There has been a general shift in the focus of oil and gas corporate since 2014. Most of the disclosed investments by oil and gas corporate investors over the past decade have been going into non-core areas, such as cleantech, IT, mobility and transport technologies. This trend went on through the first quarter of 2021 as well.
Last year was eventful and challenging for the oil and gas industry. The outbreak of the covid-19 pandemic and lockdown orders around the globe heavily affected both the demand and supply side, causing oil prices to fluctuate between $20 and $30 a barrel in the first quarter of last year, with West Texas Intermediate (WTI) contracts even entering negative territory in April 2020. Oil price recovery has been somewhat slow but it has returned to a level, making it feasible for most producers to stay in business, considering that breakeven prices for most oil companies stand between $40 and $50 a barrel or higher.
Investments in core oil and gas tech will continue to form part of the investment theses of venturers in this space, as the business is very capital intensive, riddled with uncertainties and sensitive to commodity prices. Reducing capital expenditures for times when oil prices go down remains crucial. Corporate venturing subsidiaries of oil and gas companies generally seek to bring strategic rather than financial value through their minority stake investments. The latter may come in the form of helping specific existing business units, finding new suppliers, building an ecosystem and so on.
BP is a leading oil and gas corporate investor
Today, oil and gas corporate venturers tend to make more investments in low-carbon energy technologies, mobility and transport, as well as in digitisation of industrial activities. They are also ring-fencing some bets in core upstream and downstream innovations. This trend is likely to continue in foreseeable future, thanks to technological breakthroughs and the favourable political and macroeconomic climate for renewables. They also, along with electric mobility and transport, have the potential to disrupt the energy sector permanently.
The estimated average size of deals in which oil and gas corporate venturers participated in the first quarter of 2020 was $35.14m, slightly lower than estimated figures for the past four years. At first glance, this figure does not appear to suggest any substantial surges in valuations but this is likely to change as there were record levels of dealmaking across all sectors in Q1. There were also record levels of exits, driven by the momentum of special purpose acquisition companies, and the developments on the political arena which are likely to favour more investments in renewable energies and infrastructure.
During the first quarter of this year, we tracked a total of 28 deals by the broader peer group of oil and gas corporates and industrials that were worth an estimated $703m. By extrapolation, this is very similar to levels registered in 2020 – $2.39bn of total estimated capital over 90 deals for the entire year. The total number of corporate-backed deals in emerging energy businesses as a whole was 31 in the same period.
The sector in charts
UK-based BP has invested in a significant number of rounds in cleantech, transport andmobility since 2014, along with investments in core operation technologies. France-based Total has placed significant bets on cleantech, transport and IT. Anglo-Dutch company Shell has focused investment on both cleantech and core oil and gas technologies as well as transport and mobility.
US-based Chevron has disclosed commitments in businesses around its core energy operations, the digital dimension and, most recently, cleantech. Saudi Aramco has historically focused its investing on core technologies, IT, automation and, increasingly, cleantech.
Some venturers from the sector have more than one venturing unit. Norway-based Equinor boasts two – one for low carbon and cleantech investments, Equinor Energy Ventures (previously known as Statoil Ventures) and another in oil and gas venturing Equinor Technology Ventures (formerly Statoil Technology Invest). Saudi Aramco has followed in its footsteps with the launch of Prosperity 7 Ventures.
Oil and gas companies among the top corporate venture investors in the industrial and energy sectors for Q1 were Shell, BP and Chevron.
Deals
US-based autonomous drone technology developer Skydio secured $170m in series D funding from investors including industrial equipment and appliance producer Siemens at a $1bn-plus valuation.
Venture capital firm Andreessen Horowitz (A16Z)’s Growth Fund led the round, which also featured IVP, Lines Capital and Up.Partners, while Siemens took part through its Next47 vehicle. The company’s funding has now reached $340m since it was founded in 2014.
