FutureMoney: Why did we choose to invest in Daylight?

Source: FutureMoney

Daylight is a decentralized protocol focused on DePIN and energy contribution. As an old project of FMG in the seed round, it has recently received the lead investment and attention of a16z. This article explains why we are optimistic about Daylight.

1. Green energy consensus and huge potential market

Daylight is a decentralized protocol focused on DePIN and energy contribution. Through Daylight, users can connect their energy devices (rechargeable batteries, solar panels, water heaters, electric vehicles) with the Daylight APP and receive rewards.

Against the backdrop of increasing global attention to sustainable development, carbon neutrality and efficient energy utilization, Daylight's core narrative deeply fits these mainstream values. Daylight is not just a technical project, its innovative attempts are redefining the relationship between human civilization and energy utilization.

Daylight is also a DePIN equipment market, currently targeting New York, New Jersey, Pininfarina and other regions, and will radiate to the entire United States in the future. Users can purchase solar panels, water heaters and other equipment through Daylight. Through the layout of distributed energy networks, Daylight is committed to integrating small-scale energy devices for individuals and families into a huge network that can provide stable and efficient electricity without relying on traditional power grids. This vision not only conforms to the trend of the global green revolution, but also paves the way for the future industrial revolution.

Daylight has opened up a new market space in the DePIN field. Daylight not only provides an efficient and scalable distributed energy network, but also builds a complete ecosystem that encourages user participation. With the participation of more regions and users, the potential of this market will grow exponentially, and the foreseeable market size in the future is extremely considerable.

2. Solve the problem of energy supply and demand

Daylight has successfully broken the bottleneck of the traditional energy network through blockchain technology and token incentive mechanism. On the one hand, it encourages users to access distributed power networks such as solar panels and water heaters, organically combining decentralized energy devices and improving the stability and efficiency of the overall power supply.

On the other hand, Daylight has also created an open developer platform that allows third-party developers to create various innovative energy applications based on its protocol, such as virtual power plants, electrification upgrade solutions, energy trading platforms, and demand forecasting tools.

This two-way supply and demand model enables Daylight to not only effectively cope with the complexity of the current energy network, but also provide a clear solution path for future energy needs.

3. Combination of innovative business model and deep technical background

Daylight's business model is based on three core components: Daylight Protocol, Daylight Market, and Daylight Application. Through these components, Daylight provides users with a complete ecosystem, covering all aspects of distributed energy networks, from the procurement of hardware equipment to the management of energy data, to the market-based trading of energy capacity.

This innovative business model not only improves the efficiency of energy utilization, but also provides users and developers with multiple opportunities for benefits.

At the same time, Daylight's founding team has rich industry experience and professional background. Jason Badeaux, Udit Patel, Dallas Griffin and Evan Caron, the four founders, have accumulated profound experience in energy investment, market operation and finance, respectively, providing strong technical and management support for Daylight's success.

Daylight was founded in 2022 and currently has less than 10 employees, with a total of 4 founding members:

Jason Badeaux: Co-funder & CEO, he has invested in the energy industry for many years, previously worked in several venture capital institutions, and worked as an investment banking analyst at Piper Sandler.

Udit Patel: Co-funder & CTO, he has extensive experience in the energy industry in the past and served as vice president of market operations at renewable energy company New York Based Energy Retailer.

Dallas Griffin: Co-founder, graduated from McCombs School of Business in Texas, and previously served as managing director at Piper Sandler.

Evan Caron: Co-founder, graduated from Binghamton University School of Management.

Summary

We laid out Daylight in early 2022. Even in the turbulent market, FMG remained true to its original intention and continued to explore and dig. The reasons why we chose to invest are:

The narrative is big enough, the energy market is a hard-demand and sustainable market, and its potential market size is difficult to estimate;

The supply and demand logic is concise and clear, and the logic is complete;

The team is extremely professional, efficient and concise.

The investment analysis only represents FMG's personal views, not investment advice.