West Texas Intermediate (WTI) oil prices stood at around $60 per barrel in the beginning of 2020 but pressures on demand and supply sides made the price lower than $20 when covid-19 reached Western world and stay-at-home orders were imposed.
WTI futures contracts even entered negative territory in April which made for memorable headlines, though this was due to a technicality related to physical delivery settlement of the contracts.
Since June, the price has somewhat stabilised and has been moving in the high thirties and low forties, as lockdowns have been largely eased. It remains to be seen if weather-related concerns drive it further up in the last quarter.
In the venturing space, oil and gas majors and their peers have remained active despite the headwinds for the industry. Over the latter half of the past decade, we have observed a shift of focus for oil and gas corporates, which is still evident and which is likely to continue to hold in the post-pandemic world.
Many of the disclosed deals by oil and gas corporate venturers went into emerging businesses from non-core areas, primarily in cleantech, IT, and transport and mobility.
It is these non-core areas which have the most disruptive potential for the core business of oil and gas companies, as low-carbon energy technologies may replace or considerably affect the market share of fossil fuels.
For example, the increasing adoption of electric vehicles may affect a considerable part of the customer base of oil and gas companies. There has also been an increasing digitisation of industrial activities, which exerts tangible impact over production and efficiency. However, given the challenging current situation of industry, it would be reasonable to expect more investments in core oil and gas technologies, particularly in companies whose solutions provide significant cost savings.
Investments in core oil and gas tech technologies will continue to form part of the portfolios of corporate venturers from the sector due to its capital-intensive nature, contingent on the up and down swings of commodity prices. Any innovation improving processes and reducing fixed costs is likely to be embraced.
Over the long haul, corporate venturing arm of oil and gas incumbents will continue to be more strategic rather than financial in their orientation.
In addition to investing in technologies that may profoundly disrupt the sector, strategic benefits may come in the form of building an ecosystem, finding suppliers or helping business units with specific technical challenges.
The sector in charts
In the third quarter of 2020, the IT, cleantech and transport startups received more attention than other areas. The average size of deals in which oil and gas corporate venturing peers participated in the first three quarters stood at $32m, little to no change to the figure in previous reports, which suggests valuations have not been given a boost by the pandemic but have not gone down either. We tracked 72 deals that were worth an estimated $1.66bn – broadly in line with those from last year’s quarters.
BP has disclosed a significant number of rounds in cleantech and transport companies since 2014, plus core operation technologies and biotech. Total has placed heavy bets on cleantech and transport, while Anglo-Dutch company Shell has been focused on cleantech and core oil and gas technologies as well as IT.
Chevron’s publicly disclosed commitments revolve around core energy operations, the digital dimension of its operation and in most recent times cleantech as well. Saudi Aramco has historically focused its minority stake investments in IT, core technologies and increasingly cleantech as well. In brief, nearly all oil and gas majors are involved in some way with the low carbon and advanced mobility opportunities on the venturing scene.
The top corporate venture investors out of oil and gas companies were Chevron, BP and Saudi Aramco.
Deals
During the third quarter of 2020, we reported a number of interesting deals involving oil and gas corporate venturers and their peers.
US-based artificial intelligence (AI) technology developer Beyond Limits attracted $133m in series B financing co-led by cloud computing firm Group 42 and petroleum company BP’s corporate venturing arm BP Ventures. The company has received an initial $113m, with the remaining $20m committed.
Beyond Limits has developed cognitive AI technology that combines human-like reasoning with data to solve challenges and offer insights into improving operating conditions and enhancing business performance. The technology is based on research at California Institute of Technology and its federally-funded, Nasa-aligned Jet Propulsion Laboratory.
ChargePoint, the US-based operator of an electric vehicle (EV) charging network, raised $127m from investors including Chevron and energy utility American Electric Power (AEP). Chevron participated through its subsidiary Chevron Technology Ventures. Formerly known as Coulomb Technologies, ChargePoint offers subscription-based charging services for EVs that encompasses more than 110,000 charging stations. It will allocate the funding to strengthening its commercial and fleet businesses.
Industrial equipment producer Siemens led a $100m series C round for US-based unmanned aerial vehicle developer Skydio through its Next47 subsidiary. The round also featured NTT Docomo Ventures, the corporate venturing arm of mobile network operator NTT Docomo. Skydio manufactures drones equipped with autonomous flying software that uses computer vision and machine learning technology. It will channel the series C funding into product development as it seeks to boost its customer base among enterprises and in the public sector.
