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.
Investment round and current ownership structure
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.
Strategic allocation of 2M€
From flexible pilot line to industrial scale in Finland
Built domestically, from flexible pilot to industrial scale.
Long-term agreements with EU partners. Lower dependency on Asia.
Capacity added in defined steps as demand grows — no oversized capex.
Automated assembly and test stations to keep unit cost competitive at scale.
Producing within 30 days of investment — and self-sustaining well before the industrial line is online
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.
At one shift the pilot is close to operating break-even on its own. At 2 shifts (60k / yr) the pilot is clearly profitable and helps fund the industrial ramp-up. At 3 shifts (90k / yr) it generates meaningful free cash flow — before any industrial revenue arrives.
Annual motor output by phase, line and shift configuration — pilot capacity is retained once industrial is online
Solid bars = base plan (3 shifts × 220 working days). Lighter bars = 5-shift, 24-7 × 365 upside. Dashed reference lines mark the combined ceilings.
Low-capex, flexible, 30-day delivery. Producing from M2. 5-shift 24-7 operation lifts the pilot to 150,000 / yr (upside).
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).
Pilot capacity is retained — it stacks on top of industrial output.
Pick a shift configuration per line and see the impact on volume, gross profit and operator cost
| Setup | Shifts | Motors / yr | Operators | Direct labor / yr | GP after direct labor |
|---|---|---|---|---|---|
| Pilot line | Off | 0 | 0 | ~€0 | ~€0 |
| Pilot line | 1 shift | 30,000 | 6 | ~€275,280 | ~€174,720 |
| Pilot line | 2 shifts | 60,000 | 10 | ~€454,956 | ~€445,044 |
| ▸Pilot line | 3 shifts | 90,000 | 14 | ~€658,068 | ~€691,932 |
| Pilot line | 5 shifts · 24-7 | 150,000 | 19 | ~€937,068 | ~€1,312,932 |
| Industrial line | Off | 0 | 0 | ~€0 | ~€0 |
| Industrial line | 1 shift | 100,000 | 11 | ~€525,264 | ~€1,974,736 |
| Industrial line | 2 shifts | 200,000 | 15 | ~€704,940 | ~€4,295,060 |
| ▸Industrial line | 3 shifts | 300,000 | 19 | ~€908,052 | ~€6,591,948 |
| Industrial line | 5 shifts · 24-7 | 500,000 | 25 | ~€1,242,852 | ~€11,257,148 |
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.
How much of one industrial shift we need to cover all fixed costs
At industrial scale, Midguard reaches operating break-even using less than 40% of a single production shift — roughly one in three motors coming off the line is enough to cover all fixed costs. Everything above that contributes directly to profit, and a single shift still has more than 60% of capacity in reservebefore any investment in a second shift is required.
Three scenarios for revenue and EBITDA — controls below also drive the 24-month cash flow
Cash position = €2M investment + cumulative EBITDA. The company stays well-funded across all three scenarios — even the conservative Year 1 dip is fully absorbed by the round.
| Year | Motors | Revenue | EBITDA | Cash |
|---|---|---|---|---|
| Year 0 | 0 | €0 | €0 | €2,000,000 |
| Year 1 | 25,000 | €1,250,000 | €5,000 | €2,005,000 |
| Year 2 | 80,000 | €4,000,000 | €1,000,000 | €3,005,000 |
| Year 3 | 160,000 | €8,000,000 | €2,700,000 | €5,705,000 |
| Year 4 | 240,000 | €12,000,000 | €4,200,000 | €9,905,000 |
| Year 5 | 320,000 | €16,000,000 | €5,800,000 | €15,705,000 |
Capacity figures are based on 3 shifts × ~220 working days/year (Finnish collective agreement). Moving to 5 shifts / 24-7 × 365 operation lifts output well above 390K motors/year — treated as upside, not in the plan.
Cash trajectory under the Base scenario — uses the controls in the 5-Year Forecast above
Pilot revenue starts early and the industrial line comes online around M12. 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.
The industrial ramp triggers a planned working-capital dip in M13–M15 (~€510k low point) as material purchases and inventory build ahead of customer payments. From M16 industrial receivables start flowing in and cash climbs back through Year 2.
Identified risks and mitigations
"2M€ takes Midguard from prototype to scalable production, with a clear path to break-even at less than 40% utilization of one production shift."