Skydio produces unmanned aerial vehicles with artificial intelligence (AI) and computer vision-equipped autonomous flight technology for consumer, enterprise and public sector users. It will use the funding to increase its global presence and boost product innovation.
The company debuted with a consumer-focused autonomous flying camera dubbed R1 before releasing a second iteration, Skydio 2, in 2019, with enhanced recording software and a lower price tag. Its products are used by organisations including utility providers, firefighting services, construction companies and the US Army.
Pipe, a US-based developer of a recurring revenue trading platform, raised a reported $150m at a $2bn valuation, after raising $50 million in growth funding. Although the round is still ongoing, hedge fund Greenspring Associates was reportedly the lead investor.
Siemens’ Next47 unit had co-led the original $50m funding round for Pipe.
The round was co-led by financial services firm Raptor Group and included e-commerce software provider Shopify, identity authentication software producer Okta and enterprise software providers HubSpot and Slack. MSD Capital and Republic filled out the round with private investors Chamath Palihapitiya, Marc Benioff, Alexis Ohanian and Joe Lonsdale. Pipe’s online platform enables businesses to sell contracts that represent their future recurring revenue in exchange for upfront capital.
Canada-headquartered carbon capture technology developer Svante completed a $75m series D round, featuring Chevron’s corporate venturing unit, Chevron Technology Ventures, and cryogenic equipment producer Chart Industries.
Singaporean state-owned investment firm Temasek led the round, which was also backed by Carbon Direct and Export Development Canada, OGCI Climate Investments, BDC Cleantech Practice, The Roda Group and Chrysalix Venture Capital. Formerly known as Inventys,
Svante is working on an industrial-level system designed to help companies capture carbon dioxide (CO2) emissions from existing facilities. The round took Svante’s overall funding to more than $150m. The proceeds will help it deploy several commercial-scale facilities over the next three years.
Fluid Truck, the US-based operator of a truck-sharing service for businesses, completed a $63m series A round, featuring investment vehicles for furniture retailer Ingka Group and diversified conglomerate Sumitomo. Sumitomo Corporation of Americas and Ingka Investments, a subsidiary of Ikea franchisee Ingka Group, joined private equity firm Bison Capital, which led the round, and a vehicle called Fluid Vehicle Owners.
Founded in 2016, Fluid Truck has built an online platform that allows businesses to book commercial vehicles such as trucks, vans or sports utility vehicles any time of day or night on demand. It will use the cash to hire engineering and operations staff while expanding into new markets.
US-based electric vehicle (EV) charging system provider FreeWire Technologies completed a $50m series C round that included BP’s corporate venturing unit, BP Ventures. Private equity firm Riverstone Holdings led the round, which also featured investment holding company Trirec and VC firms Energy Innovation Capital and Alumni Ventures Group. The company said it has secured almost $100m to date.
FreeWire produces EV chargers for use by business customers in areas such as corporate campuses or by fleet operators. It will put the cash into ramping up production of its Boost Charger and expanding its sales overseas.
Free Wire Technologies’ dual charger
Boston Metal, a US-based developer of molten metal production technology, collected $50m in a series B round co-led by BHP Ventures, the corporate venturing arm of mining company BHP. Devonshire Investors and Piva Capital were the other co-leaders and it also featured The Engine, Breakthrough Energy Ventures, Prelude Ventures and OGCI Climate Investments. The company is targeting a $60m final close, according to a regulatory filing.
Founded in 2012, Boston Metal has developed a process called molten oxide electrolysis to make steel alloys using electricity rather than a blast furnace. The company’s goal is to facilitate emissions-free steel production – though this will also require manufacturers to use clean energy – and help tackle a significant contributor to climate change. Boston Metal’s long-term plan is to license its technology and sell components to steel manufacturers and engineering companies. The funding will allow it to operate a semi-industrial cell line by the end of 2022 and a demonstration plant within three years.
