🌍 Newsletter - June 2024
Welcome to the 7th edition of the AFI Ventures’ newsletter.
As a reminder, AFI Ventures (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. 💚
This month, we also invite you to explore an in-depth analysis of the water sector. 🥽 Check it out here: Don’t VCs and watertech investments mix like oil and water?
👀 What Caught our eye
AI in Agriculture — The Future of Farming
by Intellias
With the global population expected to reach 10 billion by 2050 and challenges like climate change, the agricultural industry is turning to tech solutions, including AI. Indeed, the AI in agriculture market is projected to grow from USD 1.7 billion in 2023 to USD 4.7 billion by 2028, according to MarketsandMarkets.
Benefits of AI in agriculture:
Data-driven Decisions: AI analytics offer insights into farming processes, market trends, and soil health, enhancing decision-making and profitability.
Cost Savings: AI precision agriculture optimizes soil management, reducing costs and maximizing yields through efficient practices.
Automation Impact: Technologies like driverless tractors and AI-based robots revolutionize farming tasks, addressing labor shortages with increased efficiency.
Applications of artificial intelligence in agriculture:
Optimizing irrigation, detecting leaks, monitoring crops, identifying diseases and pests, tracking livestock health, intelligently applying pesticides, mapping yields, predicting analytics, automating weeding and harvesting, sorting produce, and conducting field surveillance in agriculture.
Role of AI in the agriculture information management cycle:
Plant breeding (e.g., advising on crops that are more resilient to extreme weather, disease, or harmful pests.)
Soil and crop health analysis (e.g., predicting crop diseases, determining which nutrients may be lacking.)
Crop feeding (e.g., identifying optimal patterns and nutrient application times, predicting the optimal mix of agronomic products.)
Harvesting (e.g., enhancing crop yields, predicting the best time to harvest crops.) and risk management.
Optimizing AI for agriculture and agricultural processes:
AI in agriculture relies on complementary digital technologies like big data, sensors, and software, with each component enhancing the effectiveness of the other. e.g., Big data, when combined with AI analytics, provides real-time insights for informed decision-making, leading to increased productivity and reduced costs.
Challenges of AI in agriculture:
Initial investment in AI technology is expensive, especially for small-scale farmers and those in developing nations.
Farmers' reluctance to adopt new technologies hinders widespread integration of AI solutions.
Inadequate infrastructure and technological readiness prolong AI implementation in agriculture.
AI's reliance on high-quality data and its limitations in adapting to diverse farming environments pose significant challenges.
Lack of comprehensive regulations and cybersecurity threats raise concerns regarding privacy and data security in AI-driven farming.
7 bricks to fast-track Climate Tech
by EQT, Contrarian Ventures & +60 companies
Gigascaling
Companies building CAPEX-intensive large scale plants for established green production methods (i.e. green steel, batteries, green fuels, etc.) - Northvolt, Atlas Agro, Freyr.
Founders should have a clear roadmap to reach competitive economics, build a first of a kind plant and scale rapidly, ensure commitment off-takes to unlock funding.
Investors should prioritize projects with large-scale off-takes and proven CAPEX optimization to ensure high upfront investment repayment.
Green Deployment
Companies operating, deploying or owning green assets (i.e. solar, wind and battery parks) - Zolar, Aira, Enpal.
Founders should demonstrate strong execution to out perform competition. Ramp up value, sales and scale rapidly with a clear roadmap to profitable unit economics.
Investors should consider vertical integration and geographical expansion as well as early order book traction and rapid sales.
Assess-as-a-Service
Companies providing green assets-as-a-service (i.e. micromobility, EV-as-a-Service) - Einride, Zeway, Dott.
Founders should demonstrates product-market fit and clear customer value addition. Rapid ramp-up and ensure a sustainable path to profitable unit economics, through scale or cost minimization and vertical integration.
Investors consider sales margin and plug-and-play for rapid expansion covering high up-front costs. They must support founders across funding stages to sustain a healthy balance sheet.
Product Disruption
Companies creating and assembling green products (E-aircraft, equipment, delivery drones etc) - Volocopter, Innovafeed, Faircraft.
Founders must demonstrate market existence and prove Technological Readiness Level (prototype/demo). Build Intellectual Property moat and reliable supply chain.
Investors look at large market opportunity, roadmap to profitability, proven technological viability and suitable infrastructure and legal environment.
