123Fab #31

1 topic, 2 key figures, 3 startups to draw inspiration from

“Every 18 months, we see a doubling in the number of consumer products claiming to contain nanomaterials in Europe”, said Steffen Foss Hansen, associate professor at the Technical University of Denmark and co-founder of The Nanodatabase.

Nanomanufacturing is the production of improved and nanoscale materials, structures, devices, and systems. There are two approaches to nanomanufacturing.  The first is the top-down approach, which consists of reducing large pieces of materials all the way down to the nanoscale, and the second is the bottom-up approach, which consists of creating products by building them up from atomic- and molecular-scale components. The term nanofabrication is often used instead of nanomanufacturing, but they are two very different concepts that differ in their economic dimension. While nanofabrication refers to researching and testing the feasibility of developing nano-scale materials and processes, mainly at the laboratory level, nanomanufacturing refers to the industrial-scale manufacture of nanotechnology-based objects, with emphasis on low cost and reliability.

If nanomanufacturing was mainly used for electronics (aiming to put the power of all of today’s present computers in the palm of your hand), applications in other industries are now emerging. In the solar energy sector, for instance, installation costs have been reduced by manufacturing flexible solar cell rolls instead of rigid crystalline panels. Batteries made from nanomaterials can be recharged much faster than conventional batteries. It also contributes to improving air quality thanks to a better performance of catalysts used to transform vapors escaping from cars or industrial plants into harmless gasses. Finally, several applications have been developed for the construction industry to improve the durability and enhanced performance of construction components (e.g., carbon nanotubes for better durability and crack prevention of cement), energy efficiency and safety of the buildings, facilitating the ease of maintenance and to provide increased living comfort.

All these applications of nanomanufacturing rely on a growing number of processes, mentioned above.

The top-down approach:

• Nanoimprint lithography: a process for creating nanoscale features by “stamping” or “printing” them onto a surface. A great example of such a process is Canon Nanotechnologies, the market and technology leader for high-resolution, low cost-of-ownership nanoimprint lithography systems and solutions for the semiconductor industry. Their innovative Jet and Flash Imprint Lithography technology creates the extremely small features required in today’s state-of-the-art semiconductor memory devices.

However, the process requires a lot of energy, uses chemicals (sometimes very toxic), and produces waste. Often, the results are quite unique and not easily replicable. This is why bottom-up processes are increasingly being used:

The bottom-up approach:

• Chemical vapor deposition: a process in which chemicals react to produce very pure, high-performance films. The US-based startup Grolltrex is a manufacturer of single-layer graphene sheets that uses a patented transfer and processing chemical vapor deposition method. This method allows Grolltrex to create high-performance graphene products, in addition to offering them at lower costs.
• Dip pen lithography: a process in which the tip of an atomic force microscope is “dipped” into a chemical fluid and then used to “write” on a surface, like an old-fashioned ink pen onto paper.
• Self-assembly: a process in which a group of components is assembled to form an ordered structure without outside direction. Scientists continue to explore this concept, which has become especially important in the field of nanotechnology. Indeed, as miniaturization reaches the nanoscale, conventional manufacturing technologies are failing because it has not yet been possible to build machinery that assembles nanoscale components into functional devices.

Although the applications of nanomanufacturing are wide and promising (in electronics, healthcare, energy, environmental issues, etc.), major challenges explain the slow transition from lab demonstration to industrial-scale manufacturing. The main obstacles include:

1. Developing production techniques that are economically viable
2. Controlling the precision of the assembly of nanostructures
3. Testing the reliability and establishing methods for defect control. Currently, defect control in the semiconductor industry is non-selective and takes 20-25% of the total manufacturing time. Removal of defects for the nano-scale systems is projected to take up much more time because it requires selective and careful removal of impurities.
4. Maintaining the nano-scale properties and quality of nano-system in high-rate and high-volume production.
5. Assessing the environmental and social impacts, as the emergence of nanotechnology has led to the pollution of trillions of minuscule plastic particles in the oceans, waterways, and even in our bodies. High-tech workers are exposed to unusual solvents and rare earth materials that have raised safety concerns.

To scale, not only does nanomanufacturing require more time and investment to scale, but the health and environmental issues linked to the production of new nano-elements need to be addressed quickly. Nanomanufacturing would, if these issues are solved, play a key role in the innovations of many industries.

2 Key Figures

184 Nanomanufacturing startups

registered by Pitchbook

Market size expected to reach $122bn by 2025

The market size of nanoproducts is expected to reach $122bn by 2025, a CAGR of 14.3% from 2020.

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: NanoMech, Nano-C, and Advano.

NanoMech

NanoMech manufactures lubricants, coatings, and cutting tools with their proprietary nanoscale additives that increase production rates and part quality while reducing setup times and costs.

Nano-C

Nano-C develops nanostructured carbons for use in high-value energy and electronics applications. It develops nanostructured carbons for use in high-value energy and electronics applications.

ADVANO

ADVANO combines nanotechnology with fundamental chemical engineering principles to accelerate the renewable energy revolution. Its silicon nanoparticles increase the energy density lithium-ion batteries 30-40% without sacrificing battery life or increasing the battery cost.

123Fab #30

1 topic, 2 key figures, 3 startups to draw inspiration from

This month, the South African AgriTech startup Aerobotics raised $137M Series B for its precision agriculture platform. Using a combination of satellite imagery, drones and AI-based analytics, the startup helps farmers monitor their crops, reduce their carbon footprint and increase their overall crop yield. This funding round is just one example of the rise of precision agriculture as a promising answer to the global food crisis. Indeed, the AgriFood Tech Investment Review report indicates that investment in digital technologies accounted for 41% of the deal activity in 2019.