US-based employee management software provider Parsable received $60m in series D from investors including Saudi Aramco, networking technology producer Cisco and industrial and consumer technology manufacturer Honeywell. The round was co-led by growth equity firms Activate Capital and Glade Brook Capital Partners. Cisco and Saudi Aramco participated through corporate venturing subsidiaries Cisco Investments and Saudi Aramco Energy Ventures. Founded in 2013, Parsable has built a software platform that helps industrial workers receive instructions and provide feedback through mobile devices. The cash will support expansion in regions such as Africa, Latin America, Europe, the Middle East and Asia.
Insurance group Ping An’s Global Voyager Fund has led a $60m funding round for Taulia, a US-based provider of software that helps optimise a company’s working capital.
The round included Prosperity7 Ventures, a venture capital unit of Saudi Aramco, as well as investment banking firm JP Morgan and existing backers including private equity fund manager Zouk Capital.
The company’s chief executive, Cedric Bru, told the Wall Street Journal the round valued it at up to $400m. Taulia combines a technology platform with live experts to help small and medium-sized enterprises make their supply chain more efficient to maximise their working capital.
US-based warehouse robotics technology developer Dexterity emerged from stealth with $56.2m in equity and debt financing from investors including Presidio Ventures, a corporate venturing subsidiary of diversified conglomerate Sumitomo. The company did not reveal the ratio of equity and debt but said the total included a recently completed series A round.
Founded in 2017, Dexterity designs and builds robots tailor-made for specific customers to automate elements of picking and packing in warehouses. The robots progressively learn to ‘feel’ specific items, enabling them to execute a wider range of tasks, in collaboration with each other.
US-based call centre technology developer Observe.AI received $54m in series B funding from investors including Next47 Ventures, the venture capital firm funded by industrial technology manufacturer Siemens. Menlo Ventures led the round, which also featured fellow venture capital firm NGP Capital. Steve Sloane, a partner at Menlo Ventures, will take a seat on Observe’s board of directors.
Observe provides AI-equipped software that enables businesses to transcribe every phone call to their contact centres and coach their staff to provide better customer service. The funding will support research and development work intended to help the company add real-time coaching and omnichannel support features, plus improved interaction analytics.
US-based advanced battery technology developer Natron Energy raised $35m in a series D round co-led by ABB Technology Ventures, the strategic investment arm of power and automation technology producer ABB.
Corporate-backed battery technology fund Volta Energy Technologies and venture capital firm NanoDimension Capital co-led the round with ABB. It also featured Chevron and VC firms Khosla Ventures and Prelude Ventures.
Founded in 2012 and formerly known as Alveo Energy, Natron is developing a battery storage system that depends on sodium-ion technology to carry charge, as an alternative to traditional lithium or lead-based materials. The company focuses on batteries for use in infrastructure such as telecommunications, industrial facilities and data centres where sodium-ion is potentially safer because it is less prone to explosions.
GHGSat, a Canada-based developer of greenhouse emissions tracking technology, secured $30m from investors including oilfield services provider Schlumberger for the first close of its series B round.
The state-owned Investissement Québec led the first close of the round, which also featured OGCI Climate Investments, Business Development Bank of Canada, Space Angels and Fonds de solidarité des travailleurs du Québec.
Founded in 2011, GHGSat operates a greenhouse gas monitoring system that uses its own satellites to track emissions from space. The company will channel the funding into construction of three high-resolution satellites in addition to tailoring its sensors for use in aircraft and opening an intelligence centre in the UK as it upgrades its analytics capabilities in its home country.
Humatics, a US-based microlocation technology, raised $30m in its series B round from a consortium including multiple corporates including conglomerate Sumitomo, defence equipment provider Lockheed Martin and aerospace group Airbus. Venture capital firm Blackhorn Ventures led the round, with participation by investment bank Tenfore Holdings, family office Fontinalis Partners and corporate venturing units Airbus Ventures, Lockheed Martin Ventures and Sumitomo’s Presidio Ventures. Humatics has developed a microlocation system that uses radio-frequency technology to locate and track multiple targets moving up to 30 metres away with millimetre-scale accuracy. It will use the funding to further develop and commercialise its technology.