BP Ventures led a $47m series B round for Oxbotica, a UK-based autonomous vehicle software spinout from University of Oxford. Internet group Tencent and safety equipment producer Halma also took part in the round, as did commercialisation firm IP Group, which committed $5.5m, investment fund BGF, superannuation fund HostPlus, investment firm Venture Science and funds advised by Doxa Partners.
Founded in 2014, Oxbotica has created hardware-agnostic software to provide autonomous driving functionality, and will use the series B funding to accelerate commercial deployment of its technology across multiple industries and geographies.
Canada-based geothermal energy technology developer Eavor Technologies secured $40m in a round backed BP and Chevron and the pension fund of utility Eversource Energy. BP and Chevron invested through their respective corporate venturing units, BP Ventures and Chevron Technology Ventures, while Eversource Retirement Plan Master Trust, the pension fund of utility Eversource Energy also participated. Singaporean state-owned investment firm Temasek, Vickers Venture Partners and BDC Capital filled out the round.
Eavor’s technology generates energy by using the natural heat of the earth to increase the temperature of a specialised fluid which is circulated through a closed network of underground wellbores. The nature of Eavor’s geothermal energy enables it to be supplied on demand and produces zero carbon dioxide emissions.
The company is aiming to power the equivalent of 10 million homes by 2030.
Eavor’s Alberta plant
US-based data privacy technology developer DataGrail secured $30m in series B funding from investors including marketing software supplier HubSpot, identity authentication service Okta and Siemens. VC firm Felicis Ventures led the round, which included Basis Set Ventures, Operator Collective and all of the company’s existing investors, while Siemens invested through its Next47 unit.
Founded in 2018, DataGrail has built a privacy software platform for enterprise customers that caters to data protection laws including European Union’s General Data Protection Regulation, California’s Consumer Privacy Act and California Privacy Rights Act.
Armorblox, a US-based provider of email security software, received $30m in a series B round led by Next47. Investment firm Polaris Partners filled out the round alongside VC firms Unusual Ventures, General Catalyst and undisclosed others.
Armorblox has developed a cybersecurity platform that uses natural language processing and deep learning technology to prevent cyber-attacks on businesses’ email communication networks. The company said more than 9,000 organisations use its platform to prevent attacks on their business email accounts. The funding will be used to expand its engineering, data science and go-to-market teams.
ZeroAvia, a UK- and US-based zero-emission plane maker, added $24.3m to support the development of a 2MW hydrogen-electric engine. Hong Kong-based VC firm Horizons Ventures, an existing investor and the family office for Li Ka-shing, former chairman of conglomerate CK Hutchison, led the latest funding round and was joined by new investor airline British Airways.
Other investors included venture capital firms Breakthrough Energy Ventures, Ecosystem Integrity Fund, Summa Equity and Systemiq, as well as Shell Ventures, oil and gas provider Shell’s corporate venturing unit.
ZeroAvia is working on a hydrogen-electric powertrain for aircraft, initially targeting small 10 to 20-seater planes. It has targeted 2023 to begin commercialising its technology, and the series A proceeds will support product development.
NexWafe, a Germany-based developer of silicon wafer fabrication technology, closed a €10m ($12m) series B round, featuring Saudi Aramco Energy Ventures, the venturing unit of Saudi Aramco. Fraunhofer Society’s Institute for Solar Energy Systems also took part, as did Gap Technology Holding, Lynwood Schweiz and Bantina Invest.
Founded in 2015, NexWafe is developing technology facilitating the production of monocrystalline silicon wafers for solar panels capable of delivering higher efficiency than comparable processes at lower costs. The technology is compatible with existing production lines and is able to produce ultra-thin wafers. The series B financing will support pilot manufacturing activities and allow NexWafe to pursue potential partnerships.
NexWafe scientists examine a silicon wafer
Energy utility Eni co-led an $11.5m series A round for US-based gas decarbonisation technology developer C-Zero through strategic investment arm Eni Next. The round was co-led by Breakthrough Energy Ventures and backed by industrial manufacturer Mitsubishi Heavy Industries and VC firm AP Ventures.
