Case Study: LiquidPiston's $50M Multi-Year Raise Strategy

April 9, 2024

Innovative companies have been raising capital online for close to 10 years now—and while there are thousands of success stories proving its merit, there are a handful of companies that stand out as true trailblazers in this space.

These are startups that have leveraged community raising to its fullest potential, with multiple successful funding rounds under their belts. By demonstrating traction and keeping their investors engaged with regular updates, these companies are able to consistently raise larger financing rounds each time they come back to the table — and you'd be hard-pressed to find a better example than LiquidPiston.

LiquidPiston X-Engine comparison with Kohler engine

LiquidPiston's 25 hp X-engine (left), compared with the equivalent Kohler model (right)

LiquidPiston's patented rotary engine is the first major disruption to internal engine technology in over a century. With over 90 patents granted and pending – and more on the way – LiquidPiston's mission has been and continues to be the development of compact and efficient power systems based on advanced thermodynamics, rotary engine technology, and integrated hybrid electric platforms. LiquidPiston's X-Engine will deliver the same output power as a traditional piston diesel engine – but in a package that can be less than 20% of the size and weight of the piston engine.

‍

This isn’t just an incremental improvement; it’s a potential game-changing technology that can bring power density and fuel efficiency improvements to many segments of a global $400B internal combustion engine market. The U.S. Department of Defense has taken notice of the technology’s potential – the Company has already landed over $65 million in military contracts.

‍

Built on over 15 years of R&D and extensive intellectual property creation, LiquidPiston is the kind of opportunity retail investors don’t see every day. But the father-son duo at the company’s helm decided to do things in an innovative new way—by raising capital digitally from their followers and fans.

‍

LiquidPiston’s multi-year raise strategy

LiquidPiston’s first community raise launched in 2016 and was a huge success, making it one of the first companies ever to raise $1M+ via Reg CF. They’ve gone on to raise four more rounds since then, each spurred on by exciting milestones for the business. One of their Reg CF rounds was oversubscribed in 9 hours!

‍

LiquidPiston's Community Raises

$1.0M

$1.0M

Wefunder

2017

Wefunder

$1.1M

$1.07M

Wefunder

2019

Wefunder

$1.0M

$1.04M

StartEngine

2020

StartEngine

$16.7M

$16.7M

StartEngine

2021

StartEngine

$31.4M

$31.4M

DealMaker

2023

DealMaker

LiquidPiston's five community raises, including their recent $31.4M round powered by DealMaker

‍

LiquidPiston’s most recent funding round was powered by DealMaker. The raise brought in $31.4 million in investments, bringing their total capital raised across five campaigns (three Reg CF, two Reg A) to over $50 million.

‍

The overwhelming support from over 10,000 investors in this round is an incredible validation of LiquidPiston’s technology, traction, and vision. According to the founders, the funds raised will be instrumental in accelerating the company’s research and development efforts, expanding its operations, and bringing its groundbreaking engine technology closer to commercialization.

‍

LiquidPiston's Funding Journey

2004

LiquidPiston Founding

Founded by Dr. Alexander Shkolnik and his son Alec, LiquidPiston begins research on developing advanced rotary engine technology.

2016

First Community Raise

LiquidPiston conducts its first community raise, setting a precedent as one of the first companies to raise over $1M via Reg CF.

2019

Second Wefunder Round

Secures an additional $1.07M in funding to further develop their patented rotary engine technology.

2020

StartEngine Campaign

Raises $1.04M in their third community funding round, expanding their investor base further.

2021

Major Funding Milestone

Achieves $16.7M in their fourth funding round, demonstrating significant market validation and investor confidence.

2023

Record-Breaking DealMaker Raise

Partners with DealMaker to raise $31.4M from over 10,000 investors, bringing total community-raised capital to more than $50M.

"We are incredibly grateful for the tremendous support from our investors, who have shown unwavering belief in our vision and technology," said Alec Shkolnik, CEO of LiquidPiston. "This round is a testament to the hard work of our dedicated employees, the expertise and support of the DealMaker team, and the transformative potential of our engine technology. We are excited to use this capital to propel LiquidPiston into the future and create sustainable and more efficient power solutions."

At DealMaker, we like to say that founders should see community as an asset class—and LiquidPiston's funding history is proof of its community's value. They built a robust community of followers and investors that grew with each subsequent raise, dramatically increasing the amount of capital they brought into each round. They've raised $50M and counting on their own terms, without having to pull back from their R&D efforts or put the business on hold.

"LiquidPiston is a perfect example of an aspiring startup that has leveraged the reach of crowdfunding to bypass traditional bureaucracies and reach directly into the hearts and minds of individual investors more familiar with their area of innovation," said Rebecca Kacaba, co-founder and CEO of DealMaker. "As a result, their base of investor support has grown dramatically, and DealMaker is proud to have contributed to the company's success."