Precision agriculture can be defined as an approach to farm management that uses information technology (IT) to ensure that crops and soils receive exactly what they need for optimum health and productivity. The data used in precision agriculture can be collected 2 ways:

• Aerial imagery – drones, planes and satellites help to create bird-eye views of the cultivated area, which can be used to analyze a number of parameters such as the amount of water in the soil or the health and maturity of a crop. Normalized Difference Vegetation Index (NDVI) imagery is a method of measuring crop health based on the greenness of a plant.
• Soil sensors – these are used to measure the most essential parameters and chemical properties of the soil. They can be electromagnetic, electrochemical, mechanical, etc. Electrochemical sensors provide information on nutrient availability and pH in the soil, allowing crop stress and diseases to be detected 3-4 weeks in advance.

Multiple technologies have been developed in recent years for different applications: farm planning, field mapping, soil sampling, tractor guidance, crop scouting, yield mapping, etc. By moving from homogenous to individual processing, these technologies have impacted the entire agricultural value chain – from input supply to the end customer – and improved crop yields while achieving sustainability goals (limited resource use and environmental degradation). Among the technologies that have been developed, 5 main ones can be identified:

• Remote sensing technology – these technologies use remotely sensed data to measure the most essential parameters on a farm.
• Variable rate technology (VRT) systems – they use the data collected to automate the amount of input (seeds, fertilizers, pesticides, water) applicable within defined farming areas. These technologies can be used for seeding crop fields, spraying pesticides, applying fertilizers, spreading manure, etc. Irrigation systems are the most common control systems. They allow the exact amount of water to be distributed. Startup CropX has developed an analytics software that integrates with irrigation systems to help increase crop yields.
• Satellite positioning systems – global positioning systems (GPS) enable to calculate precise locations and positions. These systems are used for navigation but also for geo-referencing information. For instance, farmers use GPS to collect geo-referenced soil samples to check nutrients, pH levels and other data to make profitable decisions.
• Equipment guidance and automated steering systems – they automate farmers’ slow, repetitive and tedious tasks, such as harvesting crops or blowing seeds. Autonomous machines are slowly appearing in the industry, using computer vision to distribute fertilizers accurately – studies show that fertilizer use can be reduced by up to 80%.
• Geo-mapping – it is a technology used to create maps of various soil and crop conditions.

In recent years, large agricultural players have joined forces with startups to shape the future of the agricultural industry. ADAMA, one of the world’s leading crop protection companies, recently announced a partnership with startup Taranis, to develop an end-to-end precision agriculture solution.

Although precision agriculture is a golden opportunity for global food security and crop yields, some challenges still need to be addressed. One of the first obstacles to its adoption is the high investment costs. Another is that most solutions have been designed for large, homogenous farms and are therefore not suitable for small, diversified farms. In addition, as precision agriculture has only recently taken off, there is still is a lack of experience in the use of drones, robots, and other precision agriculture tools, as well as a lack of connectivity between all the different devices and software (but should fame over time). Last but not least, the complexity of managing data privacy and cybersecurity is problematic (most of the cyber threats faced by precision agriculture are consistent with those in other connected industries: data theft, theft of resources, reputation loss, destruction of equipment, or gaining an improper financial advantage over a competitor).

To conclude, precision agriculture is undergoing a rapid transformation. The use of GPS guidance, aerial mapping, robotics, and drones is pushing towards sustainable agricultural practices that can have a positive impact on social, environmental, and economic aspects, but it remains a challenging opportunity. While not all companies will succeed in the transition, those that do will shape tomorrow’s sustainable food supply.

2 Key Figures

210 Precision agriculture startups

registered by Crunchbase

Market size expected to reach $11.1bn by 2025

The market size is expected to reach $11.1bn by 2025, rising at a CAGR of 13.9%.

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: GramworkX, Karnott and Arable.

GramworkX

GramworkX has developed an IOT and AI enabled smart farm resource management tool, which helps the farmers guide, optimize and monitor utilization of water. The technology includes a unique machine learning algorithm, which provides micro-climatic condition predictions for the farmer to take accurate and proactive decisions.

Karnott

Karnott offers a tracking software coupled with a connected device that tracks agricultural equipment. Karnott places an automatic, autonomous, mobile, real-time device in tractors, trailers, or seeders to collect data, and then their software automatically calculates, analyzes, and archives it.

Arable

Arable is an agricultural data and analytics company that offers the world’s first IoT-enabled irrigation management tool, weather station, and crop monitor in one, the Arable Mark. Reliable data-driven decision-making saves customers time and money, reducing risk while preserving natural resources.

123Fab #29

1 topic, 2 key figures, 3 startups to draw inspiration from

Unfortunately, edge-connected devices have added numerous entry points for hackers to target. The vast Mirai botnet attack in 2016 is just one example. By infecting Internet of Things (IoT) devices, the Mirai malware turned 100,000 devices into a network of remote-controlled bots, which had the effect of wiping the east coast of the US off the internet for a day. Another example is the hacking of the internet-connected fish tank in a Las Vegas casino a year later.

Edge Computing is a distributed computing paradigm that brings computation and data storage closer to the data collection point, to improve response times and save bandwidth. Instead of being processed in a data center, data is processed locally in the device itself. While processing often involves normalizing and analyzing the data stream to look for business intelligence, only the results of the analysis are sent back to the principal data center.

In recent years, the Edge Computing market has surged, mainly bolstered by the development of 5G and IoT technologies. While 9% of the world’s data was processed via edge computing in 2020 (compared to 91% via the cloud), it is projected to reach 75% by 2025. As the number of applications grows — autonomous vehicles, industrial manufacturing, smart devices, and homes — edge computing is all the more a significant threat to cybersecurity. Indeed, the computing paradigm is based on connected objects and micro data centers, which are often the weakest links and the most obvious gateways for hackers. Therefore, it has been imperative for integrators and providers to comply with stringent directives and regulations, such as the EU’s General Data Protection Regulation (GDPR), to protect the personal data they hold.

