Investment Case · 2026

2M€ takes Midguard from prototype to scalable production.

Establishing in-house series production of electric drone motors in Finland — with a clear path to break-even at less than 40% utilization of one production shift.

Capital raise
2M€
Pilot capacity
90,000
motors / yr · 3 shifts
Combined max capacity
650,000
motors / yr @ 5+5 shifts (pilot + industrial)

Raise & Cap Table

Investment round and current ownership structure

Investment round

Capital raise
€2,000,000
Use
Pilot + industrial production
Stage
Prototype → series production
Valuation
Set by investor

Pre-money valuation is open — we believe the market sets the price. The numbers throughout this plan describe the underlying business, not a fixed term sheet.

Current ownership (pre-investment)

Use of Funds

Strategic allocation of 2M€

Summary

Industrial line (12-mo build)
€1,020,000
Pilot line (30-day delivery)
€130,000
Team & operations
€350,000
Supply chain & inventory
€300,000
Validation & quality
€125,000
Commercial scale-up
€75,000
Total
€2,000,000

Manufacturing Strategy

From flexible pilot line to industrial scale in Finland

Scalable production in Finland

Built domestically, from flexible pilot to industrial scale.

Secure European supply chain

Long-term agreements with EU partners. Lower dependency on Asia.

Modular expansion

Capacity added in defined steps as demand grows — no oversized capex.

Automation-driven

Automated assembly and test stations to keep unit cost competitive at scale.

Pilot Line

Producing within 60 days of investment — and self-sustaining well before the industrial line is online

Machine lead time
30 days
ordered M1, producing M2
Pilot capacity
90,000
motors / yr · 3 shifts
Industrial lead time
~12 months
online around M12
Pilot fixed costs
~337k €
per year · all-in

Year-1 pilot cost stack

Team & Operations
€24,800 / month
Facility & Overhead
€3,300 / month
Total fixed cost
€337,200 / year
Detailed breakdown & facility terms (confidential — click to expand)
Core team (founders, senior engineer, operators)
€20,000 / month
Employer costs (~24%)
€4,800 / month
Facility lease (Ostrobothnia, Finland)
€1,800 / month
Utilities, insurance, overhead
€1,500 / month

Secured production facility in Ostrobothnia, Finland — signed lease with a first-year discount on production area. Full lease (~€3,360/month, ~€40k/year) applies from Year 2. Specific landlord, address, square-meter pricing and contract terms shared under NDA.

Production Capacity

Annual motor output by phase, line and shift configuration — pilot capacity is retained once industrial is online

Pilot · base plan
Pilot · 5-shift upside
Industrial · base plan
Industrial · 5-shift upside
Combined · base plan
Combined · 5-shift upside

Solid bars = base plan (3 shifts × 220 working days). Lighter bars = 5-shift, 24-7 × 365 upside. Dashed reference lines mark the combined ceilings.

Pilot line · Finland
30,000 / shift — up to 90,000 / yr at 3 shifts.

Low-capex, flexible, 30-day delivery. Producing from M2. 5-shift 24-7 operation lifts the pilot to 150,000 / yr (upside).

Industrial line · automated
100,000 / shift — up to 300,000 / yr at 3 shifts.

12-month build. Modular: add shifts and modules as demand grows. 5-shift 24-7 operation lifts the industrial line to 500,000 / yr (upside).

Combined output
390,000 motors / year at 3 shifts (base plan)
650,000 motors / year at 5 shifts · 24-7 (upside)

Pilot capacity is retained — it stacks on top of industrial output.

Production Mix Calculator

Pick a shift configuration per line and see the impact on volume, gross profit and operator cost

Pilot line
Selected: 3 shifts
Motors / year
90,000
Staff
14
Direct labor / year
~€658,068
operators, shift leads, maintenance/QA
Gross profit after direct labor
~€1,591,932
Contribution before company payroll, fixed overhead and EBITDA.
Industrial line
Selected: 3 shifts
Motors / year
300,000
Staff
12
Direct labor / year
~€583,668
operators, shift leads, maintenance/QA
Gross profit after direct labor
~€6,916,332
Contribution before company payroll, fixed overhead and EBITDA.
Combined — pilot + industrial
Total motors / year
390,000
combined output
Direct labor / year
~€1,241,736
operators, shift leads, maint/QA (incl. CBA premiums)
GP after direct labor
~€8,508,264
contribution to company payroll, fixed overhead & EBITDA
SetupShiftsMotors / yrStaffDirect labor / yrGP after direct labor
Pilot lineOff00~€0~€0
Pilot line1 shift30,0006~€275,280~€474,720
Pilot line2 shifts60,00010~€454,956~€1,045,044
Pilot line3 shifts90,00014~€658,068~€1,591,932
Pilot line5 shifts · 24-7150,00019~€937,068~€2,812,932
Industrial lineOff00~€0~€0
Industrial line1 shift100,0004~€200,880~€2,299,120
Industrial line2 shifts200,0008~€380,556~€4,619,444
Industrial line3 shifts300,00012~€583,668~€6,916,332
Industrial line5 shifts · 24-7500,00017~€862,668~€11,637,332