C-Zero has creaed a method of converting natural gas into hydrogen to cut carbon dioxide emissions from processes such as power generation, heating and chemical production. The technology was developed at the University of California, Santa Barbara, and involves splitting methane into hydrogen and solid carbon. The cash will fund piloting the system at commercial scale.
C-Capture, a UK-based developer of CO2 separation technology, raised £8m ($11.3m) in funding from investors including BP and power producer Drax Power. BP Ventures took part in the roundon behalf of BP, and it included technology commercialisation firm IP Group and the state-owned British Business Bank’s Future Fund.
Spun out of University of Leeds in 2009, C-Capture has built CO2 capture and storage systems intended to enable factories and power plants to catch and eliminate combustion furnace gases in the smoke flue.
Rose McCarthy (Carbon Capture chemist) and Douglas Barnes (head of chemistry)
US-based cloud solution provider LO3 Energy close $11m in Series B financing with participation from a suite of corporate backers. Shell Ventures and Shikoku Electric Power joined Braemar Energy Ventures, Sumitomo Corporation and Centrica and other investors.
Founded in 2015, LO3 Energy has developed a cloud-based marketplace infrastructure for retail energy providers and distribution utilities, dubbed Pando, which enables businesses and households to dynamically transact energy and services from Distributed Energy Resources and community assets.
Cumulus Digital Systems, the US-based developer of a software platform that pools industrial data to help make facilities safer, received $8m in funding from investors including Shell Ventures.
The round was led by private equity firm GEC and also featured Brick & Mortar Ventures. Cumulus said it had previously raised $7m, $4.5m in a 2018 round led by Brick & Mortar Ventures that included Shell Ventures and Castor Ventures.
Chevron has provided series C funding for US-based carbon capture technology developer Blue Planet Systems. A securities filing showed it had raised $4.4m, which is likely to include the Chevron cash. The investment was made through corporate venturing unit Chevron Technology Ventures and comes after Blue Planet closed a $4.8m series B round in 2015, according to a separate filing.
Founded in 2013, Blue Planet has developed a technology which uses CO2 as a raw material for making carbonate rocks, which can be used in place of natural limestone as the principal component of concrete.
CorrosionRadar, a UK-based developer of technology to detect and predict corrosion in pipelines, secured £2.9m ($4m) in series A funding, led by Saudi Aramco Energy Ventures, with participation from the Mercia-managed MEIF Proof of Concept & Early Stage Fund and angel investors, according to BusinessLeader. The Cranfield University spinout also raised $1.3m from MEIF in late 2019.
CorrosionRadar has developed remote sensing technologies and advanced analytic systems for smart oil and gas infrastructures. Its technology’s focus is on monitoring corrosion under insulation that can cause catastrophic failures and significant downtime to the industry.
UK-based enterprise blockchain technology developer Finboot received £2.4m ($3.3m) in funding from investors including Repsol Corporate Venturing, a subsidiary of oil and gas provider Repsol. The round also featured Development Bank of Wales and Tom Singh, founder of fashion retailer New Look, who was identified by Finboot as its original lead investor in 2018.
Established in 2016, the company has developed a SaaS solution dubbed Marco, a suite of blockchain applications and middleware solutions for value and supply chains that can be deployed by a wide range of sectors, including oil and gas, chemicals, consumer goods, automotive, travel and tourism as well as healthcare.
US-based solar power provider Solstice Power Technologies has closed a $3.1m round led by Total Carbon Neutrality Ventures, a subsidiary of petroleum supplier Total. The round included energy technology producer Schneider Electric’s investment arm, Schneider Electric Ventures, and insurer American Family Insurance’s Institute for Corporate and Social Impact as well as Massachusetts Clean Energy Center, Next Wave Impact, Active Impact Investments, Powerhouse Ventures, Gratitude Railroad, H/L Ventures, SustainVC, Halcyon Angels and unnamed individuals. Founded in 2016, Solstice provides turnkey customer solutions for shared solar. It also offers subscriber aggregation and management 21 services to solar developers, utilities, and other providers of shared solar energy.