Although the cyberrisks are more limited than those of cloud computing, because hackers have to infiltrate decentralized storage systems to access sensitive information, and because the information is not stored in a single data center, attacks can be more frequent. Indeed, edge computing faces 4 key security concerns:

1. Architecture — While sending data to the cloud from edge devices is secure (companies control the infrastructure used to encrypt and verify the data), receiving data from the cloud is not. The challenge for companies is to ensure that the data is authenticated and can be safely computed into the IT system. Startup Attila Security helps companies in this respect, by protecting all edge devices and simplifying network security in accordance with National Security standards.
2. Fragmentation — All IoT devices have to be authenticated and adhere to privacy policies that give network administrators oversight over their data. As it seemed too challenging to impose a universal privacy policy on the infinite number of IoT devices, Microsoft decided to launch Azure Sphere in 2018 to address the IoT fragmentation. It replaces the general-purpose microcontroller units (MCU) used in most of the connected devices with a secure one, designed so that each subsystem of the chip is securely isolated from the others.
3. Physical security — Devices are vulnerable to theft and infiltration. A simple USB key can be used to upload counterfeit software or firmware that changes the configuration of the device to access the private data. Encrypted tunnels, firewalls, and access control are therefore essential.
4. User Error — Given the multitude of devices within the edge (connected together and within networks), experts have a hard time implementing cybersecurity solutions. A solution to user errors and external edge attacks is to rely on a third-party management program.

Although there are many solutions to prevent attacks, certain segments present higher risk use cases than others.

• Autonomous vehicles — Threats are on three levels: control, communication, and sensing. Recently Tencent Keen Security Lab, a Chinese cybersecurity firm, uncovered a range of flaws in BMW’s autonomous vehicles. A team of white-hatted hackers managed to take control of the audio, visual and navigation units without any physical connection. Although BMW has rolled out modifications, it is is all the more alarming as all parts of an autonomous vehicle are managed by a computer. V2V (vehicle-to-vehicle) communication, which is a major source of data for guidance and control systems, is also susceptible to hacking. This can propagate upwards and compromise the security of the control layer.
• Industry 4.0 — Due to the interconnected nature of industry 4.0-driven operations, cyberattacks have far more extensive effects than ever before.  Although no single attack could bring down the entire network, the increasing number of entry points makes it crucial for industrial executives to be apprised of the potential risks. Studies show that more than 50% of small and medium-sized businesses have experienced a cyberattack in the last five years and that manufacturing is one of the most frequently targeted industries. However, in comparison, edge computing is still more secure than the cloud.
• Home & wearable accessories IoT — While most people are aware of the risks associated with mismanaging passwords of traditional IT devices, most users aren’t accustomed to the risks associated with IoT devices. Two years ago, for instance, a large number of printers were hacked worldwide urging people to subscribe to PewDiePie’s YouTube channel. Connected watches or wireless headphones are also often hacked. Indeed, Bluetooth devices can leave gaps for security breaches.

To conclude, the rapid growth of the edge computing market (often considered more secure, faster and cheaper than cloud computing) goes hand in hand with the multiplication and scattering of cybersecurity challenges. Not because it is new, but due to the volume of data that is processed. There is no magic recipe for the time being, which is why research and investment will undoubtedly increase drastically in the coming years. According to studies, global cybersecurity spending could reach $134 billion in 2022.

2 Key Figures

268 Edge computing startups

registered by Tracxn

Market size expected to reach $43.4bn by 2027

According to Grand View Research, the market size is expected to grow from $2.5bn in 2019 to $43.4bn by 2027, at a CAGR of 37.4%.

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: Edgescan, EDJX and Clearblade.

Edgescan

Edgescan is an irish startup that delivers full stack vulnerability management, i.e. deep security assessment of web applications, supporting app servers, components and associated hosting environments. They cover off supporting systems in both cloud and edge data center environments.

EDJX

The USA-based startup EDJX, provides object storage, serverless, and edge services, resulting in zero infrastructure to manage. The company develops hardened and secure nodes suited for industrial environments with low latency.

ClearBlade

ClearBlade is an edge computing software company enabling enterprises to rapidly engineer and run secure, real-time IoT applications. Clearblade provides sofwares with encryption, authentication, and authorization of API access including tokens and certificates.

123Fab #28

1 topic, 2 key figures, 3 startups to draw inspiration from

In April 2020, the French government finally authorized retrofitting, i.e. the conversion of a vehicle’s engine to reduce its emissions. Although retrofitting wasn’t illegal beforehand, it was necessary to obtain authorization from the car manufacturer for the retrofitted vehicle to be homologated. Today, any certified professional can convert a vehicle, as long as it is a passenger or freight transport vehicle more than 5 years old (cars, trucks, buses, light and heavy commercial vehicles, etc.) or a 2- or 3-wheeled vehicle more than 3 years old. While France is now the 13th European country to have legalized this practice for B2B and B2C players, it is also the first country to have authorized the retrofit of hydrogen engines. In this newsletter, we will focus on B2B retrofitting for cars and light commercial vehicles (LCV).

