Terratico

Terratico is a company with an ecological and sustainable overlap that produces an alternative to terrazzo and precast concrete, using any type of plastic in up to 45% of the final concrete mix. The company and its products have the potential to transform the building material and outdoor furnishing market. Production based on a patented process allows the use of waste plastic in concrete so that the plastic pieces do not drag on the surface of the mix and are evenly distributed throughout the volume of the product. This process gives the material unique technical properties such as higher strength, resistance to cracking and up to 30% less weight, and requires less additional reinforcement (none for smaller products). Terratico's products were already launched in 2021, when the company tested the so-called proof of concept, with demand exceeding the capacity of small-scale production.

• local production ensured by proprietary patented technology;
• unique material properties compared to traditional concrete and terrazzo;
• no competition in the use of plastics in the final mix;
• versatile team with experience in construction and finance;
• sustainability embedded in the business model;
• growing market for precast concrete and terrazzo (5.2% CAGR 2023-2030);
• expansion strategy focused on Western European, US and Asian markets.

• An environmentally friendly product with unique technical characteristics and worldwide market potential.
• Effective pre-investment valuation of the company €10.25 million.
• Expected return of 4x the investment and more.
• Increase in projected revenue from product sales from €5.4 million in 2024 to €20.6 million in 2028 (CAGR 40%).
• Increase in projected EBITDA from €1.9 million in 2024 to €9.9 million in 2028 (CAGR 33%).
• Stable gross margin at around 70% and EBITDA margin at 48%.
• Protective mechanisms such as a 1.5x liquidity preference with an inflation clause secured by intellectual rights and a 2x dividend (on top of the pro-rata trading stake).
• The right of redemption of investors by the founders (3x the total investment until 30.06.2026 and 4x the total investment until 30.06.2027).
  
  Co-investor is the VC fund Venture to Future Fund, to which the investment via Crowdberry investors will be added. The total investment is €3 million with the co-investment of the fund.

Terratico was founded on the basis of the more than 25 years of experience and activity in the field of building materials of Otto Nagy Sr. and Otto Nagy Jr. and their efforts to solve the general problem of the surplus of waste plastics. The first idea to use plastic recyclates in concrete as a substitute for crushed marble in terrazzo was conceived in 2019. After two years of testing, the first version of the product was developed, which the company has since been continuously refining.

The inventors successively registered a utility model and filed a patent application for all three parts of their production process. The company's first commercial success came in 2021, when they produced 100 benches that incorporated shredded credit cards for a Slovak bank. In the same year, the company managed to get their product into the Slovak pavilion at the world exhibition "Expo Dubai 2020", where they gained many international contacts and registered a great deal of interest in their innovative material from all over the world.

In 2023, Terratico participated in the "World of Concrete" and "The International Surface Event" in Las Vegas, Nevada. The interest of potential buyers from North America and other parts of the world at these events exceeded the founders' expectations. The company received specific offers for cooperation as well as product orders, which they were unable to fulfil at the time due to capacity constraints.

Therefore, at the beginning of 2024, the company started to seek capital mainly for the launch of a large-scale production plant for the production of large-format panels, tiles and facades, which would enable it to respond more flexibly to the rising demand for its products.

The investment opportunity closes no later than 31 May 2025.