Fireplace without a Chimney, Business Without Borders. The Story of Innovative Smart Fireplace Manufacturer Neverdark: From Garage to $2 Million in Investments.
In 2019, the two founders stood in a cold garage and assembled the first prototypes of a device that seemed too bold for the Ukrainian market at the time: a fireplace with a real flame that works without a chimney or firewood. At that point, they had no investors, no loans, and no capital. Just an idea and stubbornness.
Five years later, their company, Neverdark, sells its product in 17 European countries, is listed among the country’s most prominent tech startups, has been featured on the covers of Forbes and NV, and has received €400,000 in grant funding to develop its R&D, production, and intellectual property protection.
Today, the company is preparing for its next big step – raising $2 million in investment to scale the company across Europe and enter the US market.
But Neverdark’s story is not just about prototypes, new markets, and venture strategy. It’s about daily financial decisions, risks, burn rate, the struggle for investment, and the ability to find alternative financing tools where others give up.
“Fireplaces that can be installed anywhere.” A product that did not exist before
Until now, there were only two types of fireplaces with real flames: wood-burning and gas. Both are environmentally unfriendly, both are toxic, and both require complex communications.
European regulations regarding them are becoming increasingly stringent. Cities are restricting or banning the use of wood-burning fireplaces due to carcinogenic emissions. Gas fireplaces are complicated to install and pose risks.
Neverdark offers a different technology: a smart fireplace with real flames, in which the system processes fuel so that there is no smoke, no smell, and no toxic emissions. The fireplace can even be installed in a renovated apartment without any utilities. It is not just an interior design feature — it is an environmentally friendly alternative to outdated technologies.
One Garage, Two Partners, and Advance Payments from Customers: How It All Started
In its early years, the company operated according to the classic scenario of technological bootstrapping – using its own funds. Not a single hryvnia of external investment.
“We made our first products simply to order for customers. 70% prepayment — we make the product – we deliver. All the profits earned went back into production,” recalls Lysak.
In 2019-2020, this type of financing ensured survival, but not growth. Meanwhile, demand was growing. The team lacked working capital, equipment, and certification. The startup hit a ceiling that was impossible to overcome with its own income alone. A financial accelerator was needed.
First Breakthrough: Grant from the Ukrainian Startup Fund
Participation in the first wave of the Ukrainian Startup Fund was crucial. Neverdark won $50,000, taking first place in the selection process.
“For us, it was a significant amount of money. We bought equipment, got certified, and invested in marketing. And we immediately doubled in size. It would have taken us years to earn that money.”
This became the starting point for the company’s entire future strategy. Not as an exceptional gift of fate, but as a demonstration that grants are a tool that can be systematically used in business development.
Over time, the company will come a long way and receive a total of €400,000 in support for R&D, patenting, equipment purchases, and financing development projects.
Why Grants Are Not Magic, But Strategy
Lysak is honest: grants are not a magic wand, but a difficult tool with high requirements. Indeed, they do not need to be repaid, allow for the financing of R&D, fixed assets, and intellectual property registration, and do not require perfect financial indicators, but they have limited amounts, are often not used for working capital, require time, reporting, and compliance with the grantor’s objectives.
Neverdark’s main rule: a grant must match the goals of your business project. A startup does not change its model for the sake of funding – it only seeks funding for already defined strategic objectives.
Why Loans Are a Different Story
When the startup grew and its performance became stable, Lysak approached banks for the first time. And for the first time, he was rejected.
“We simply had nothing to show. The first financial year was not closed, there were no figures. We were given a grant, but no loan.”
This is a classic situation for startups: grants are given in the early stages, banks only when the company has already “grown up.” After growth and grant projects, Neverdark’s financial indicators improved, and the situation reversed: “The banks started calling us themselves. We chose between three banks.”
Burn Rate, Risks, and What Is the “Road to Venture Capital”
Lysak talks a lot about burn rate – the speed at which a startup burns through resources. This is a key factor in growth. Unlike traditional businesses, startups do not work for dividends, but for capitalization. Therefore, they need speed of development, investments or grants, and scaling instead of profitability “here and now.”
Europe, Intellectual Property, and Patents Worth $50,000
When Neverdark began to expand into foreign markets, it became clear that without registering intellectual property, it would be impossible to enter those markets.
“It’s easy to spend $50,000 on a machine — you see the result. It’s difficult to spend it on patents, because it doesn’t make the business better tomorrow.”
That is why the company applied for a separate grant for patenting and received $50,000 in support. This is a long game, without which the European and American markets are impossible.
Production in Ukraine and Plans for a New Assembly Line in Europe
In a few years, Neverdark has built a full production cycle in Ukraine. This was achieved partly through grants and partly through reinvested profits and loans. Now it is time for an assembly plant in Europe, and the company is already looking for European grant programs that can finance it. The EU offers completely different scales of funding — from €1 million to €3 million.
Next Step: Secure $2 Million in Investment
Today, Neverdark announces a $2 million funding round that will enable it to execute its three-year plan:
Cover the entire European market;
Achieve $12.5 million in revenue;
Enter the US market;
Strengthen R&D and intellectual property;
Launch assembly facilities in Europe.
This is the strategy of a company that has already proven its ability to scale its product, maintain quality, and grow steadily even during wartime.
“We started in a garage. Today, we are entering the US market.”
“My partner and I started in a garage. Without money. Without investors. Without a market. And our journey shows that financial instruments are not barriers, but opportunities. Grants, loans, own funds, venture capital — these are all stages of the same road. The main thing is to know where you are going,” says Lysak.
Neverdark is not just a story about technology. It is a story about Ukrainian engineering, which knows how to do complex things, about an entrepreneur who knows how to survive between burn rate and growth, and about a business that proves that Ukrainian products can become global today.