Two retrofit technologies coexist:

1. Exhaust after-treatment systems (for diesel engines) – this process involves modifying only the diesel emission system of the engine. Hardware may include diesel particulate filters (DPFs), diesel oxidation catalysts (DOCs), selective catalytic reduction (SCR), crankcase emission control devices, or other technologies to reduce emissions.
2. Re-power systems – this involves stripping out the existing engine and replacing it with a brand-new powertrain (e.g. a 100% electric powertrain, a cleaner diesel engine, a petrol engine + LPG system, or a hybrid electric powertrain). Hydrogen retrofitting involves removing the combustion engine and replacing it with a battery backed up by a hydrogen fuel cell. Although the technologies are very recent and many companies are still in the prototyping phase, the main reasons for the enthusiasm for hydrogen retrofit are the following:

• Battery recharging is faster: it takes about 5 minutes in a hydrogen charging station. However, the infrastructure is not yet well developed. In Europe, there are 170K electric charging stations compared to 87 hydrogen stations.
• Hydrogen batteries occupy smaller volumes compared to electric cars (but are heavier)

Since retrofitting presents an interesting opportunity for decarbonization, corporates are increasingly addressing this market. For instance, Air Liquid, Green GT and TC Transports are currently working on a project called ‘Cathyopé’ to retrofit 44-ton diesel trucks for commercial logistics. Corporate-startups are also flourishing. Last summer, Air France announced that it was joining forces with French startup Carwatt to switch to electric ramp equipment. Baggage trolleys, runway trucks, stepladders, aircraft pushers, etc. are being converted to electric engines and equipped with second-life batteries. Another example is the German startup Keyou, founded by former BMW engineers in 2015, which has redesigned the traditional internal combustion engine enabling it to run on hydrogen.

Beyond being an interesting decarbonization option, retrofitting has other advantages for manufacturers and end customers.

1. Retrofitted vehicles are more affordable than new electric and hydrogen cars – for a fraction of the price of a new electric car (the cheapest $22,000), French start-up Transition One retrofits the most popular car models. For $5,600 (or $9,000 without a government subsidy), it builds a more efficient electric engine, batteries and a connected dashboard into the car.
2. Retrofitted cars are eligible for subsidies – in France, for B2B retrofitting, companies can receive a subsidy of €4,000 for a commercial vehicle weighing less than 2.5 tons and €6,000 in other cases.
3. Retrofitting contributes to a dual circular approach – on the one hand, it extends the life of existing thermic vehicles. On the other hand,  old batteries are recycled and have a second life. The flagship example is the Renault Zoé, whose electric engine is reused in LCV or motorboats on the Seine, after 5 or 6 years of use when its capacity is only slightly degraded (70%-80% of its initial capacity).

However, a number of challenges also hinder the massive implementation of retrofitting. First of all, there are economic reasons for its slow adoption. The process is costly, especially if the car’s lifespan is limited by other components. Then, there are technical reasons. Retrofitted cars have a reduced driving range (120 to 200 km maximum) and must pass rigorous safety tests to be roadworthy. For hydrogen retrofitting, access to hydrogen is difficult; the number of charging stations is very limited. Finally, there is some hesitation about the environmental issues surrounding retrofitting – some wonder about the sustainability of EVs and therefore retrofitting. For others, it should be seen as a step in the transition to electric cars that only makes sense in certain circumstances.

To conclude, if retrofitting is a valid option for many companies at the moment, the future of the market will depend on its long-term affordability compared to other options. This is because the cars used are often end-of-life vehicles that can be more expensive to maintain. At the same time, the question of retrofitting electric vehicles is also beginning to be raised by car manufacturers.

2 Key Figures

24 vehicle retrofit startups

registered by Crunchbase

Market size expected to reach 420k vehicles by 2025

According to a study carried out by Aster Fab, the number of retrofitted vehicles in the EU is expected to reach 420,000 vehicles by 2025.

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: Carwatt, Phoenix mobility and E-Néo.

Carwatt

Carwatt converts industrial and transport vehicles from combustion to electric. It works on airport support equipment, industrial vehicles, waterways, safari cars.

Phoenix Mobility

Phoenix Mobility designs retrofit kits to convert fuel-powered vehicles into electric ones. This is a cheaper and greener alternative to buying a new vehicle. It is one of the pioneers in retrofitting in France.

e-Néo

e-Néo works exclusively for B2B clients (garages, transporters, companies, local authorities, etc.) on the transformation of the vehicle’s powertrain (retrofit) from thermal to electric or hydrogen.

123Fab #27

1 topic, 2 key figures, 3 startups to draw inspiration from

In recent years, the solar photovoltaic (PV) market has gained impetus from the rising demand for alternative sources of energy and the decreasing operating costs. Convinced that solar energy is essential to achieve climate neutrality, the ‘Solar Europe Now’ coalition, which brings together 120+ players across Europe, calls for better integration of solar PV into climate and energy policies. Rooftop PV systems, for instance, are an accessible tool for decarbonizing activities (tertiary or industrial) and can be combined with other energy transition projects (storage, biomass, etc.). And you, do you have any plans in the field of solar energy?

As far as solar energy is concerned, two main technologies are used: photovoltaic (PV) and concentrated solar power (CSP). Unlike CSP, which uses the sun’s energy to convert it into high-temperature heat, PV uses sunlight to convert it into electricity. PV has four main applications: residential, utility-scale, commercial & industrial (C&I) and off-grid.

In this newsletter, we will focus exclusively on utility-scale and C&I applications.

Over the years, solar energy has proven to be more beneficial than before. In addition to being a truly renewable energy that can be harnessed in most parts of the world and will be accessible as long as the sun shines, its applications are multiplying. However, it has also been widely criticized:

• It is weather-dependent – solar panels are dependent on sunlight to effectively collect solar energy. As a result, cloudy and rainy days have a noticeable effect on the energy system.
• Solar storage can be expensive – beyond the initial cost of purchasing solar PV systems, which is fairly high, solar energy also requires large storage systems.
• It uses a lot of space – solar PV is a much more land-intensive technology than coal, natural gas or nuclear power. It uses 44 acres per megawatt compared to 12 for the other three sources. However, it is less than wind and hydro, which use 71 and 315 acres respectively.
• The toxic chemicals used – the PV production process requires the use of cadmium and arsenic. While the EU has implemented strict regulations in place for PV recycling, a large number of countries dump their solar panels in landfills, risking toxic chemicals leaking into the soil.