Direct labor includes operators, shift leads, production engineers and the maintenance/QA crew tied to running the line — gross monthly pay plus Finnish 24% employer costs and CBA shift / night / weekend premiums. Company payroll (founders, sales, marketing, finance/admin) and fixed overhead (facility lease, equipment service & wear, utilities, logistics, insurance) sit outside this table and are absorbed by the gross profit shown in the right-hand column on the way to EBITDA. Equipment depreciation is reported below EBITDA, not inside it. Click any row — or use the buttons — to drive the combined totals above.

5-Year Forecast

Three scenarios for revenue and EBITDA — controls below also drive the 24-month cash flow

Scenario
Material cost shock
+0%
0%15%30%
Shock starts
Customer payment terms

Revenue, EBITDA, salary & cash position

YearMotorsRevenueGross profitEBITDAHC directHC companySalary directSalary companyCash
Year 00€0€0€000€0€0€2,000,000
Year 125,000€1,250,000€424,120€5,00042€200,880€148,800€2,005,000
Year 280,000€4,000,000€1,799,120€1,000,000411€200,880€624,960€3,005,000
Year 3160,000€8,000,000€3,619,444€2,700,000814€380,556€834,024€5,705,000
Year 4240,000€12,000,000€5,416,332€4,200,0001217€583,668€1,014,072€9,905,000
Year 5320,000€16,000,000€7,141,052€5,800,0001820€858,948€1,155,432€15,705,000

HC / Salary direct = produktionspersonal på linjen (operatörer, skiftledare, underhåll/QA, produktionsingenjör) — räknas som direkt produktionslön i Gross profit, inkl. finska CBA-skifttillägg och arbetsgivaravgifter. HC / Salary company = gemensam personal (grundare, sälj, marknad, plant manager, finance, HR, admin) — räknas som overhead och dras från EBITDA tillsammans med övriga företagskostnader och avskrivningar.

24-Month Cash Flow

Cash trajectory under the Base scenario — uses the controls in the 5-Year Forecast above

End-of-Year-2 cash is €3,005,000 under the Base scenario — consistent with the 5-year forecast above. Working capital for the industrial ramp-up is fully included in this round.

Risk Analysis

Identified risks and mitigations

Technical

  • Motor performance shortfall
    Prototype testing, iteration, customer feedback loops
  • Temperature & durability under load
    Thrust bench, long-term endurance tests, validated materials
  • Quality variation at higher shift counts
    Automated QA, test protocols, full traceability per unit
  • 24-7 operation wear (5-shift upside)
    Predictive maintenance, redundant tooling, planned changeovers

Commercial

  • Long defence/industrial conversion cycles
    LOIs, paid test batches, parallel customer dialogues
  • Price pressure from Chinese motors
    European supply chain & defence-grade positioning as moat
  • Single-customer concentration risk
    Broad pipeline — no customer >25% of revenue at scale
  • Customer payment terms stretching to 60–90 days
    Working-capital buffer in raise; explicit modelling in cash-flow tool

Financial

  • Material price shock (rare-earth, copper, alloys)
    Modelled up to +30% in the forecast tool — round absorbs Conservative impact
  • Material outlay before customer payment
    €2M round sized to cover the M13–M15 working-capital dip
  • Slower ramp-up than planned
    Low fixed cost base + pilot self-sufficient at 1 shift
  • Industrial line delivery delay (~M12)
    Pilot keeps revenue flowing; sales & validation continue in parallel

Supply chain

  • EU components more expensive than Asian alternatives
    Volume agreements, design-for-cost, multi-sourcing
  • Magnet supply constraints
    Strategic partnership with European magnet specialist
  • Long lead times for critical parts
    Safety stock + dual sourcing on bottleneck components
  • Capacity scaling beyond 3 shifts
    Pilot + industrial modular by design — 5-shift 24-7 path validated as upside

"2M€ takes Midguard from prototype to scalable production, with a clear path to break-even at less than 40% utilization of one production shift."

Midguard Systems Ab · Vaasa / Kaitsor, Finland··