π Newsletter - January 2024
π Happy New Years from the AFI team π
Welcome to the 2nd edition of the AFI Venturesβ 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 β¬250k to β¬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. π
π What Caught our eye
Outcomes from COP28: What next to accelerate climate action?
COP28 witnessed growing momentum in global climate action, yet highlighted the insufficiency of current efforts to meet the 1.5ΛC target. While progress was noted, a stronger commitment to increased ambition and the translation of pledges into tangible actions is crucial for achieving meaningful results.
The largest gathering to date:
Over 80,000 delegates, including 160 heads of state and 700 CEOs, attended COP28, emphasizing the imperative to reduce emissions.
Parallel Energy Systems and Renewables Commitments:
Leaders commit to tripling renewables by 2030, doubling energy-efficiency rates, and setting new standards for hydrogen.
Countries producing two-thirds of global nuclear energy pledge to triple nuclear capacity by 2050.
Decarbonization Efforts:
A focus has been placed on reducing the emissions from fossil fuel operations production.
The Oil and Gas Decarbonization Charter has been signed by 50 major companies, committing to net-zero operations, near-zero methane, and zero routine flaring.
Methane Emission Reduction:
As the second largest driver of global warming, methane took center stage, as nations such as the United States and the European Union pledged to tackle their respective methane emissions, while the World Bank committed to initiating a minimum of 15 country-specific methane programs.
Critical Technologies for Net-Zero:
While deployment has accelerated, especially in solar and wind power, further acceleration is essential for renewables and interconnected climate technologies.
At COP28, countries endorse the UAE Hydrogen Declaration, and leaders commit to renewable hydrogen-derived shipping fuel. To expedite progress, addressing challenges in supply chains, financing, and overcoming bottlenecks in permitting and labor is crucial for scaling up these technologies.
Financial Integration and Funding Gap:
COP28 witnesses over $80 billion in climate finance commitments, but a $41 trillion funding gap remains. Emphasis is on blended-finance structures and initiatives.
Agreements and Initiatives:
COP28 results in agreements on the Loss and Damage Fund, voluntary carbon markets, and new coal transition credits.
The Industrial Transition Accelerator focuses on decarbonizing heavy-emissions sectors, while pledges aim to make near-zero building the norm by 2030.
Nature and Planetary Boundaries:
COP28 sees efforts to unlock funding for nature, improve conservation, and recognize the interdependence of natural capital and climate actions.
Commitments to Sustainable Ocean Management and tracking nature dimensions in corporate reporting indicate rising attention to nature preservation.
Adaptation as a Critical Ingredient:
Adaptation gains prominence, with agreements on health, food, and water systems. Declarations on Sustainable Agriculture and Climate and Health emphasize the need for adaptation measures integrated into national plans.
Leadership Actions for Acceleration:
COP28 emphasizes the need for leaders to take bold action to accelerate progress, emphasizing measurable strides in months rather than decades.
Why AI and energy are the new power couple
AI is playing an increasing role in managing the complexities of evolving power systems. The article highlights the benefits in forecasting, predictive maintenance, and other applications, it also stresses the importance of addressing risks, ensuring accountability, and fostering international collaboration for a successful energy transition.
Complexity and Demand:
Power systems are evolving due to a surge in electricity demand and efforts towards decarbonization.
The transition involves shifting from centralized power stations to managing multi-directional flows among distributed generators, the grid, and users.
Unpredictability:
The unpredictability in power systems is rising with an increasing number of grid-connected devices.
These devices include electric vehicle (EV) charging stations and residential solar installations.
Advancements in AI:
AI applications are rapidly progressing, providing powerful tools for planning and operating evolving power systems.
The computational power required to develop advanced machine learning models has doubled every five to six months since 2010.
Critical Resource:
AI is considered a critical resource for the energy sector to effectively handle the growing complexity and data in power systems.
Forecasting Supply and Demand:
Google's AI subsidiary DeepMind developed a neural network in 2019 to enhance wind power output forecasts for its 700 MW renewable fleet.
The improved forecasts increased the financial value of Google's wind power by 20%.
Predictive Maintenance:
E.ON's machine learning algorithm predicts when medium voltage cables in the grid need replacement, reducing outages by up to 30%.
Enel's use of sensors on power lines, coupled with machine learning, led to a 15% reduction in power outages.
Managing and Controlling Grids:
AI applications can utilize data from sensors, smart meters, and IoT devices to observe and control power flow, especially at the distribution level.