However, a lot of R&D has been carried out to address these issues in recent years. Startups and corporates have developed new technologies that have reduced the cost of PV systems down and maximized their efficiency. Startup solutions are:

• Creating more efficient materials – startups are integrating new materials into solar panels to maximize the solar PV yield. One example is Australian startup Sapphire, which uses nanostructured ‘black silicon’ to prevent light reflection and allow the cells to absorb more light.
• Developing ways to store more energy – Finnish cleantech startup Teraloop developed an alternative model to electrochemical batteries for storing renewable energy: a flywheel. It is designed to store rotational energy efficiently and meet the requirements of industrial players who need a large amount of energy.
• Producing smarter solar trackers – solar panels are often assembled into arrays on a type of mounting system – rooftop-mounted, ground-mounted, wall-mounted or floating. While mounts can be fixed, they can also be dynamic and use solar trackers to make sure panels always face the sun. These tracking systems are increasingly common in utility-scale projects. In the tracker space, US startup Array Technologies has developed DuraTrack Hz, an industry-leading single-axis tracker. Early October, the startup raised over $1 billion in a public offering.
• Manufacturing more reliable inverters – a large amount of the production loss on solar PV systems is often attributable to the poor performance of inverters, responsible for converting and feeding the power into the grid. This can be due to a faulty installation, overheating issues or an isolation fault. US startup Alencon Systems has developed a system based on a patented harmonic neutralization approach, an upgrade from the pulse-with modulation used by PV inverters today.

Beyond efficiency, startups are also addressing sustainability issues. We have recently seen the development of organic photovoltaic (OPV) cells that use thin-film organic semiconductors – typically polymers or small molecules. The EU has also been investing to develop systemic circular business solutions. This is in particular the object of study of the 2 European-funded programs Circusol and Cabriss.

While the PV sector is predominant, the concentrated solar power (CSP) sector is also gaining traction. Heliogen, a startup backed by Bill Gates, raised $39 million in early November to support industrial applications in which PV may not be able to compete: production of cement, steel and petrochemicals, etc.

To conclude, we anticipate solar energy to grow in prominence in the commercial & industrial sectors in the coming years in the EU. Not only thanks to Germany’s sustained deployment but also to emerging growth markets such as France, the Netherlands and Spain as a result of improving policy environments. Essentially, the future of solar energy will be shaped by incumbent lobbying; the speed, quantity and nature of government support and the divestments and investment made.  

2 Key Figures

378 solar PV startups

in the world registered by Crunchbase

Market size expected to reach $113bn by 2025

According to MarketsandMarkets, the global photovoltaic market is expected to grow from $76.6 billion in 2020 to $113.1 billion by 2025, at a CAGR of 8.1%.

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: Sapphire, SolarEdge technologies and Oxford PV.

Sapphire

Sapphire designs and manufactures solar energy systems to make them efficient by using nanostructured “black silicon” to prevent light reflection and allow the cells to absorb more light.

SolarEdge technologies

SolarEdge technologies sells power optimizers, solar inverters and monitoring systems for PV arrays. The products are designed for residential, commercial and utility-scale installations.

Oxford PV

Oxford PV commercializes a new technology for thin-film solar cells using solid-state perovskites, boosting the efficiency of current commercial cells.

123Fab #26

1 topic, 2 key figures, 3 startups to draw inspiration from

In recent years, the e-commerce market has grown exponentially. B2C marketplaces are continuously flourishing – Airbnb, DoorDash, eBay, Farftech, Uber, Zalando – paving the way for the rise of B2B ones. While Amazon Business and Alibaba, horizontal players, have been responsible for most of the traction in the online B2B market, new players – especially startups – are opening up huge opportunities for companies of all sizes in the vertical marketplace space. And you, do you have any B2B marketplace plans?

Unlike an online store, a marketplace is a platform where vendors can come together to sell their products or services to a curated customer base. After transforming consumer retail, hospitality and travel markets, marketplaces are now reshaping more complex industrial markets and supply chains – agriculture, construction, logistics, automotive, machinery & equipment, healthcare, etc. There are 2 main categories of marketplaces:

• Horizontal marketplaces: aim at multiple sectors to serve a wide range of products to a broad audience
• Vertical marketplaces: aim at a single sector to serve a niche of products to a target audience

In this newsletter, we will focus on vertical B2B marketplaces exclusively.

There are numerous startups that are making inroads into the B2B marketplace sector. French startup ManoMano, for example, is the largest European marketplace for gardening and home improvement. It distributes, via ManoManoPro, the products of more than 1,000+ manufacturers, including Schneider Electric, Bosch, Siemens, Karcher, etc. Pharmedistore is another example that sells medical supplies for chemists. It is precisely these niche third-party players that have given the impetus for reshaping industrial supply chains and have provided legacy industries the opportunity to tap into the potential of online B2B channels.

Another trend we see appearing is industrial giants establishing their own B2B marketplaces including Airbus and Thales in the aerospace; Alstom with StationOne in trains; Toyota Material Handling for forklifts; HP Enterprise for IT supplies; Farmers Business Network for Agriculture; FastMetals for iron and steel; CheMondis for chemical products, etc. But what are the forces that drive manufacturers to develop their own marketplaces which sell their competitors’ products?

• Horizontal and pure-players entering these industries – manufacturers are seeking first-mover advantages to become the first one-stop-shops before horizontal players (Amazon, eBay and Alibaba) or pure-players (startups) do
• The data collected on the transactions in the ecosystem – by analyzing data (e.g. top ten most-wanted materials or the industrial services with the highest increase in demand, etc.), trends become visible and manufacturers can anticipate and reinvent themselves
• To position themselves as a trusted interlocutor in a highly fragmented world – with this unifying role, manufacturers can become the interlocutor of a large number of small players that do not necessarily have the means to develop online
• To be more competitive – by putting their catalogs online and digitizing offline workflows (quotes, contract, telephone/email/fax, etc.), manufacturers maximize their chances of winning bigger contracts while acquiring new skills in digital marketing and trying out new business models they are not necessarily familiar with

That said, manufacturers often suffer from many supply-and-demand problems. That’s why B2B marketplaces are much more technical than B2C markets: relationships are personal (customer-specific and bulk pricing), buying cycles are long, procurement processes are complex, payment terms need to be flexible, shipping options need to be numerous, etc. Startups are developing APIs that integrate with B2B marketplaces to address these issues: Orderful modernizes the trading of electronic data interchange (EDI) data, BlueVine gives B2B companies an advance on their current invoices and Shippo offers multi-carrier shipping options.