A Solstice solar farm in New York State
Total has invested an undisclosed amount in Singapore-based renewable microgrid developer Canopy Power through Total Carbon Neutrality Ventures. The company raised an undisclosed amount in a 2018 series A round featuring sensor and wiring system manufacturer CMR Group, Gaia Impact Fund and existing backer Golden Elm Investments.
Founded in 2016, Canopy Power designs, builds and finances renewable energy microgrid solutions aimed to enable customers to achieve substantial cost savings via reduced diesel
fuel usage.
UK-based risk assessment technology developer and ride hailing insurance provider Humn secured an undisclosed amount from Shell Ventures and technology investment firm Marbruck Investments. The company identified Marbruck as an existing backer and said the funding will support the commercial roll-out of its products. Founded in 2017, Humn has developed a software, dubbed Rideshur, which uses data to provide a precision insurance solution to accurately price any road segment in real-time.
Japan-based warehouse distribution robot developer Lexx Pluss secured an undisclosed amount from diversified conglomerate Sumitomo and VC firms Incubate Fund and SOSV Investments. The capital will support recruitment and the further development of the company’s technology, slated for release this year. Founded in 2020, Lexx Pluss is developing a hybrid autonomous mobile robot that transports heavy loads and optimises workflows within warehouses, logistic sites and other spaces.
Diversified trading group Sumitomo, carmaker Daihatsu and leasing services provider Sumitomo Mitsui Finance and Leasing invested an undisclosed amount in agricultural drone producer Nileworks. It had previously raised $7.1m from Sumitomo, chemical producers Kumiai Chemical Industry and Sumitomo Chemical, financial services firm Norinchukin Bank, Innovation Network Corporation of Japan (INCJ) and National Federation of Agricultural Co-operative Associations in 2017 and added $14.3m from Sumitomo, Kumiai, Sumitomo Chemical, INCJ, Mirai Creation Fund and Drone Fund in March 2019.
Shell Ventures, APG Asset Management and EDP Ventures participated in a Series B funding round of undisclosed size raised by Netherlands-based residential smart energy platform Net2Grid. The company is planning to rapidly scale the development and deployment of its platform across Europe, Australia and North America with the funding.
Established in 2011, Net2Grid has developed algorithms that are capable of disaggregating energy bills in individual appliance consumption level and determining their energy efficiency.
Net2Grid provides residential smart energy
Exits
We also reported several exits and acquisitions of corporate venturers from the oil and gas space.
Hyzon Motors, a US-based commercial vehicle producer backed by petroleum supplier Total, agreed to list through a reverse merger with special purpose acquisition company Decarbonization Plus Acquisition Corporation (DCRB).
The deal will value the combined company at $2.1bn and it will take the spot on the Nasdaq Capital Market taken by DCRB when it floated in a $200m initial public offering in October 2020. Investors including financial services and investment group Fidelity, funds and accounts managed by BlackRock, Federated Hermes Kaufmann Funds, Wellington Management and Riverstone Energy are supplying $400m in financing to support the deal.
Hyzon has developed a range of hydrogen fuel cell-powered trucks and coaches, and will begin shipping them to customers later this year. The company was spun off by fuel cell manufacturer Horizon Fuel Cell Technologies in January 2020 and raised an undisclosed sum from Total Carbon Neutrality Ventures, Ascent Hydrogen Fund, Hydrogen Capital Partners and Audacy Ventures in October.
Markforged, a US-based industrial 3D printer manufacturer backed by corporates Microsoft, Porsche and Siemens, agreed to undertake a reverse merger with special purpose acquisition company One to list on the New York Stock Exchange. Porsche Automobil Holding and M12, vehicles for carmaker Porsche and software producer Microsoft, have committed to a $210m private investment in public equity led by Baron Capital Group.