New Technology
Companies developing innovative technologies that revolutionize industries (Carbon capture, new materials) - Sirona, Dionymer, Revcoo.
Strong IP moats are required and founders must showcase economical superiority and cost competitiveness of technology. Investors consider proven go to market strategy with commercial traction through off-takes.
Moonshot
Companies launching highly game-changing science fundamental to the way entire sectors work (Fusion, quantum computing) - Pasqal, Marvel Fusion.
Founders should secure grants and public funding, demonstrate TRL, conduct R&D and establish IP moats. Engage with first commercial partners.
Investors should look for proven technology development and indication of commercial traction.
Companion Software
Companies offering software enabled through hardware (Software for utilization optimization, Building Management Software/grid management) - Monta, Entroview, Tilt.
Founders should establish early Minimum Viable Product feasibility and technology advantage vs peers. Prove scalability and rapid growth potential, low churn and growing Average Contract Value.
Investor will look for proved value proposition, speedy customer acquisition and early growth focus. Geographical expansion is key.
🤘 Recent News from our portfolio
SpotLight Earth has been awarded the Greentech Innovation prize - link
Carbonx announced the expansion of its operations to Switzerland - link
Prolong recently joined the Fashion Green Hub network and Plateau Fertile Paris to accelerate the Care & Repair topic within fashion organizations - link
MORFO joined a new restoration project supervised by the Secretary of State for the Environment and Sustainability in Pará - link
Resortecs announced a partnership with Decathlon to create a fully recyclable swimwear collection without compromising performance, functionality, or aesthetics - link
Sirona Technologies announced joining the Association Française pour les Emissions Négatives (AFEN) to support the build out of carbon removal in France and Europe - link
ERS unveiled a partnership with Restor and Recarb - link & link
Dionymer was seen on TF1 and was awarded during Elections de la Tech 2024 last week - link & link
💰 Early-stage impact rounds in France
Carbonfact (€14M / Alven, YCombinator, Headline) offers fast, scalable life-cycle assessments to help fashion brands lower their scope 3 emissions
inHeart (€10.2M / Elaia, SAGANA, NACO & others) provides cloud-based medical image analysis solutions for cardiac interventions on patients with arrhythmias
SpinEM Robotics (€10M / spineart) develops a next-generation tracking technology for robotic spinal surgery
Biodol Therapeutics (€7M / BPI France) develops first-in-class compounds for the treatment of chronic pain
Eclipse (€5.5M / Wind Capital) aims to balance energy by promoting renewable energy deployment through stationary storage solutions
SCOP3 (€5.2M / IRDI SORIDEC Gestion, Groupe NICOLLIN, NGB Invest, & others) is a platform that gives new life to professional equipment
neuroClues (€5M / EIC Accelerator, White Fund, We International & others) provides easy-to-use eye-tracking environment
Hephaistos-Pharma (€4.5M / Elaia, Fournier-Majoie, Xista science ventures, & others) is a biotech company developing oncology treatments
Cryo Collect (€4M / GTT Strategic Ventures, Engie New Ventures) offers innovative solutions for gas treatment and liquefaction
VoltR (€4M / C4 Ventures, Exergon & others) is a manufacturing company specializing in restoring lithium batteries
Klineo (€2M / BPI France) is a platform that provides an intuitive and intelligent clinical trial search for oncology patients and doctors
En Carta Diagnotics (€1.5M / CentraleSupélec Ventures) is a state-of-the-art molecular testing platform
CircularPlace (€1.4M / Aticco Ventures, LGH) offers a range of solutions for managing unsold goods, returns and second-hand equipment
Dk (€1.2M / BAs) is the only carbon management solution for plurimedia
harvy (€1M / Antler, Tivoli Capital, FBFC) offers a delivery management platform that helps producers and retailers reduce their logistics costs
Live Arts (€1M / BPI France, BAs) proposes entertainment, semi-therapeutic, wellness and sports activities for seniors
Therasonic (€1M / M2care) aims to revolutionize the treatment of neurological diseases, particularly brain cancers
IKO & NOTT (€700K / NC) offers eco-responsible, ethical and committed sneakers
Oligofeed (€600K / The Yield Lab Europe, CCI Capital Croissance, BAs, & others) is a deeptech specializing in the research and development of revolutionary macronutrients for bees
TILKAL (NC / Innovacom, EIC Accelerator) is a supply chain traceability and transparency platform
🤝 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. 🍃