🌍 Newsletter - April 2024

Apr 03, 2024

Welcome to the 5th edition of the AFI Ventures’ newsletter.

As a reminder, AFI Ventures (a fund managed by Ventech) is an impact VC fund that invests in pre-seed/seed startups with a strong environmental and social ambition & producing a systemic change. We invest once a month in France & Europe tickets ranging from €250k to €500k.

Each month in this newsletter, you'll find a summary of 2 articles on the impact ecosystem that have caught our attention, fundraisings realised by impact start-ups in France, and news from our portfolio. 💚

👀 What Caught our eye

Annual review of the Carbon Dioxyde Removal market

written by Robert Höglund, Kevin Niparko & others

Market Growth:

CDR purchases surged from 0.615 Mt in 2022 to 4.5 Mt in 2023, representing a 7.3x increase. Since 2020, it represents a 500% CAGR. Deliveries increased to 125 kilotonnes in 2023, doubling from the previous year.

Significant purchases in 2023 include Microsoft's deal with Ørsted for 2.67 Mt of BECCS, Heirloom's agreement with Microsoft for 315,000 tonnes of DAC, and Amazon's commitment to purchase 250,000 tonnes of CO2 from 1PointFive.
Time-to-order fulfillment measures the time between the purchase and the estimated delivery. The median delivery time is now 35 months from when a purchase is made, slightly down from the 2022 Median Time of 36 months.

CDR Methods & Suppliers:

BECCS dominated CDR purchases, accounting for 64% of total purchases in 2023. Strongly driven by the Microsoft purchase
Ørsted led as the top supplier with 64% of all CDR sales, followed by Heirloom (8%) and 1PointFive (7%).
Deliveries were primarily concentrated in biochar, representing 92.9% of all durable CDR deliveries. Followed by biomass removal, mineralization, biooil, enhanced weathering, DAC and others.

The total number of CDR purchasers increased to 188 in 2023, with 41 purchasers buying over 1000 tonnes. 14 buyers bought more than 10kT, 2x from 2022.

Pricing:

The CDR.fyi Price Index rose to $488 per tonne in 2023 from $303 in 2022.

Long-term Growth Targets:

Current growth rates suggest progress towards the long-term goal of achieving 4 Gt per year of durable CDR by 2050.
Research indicates the need for cumulative removals of around 3 Gt of CO2 between 2020 and 2040 to reach annual CDR capacity of 4-5 Gt in the 2050s.
Interesting article on 2023 CDR Investment Landscape

The Heat is On: What We Need to Deploy Millions of Heat Pumps in Europe

written by Martin Collignon

Introduction to Heat Pumps:

Heat pumps have been operating in fridges and air conditioners for years, offering exceptional efficiency where for every unit of energy consumed, they provide 3-4 times as much heat back.

Market Creation and Green Premium:

Bill Gates' concept of the 'green premium' underscores the necessity of making green technology economically attractive.
Heat pumps face challenges such as noise, bulkiness, and higher upfront costs compared to boilers.

Policy Measures:

Policy measures such as removing subsidies for fossil fuels, implementing carbon pricing, and reducing taxes on electricity are proposed to encourage heat pump adoption.
Suggestions include an immediate ban on new boiler installations to drive market growth.

Supply Side Challenges:

While billions are invested in heat pump manufacturing, labor shortages, particularly among older electricians and plumbers, pose challenges.
Training initiatives are suggested to address this shortage, with examples of startups like Forge, La Solive or Smalt aiding in upskilling efforts.

Role of Software:

Software is poised to streamline the installation process, making it more efficient and profitable.
Various startups and larger companies are developing software solutions to address different aspects of the installation process. (i.e. Cloover, Renolib or Lun)

🍃 AFI Ventures - Main Highlights

AFI Ventures’ Public Investments in 2024

Green Praxis 🇫🇷 - (€1.4m / Open CNP, Angels) Leverages AI to enhance natural asset management for operators and infrastructure owners.
- Investment rationale:
  - Innovative platform offering solutions for risk management, cost optimization, and improving biodiversity and carbon footprint, marking a significant step forward in marrying technology with nature for a sustainable future.
  - Led by a stellar team (🤘 Martin and Jerome) and already working with industry references (Vinci, Sferis/SNCF, Veolia, etc.)
Kor 🇫🇷 - (€2m / Raise Seed for Good, Evolem, Angels) The next-gen health check-up to prevent disease and optimize health.
- Investment rationale:
  - A+ founding team (Sophie, Khadija and Samuel) with expert advisors (Raphael Attal)
  - Commercial competitive advantage thanks to an extensive sales network, affordable price point and deep expertise on B2B HR SaaS go-to-market strategies
  - Innovative product on the cutting edge thanks to its proprietary algorithm and seamless platform driving user retention

💰 Early-stage impact rounds in France (up to €15M)

Cure51 (15m€ / Sofinnova Partners, Hitachi Ventures etc) creates a database of cancer survivors to leverage their exceptional biological features
Sublime Energie (11,5m€ / Crédit Mutuel Impact) provides transportation of biogas services
Bene Bono (10m€ / Project A, AXA VP, 2050, Stride.VC) is an online store that provides seasonal fruit and vegetable products
Hawckcell (5m€ / MIG Capital, BPI) offers a unique MRI solution for better prediction, for animals and humans
Sorella Care (5m€ / Blisce, Vorwerk Ventures) is the first network of multidisciplinary health places for women
Inalve (4,7m€ / Blue Forward fund, Angelor, KREAXI) produces fresh microalgae for various fields
Pelikan Mobility (4m€ / Pale Blue Dot, Seedcamp, Frst) leverages digital twins and optimization algorithms to deliver cheaper, more productive EVs, tailored to each fleet
Rebrain (3,7m€ / Naco, Karista) provides a targeted technology for planning neurosurgical procedures
Steerlight (3,2m€ / BPI France, Stellantis Ventures etc) develops laser-based optical systems to aid with mobility
C02 Winery (2m€ / NC) captures and reuses fermentative CO2 in wineries
Elixir Health (2m€ / NC) the first patient/professional platform dedicated to improving care pathways, from fertility to maternity
Foodflow (2m€ / NC) is the new distributor revolutionizing restaurant supplies
WaltR (2m€ / NC) a pioneer in the monitoring of pollutant emissions using space and ground-based imagery
Carton Vert (1,4m€ / Impact Business Angels, Banque des Territoires, & more) specializes in the selling of discarded packing cardboard, carefully collected from trustworthy partners
Green Praxis (1,4m€ / AFI Ventures, Open CNP) reduces vegetation management cost for infrastructure operators
Load Stations (1,2m€ / NC) offers comprehensive, innovative electric mobility solutions for businesses
Life 01 (1,1m€ / NC) proposes a range of designed, connected, intelligent and autonomous indoor air purifiers for homes
Cartage (500k€ / NC) offers the 1st all-day insurance that allows everyone to borrow all the cars in their circle or to lend their own
Velomad (300k€ / NC) France's leading direct-sales brand of VAEs

🤝 Our Team

Charles Fourault - Partner - charles@afi.ventures
Mamadou Dembele - Senior Associate - mamadou@afi.ventures
Constantin de Chaudenay - Associate - constantin@afi.ventures
Kim Godson - Analyst - kim@afi.ventures

Don't hesitate to reach out if you're an impact entrepreneur or just interested in any of these topics. 🍃

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