The challenge

Edge Zero is an Australian-based hardware and software solution provider of low voltage electricity network monitoring services to utility and C&I customers.

At the beginning of 2024, Edge Zero was seeking additional capital to be raised at the company-level to enable the next phase of their growth journey, which included international market expansion into the US among other key initiatives.

Our solution

Sell Side Financial Advisor

Rennie Advisory’s Deals team was engaged by Edge Zero as sell side financial advisor to support the business with their growth capital raise process. Broadly, the scope of Rennie’s mandate was the following:

• Defining the desired transaction outcome alongside Edge Zero including valuation expectations, desired funding amount, preferred investor archetypes and use of funds
• Development of a targeted prospective investor list capable of providing the desired transaction outcome
• Development of a professional short-form investment teaser and long-form management presentation for communications with prospective investors
• Facilitation of all meetings and communications with prospective investors, including formal Q&A processes
• Management of the transaction dataroom
• Leading commercial negotiations with prospective investors alongside Edge Zero towards non-binding indicative offers and through to the execution of formal transaction documentation

Our impact

Through the execution of the above mandate, Edge Zero successfully closed their growth capital round of A$15M+ approximately 8 months from commencement with investment secured from Adamantem Capital, an Australian private equity fund, and Caterpillar, a global construction, mining and other engineering equipment manufacturer.

These two investors were able to provide Edge Zero with capital to progress their key near-term initiatives to further penetrate the Australian market, commence a more fulsome US market entry and position them in a new industrial customer segment.
The Rennie Deals team was pleased to support Edge Zero throughout this transaction as their financial advisor.

Key insights

• A key value driver for prospective investors is a customer base of large individual customers with long-term purchasing behaviours (i.e. electricity network companies)
• The ability to solve a global problem provides early-stage companies with a large addressable market and assists prospective investors with growth case modelling