Seeq, a US-based analytics software provider for manufacturing and industrial internet of things, closed its series B expansion round from a consortium including multiple corporate venturing units. Cisco Investments was a new investor in Seeq’s about-$30m expansion. This is in addition to previous series B funding, led by Altira Group and Saudi Aramco Energy Ventures. Seeq has developed a software platform that enables customers in the manufacturing and industrial industries, including oil and gas, chemicals and pharmaceuticals, to get data from connected systems and share it quickly and easily.
US-based energy-saving software provider Palmetto has closed a $29m series B round featuring Evergy Ventures and Shell Ventures, which invested on behalf of energy utility Evergy and Shell. Arctern Ventures, Greycroft, Lerer Hippeau, Box Group, Falkon Ventures and Leto Family Office filled out the round.
Palmetto provides software systems that help consumers track and understand their energy use, in addition to solar panel, energy storage and EV charging systems. The funding will support geographic growth and the expansion of the company’s customer service, data science and research and development teams.
UK-based carbon dioxide (CO2) separation technology developer Carbon Clean Solutions (CCSL) closed $22m in series B funding from oil and gas producer Equinor and venture capital firm Icos Capital. Equinor took part in the round through corporate venturing unit Equinor Ventures. Chevron Technology Ventures joined trading group Marubeni and Wave Equity Partners to supply $16m in series A funding for CCSL in February. CCSL is working on technology intended to facilitate the cost-effective separation of CO2 from emissions at industrial and gas facilities. The funding will go to technology development and increasing headcount at the company.
US-based grid management technology provider SparkMeter completed a $12m series A round featuring Total’s corporate venturing subsidiary, Total Energy Ventures. The round was co-led by venture capital firm Clean Energy Ventures and energy tech-focused fund Breakthrough Energy Ventures, and included Goodwell Investments, Alitheia Capital and undisclosed additional investors.
Founded in 2013, SparkMeter produces connected smart meters and software that help energy utilities in emerging markets maintain a stable service by providing insights into power consumption and cost.
Sumitomo joined Equinor Ventures and Wintershall Dea Technology Ventures, the corporate venturing subsidiaries of oil and gas suppliers Equinor and Wintershall Dea, to provide NOK75m ($8.5m) in series B funding for Norway-based petroleum geoscience software producer Earth Science Analytics.
The company had received an undisclosed amount of series A funding from Saudi Aramco Energy Ventures in March 2019. Founded in 2016, Earth Science Analytics has developed a data-driven prediction analytics services for exploration and production oil and gas companies.
BeGas, a Spain-based provider of liquified gas-powered engines, raised €5.2m ($6m) from investors including Repsol Energy Ventures, the corporate VC subsidiary of oil and gas supplier Repsol. The round also featured Ekarpen, Fundación BBK, CDTI, Easo Ventures and Seed Bizkaia, and Repsol’s investment reportedly gave it a 19% stake.
BeGas had received an undisclosed amount from Repsol, Easo Ventures, EIN, Seed Bizkaia and Itzarri EPSV in May 2019. BeGas manufactures 100% EuriVI-D autogas engines with liquid phase injection, approved for use in trucks and city buses.
US-based industrial blockchain network operator Data Gumbo raised an initial $4m in series B round led by venture capital firm L37, with participation from Equinor Ventures and Saudi Aramco Energy Ventures. Data Gumbo has now raised a total of $14.8m in funding. Data Gumbo previously raised $6m in series A financing co-led by Equinor and Saudi Aramco in May 2019. Founded in 2016, Data Gumbo has created a trusted transactional network to automate contract execution based on blockchain technology. The network reduces contract leakage, frees up working capital, and enables real-time cash and financial management.
Aiforce Solutions, a Japan-based developer of an AI -equipped human resources software, received ¥260m ($2.5m) in a series A round featuring diversified conglomerate Sumitomo. The corporate joined financial services firms Mizuho Bank and 77 Bank’s Mizuho Capital and 77 Capital units, Development Bank of Japan’s DBJ Capital fund and investment firm Gordon Brothers Japan in the round, which came in the wake of an undisclosed amount from Sumitomo in July 2019. Aiforce Solutions provides AI-related services including selection of AI vendors and technical evaluation of potential investments.
