Maritime Ventures Newsletter 3.0
A study of big bucks fundraising
This Month in the Maritime Ventures Newsletter
Welcome to the April edition of the Maritime Ventures Newsletter, your source of the latest news and insights from the world of maritime tech deals, software, sustainability and innovation.
I hope you find this newsletter informative and interesting. If you have any feedback, questions, or suggestions, please feel free to contact me by replying to this email or reach out on LinkedIn. I’d love to hear from you and learn more about your interests and challenges in the maritime tech space.
Anyways, grab yourself a good cup of coffee, tea or a beer and enjoy a snapshot of the pulsating life of maritime software, sustainability, and innovation. Happy reading!
Monthly Commentary
For those celebrating the end of Ramadan, Eid Mubarak! This month of the fast has seen big money going into a VC fund, fuel solutions as well as a few start-ups raising money. We even have an acquired startup (four years ago) announcing their owners are investing more cash for them to grow (faster) - in recent newsletters we have talked about capital efficiency, let’s see what Kongsberg Digital can do when sending money to Denmark. Coach Solutions has seen healthy top-line growth since the acquisition (doubling from 2020 to 2022), but has seen their net result drop from a solid almost 50% net profit margin to diving head first into a negative result, through more than 3x’ing their personnel costs (according to their official books in Denmark).
Of other companies in requirement of big money, this newsletter also sees the stark difference of raising money (for AI) in Silicon Valley compared to Singapore (also for AI). A US $13m seed round compared to a US $2.7m Pre-A round. A proof of concept vs a proven solution across 70+ projects in 4 countries. What are the Americans better at? The tech? The pitch? The access to capital? The (high) cost of developers? All of the above? See deals in the tidbits at the end.
While delegates at the IMO MEPC81 have been discussing whether or not we should have a global emissions tax, the race for net-zero fuels and energy-efficiency has not paused! From full-scale CCUS being installed to the worlds first ammonia bunkering operation here in Singapore (I guess that’s what happens when a self-made mining billionaire wants to try out ammonia on a PSV - speed).
Now, I’m going grab my popcorn and wait for Nine Realms to start pushing out their millions into exciting new supply chain ventures.
Happy reading!
Maritime Technology Ventures Featured In Media
On Deals
Maersk veterans win backing from super-rich for $220m supply-chain tech fund - Nine Realms closing half (~$100m) of the cash target, with backing from “major family offices” and institutional investors. Otherwise, the article talks about investments the Nine Realms team (ex-Maersk Growth) has done in previous roles. Now that funding has closed, let’s see where the money goes - I have some bets.
MarineLabs Secures $4.5 Million Seed Round from BDC Capital and Seaspan Shipyards - Claimed largest seed round in Canadian ocean-tech history. Have developed a real-time weather intelligence solution, combining their own “coastal sensors” with advanced data processing. A coastal version of Sofar Ocean?
FrontM gets new investment for crew ‘superapp’ - Undisclosed round led by Motion Ventures with participation from MOL Plus and Wilhelmsen. Installed base of 1000 vessels and a pipeline of another 1000 vessels “from MOL, Wilhelmsen and others”.
Kongsberg Digital pumps cash into Clipper Group spin-off to accelerate digital shift - Announcing that they are pumping more money into an already acquired company (almost 4 years ago now). With more funds, looking to accelerate growth. I guess we all know how it went with the last SaaS company who raised a lot of money and tried to growth-hack maritime... Undisclosed sum.
MOL pumping cash into US owner developing first long-range electric container ship - MOL Plus invests an undisclosed amount into FleetZero, who’s looking at battery systems for medium to large sized vessels transporting containers on medium to long distances. Bought and retrofitted an anchor-handling tug supply vessel last year (now with a $3m profit according to VesselsValue, not bad for a startup eh?).
Zodiac Maritime, Fortescue and more pile cash into green fuel project - Tree Energy Solutions raises US $150m from existing investors in AtlasInvest, Reggeborgh and Zhero as well as Azimut Group, E.ON and HSBC in addition to the above.
Alsym wants to ‘light up homes for a billion people’ with its new battery - Invented a low-cost non-flammable battery, cheaper (40% less) and inherently safer than Lithium-ion batteries, and raised a US $78m series C led by General Catalyst and Tata, with participation from Drads Capital, Thomvest and Thrive Capital. Going to market in 2025. Are we getting closer to a safe battery for use in maritime?
British cleantech firm gets venture capital funding for wind propulsion trials - GT Green Technologies raised US $1.5m in seed funding from OnePlanetCapital, alongside Carisbrooke Shipping, to demonstrate their wind tech.