Even if legacy industries still have a long way to go, we anticipate marketplace ecosystems to grow in prominence in the manufacturing and industrial sectors in the coming years. Over time, they will incorporate additional services such as supplier/buyer financing, insurance, integrated logistics and service warranty support.

2 Key Figures

742 B2B marketplace startups

in the world registered by Crunchbase

Market size expected to reach $3.6tn by 2024

According to financial services advisory firm iBe, worldwide B2B marketplace GMV could reach an estimated $3.6 trillion by 2024, up from an estimated $680 billion in 2018

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: Mirakl, Reibus and Shippo.

Mirakl

Mirakl is a French marketplace publisher that helps businesses build out a marketplace with third-party sellers. In September, the startup became France’s 10th unicorn with is $300 million funding round.

Reibus

Reibus provides an online marketplace intended to buy and sell prime and excess materials used in industrial markets.

Shippo

Shippo has developed a multi-carrier shipping API to assist businesses succeed through shipping.

123Fab #25

1 topic, 2 key figures, 3 startups to draw inspiration from

In recent years, China has invested substantially in surveillance cameras to become a global superpower. China’s unicorns – SenseTime, Megvii, CloudWalk and Yitu – represent 60% of China’s estimated market for computer vision and are pioneers in the biometrics market. More globally, industry players are positioning themselves in the contactless biometrics segment – particularly facial recognition – to respond to the changing business landscape.

Biometrics, defined as the means to reliably identify and authenticate individuals through unique biological characteristics, is playing a pivotal role. Many industries are demonstrating a real appetite for its benefits and use cases are spanning across a variety of sectors – security, healthcare, banking & finance, travel & hospitality, automobile, retail, government, education, military & defense, and many more.

There are 2 main categories of biometric solutions:

• Physiological solutions: morphological (face, fingerprint, hand, iris, etc.) and biological (DNA, blood, saliva, urine, etc.)
• Behavioral solutions: voice recognition, signature dynamics, gestures, etc.

In this newsletter, we will focus on facial recognition exclusively.

In recent years, facial recognition has invoked a lot of criticism – especially with China carrying out its social credit system based on the ranking of its citizens. It is the fear of an invasion of privacy that frightens the proponents of its use, who dread the emergence of a ‘Big Brother’ society, run by machines. This fear led to numerous protests in Hong Kong where citizens used umbrellas and masks to obscure their identity from the cameras. Lobbying efforts have also ramped up in many countries, prompting the US to recently put facial recognition Chinese unicorns on their ban list and to temporarily suspend the roll-out of the French government’s biometric-powered app Alicem – due to public outcries. Stakeholders also denounce the discrimination that can ultimately result from the use of unrepresentative datasets (ethnicity, gender or social class). Not to mention the concern about potential hackers, as biometric data, unlike passwords, is linked to a single identity that can never be changed.

Yet, facial recognition has already been integrated into a huge number of smartphones and the use cases are widespread. In other words, humans are saying that they are not ready when the technology is pretty much ubiquitous. In fact, in February, the EU unveiled its strategy to catch up with China and the US and dispel fears of ‘Big Brother’ like control.

There are many forces driving the adoption of facial recognition technologies:

• Increasing security concerns – the market is led by increased activity to combat crime and terrorism. In a context where China is massively investing in surveillance, Beijing-based startup Xloong has developed a pair of AR sunglasses to help the police identify and catch suspects. While two-factor and three-factor authentication was driven by the growing need for privacy and security, facial recognition technologies address this need while providing simplicity of connection.
• Ever-expanding uses cases – in recent years, the technology has expanded to new use cases that go beyond identification and authentication. One example is facial analysis, which healthcare professionals can use to measure pain and dysfunction or which retail companies can use to analyse customer emotion and product performance. It goes without saying that another application that has gained prominent adoption is in smartphones.
• The launch of Biometrics-as-a-Service (BaaS) – now small and medium-sized companies can deploy biometric technologies rapidly through APIs, for instance with Florida-based startup Kairos’ one.
• The technology’s maturity  which is driven by its numerous applications 
  • Advancements in the algorithms – while traditional facial recognition systems had their loopholes (e.g. using a printed picture), today’s advanced recognition systems – powered by deep learning – deliver far superior accuracy. According to a recent NIST test, only 0.2% of searches (in a data base of 26.6 million) failed to match the correct image, compared with a 4% failure rate in 2014. This is a 20x improvement.
  • Low cost of edge AI processors – the overall cost of implementing embedded processors are driving down. San Diego-based startup Kneron (backed by Sequoia, Alibaba and many more) announced early September the launch of its new AI chip, whose power and cost outperforms those of Intel and Google.

What is important to bear in mind is that the rollout of facial recognition technologies (when not BaaS) cannot be done without a total rethink of IT legacy systems. It is crucial to implement high-performance processing, storage and encryption solutions beforehand. Heightened education and awareness is key to prevent identity theft. Regulations also need to keep up to ensure that the technology will ethically and positively shape human identity applications.

The pandemic is changing the dynamics in the facial recognition technologies market. Since masks obstruct today’s recognition software (based on features around the eye, nose, mouth, and ears), the pandemic has spurred – in a conjectural way – the development of technologies designed to identify and authenticate people wearing masks or protective headgear. However, the long-term impact has yet to be proven.

