilize solar energy without upfront investment, positions it well in a growing sector where businesses are actively seeking to enhance energy efficiency and sustainability.

The involvement of reputable investors like Wallonie Entreprendre and Andera Partners not only reinforces Skysun’s credibility but also provides essential strategic insights that can facilitate its expansion plans. With a strong management team and notable advisory board, the company appears well-equipped to navigate market challenges and capitalize on growth opportunities.

Moreover, as regulatory frameworks across Belgium and France continue to evolve in favor of renewable initiatives, Skysun is likely to benefit from increasing consumer demand for green energy solutions. This trend should solidify its market position and help it achieve its goal of significantly contributing to the energy consumption needs of local households and businesses.

In conclusion, the funding round is a strategic move that aligns with broader market trends, and given Skysun's innovative approach and experienced management team, it represents a compelling investment opportunity in the renewable energy space.

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