Limited opportunities, limitless solutions and reward-hungry investors: Why maritime disruptors are facing a wave of consolidation - Meanwhile, back in maritime, a round-up of maritime SaaS deals over the last few years, with insight from a few players. TL;DR: Too many players and too few shipping companies to sell to - equals inevitable consolidation.
On Software Ventures
New Greek AI bunker platform launched as Schoeller and Baseblue team up - Backed by Columbia shipmanagement’s owner (and shipowner) Schoeller Group as well as bunker trader Baseblue, Fuelink is set up to be the central repository of bunker-related data and serve as a fuel supply optimisation platform. Coming out of a 3 year long private test mode, now going public. Includes inventory management of EUAs.
Kongsberg Maritime launches decision support tool for vessel optimisation - Launches EcoAdvisor, an operational tool for the vessel Captain, DP Operator and Chief Engineer.
Pole Star’s Podium5 integrates with Theyr - Together with Uni of Southampton and the Alan Turing Institute, Theyr have developed an algorithm that optimise voyage routing considering multiple objectives, such as “fuel consumption, voyage duration, departure/arrival times, TCE, Charter Party Compliance, CII, and safety”.
Ardmore Shipping to deploy AI for fleet optimisation - Deepsea Technologies to implement Pythia, their voyage optimisation tool, across the Ardmore fleet.
Shipping insurer-backed Ceto launches AI emissions management platform - Gives visibility of EUA requirements of voyages, including an AI that forecasts how route deviations will affect the output. “Why should the software that monitors EUA exposure be complicated?” - Slight stab to the specialised EU ETS software solutions from Ceto there
zero44 releases free online calculator for FuelEU Maritime regulation - Calculates the financial implication of FuelEU Maritime, basis a ships fuel consumption.
RightShip and Sedna sign integration partnership - Data such as the Rightship Safety Score and GHG rating delivered into the Sedna Pulse, their AI aggregator of information hidden in emails. Sedna’s integration partners now include Signal, Spot Ship, Lloyd’s List Intelligence and ZeroNorth.
Understanding the buzz surrounding generative AI and shipping - An informational piece about Greywing and how they use Generative AI to solve shipping problems.
Kongsberg Digital to provide digital infrastructure to HX Roald Amundsen Hybrid Vessel - Seemingly have been somewhat quiet from Kongsberg Digital since they signed 500 vessels from MSC and raised $90m in funds, here they popped up with a single vessel from HX (Hurtigruten Expeditions).
Mitsui O.S.K. Lines FOCUS system verified by ClassNK - “Fleet Optimal Control Unified System (FOCUS)” granted an “innovation endorsement” from ClassNK, basically stating that the functions in the software work according to what they say they should.
NorthStandard encourages members to implement AI - Partnering with Orca AI, adding on their navigational support system to the “digital risk-reduction tools” they incentivise members to start using.
Autonomous navigation “can reduce fuel use on VLOC 15 per cent” - HD Hyundai testing their AVIKUS in-house startup’s system on a VLOC between Singapore and Brazil, controlling the speed and direction of the vessel without navigator’s intervention. Claims up to 15% reduced fuel consumption, verified by Korean Registry.
ABS Wavesight adds digital SIRE 2.0 inspection support - Adding the feature to their Nautical Systems software, with pre-inspection data submitted and prepared.
Kaiko Systems And I.Safe MOBILE Singapore Announce Strategic Partnership - The safe tablets of i.Safe selected as a preferred provider for the SIRE 2.0 Self-Assessment Tool, with the tablets bein chosen by OCIMF for their SIRE-inspectors. Already in use on Columbia Ship Management vessels.
Google Search for shipping launched by German shiptech venture capital firm - Speaking of Flagship Founders.. their latest launch: Sealenic, who’s building an “AI-powered virtual assistant for the shipping industry”. Reederei F Laeisz, Harren Ship Management and Fairplay Towage are the first users before a bigger launch later.
On Sustainability Ventures
Korean shipyard in MOU on OceanGlide fluidic air lubrication system - K Shipbuilding (KSB) sings MOU with AlfaLaval, covering the use of the OceanGlide in potential future newbuilds from the yard. Claims “up to 12%” propulsion power savings.
Cargill sees big ‘real world’ wind power savings, business case tenuous - TL;DR: With current fossil fuel prices, the economics are tricky. After first six months of operation, has saved on average 3 tonnes of fuel per day - or 14%. In near-optimum conditions during an open sea voyage, the vessel achieved 11 tonnes of fuel savings per day - or 52%. This vessel only have two sails, while most kamsarmax vessels will carry three - increasing the fuel savings by a factor of 1.5. Payback is around 10 years.
Union Maritime opts for WindWings on two newbuild LR tankers - Right off the bat with the new CMET partnership, announcing two vessels being built in a Chinese shipyard.