2 Key Figures

1,262 Biometric startups

in the world registered by Crunchbase

Market size expected to reach $68.6bn by 2025

According to Markets & Markets, the global biometric market accounted for $36.6 billion in 2020 and is expected to reach $68.6 billion by 2025 growing at a CAGR of 13.4% during the forecast period.

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: Onfido, Kairos and Anyvision.

Onfido

Onfido uses AI and facial biometrics to ensure that IDs are genuine and match with users presenting them. This enables their customers to onboard users remotely while reducing risk.

Kairos

Kairos enables developers and businesses to easily build face recognition into their software products using their API.

Shippo

AnyVision is a video analytics company specializing in face and human recognition in mass crowd events in real time.

123Fab #23

1 topic, 2 key figures, 3 startups to draw inspiration from

Over the years, the French government has boosted the financial incentives offered to the biomethane industry to reduce the costs associated with the production and operation of units. Whereas the exemption from the domestic consumption tax on natural gas (TICGN) previously applied to biomethane, the French government has just announced that it will no longer apply from January 2021. France Biométhane, a green gas think-tank, deplores this decision which, according to them, discredits biomethane and favors fossil fuels.

Biomethane, defined as a renewable natural gas with properties close to those of natural gas, may well play a major role in building a sustainable energy future according to the International Energy Agency (IEA). Indeed, there is no need to change the transmission and distribution infrastructures or end-user equipment. Consequently, it can be injected into the natural gas distribution network very easily or used as fuel for vehicles (bio-CNG, bio-LNG). It is also comparable to renewable energy since it emits 10 times less carbon than natural gas, can be stored and offers a solution to the intermittent use of solar and wind energy. Finally, it reduces the pressure on landfills and fits into the circular economy. Therefore, there are reasons to believe that biomethane could become more firmly established in the future. How about its economic viability and technical feasibility?

To date biomethane can be produced in 3 ways:

• The biogas road – which uses wet biowaste. It uses the means of anaerobic digestion to convert the biowaste into biogas. The biogas is then purified to remove the CO2 and other contaminants to produce biomethane.
• The syngas road – which uses dry or semi-dry biowaste. It uses the means of pyro-gasification to convert the biowaste into syngas. The syngas is then cleaned and methanised to convert the hydrogen, carbon monoxide and dioxide into methane.
• The hydrogen road – which uses electricity. It uses the means of electrolysis (or power-to-gas) to convert electricity into hydrogen. The hydrogen is then cleaned and methanised to convert it into methane.

In short, there are three main methods for producing biomethane: anaerobic digestion, pyro-gasification and electrolysis. To date, approximately 90% of the biomethane produced comes from anaerobic digestion and the upgrading of biogas. Among the purifying and upgrading technologies, we can find water scrubbing, adsorption, cryogenic separation, membrane technology, etc.

Waga Energy, a landfill gas-to-energy technology firm, is one of the large players in this segment. In 2018 they notably joined forces with environmental services giant Veolia. Since then, Veolia has been using Waga Energy’s Wagabox® technology to produce biomethane using biogas, which is injected directly into the natural gas grid operated by GRDF. In early October, the two players signed a contract to install a purification unit at the waste storage center in Claye-Souilly. This facility, which should be commissioned by February 2022, will produce biomethane from waste and supply 20,000 households in the Paris region with renewable gas.

Last year, France set an objective of injecting 10% of biomethane (21 TWH) into the country’s gas network by 2030, like Denmark is already doing. Numerous biomethane injection sites have seen the light of the day. To date, 133 biomethane injection sites are producing 2.3 TWH per year. With an average annual growth rate of more than 60% over the last 3-4 years, the French goal seems feasible.

However, production costs remain high when taking into account the cost of input supply, the cost of transformation (into biogas/syngas and then into biomethane), and the cost of injection (connection to the energy grid). The price to produce biomethane reaches €95 compared to €20 for natural gas. This is why the development of biomethane will ultimately depend on the policy framework and if the market conditions remain attractive for the project leaders (green gas feed-in tariffs, stability, or reduction of construction and gas connection costs).

Overall, the optimal uses of biomethane are in the end-sectors where there are fewer low-carbon alternatives (high-temperature heating, petrochemical feedstocks, heavy-duty transport, shipping, etc.). There are also other motivations such as rural development (household digesters), energy security (complementing wind and solar PV or substituting imported natural gas) and urban air quality

Circular economy for industrial waste: Are we getting closer?

For a long time, take-make-waste has been the standard approach to consumption and production. According to a PwC study, 50-75% of the resources used are returned to the natural environment as waste. Thus, manufacturing must give way to more sustainable and circular approaches.

The circular economy is a system of exchange and production which, at all stages of the product life cycle, aims to increase the efficiency of resource use and reduce environmental impact. The circular economy is not limited to industrial waste management, it also includes product design and recycling processes to close the loop. In this newsletter, we will focus on the technologies and methods to limit industrial waste.

In general, industrial waste is collected and then either landfilled (30% of the waste), incinerated, composted (for organic materials), or recycled. Today, a circular economy approach seems more relevant to valorize industrial waste. While the recent takeover of Suez (water and waste management solutions) by Veolia highlights the complexity of the industrial waste market, many other innovative solutions are being developed.

There are several reasons behind the growing interest in the circular economy. The first reason is the global awareness of the climate emergency: 68% of the world’s population considers global warming to be a major threat. The environmental benefits of a circular economy are manyfold: it contributes to the reduction of waste and greenhouse gas emissions, but also to the systematization of recycling. It also reduces dependence on imported resources (raw materials, water, energy), which is critical in the context of resource scarcity. Indeed, COVID-19 has shown the importance of diversifying our value chains and improving Europe’s strategic autonomy by increasing the value of the materials, adopting thoughtful design, reducing recycling costs and ensuring the functioning of the market for secondary raw materials. Another reason lies in technological breakthroughs (digitalization, industry 4.0) which allow new innovative solutions to emerge. In addition to the savings made through the purchase of second-use products, business growth is stimulated and competitiveness is strengthened.