Funds and accounts managed by BlackRock, Miller Value Partners, Wasatch Global Investors and Wellington Management have also contributed to the financing. Combined with the money already held by One, Markforged will have access to $425m in gross proceeds. Founded in 2013,
Markforged has developed an AI-powered additive manufacturing platform. It will use proceeds to drive business growth, launch additional products and introduce more proprietary materials.
Shell agreed to acquire Next Kraftwerke, a Germany-based virtual power plant operator backed by renewable energy producer Eneco, for an undisclosed amount. Next Kraftwerke was spun out of Institute of Energy Economics at University of Cologne by Jochen Schwill and Hendrik Sämisch, and its business model involves using a large number of decentralised power plants to generate electricity.
The company controls over 10,000 decentralised energy units across Germany, Belgium, Austria, France, Poland, the Netherlands, Switzerland and Italy, covering solar, bioenergy and hydro power. The plants generate electricity that is traded on behalf of Next Kraftwerke’s customers on the electricity wholesale markets. Shell said it intends to double its electricity business to about 560 terawatt hours by 2030.
Next Kraftwerke, a Germany-based virtual power plant operator, has been bought by Shell
Shell also paid an undisclosed amount to acquire Germany-based EV charging network Ubitricity, allowing corporate investors EDF, Honda and Siemens to exit. Ubitricity operates the largest EV charging network in the UK and substantial networks in Germany and France, integrating its systems into existing objects like lampposts to make them more accessible.
The deal is intended to boost Shell’s own charging service, which spans some 430 service stations and provides access to roughly 185,000 third-party chargers. Founded in 2008, Ubitricity runs a network of EV chargers that are installed in street lights and lampposts, reducing the need for dedicated charging spots and enabling users to charge their vehicles on and off the street.
Ubitricity places chargers in street furniture like bollards and lampposts
Driverless vehicle technology provider Cruise agreed to buy Voyage, a US-based autonomous taxi developer backed by corporate venturing funds InMotion Ventures and Chevron Technology Ventures, for an undisclosed amount. Voyage is developing robotaxis equipped with its own self-driving software and capable of travelling at up to 40km per hour, for use in small communities. Its initial customer base is senior citizens.
Funds
Chevron Technology Ventures launched a $300m vehicle called Future Energy Fund II to fund developers of clean energy technology. It will provide funding for developers of technology that can help reduce carbon emissions in areas such as industrial decarbonisation, mobility technology, the decentralisation of the energy structure and circular carbon technology.
The fund is the eighth to be formed by the unit since it was launched in 1999 and it is the successor to the first Future Energy Fund, which was formed in 2018 with $100m in capital. Chevron has backed 10 companies including carbon capture technology developers Carbon Engineering and Blue Planet, carbon removal system developer Carbon Clean and ChargePoint, the operator of an electric vehicle charging network, through the first fund.
Barbara Burger, president of Chevron Technology Ventures, said: “We continue to take meaningful actions to address the challenges and opportunities of the global energy transition.”
Pilot air contactor by Carbon Engineering, which is backed by Chevron Technology Ventures
Luxembourg-registered multinational steelmaker ArcelorMittal has set up a corporate venturing fund to invest up to $100m per year in startups that can help it transition to carbon-neutral steel production.
XCarb innovation fund will invest in companies “developing directly applicable, commercially scalable technologies that offer strong potential to decarbonise the steelmaking process,” ArcelorMittal said in a statement.
Aditya Mittal, ArcelorMittal’s chief executive, added: “The fund we have launched adds an exciting, complementary new element to our CO2 technology strategy. We will be seeking to support emerging companies that are pioneering new potentially transformative technologies.”
France-based private equity firm Eurazeo raised €80m ($97m) for the first close of its Smart City II Venture fund, after securing commitments from several corporates. Limited partners include Total, car manufacturer Stellantis, electric utilities EDF and Mainova, public transport operator RATP, logistics company Duisport and real estate developer Sansiri.