New British wind propulsion tech readies for market - Meanwhile, the UK government has allocated an innovation grant to the start-up, WingTek, for the development of two prototypes - a new type of sail that can easily be retrofitted on ships.
Evergreen Fits World‘s 1st Carbon Capture System On Its Neopanamax Containership - CCS system from Shanghai Marine Diesel engine Research Institute and approved by ClassNK, using amine adsorbents and up to 80% capture rate. They highlight the problem of offloading the CO2 - I take it they are still working on that part.
Hafnia planning to break into future fuels production with new venture - Investing, together with Big Hill, in a plant looking to produce low-carbon blue methanol bunkers, made from CO2 exhaust gases. Subject to final investment decision.
Fortescue Green Pioneer completes landmark ammonia fuel trial - World’s first use of ammonia fuel on a vessel, in combination with diesel in the combustion process.
Ugland vessel to deploy automated propulsion system - ‘Cruise control’ for ships reaches the 400th milestone, with FuelOpt from Manta Marine Technologies. Saving fuel through stable speed.
Neptune Lines to optimise four newbuild PCTCs for slow steaming - HD Hyundai installing engine part-load optimisation, through a partnership with turbocharger company Accelleron.
Pacific Basin readies new propeller coating across its giant fleet - Coating all of their 40 vessels scheduled for drydock in 2024 with GIT’s graphene-based propeller coating. Largest adoption of this kind of coating in dry bulk, after a successful trial on a supramax. Previous tests on propeller coating has shown up to 4% increased vessel performance. Pacific Basin have been applying silicone coating to their propellers since 2007, but have not been able to avoid damage to the coating resulting in a complete re-application of coating in every docking.
TECO 2030 Receives AIP from DNV for Onboard Compressed Hydrogen Fuel System - Approval in Principle for the system design, with no showstoppers. New orders lets go?
Corvus Orca is first marine ESS to win ClassNK type approval - An alternative to the alternative fuels, energy storage systems (aka. batteries). To date “more than 600 vessels and port applications” have an Orca system installed, now also with Type Approval from a class society covering 20% of the world merchant fleet.
COSCO Shipping uses GSBN blockchain to issue green shipping certificates - The blockchain solution documents and verifies the purchase of biofuels by COSCO. Unclear if the “greenness” of the biofuel is documented and verified as well..
On Non-Software Tech Ventures
KVH’s “CommBox Edge” for managing multiple satcom systems - A product of an exclusive distribution agreement with Kognitive Networks, an edge computer and software product for network and bandwidth management onboard vessels.
Autonomous shipping company Massterly opens Remote Operation Centre - Official launch of the centre in Horten, Norway, where they currently manage three vessels, including Yara Birkeland and two RoRo ferries for ASKO. More vessels to join later in the year.
Norway Orders World’s First Battery-Power Autonomous Ferries - And more autonomy is coming for Norway! Four ferries to cross a fjord, delivered in 2026 and phased into autonomy until 2028.
Robotic vessel player Ocean Infinity secures long-term deal with Shell - Not just in Norwegian fjords, autonomy is coming with an Armada fleet of uncrewed and lean-crewed vessels, where Shell signs a five-year agreement with Ocean Infinity vessels for all current and future countries they operate in.
Japanese university orders power prediction database - Mitsubishi Heavy Industries has built a hull design database and use that to develop a “power prediction and lines selection system (MiPoLin)” - now Tokyo University wants more of it.
Elcome to offer PAYG satcom - Finally, some more satellite info: Pay-as-you-go service launched with Starlink, where crew can pay as little as US $3 for data bundles or monthly subscriptions to connectivity. Also offering the hardware for free for “qualified” customers. Sounds like strong competition in offering Starlink as a service these days.
Pacific Basin equips owned fleet with Starlink high-speed connectivity - Starts roll-out across their 116 owned ships.
DFDS extends Nowhere Networks deal - Started at a trial now we’re here.
Why Viasat’s Ben Palmer is ready to battle with Elon Musk-backed Starlink - TL;DR: Incumbent being a stereotypical incumbent. I’m not here to trash Viasat, they are creating excitement around their own people.. (..and doing what incumbents have been doing forever: Not understanding the disruptive nature of new business models entering their markets). (To fully understand this joke, please read the last few paragraphs in the article).
‘K’ Line to develop optical vessel fire detection system - Together with Nippon Hakuyo Electronics and OPT Gate, specifically due to the threat of electric vehicle fires.
Wall Climbing Robot Earns ClassNK Innovation Endorsement - MOL, Sumitomo Heavy Industries and MOL Shipmanagement has developed a magnetic crawler robot to do inspections and measurements in inaccessible areas.
