Buoyant's Year End Updates
It’s been a busy couple of quarters at Buoyant, so we wanted to take the chance to reflect and share a few updates on what our team and portfolio has been up to.
Navigating Federal Risks and Opportunities
Over the past month, we have been digesting the results of the election. You can see our initial reactions in a letter we sent to our LPs and portfolio CEOs here. We are monitoring key risks and opportunities as federal priorities shift:
Risks:
Reduced Funding for Climate Agencies: The EPA, DOE, and NOAA will likely face budget cuts.
Uncertain Future for the Inflation Reduction Act: Remaining unawarded funds and renewable energy tax credits are at risk as fiscal priorities shift, and Congress looks for “pay-fors” to fund expected tax cut extensions.
SEC Climate Disclosure Rules: Without finalized rules, corporations may not be compelled to measure and disclose climate risks unless required by state or international regulations.
Paris Climate Accord Withdrawal: U.S. exit could shift global leadership to other major emitters like China.
Trade Wars Impacting Renewables: Tariffs on imports from Asia and Europe could hinder renewable energy projects and inflate costs.
Opportunities:
Bipartisan Permitting Reform: Streamlined permitting will benefit all energy projects, including renewables.
State and Municipal Leadership: With billions of federal dollars already allocated to states, local governments will play an increasingly vital role in emissions reductions, building codes, and business incentives.
Renewable Energy Growth: RE has consistently expanded under both Republican and Democratic administrations. We anticipate this trend to continue, driven by market demand and technological innovation.
Buoyant’s Investment Thesis is Resilient
Independent of Government Subsidies: None of our portfolio companies rely on federal support. Instead, our focus on capital-efficient, commercially ready digital solutions ensures resilience to policy changes.
Business Value with Climate Impact: Our investments optimize production, reduce costs, increase yields, and improve processes while achieving meaningful climate mitigation and adaptation.
Business-to-Business (B2B) Focus: Almost all of our portfolio companies sell solutions to businesses (as opposed to government entities). Many of these businesses maintain a global and long-term view, so their sustainability commitments are not dependent on the outcome of the US election.
Global Standards Adoption: International corporations, especially in the European Union, are adhering to stringent regulations such as the Corporate Sustainability Reporting Directive (CSRD), driving continued demand for sustainable solutions.
At Buoyant, we remain optimistic about the future of climate investing and are committed to driving sustainable growth and returns. We’d love to hear from you on how you are navigating this dynamic environment.
Portfolio Update
Raptor Maps announced its $35M Series C financing led by Maverix Private Equity. Buoyant led the company’s Series A and participated in its Series B and Series C. Raptor Maps is building the integrated operating system for the solar industry, enabling the industry to scale and lead the energy economy. The Series C financing will accelerate Raptor Maps' product development, including enhancements in solar automation, work management, and machine-learning insights. See press release here and Bloomberg coverage here. Congrats to the team!
In Case you Missed It: 2024 Research
Over the summer, Buoyant presented two webinars based on research conducted earlier in the year. We found the webinar format to be a productive way to connect with Buoyant’s ecosystem, so thank you to all who participated. In case you missed it, you can find summaries of the research and highlights from the webinars here:
Nanea Alden, our Summer Fellow from Stanford GSB, conducted a deep-dive on the Blue Economy. Ocean data and intelligence has an important role to play in climate, so we will be watching this space closely. See her blog post here.
Upcoming Research
We’re spending more time thinking about Climate Risk Intelligence, and in particular, the need for increased investment in adaptation and resilience. We’re watching to see how the insurance industry responds to increased acute risk from climate change and how vertical software solutions can provide industry-specific solutions. Amy shared her views with Heatmap on this topic. As Disasters Strike, Investors Turn to Adaptation Tech.
Portfolio Companies in the News
Beni was on ABC News demonstrating how they can help to reduce waste from Halloween costumes (link)
FloodFlash was featured in the Financial Times article: The uninsurable world: rethinking how to cover for climate damage (link)
HData and the California Water Association Partner to Make Data Accessible and Apply AI to Water Utility Proceedings (link)
Ocient CEO, Chris Gladwin, was featured in Fortune on the dangers of AI energy consumption (link)
Raptor Maps was featured in Commercial UAV’s article: A convergence of tech will shape the future of infrastructure inspections (link)
ReelData announced customer expansions with Cermaq (link) and Samherji (link) to support improved feeding efficiency
Shifted’s CEO Forest Frizzell was among 20 leaders the Pacific Business News recognized as Hawaiiʻs Most Admired Leaders (link)
What we are reading…
Artificial intelligence is helping improve climate models by The Economist
Investment in adaptation startups ‘remains glaringly low’ by Latitude Media
The cleantech companies that didn’t make it through 2024 by Canary Media
What we are listening to…
U.S. Rep. Bruce Westerman: What's next for permitting, geothermal, and the IRA? On Political Climate
The Self-Driving Revolution Is Real-and It Could Be Spectacular. On Plain English
What we are watching…
Buy Now! The Shopping Conspiracy, a documentary on the sustainability impact of shopping
Wicked!
Happy Holidays, everyone. Hoping that 2025 is a year of good health and pleasant surprises.
This is super cool!