The fund also received capital commitments from family offices and PRO BTP, a non-profit organisation providing insurance and pension services for the French construction industry. The vehicle is set to invest in early-stage companies operating in the energy, mobility, property technology and logistics sectors globally.
Matthieu Bonamy, partner at Eurazeo’s subsidiary, IdinvestPartners, said: “The smart city venture strategy aims to select and support the future global leaders in each of their sectors thanks to an expertise in our investments themes and a selectivity rate at the level of the best generalist funds.”
Taiwan-headquartered industrial technology producer Advantech and Switzerland-based VC firm Momenta Ventures are raising up to $50m for an investment fund focusing on digital industry technology. AIoT Ecosystem Fund will target emerging companies based in North America and Europe developing products that combine AI and industrial internet-of-things technology.
The fund will invest at series A, series B and growth stage, in companies developing technology products and services for the energy, manufacturing, smart spaces and supply chain sectors. Momenta will lead investments for the fund while leveraging Advantech’s industrial hardware and software capabilities as well as its presence in the market.
US-based venture capital firm Phoenix Venture Partners (PVP) closed a fund of undisclosed size backed by a host of corporates pharmaceutical firm Pfizer, ceramics product maker Corning, materials manufacturer W L Gore and chemical producers Showa Denko, Nissan Chemical and Nagase. Electronics producer LG supplied capital through LG Technology Ventures.
PVP III’s other limited partners (LPs) included new and existing unnamed financial institutions, family offices and multinational corporations. Although its size was not disclosed, a securities filing indicated the firm had raised approximately $109m for the vehicle.
Founded in 2010, PVP invests in companies operating in the advanced materials sector. It closed its second fund in 2017 with commitments from Pfizer, Corning, Showa Denko, WL Gore, manufacturing conglomerate 3M and chemical providers Eastman Chemical and Solvay having secured at least $63.5m.
Canada-based telecommunications company Telus launched a C$100m ($76.5m) impact investment fund called Telus Pollinator Fund for Good. The vehicle will target early-stage companies in Canada developing digital healthcare technology as well as products that can encourage environmental sustainability, responsible agriculture and social and economic inclusion.
The first three recipients of capital from the fund are microfinance scheme Windmill Microlending, impact investment fund Rhiza Capital and Tidal Vision, a developer of chemicals based on the chitosan biopolymer found in crustaceans.
Shell GameChanger Accelerator powered by NREL (GCxN), an accelerator co-run by Shell and the US Department of Energy’s National Renewable Energy Laboratory, selected three participants. US-headquartered Air Company, which is developing a technology that transforms carbon dioxide into alcohols, fragrances and other consumer products, joined Versogen, the hydroxide exchange membrane producer formerly known as W7Energy, in the scheme’s fourth batch. Ionomr Innovations, a Canada-based company working on ion-exchange membranes and polymers for electrochemical products, filled out the cohort. Each of the three which will get up to $250,000 in non-dilutive financing and research support to develop clean technology for commercial use.
Air Company is developing a technology that transforms CO2 into consumer products
Toho Gas Accelerator Program 2020, a Japan-based accelerator formed by energy utility Toho Gas and Eiicon, a subsidiary of recruitment firm Persol, selected the startups for its first batch. The cohort includes robotic process automation technology developer Batton and ExaWizards, which is working on AI-powered medical and nursing care software, and Lightblue Technology, a natural language processing technology developer specialising in image analysis and data extraction.
The two-month initiative was formed in November 2020 and it targets lifestyle and manufacturing technology developers based in Aichi, Gifu and Mie, the three main prefectures in Japan’s Tōkai region where Toho Gas operates. Eiicon’s open innovation platform, Auba, will run the programme with Toho Gas.