ICYMI
Maritime-focused venture capital fund reaps rewards in Singapore - Motion Ventures featured in TradeWinds, already in profits after three years with two exits from their 25 company strong portfolio. Discusses the background and support from corporate investors, shortening B2B sales cycles in maritime.
How to win at green shipping? BCG thinks it knows how - TL;DR: Supply chain directors and buyers are only willing to pay a 4% premium on decarbonised transportation, and 31% of cargo owners are willing to join a buyers club for green fuels (and another 41% considering it)
The IMO MEPC81 happened:
Three rival camps pitch up at key IMO decarbonisation meeting
IMO inches closer to agreeing world’s first emissions levy as momentum shifts
Norway’s bad IMO diet plan for shipping: a solution that causes more harm than good - Highlights the upstream problems of grey ammonia, biodiesel and fossil LNG, and the problem of the suggestion “Norway et al” has for the MEPC81. TL;DR - walking backwards into the future.
And the whole statement from IMO: Marine Environment Protection Committee 81st session - TL;DR: Potential global IMO emissions tax.
Cape diversions see box shipping EU ETS outlays leap by 191% - With ships now sailing around Africa instead of Suez, Oceanscore has estimated that the route diversion has tripled bunker consumption and increased sailing speeds by 25% (based on AIS data). This leads to almost 3x increase in EUA costs per voyage.
Latest start-up cohort emerges from Studio 30 50 - Total of eight pre-idea founders and two pre-revenue startups presented, from Bills of Lading and InsurTech to crew training, predictive maintenance and circular economy in maritime operations.
Studio 30 50 launches first European start-up cohort in Copenhagen - Title says it all, the studio is crossing continents! (And now open for applications as well)
See how the Key Bridge collapse will disrupt the supply of cars, coal and tofu - From Washington Post on the Baltimore port. TL;DR: Not really a big port in the global scheme of things, and the fifth largest on the US west coast - and as quoted in the article: “[It is] one more disruption in an already-stressed system for the global supply chain”. Informative for someone (like me) who are not too familiar with port(s) on the US west coast.
The Sea Cargo Charter expands its scope to accelerate shipping’s decarbonization - Expands from charterers to also include shipowners, in a baseline to track emissions in relation to the Science-based targets to reach net zero by 2050.
Alexander Saverys’ ammonia mission doesn’t mean running on green fuels all of the time - An interesting interview with the CMB.tech / Euronav executive, on why they are bullish on ammonia. TL;DR - they solve the fuel supply constraints by running on ammonia just enough to cover the prevailing regulatory requirements, mainly the “real gamechanger” of regulations which is the FuelEU Maritime.
Sustainable fuels could cost the same as fossil fuels by 2035, says Wärtsilä report - Meanwhile, Wartsila publishes report on the projected costs of fossil vs alternative fuels, if you add in the EU ETS and FuelEU Maritime charges.
Sailing on nuts: Testing cashew nut oil biofuels in shipping - Alternatively, you could be doing shells of cashews. Wartsila, LR’s fuel business and biofuel supplier ACT Group in collaboration, making a 30% biofuel blend, to be used on UECC car carrier ships.
Ammonia engines face pilot testing as pressure mounts for first deliveries - Whether you believe in ammonia as a fuel or not, it is coming. Piece on the big engine OEMs and their progress to a commericalised ammonia engine. MAN takes delivery of a 10k cbm tank of ammonia per week, for testing purposes.
‘Teslas of the seas’: The ammonia-fuelled vessels poised for their debut - Followed up by another piece on the vessels built(/retrofitted) and on order for ammonia. Most interesting is this table:
3x the size for an ammonia fuel tank? Lets go. Bigger tanks or more frequent bunker calls?
Tidbits and Food For Thought On Start-ups and Ventures
Archetype AI Raises $13M, Emerges from Stealth with Newton, a Foundation Model for Understanding the Physical World - Not directly maritime (hence here), but an AI company that combines what it sees in the physical world (temporal sensors, radars, cameras, etc) with LLMs to explain the real world. Raised money from Venrock (lead), Amazon Industrial Innovation Fund, Hitachi Ventures, Buckley Ventures, Plug and Play Ventures, and angels.
Ailytics Raises US$2.7M in Pre-A Funding - Focusing on heavy industries, using AI to do video analytics to uncover unsafe situations, measure productivity, and security breaches. Led by Tin Men Capital, participated by Aurum Investments, Angel Central and strategic investors.
Interesting to see the difference in round size from Archetype AI (seed round) to Ailytics - from a proof of concept GenAI in Silicon Valley to proven industrial AI (70+ projects across 4 countries) in Singapore…
Raise millions for your startup - If you want to deep-dive into the space of fundraising, Hustle Fund (pre-seed VC) published this book to educate you on the process.
Happy week!