Energy utility Engie co-led a $2.25m pre-series A round for India-based last-mile delivery service Frontier Markets Consulting through impact investment vehicle Engie Rassembleurs d’Energies. The round was co-led by the Rise Fund and the Singh Family Trusts, and also featured Teja Ventures and affiliates of Beyond Capital Fund. It followed an investment by Engie in April 2019 and an undisclosed amount from Seedfund in 2011. Rianta Capital and Acumen Fund are also among the company’s backers.
Chevron provided an undisclosed amount of series A funding for US-based nuclear fusion reactor developer Zap Energy through corporate venturing unit Chevron Technology Ventures. The company secured $1.1m in equity financing according to a regulatory filing, and will put the Chevron funding into expanding its development team and enhancing its technology.
Nuclear fusion occurs when nuclei of lightweight elements (usually hydrogen) collide with enough force to fuse and form a heavier element – a process that releases substantial amounts of energy with no greenhouse gas emissions and limited long-lived radioactive waste. Zap Energy’s technology stabilises plasma using sheared flows rather than magnetic fields to confine and compress the plasma.
Engie New Ventures, the corporate venturing vehicle of Engie, also invested in Energyworx, a Netherlands-based provider of cloud energy management software, as part of a funding round of undisclosed size. The round included EDP Ventures, a subsidiary of fellow power provider EDP, as well as VC firm Set Ventures. It came after EDP Ventures led a $1.1m series A round for Energyworx in November 2019 that boosted its total funding to $3.8m. Set Ventures was an earlier backer, as was HenQ.
Founded in 2012, Energyworx has developed an energy data management platform which enables energy and utility companies with their digital transformation initiatives and enables them to monetise their smart meter data.
Chevron Technology Ventures admitted two companies to its Catalyst Program, an accelerator initiative it formed in 2017.
They are Norway-based oilfield technology provider Entech Solutions and MiqroTech, the US-based developer of a sensor system that analyses the status of pipelines. EnTech Solutions provides distributed energy technology, delivering clean resilient electricity from an infrastructure that prioritises all available resources. MiqroTech has developed an AI-based solution that predicts and notifies users of pipelines leaks.
Sumitomo invested an undisclosed amount in Israel-based hydrogen production technology developer H2Pro through corporate venturing unit IN Venture. The startup was founded in June 2019 and received $3.5m in seed funding from automotive manufacturer Hyundai Motor Company and Contrarian Ventures in October that year.
H2Pro has developed a method for splitting water molecules into hydrogen and oxygen Unlike conventional electrolysis, hydrogen and oxygen are generated separately at different phases – an electrochemical phase and a thermally activated chemical phase.
SC Digital Media, a subsidiary of diversified conglomerate Sumitomo, invested an undisclosed sum in Kiyono, the Japan-based developer of an analysis software platform for customer data. The capital will go to product development, with a particular focus on leveraging assets held by Sumitomo.
NearMe, the Myanmar-based operator of a digital services platform for businesses, has raised a seven-digit dollar amount fromSumitomo. The company was launched by digital payment processor 2C2P as 1-Stop and it plans to get support for its retail partners from Sumitomo’s affiliates.
Repsol Impacto Social, an impact investment fund owned by oil and gas supplier Repsol, has paid an undisclosed amount for a 35.3% stake in Saema, the Spain-based operator of a recycling plant. The company also offers waste management services tand green spaces maintenance.
Sumitomo agreed to invest an undisclosed sum in US-based metal additive maker Sintavia through its Sumitomo Corporation of Americas (SOCA) subsidiary. Sintavia had already raised an undisclosed amount from SOCA in 2018 after a $10m investment from private equity firm Neff Capital Management in 2015 and an additional $15m from Neff two years later. Founded in 2012, Sintavia produces metal additives for 3D printing in support of industries like oil and gas, aerospace and defence, automotive, and ground power generation.
GLX Digital, an Australia-based company that has developed the first end-to-end trading software solutions for global commodity markets, announced it had secured a minority investment from Shell Ventures. GLX Connect allows Shell’s LNG trading teams to buy and sell LNG cargoes using their own private and confidential digital trading environment, connecting in real-time to more than 75 global energy companies that have already signed up to the GLX Connect platform.