People
David Hayes and Ignacio Gimenez were promoted to managing partners at BP Ventures. The new role is part of a shift under Meghan Sharp, the new global head of BP Ventures and vice-president for the company’s “innovation engine” being developed to “support the technical and commercial capabilities necessary to grow new businesses for BP in our journey to net zero”. Sharp returned to BP Ventures towards the end of 2020, having left in 2019 to become chief operating officer at portfolio company Beyond Limits.
A GCV Powerlist 2020 award winner, Hayes spent nearly 18 months as chief investment officer and managing director for the Americas at BP Ventures and is on the boards of Xpansiv CBL Holding Grou, Fulcrum Bioenergy and Calysta. He started as an analyst around the time BP Ventures was being formally created towards the end of the 2000s.
Gimenez was promoted from managing director for Europe and Middle East at BP Ventures, having joined in mid-2017. He sits on the boards of Finite Carbon, Voltaware, Fotech Solutions and Grid Edge.
Hayes said: “Nacho Gimenez and I are joined by Daniela Proske, Erin Hallock, Sophia Nadur and Chad Bown as managing partners as BP Ventures reinvents the group to better serve BP as we aim to reimagine energy for people and the planet.”
David Hayes & Ignacio Gimenez
Giancarlo Savini left Shell Ventures and joined Honeywell Ventures, the counterpart for industrial product and software producer Honeywell. Savini told Global Corporate Venturing that he would be “working in a similar role” at Honeywell Ventures, having joined his previous employer as manager of investment and partnerships in 2018. He joined Shell in 2012 as senior innovation lead for capital equipment, a position he held for two years before serving as digitisation lead and contract manager for power generation technology until 2018.
Savini was involved in Shell Ventures’ investments in energy management technology developer Autogrid, blockchain-powered energy storage solution developer LO3 Energy and Veros Systems, which provides an industrial asset monitoring system. He led the round for Veros on behalf of Shell Ventures and took a board seat in 2018.
Giancarlo Savini
Kevin Stevens joined Energize Ventures, a US-based venture capital firm set up and backed by Renewable power producer Invenergy, to lead its growth equity platform. Previously a partner at venture capital firm Intellis Capital for just more than three years, Stevens’s deals included Wndyr and Ensemble Energy.
He began his career in business development at NRG, a US-headquartered integrated power company, before moving to then-startup Choose Energy, an online energy marketplace (where he met Energize managing partner John Tough).
Kevin Stevens
Energize had been investing in pre-growth stage technology companies that are “changing the game in energy” and, as well as Invenergy, its limited partners include industrial and energy companies Schneider Electric, GE, Hannon Armstrong, WEC Energy Group and Caterpillar.
Canada-based biotechnology product maker Natural Products Canada (NPC) plans to raise C$50m ($39.5m) for a cleantech corporate venturing fund, NPC Ventures. The company has secured a non-binding term sheet with an undisclosed anchor investor for the vehicle, which will invest in producers of natural alternatives to synthetic products such as plastics and preservatives. The fund will target 16 to 20 investments ranging from C$500,000 to C$2.5m.
NPC has invested in 13 companies over the past four years. NPC Ventures aims to complete its first close in autumn 2021 and has hired Kristi Miller, founder and former national managing director of business finance provider First West Capital, to run the fund as managing director.
Kristi Miller
Miller said: “NPC Ventures has tapped into something very compelling. There is tremendous opportunity for Canadian companies to meet this exponential demand for ‘natural’. I am honoured to bring my experience and network to an area with such meaningful potential for growth.”
Thailand-listed industrials group Siam Cement Group (SCG) promoted Prakit Worawattananon to managing director (MD) of its corporate venturing unit, AddVentures, and to director of its corporate innovation office. He was director of deeptech innovation at SCG and led its Zero-To-One startup studio from April 2020 after a three-year stint running supply chain strategy for SCG Packaging. SCG launched AddVentures in 2017 under Joshua Pas, who remains in place as its other MD.
Prakit Worawattananon
It won GCV’s new entrant of the year award with a five-year plan to make early-stage investments in 25 to 35 startups and back as many as five VC funds.