Andrea Rossi has always indicated that he would only use his own money until he was selling eCat products on the open market. It should be no surprise then that the possibility of opening up investment opportunities to the public looms now that the 1MW plant has shipped. Of course, without knowledge of the customer’s identity or verifiable scientific proof, any such venture at this time would be high risk. If you assume for now that the eCat is real, AR has money coming in the door (probably around 2m Euro a pop) and so some of the immediate financial pressure is relieved. Even so, the scale of his task is enormous. This would just be the start and we are told that it will be three months before the next delivery. Therefore, it is unlikely that he will be flush with cash for some time at least. It makes sense then, to consider raising money through the issue of public shares.
A serious businessman with a real product would not attempt to do so in the midst of uncertainty regarding the product. Doubt and suspicion will lower the value of such shares. For that reason, I would only expect such a move after the clouds obscuring the eCat have been lifted. As Dr Rossi hints on his blog, we may be seeing the seeds of exactly that.
Dear Mr. Andrea Rossi,
Congratulations on your outstanding success!
Please, inform me how I could buy the shares of your company.
I have many inventions, mostly related to biomedicine, and I have ideas how to increase mental capability, how to primary prevent mental diseases, how to get people healthy from the beginning of the life and some others. A lot of money is needed for realization, and in an attempt to promote it (partly, of course), I hope to buy the shares of your company.
Dear Simon Basovich:
Dear Francesco D.M.:
We are just producing heat, so far.
Probably we will sell shares to allow everybody to participate to this enterprise. But before this we have to consolidate our manufacturing and commercial system.
I postulated in an earlier post that there were now so many people involved in AR’s project across too many organisations, that it would become increasingly difficult to keep secrets such as: Who is the customer? It seems that Dr Rossi agrees.
Dear Neil Ferguson:
The names of Customers unavoidably will pop up, before or later.
I agree with you.
Dear Luca Salvarani:
3- I want not our Customers assailed by the puppetts moved by their puppetteers. Let the plant go to work, then they will reveal themselves automatically. Probably you did not understand that there is a war against us.
Finally, we have AR reiterate his hope/plan for the coming years.
Dear Paul Calvo:
The price can drop to 500 $/kW if we will have to produce millions of pieces.
To be ready to sell household E-Cats we need from 1 to 2 years.
We are not looking at a hit-and-run con-job but a long-term strategy that is cohesive and well thought out. To achieve the scale needed to produce millions of pieces will require money and confidence in the product. Right now, he is building that confidence even as the eCat starts to earn its keep. He knows that eventually we will learn who the customers are and it seems obvious to me that such knowledge would dispel many fears. All of this is being played out in a sea of commercial warfare, even if the battle is obscured for now.
Dear Mr. Rossi,
You have commented there “is a war” against you (your organization? your efforts to market the E-Cat?). Do you expect the successful sale of the megawatt demo module to
stop the war, or is it going to get bigger?
Dear Robert Mockan:
Thus, it makes sense to retain a certain mystique, making it difficult for competitors to gauge the truth or guess the technological details behind the eCat’s apparent success. To attract the money required, he has to own and protect the intellectual property:
Nobody would invest anything in a non proprietary technology.
And yet, to sell the product and shares widely he has to take the risk of building confidence, of attracting an army of opponents alongside allies. It is a tough path to walk. Those who say he should have simply proven beyond doubt a year ago that the eCat was genuine do not consider that without handing it over to third parties for many months (with all the risks that entails) during which time he is in limbo, there is no test he could have done that would have satisfied the attackers. Indeed, I am certain that even that would have achieved little apart from arming his competitors. Instead, he is now bringing in money as interest is growing. He has kept ahead of everyone else by being shrewd as well as clever.
That said, he also knows that he cannot keep such a delicate balance going forever. A conman would want to sell you shares now while you are confused, an entrepreneur knows he will get more on delivering proof. To me, this all adds up. When we will know the truth is anyone’s guess.
I’m frightened to say it but I’ll guess anyway. Soon.
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