Facilitating Demand Response:
AI processes, including forecasting electricity prices and dynamic pricing, can facilitate demand response.
Consumer Services:
AI and machine learning processes in apps and online chatbots can enhance customer billing experiences.
Companies like Octopus Energy and Oracle Utilities are exploring improved consumer services using AI.
AI Specialists Shortage:
Risks include cybersecurity threats, privacy concerns, biases in data, and energy consumption.
Responsibility and accountability for AI outputs need to be addressed, emphasizing the need for clear frameworks.
Energy Consumption:
Training a single AI model uses more electricity than 100 US homes consume in a year.
Google reported that machine learning accounted for about 15% of its total energy use over three years.
AI's energy consumption raises environmental concerns; prioritizing efficient infrastructure and algorithms is crucial.
Global Approach:
A coordinated global approach is emphasized to enable internationally applicable and replicable AI solutions.
Collaboration can expedite the energy transition and reduce its costs.
π AFI Ventures - Main Highlights
AFI Venturesβ Public Investments in December 2023
Prolong π«π·Β (Imagination Machine, BAs)Β - The Care & Repair Management Platform for brands and retailers.
Investment rationale:
Recent News from our portfolio
Bon Vivant joins France Deeptech alongside companies such as GOURMEY,Β PASQAL,Β AQEMIA,Β Exotec.
Carbonx Climate announces partnership with Adyen (one of Europe's biggest tech companies).
π°Β Early-stage impact rounds in France (up to β¬15M)
Okomera (β¬10.2M / Resonance, Polytechnique Ventures, Bpifrance) Accelerates access to improved, precision-based cancer therapies.
Spore.Bio (β¬8M / Local Globe, BAs) Develops innovative technological tools to help factories manufacture safe products.
Auum (β¬7.4M / MAIF Impact, Starquest Capital, Founders Future, Foodles) A machine that washes, disinfects, and dries glasses to replace plastic cups.
H2Gremm (β¬7M / Unexo, Box Invest) Provides a low-carbon energy autonomy solution.
Bcv (β¬6M / NC) Develops a Class III medical device to optimize minimally invasive endovascular procedures.
Tri'n'Collect (β¬5M / Colam Impact, Bpifrance, Banque des Territoires) Provides a customized service for sorting, collecting, and recycling building trash.
Carthera (β¬4.5M / Supernova Invest, EIC, Unorthodox Ventures) Designs and develops innovative therapeutic ultrasound-based medical devices for treating brain disorders.
Susu (β¬4.5M / Plug and Play, Launch Africa, Five35 Ventures) Makes healthcare affordable and accessible for Africans.
Scienta Lab (β¬4M / CentraleSupΓ©lec Venture, BAs) An AI-powered platform pioneering Precision Immunology.
Carbon Maps (β¬3M / Daphni, Breega, Samaipata) The first climate management platform for the food industry.
I-VIRTUAL (β¬3M / Elaia, Malakoff Humanis, UI Investissement) Develops software that allows physiological and emotional values to be measured using the camera of a smartphone or computer.
Cyclair (β¬2.1M / CrΓ©dit Agricole, Business Angels des Grandes Ecoles) Develops technical solutions that keep crop protection and yields intact while reducing the requirement for chemical inputs.
Inalve (β¬2M / KREAXI, Angelor) Produces fresh micro algae for various fields, such as animal nutrition and health, cosmetics, and nutraceutics.
Velco (β¬2M / NC) Accompanies professionals with its connectivity solutions for a safer and more reliable urban mobility.
Kleep (β¬1.8M / BAs) Develops a software that analyzes customers' body shapes and recommends the right size for products.
Dionymer (β¬1.5M / AFI Ventures, AQUITI Gestion, IRDI SORIDEC Gestion) Creates a method that uses microorganisms to convert industrial organic waste into biodegradable polyhydroxyalkanoates.
HUVYβ’ (β¬1.1M / Bpifrance Digital Venture, RΓ©gion Nouvelle-Aquitaine) Helps detect skin cancers using AI.
EyeGauge (β¬535K / BAs) Brings digital innovation to Maritime Transportation, Mining and Energy sector and Facility Management.
Remixt (β¬420K / NC) Prevents critical churn, legal, and reputation risks generated by the lack of Diversity, Equity & inclusion.
BioAZ (NC / BAs) Developing breakthrough innovations for animal welfare and more sustainable breeding.
π€ 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. π