Battery technology developer South 8 Technologies closed a funding round from Shell Ventures and Taiyo Nippon Sanso Corporation. It followed Shell’s early-stage GameChanger programme and several federal and state-sponsored grants and contracts that have helped mature the company’s Liquefied Gas Electrolyte technology. South 8 Technologies has developed a technology which will increase the energy, power, and safety of battery systems while keeping much of the same manufacturing infrastructure in place for the Li-ion industry.
Exits
In the third quarter of 2020 we also reported two notable exits from corporate venturers in the oil and gas space.
Wind turbine equipment maker PolyTech acquired Fos4X, a Germany-based developer of wind farm optimisation technology, for an undisclosed sum, allowing Equinor
to exit.
Spun out of TU Munich (TUM) in 2010, Fos4X markets internet-connected sensors that can be fixed to wind turbines to evaluate their aerodynamic profile, providing data that can be analysed by its software to help optimise turbine performance. The technology will help PolyTech add digital and data analysis tools to its wind turbine products.
Solar cell and module manufacturer Q Cells agreed to acquire US-based energy storage software provider Geli for an undisclosed sum, allowing Shell to exit.
Geli is the creator of a software platform that can be used to design and manage battery-based energy storage systems for use with renewable energy installations. Its technology will be used by Q Cells to strengthen its integrated solar-and-energy-storage projects.
Funds
BP revealed it intends to provide $70m for India and UK-focused cleantech investment vehicle Green Growth Equity Fund (GGEF). GGEF was formed to invest in India-based technology developers operating in fields such as renewable energy, energy efficiency, energy storage, electric mobility and resource conservation. It has a target size of $700m and BP’s investment is set to close later this year. The government of India’s National Investment and Infrastructure Fund and the UK Department for International Development are anchoring the vehicle.
GGEF’s first investment was in a $330m round for solar and wind power project developer Ayana Renewable Power in February 2019 that also featured NIIF and the UK government’s development finance institution, CDC. The fund has since provided capital for shared electric bus service GreenCell Mobility, recycling services provider EverEnviro and Radiance Renewables, a developer of low-cost renewable energy technology for industrial applications.
Turkey-headquartered petroleum refinery operator Tüpraş provided an undisclosed amount of capital for Switzerland-based venture capital firm Emerald Technology Ventures’ Industrial Innovation Fund (EIIF). Formed in 2016 as an evergreen fund, EIIF’s limited partners include corporate venturing units Caterpillar Ventures, Chevron Technology Ventures, GC Ventures and Henkel Adhesive Technologies. Liquid ink producer DIC is also among the LPs.
Japan-based consumer electronics producer Sony formed a corporate venture capital vehicle called Sony Innovation Fund: Environment that will focus on environmental technologies. Sony Innovation Fund: Environment will back developers of technology that can address issues such as climate change, the use of resources, biodiversity and possible harmfulness of chemicals. It will initially seek to invest ¥1bn ($9.4m) in startups at seed stage. The corporate launched CVC unit Sony Innovation Fund in 2016 and formed a growth-stage investment fund with securities brokerage Daiwa in July 2019.
Saudi Aramco formed a $1bn corporate venturing fund dubbed Prosperity 7 Ventures. The unit was named after the first well that discovered oil in the Saudi Arabian desert, and it will focus largely on China and the US under the overall direction of unit head Aysar Tayeb.
The fund is meant to help Aramco diversify over the longer-term from oil and gas into technologies such as artificial intelligence, 5G, industrial automation, robotics, the cloud, data and analytics, the internet of things and blockchain services, complementing Saudi Aramco Energy Ventures, the corporate venturing unit now led by Mahdi Aladel after Majid Mufti’s departure.
US-based e-commerce, cloud computing and consumer device group Amazon launched a $2bn investment fund that will back developers of products that can support carbon reductions. The Climate Pledge Fund is targeting transportation, logistics, manufacturing, materials, food and agriculture technology developers, and those that engage with clean power production and storage or the circular economy.
Nasdaq-listed energy provider Exelon and its non-profit foundation have selected 10 startups to receive a combined $1m in direct funding to develop new technologies to mitigate and build resiliency to the impacts of climate change. The application process for year two of the company’s $20m Climate Change Investment Initiative (2c2i) is now open.