Both private and public players now see industrial waste as an untapped resource to close the loop.

Kalundborg Industrial Symbiosis is a partnership between eleven public and private companies in Denmark. Since 1972, they have developed the world’s first industrial symbiosis, very close to the principles of the circular economy. Its model is based on the fact that a residue from one company becomes a resource for another, which is beneficial for both the environment and the economy. Approximately 135,000 tons per year of fly ash are avoided, and annual gypsum waste is reduced by 80,000 tons. For instance, water from the Statoil refinery is reused to cool the power station; waste heat from the power station is used to heat the district; fly ash from the power station is sent to cement manufacturers and gypsum is sold to a plasterboard manufacturer.

This sustainable initiative, which started nearly 50 years ago, is no longer the only one; many projects are underway, on different scales and led by a wide range of players.

EU-backed projects

The EU supports and funds circular economy innovations for industrial and urban waste management. For instance, the BAMB (Buildings as Material Banks) project aims to reduce construction and demolition waste through a new standardized circular method of building design, allowing the construction sector to recover, repair and reuse building materials. This approach goes beyond the limited and linear life-cycle analysis approaches currently used in the construction industry tools and methodologies.

Large corporation projects

Large corporations are also tackling this issue. ArcelorMittal, one of the biggest recyclers of steel in the world, recycles around 30 million tons every year and ambitions to become a leader in the circular economy. They reuse more than 80% of their steel production residues and by-products, and about 30% or their steel is made from scrap metal instead of iron ore. In Spain for example, ArcelorMittal has found markets for slag (a glass-like by-product that remains after the separation of a given metal), to sell not only what has been produced but also what was been stockpiled in previous years. Other innovative uses of slag include ballasting offshore wind turbines to replace natural materials, thus avoiding the ecosystem disruption that can result from the extraction of these materials from their original habitat.

Startup solutions

It is very interesting to see that smaller players – startups – are also entering this “circular economy waste market”. There are multiple ways to close the loop, startups are positioned in different segments of the value chain:

• In the logistics segment, Cycle Up is the leading professional marketplace for deconstruction materials and building site surplus. Thanks to the marketplace, construction players can sell and exchange their building materials. It also gives advice on the reuse of these materials. This global solution is both a platform and a service provider. All materials can be sold, but especially materials for finishing work (joinery, doors, locks, etc.).
• In the transformation / revalorization segment, Sopraloop recycles and converts post-consumer PET waste (PET bottles, PET trays, etc.) into recycled polyols. They are still working on the prototype, but their solution should enable its users to recycle 7,000 tons of non-recycled complex PET and produce 10,000 tons of recycled polyols per year. In this segment, there is also ZaaK, a startup that focuses on recycling industrial waste into high-value products. Using patented clean technologies, ZaaK intends to revolutionize the building and construction industry with state-of-the-art technologies and high-quality products made from fly ash, a waste by-product from coal-fired power plants.
• In the digital segment, Trinov improves waste management efficiency through data and algorithms. It makes it possible to plot the waste stream generated to simulate the potential use of waste products such as energy recovery, recycling, composting, etc. This modeling allows the financial and environmental impact of each scenario to be measured before making a decision.
• In the waste-to-energy segment, there are mainly solutions for converting organic waste (a subject we’ll dive into in another newsletter). The startup Sistema provides biodigester equipment to produce biogas from organic waste. The biogas can then be used for residential and farming activities.

However, this market faces major financial and legal challenges, slowing down the development of waste services for a circular economy. First, institutional rules and regulations need to be adapted to encourage and promote the development of the circular economy, both nationally and internationally. In the EU, for instance, the common legal basis is still under discussion due to the difference between countries. Secondly, business transformation is costly. Financial incentives are essential to speed up the establishment of the circular economy. Business models also need to be adapted. Even if an asset has been appropriately designed  (durable, repairable, etc.) the impact is limited if the business model is not in place to reap the benefits. Finally, multi-stakeholder collaboration is necessary to have a positive impact. To combine environmental and social aspects, collaboration is fundamental to achieve an impact. A good example is Responsible Steel, the industry’s first global multi-stakeholder standard and certification initiative, which aims to develop higher standards, taking into account circularity as well as social and environmental aspects.

Overall, the circular waste economy is still in progress but its future outlook seems promising. Opportunities for industrial waste valorization are arising, thus the sooner it is addressed, the better (both for the planet and for company financials). A major challenge remains to find technical solutions to recycle (particularly difficult for composite materials) and integrate critical materials into a circular economy process.

2 Key Figures

207 Waste Management startups

in the world registered by Crunchbase

Market size expected to reach $435bn by 2023

The global waste management market size was valued at $285bn in 2016 and is expected to reach $435bn by 2023.

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: Waga Energy, Enosis and Electrochaea.

Cycle Up

Cycle up is a marketplace based on the reuse of building materials. The marketplace allows construction actors to buy materials that have already been used or not. It is intended for players in the sector: owners, project owners, architects, demolition workers, builders, it provides access to materials and their reuse solutions.

Melodea

Melodea has developed technology for the extraction and industrial production of cellulose nanocrystals (CNCs) from wood pulp and paper production side streams. It extracts CNCs and using them to produce products like water-based adhesives, paints and coatings, or eco-friendly foams.

Recycling Technologies

Their modular technology can be mass-produced to recycle plastic waste into feedstock for new plastic production. This solution can be installed at existing waste sites anywhere on the globe to help divert plastic waste away from landfill, incineration and leaking into our environment.