Zutacore

Zuta-Core is ramping up its operations with a mission to lead the multi-billion-dollar data-center cooling market.

 

Zuta-Core is bringing to market its disruptive HyperCool2 technology, in collaboration with the world’s most prominent global data-center infrastructure providers. Zuta-Core is seeking an equity investment, to achieve two important milestones on its quest to become a $100 million revenue company with 30 percent EBITDA by 2021- ramping up sales and becoming self- funding within three quarters.

Zuta-Core Overview

Founded by Erez Freibach, Tal Parnes and Nahshon Eadelson in 2016 in Sderot, Israel, Zuta-Core developed the HyperCool2, a two-phase liquid cooling technology. Among multiple applications, Zuta-Core chose to focus its initial efforts on the massive and rapidly growing $11B data-center cooling market. The HyperCool2 poses major disruption in this market, slashing Data Centres Capital expenditures and Operational costs by half while more than tripling the computing performance. Zuta-Core established channel partnership with Cupertino Electric Inc (CEI), a leading data-center infrastructure company in north America, and is in progressive phase of establishing the same with Schneider-Electric and Siemens, creating a warrantied, bankable global supply chain for distribution of ‘cooled-by- Zuta’ solutions. First commercial pilot deployments are expected to begin in Q4 2018 with both hyperscale clients and leading data-center operators. Led by a team of industry veterans, Zuta-Core is poised for profitable growth and market leadership.

Zuta-Core Technology

Zuta-Core HyperCool2 is a two-phase close-loop, low-pressure, direct contact not- conductive liquid cooling technology. Cooling “at the core”, Zuta-Core solutions are optimized for high performance CPUs and GPUs, already demonstrated upwards of 400W per device at constant turbo mode, and can go beyond 1.5KW /1U. In its core, an Enhanced Nucleation Evaporator (ENE) was developed to provide a breakthrough low boiling incipience with T∆ <0.5oC, thermal resistance of 0.03 and heat-flux as low as X W/cm2, all at low-pressure. Zuta-Core’s technology encompasses materials, processes and system integration from standalone servers to the data-center level and is protected by 13 patents to-date.

Performance:

  • 3X computing density 20% faster computing processing
  • Up to 80% cooling OPEX savings
  • 20% overall reduction in electricity bills
  • 30% -60% reduction in CAPEX, footprint

Financial Projections

With the technology developed, products being tested and certified, Zuta-Core is focusing on establishing a robust, global supply-chain as well as sales and marketing infrastructure. Zuta-Core is forecasting $1 million in revenue in 2018, and $15M in 2019. Zuta-Core is aiming for profitability in 4Q 2018 and projects over $100 million in revenue and 50 percent EBITDA by 2021.

Market Potential

The global data-center cooling market is expected to grow to a staggering $11.8B in 2020. The ability to produce value across the entire supply chain will propel Zuta- Core’s cooling solutions into data-centers of both the hyperscale clients as well as the long tail of data-center operators. Zuta-Core captures this position through its elegant, safe, reliable and cost compelling technology, ease of integration into a leveraged supply chain, demonstrating value for data-center infrastructure providers to the end-users.

DC Cooling market:

  • $11.8B in 2020
  • Compound Annual
  • Growth Rate (CAGR) of 13.6%

Market Momentum

Like the “Intel Inside” model, Zuta-Core’s solutions are manufactured, integrated, sold and warrantied by the industry’s most prominent data-center infrastructure partners.
CEI (www.cei.com) ‘cooled-by-Zuta’ data-center solutions, soon to be expanded by Schneider-Electric(www.schneider-electric.com) and Siemens offering, allow the data-center owners and operators to confidently design, build and retrofit high performance data-centers with HyperCool2 based solutions at breakthrough costs and speeds. On the heels of successful third party environmental and seismic test at NTS labs in Newark CA, both hyperscale clients and leading data-center operators, the caliber of Equinix (www.equinix.com), are lining up first commercial deployments of hundreds of KW to begin as early as 4Q/2018.

Risks & risk mitigation

Zuta-Core identifies the pace of market adoption as the single biggest risk, which could impact the financial plan. While levers of expense controls were built into Zuta-Core’s financial plan to allow for an extended runway, the risk is mitigated by the largest, global data-center infrastructure companies introducing their branded products cooled-by-Zuta to market. Those partners provide significant market access and credibility through their channels, eyeing much larger market growth than Zuta-Core has in its projections.

Competitive Analysis

Zuta-Core’s unmatched advantage is rooted in the unique combination of system attributes of the HyperCool2 technology – two-phase close-loop, low-pressure, direct contact not-conductive liquid cooling technology. Alternative technologies are falling short of such comprehensive capabilities, positioning Zuta-Core with a superior solution in both performance and TCO value.