The Exelon Foundation will invest $10m in early-stage startups working on climate change mitigation, adaptation and resiliency over 10 years. Exelon will match that commitment with up to $10m of in-kind services, including mentoring entrepreneurs on accessing capital, structuring business plans and meeting regulatory requirements.
Netherlands-based multi-university venture fund Shift Invest has raised €70m ($82.5m) for its third vehicle, Shift III, from investors including insect-based animal feed supplier Protix and chemicals company Corbion. The impact investment vehicle, which achieved an initial close in May, is also backed by financial services firm Rabobank’s Rabo Corporate Investments, Wageningen University and Research and the European Investment Fund. The Dutch government-owned research institute TNO and the Netherlands Enterprise Agency, as well as unnamed family offices, regional development funds, universities and entrepreneurs backed by Shift’s previous funds have also thrown their weight behind the vehicle. Shift III will collaborate with TNO and the country’s technical universities on identifying promising technologies with a focus on products that can safeguard biodiversity. It will invest from seed to growth stage.
Japan-based carmaker Toyota added an $800m global growth-stage investment fund called Woven Capital to its early-stage, artificial intelligence-focused corporate venture capital unit. Toyota Research Institute – Advanced Development (Tri-Ad) was launched in March 2018 to oversee the formation of Toyota’s Woven City as an incubator for smart city design, connected mobility, and robotics technology from Toyota and its partners. The unit will begin expanding and transitioning its operations into a holding company dubbed Woven Planet Holdings, two operating companies – Woven Core and Woven Alpha – and Woven Capital itself, in January 2021.
Hyundai Mobis, the automotive components arm of South Korea-headquartered carmaker Hyundai, provided a total of $20m in capital for two US-based venture capital funds. The recipients are ACVC Partners, an early-stage investment firm focusing on millennial-driven technology products, and Motus Ventures, a VC fund and business accelerator focused on transportation, intelligent infrastructure and the internet of things. Founded in 1977, Hyundai Mobis channels upwards of $800m into research and development each year and the move is intended to diversify that spending. It aims to form a collaboration ecosystem that will integrate startups with its own technology activities.
Japan-headquartered electronics producer Panasonic launched its $150m second fund for Conductive Ventures, the US-based growth equity firm it sponsors. Conductive Ventures launched its first vehicle in April 2018 with $100m in capital provided by Panasonic as is its sole limited partner.
The firm said its portfolio includes semiconductor provider Ambiq Micro, electric bus manufacturer Proterra, marketing software producer Sprinklr and additive manufacturing technology provider Desktop Metal, which is pursuing a $2.5bn reverse merger. Conductive Ventures II will invest in expansion-stage technology developers in areas such as AI, digital health, advanced manufacturing, commerce, autonomous vehicles and financial technology as well as the future of work.
Seeds Capital, a venture capital arm of government agency Enterprise Singapore, agreed to partner with institutions including three corporate venturing units to co-invest S$50m ($36m). The initiative is backed by the Maritime and Port Authority of Singapore will involve Seeds Capital and the consortium investing the money in 50 maritime technology startups to improve efficiency and safety in the industry. Innoport, the investment vehicle for ship operator Schulte Group, is one of the six partners, as are KSL Maritime Ventures, a subsidiary of conglomerate Kuok Group, and PSA Unboxed, which represents port manager PSA International.
Switzerland-based venture capital firm Emerald Technology Ventures closed its water innovation impact fund at $100m with backing from corporate limited partners water and hygiene technology manufacturer Ecolab, software provider Microsoft and water and wastewater equipment and infrastructure producer SKion Water. They were by joined Singaporean state-owned investment firm Temasek, the fund’s cornerstone investor. Emerald has now formed five funds and backed 67 industrial technology providers in addition to managing investments for third parties such as the Singaporean and Swiss governments. This latest vehicle will invest in developers of technologies that can help conserve water, strengthen urban sustainability, improve the efficiency of resource use, cut health risks and assist in adaptation to climate change.
Packaged food and beverage producer Nestlé’s sustainable packaging fund provided $30m for Closed Loop Leadership Fund, a US-based buyout unit launched by circular economy-focused investment firm Closed Loop Partners. Closed Loop Leadership Fund is targeting $300m according to a regulatory filing from October 2019. It has been looking to court corporate investors, family offices, foundations and other institutional investors. The vehicle is intended to form sustainable supply chains in the US, buying companies at various stages of the plastics consumption cycle in an effort to limit wasted packaging.
