From cars to trains to planes, the future of transportation is electric. That’s why companies like Tesla (cars) and Joby Aviation (planes) have become multi-billion-dollar businesses.
But up until now, there hasn’t been a company spearheading the effort to electrify maritime transportation. Enter Valo.
Valo is developing a line of fully-electric water vessels that are nearly twice as efficient as traditional, gas-powered ones. Not only are these vessels fast, efficient, and a thrill to ride, but the technology behind them has the potential to transform nearly every recreational and commercial boat.
Marine transportation has left a lasting legacy, particularly in the U.S. Forty percent of Americans live in costal counties, yet these places represent just ten percent of the country’s entire land mass.
Water has helped transport goods and people for centuries. Even today, water transport is critical to the global economy. Every year, eleven billion tons of goods worth fourteen trillion dollars are transported by water.
But boats rely on inefficient, outdated technology. Soon, they’ll look to Valo for help.
Valo’s water vessels are what are known as hydrofoils.
A hydrofoil is an underwater fin that has a wing-like structure. And boats that use these fins are themselves referred to as hydrofoils.
Essentially, hydrofoil boats travel through water on wings. These wings, called “foils” because of their resemblance to airfoils, create lift for a boat by deflecting water flowing over their surfaces — the same way an airplane’s wings deflect air.
These foils lift the boat above the surface of the water, enabling the craft to escape the drag of surface friction. The result is a craft that can go twice as fast as a conventional one with the same engine.
But hydrofoils can be tough to balance. That’s why Valo solved this challenge with its proprietary technology. This technology keeps hydrofoils balanced, ensuring stability and rejecting disturbances during motion.
With its vessels and technology, Valo is targeting some major markets. These include the forty-two-billion-dollar market for recreational boating, the forty-billion-dollar market for short sea cargo shipping, and the twenty-two-billion-dollar market for passenger transport.
Valo sells its hydrofoils direct to consumers. And it will soon sell its technology to recreational and commercial boat builders.
The company launched in 2018. And while it’s pre-revenue, it has amassed three-and-a-half million dollars in pre-sales for its initial personal watercraft. It’s also received $124 million worth of Letters of Intent from Fortune 100 firms, ferry groups, and original-equipment manufacturers.
Notable investors in Valo include Y Combinator, Soma Capital, Fifty Years VC, and Climate Capital. Valo projects to reach $100 million in annual revenue by 2029.