Suez Environnement, a France-based water and waste treatment company part-owned by utility GDF Suez, has set up a €50m ($66m) corporate venturing fund.
Blue Orange will invest between €500,000 and €2m in seed to development-stage water and waste companies in Europe, North America and Asia but will also have the flexibility to call down more capital or invest for a longer period of time if necessary.
Adrien Henry, managing director of Blue Orange, said in a presentation that the fund "acts as a minority shareholder and industrial partner: starting from a capital stake our team nurture the commercial and industrial development of young companies that promote innovative technologies".
He added Blue Orange would be "a special partner for entrepreneurs and co-investors" because of its parent’s worldwide network of commercial operations and waste and water experts and scientists."Financial returns are looked at carefully but as a security rather thanhelp a group that posts €2.1bn in Ebitda [earnings before interest, tax, depreciation and amoritsation]. A Suez business unit interest in a potential investment is a prerequisite and we expect to see 300 business plans next year as we can promise start-ups commercial and industrial exposure."
Suez Environnement invests €65m in research and development each year and Blue Orange will be able to help its portfolio companies with testing. Henry said Suez had been dedicated to innovation and developed"dozens" of technology companies.
He said the company’s management had "made a commitment at the highest level" to set up the fund because there were such strong changes in waste management and water services as new tools became available through innovation and bringing in competition from other sectors, such as industrial groups developing smart meters or oil majors treating waste water.