Solvay Ventures, the strategic investment arm of France-based chemicals producer Solvay, has made its second commitment to a China-focused advanced materials fund by backing Richland Capital Fund III.
The unit commited to Richland’s third venture capital fund at its first close alongside Redbud, a China-based fund-of-funds subsidiary of Tsinghua Asset Management, and Nipsea, part of Japan-headquartered Nippon Paint. The commitment comes after Solvay Ventures contributed to China-based Longwater Investment’s advanced materials-focused fund in April 2019.
Stéphane Roussel, managing director at Solvay Ventures, said: “By partnering with Richland Capital, we want to support and share in the upgrade of China’s manufacturing ecosystem towards higher value added applications and products.”
Japan-headquartered biofuel supplier Euglena has formed a startup investment and partnership scheme, Euglena Sustainable Ventures.
The initiative will target companies in sectors including bioinformatics, direct-to-consumer and healthcare technology, as well as other strategic areas relevant to the company. Euglena Sustainable Ventures has made its first investment, providing an undisclosed amount for (also known as Bace), the Japan-based owner of chocolate brand Minimal, which uses fair trade-sourced cacao beans to produce its confectionery.
Euglena had already conducted direct investments in companies including bioinformatics software provider Amelieff, regional basketball league Ryukyu Golden Kings, customer-to-customer food portal Pocket Marché and MedCare, the operator of health insurance management platform Medically.
People
Joe Chang has become managing director and the senior leader in China for Prosperity 7 Ventures, Saudi Arabia-based oil and gas supplier Saudi Aramco’s newly formed $1bn corporate venturing fund. Chang had co-led the technology team and investments for Eight Roads Ventures, the venture capital subsidiary of US-based investment and financial services group Fidelity formerly known as Fidelity Growth Partners, in Greater China for nearly four years.
Iain Cooper, founder and head of Schlumberger’s corporate venturing unit, left to become chief executive of UK-based, corporate-backed gas sensor technology provider SeekOps. Cooper, a Global Corporate Venturing Powerlist 2019 award winner, had spent 13 years heading the unit. He has been replaced by Arindam Bhattacharya as director of Schlumberger Corporate Ventures and Schlumberger New Energy, which manage an active portfolio of more than 20 companies. Bhattacharya was promoted from Schlumberger’s marketing and technology, reservoir and infrastructure group, where he had been group vice-president. Cooper had managed technology investments for Schlumberger’s corporate venturing deals since 2007.
Jonathan Tudor, technology and strategy director at Centrica Innovations, the corporate venturing subsidiary of UK-listed energy utility Centrica, became an investment partner at Clean Growth Fund (CGF). A GCV Powerlist 2019 award winner, Tudor had joined Centrica in September 2017 after leaving as managing director the BP Ventures unit. VC firm Clean Growth Investment Management launched the £40m ($45m) CGF in May this year under managing partner Beverley Gower-Jones. CGF was founded with equal investment from the UK’s Department of Business, Energy & Industrial Strategy and institutional investor CCLA, one of the country’s largest charity fund managers. It is targeting another £60m from private and corporate investors.
Stephen Cook, chief commercial officer for group technology at UK-based oil and gas supplier BP, was promoted to senior vice-president of its Launchpad and Ventures unit. The move follows the retirement of David Gilmour, who had set up Launchpad as a private equity-style investment unit to complement the corporate venturing team at BP Ventures. Cook had spent three years in a chief commercial officer position at BP, responsible for its long-term technology view in the energy industry.
Thomas Kostka left chemicals and consumer products provider Henkel to become head of corporate venturing at Germany-based specialty chemicals producer Altana. Kostka spent more than a dozen years at Henkel, also based in Germany, most recently as senior investment manager for its adhesive technologies corporate venturing unit. Altana hired Kostka after Florian Loebermann, the previous head of corporate venturing at the company, left in 2019 to become managing director of 3D printer manufacturer DP Polar. In the interim, Volker Mansfeld, head of corporate development at Altana, maintained a corporate venturing portfolio that includes Velox, the Israel-based digital printing technology provider that raised $32m in late 2018.