Techin' Geek

Applied Computing, a startup based in London that’s developing a foundational AI model for the oil, gas, and petrochemical sectors, has secured a $20 million Series A funding round led by engineering behemoth KBR, with participation from Databricks Ventures.

Established in 2023, this startup focuses on oil, gas, refining, and petrochemical systems, where a single facility can possess thousands of sensors that monitor various parameters, including temperature, pressure, velocity, and viscosity. Despite the enormous potential for assisting energy firms in resolving data tracking challenges, significant fragmentation remains a considerable obstacle.

As a result, facilities typically make operational choices based on less than 8% of the data at their disposal, states Applied Computing’s co-founder and CEO Callum Adamson (depicted above, right). Operators already gather most of this data, he mentioned, but they encounter difficulties in swiftly integrating sensor readings, engineering documentation, and both physics and chemistry to analyze and forecast outcomes.

“The core challenge is enabling those three data sources to interact with each other in real time. That’s the crucial element,” he informed TechCrunch.

In contrast to large language models that predict subsequent words, Applied Computing indicates that its foundational model, Orbital, merges a time series model, a physics-driven model, and a language model to project a facility’s state. This is achieved by analyzing sensor data while considering physics and chemistry, as well as recognizing the constraints of a facility’s equipment and operator activities. Additionally, it allows technicians to simulate how a modification in one area of a facility could impact the overall operations.

Essentially, Applied Computing is emphasizing speed: it asserts that Orbital can identify anomalies, investigate their causes, and model the potential implications of a suggested remedy on other facility operations, all within a matter of minutes. Adamson asserts that the solution can condense investigations that once lasted days or weeks into mere seconds, assisting operators in minimizing energy consumption and sustaining productivity.

This promise of rapidity appears to have attracted supporters. The startup claims it transitioned from stealth mode to achieving double-digit millions in annual recurring revenue in less than 18 months. Adamson noted that Orbital is actively being utilized by several “large, publicly traded” upstream oil and gas firms, as well as downstream refining and petrochemical businesses, although he refrained from disclosing the number of customers.

Among its partners are Indian energy firm Wipro and KBR, which has incorporated Orbital into its INSITE 3.0 digital platform for energy projects and is utilizing the product for ammonia production. Adamson also mentioned that the startup is collaborating with a “major U.S. upstream operator,” with plans to announce a partnership with a European oil major in the upcoming weeks.

Nevertheless, Applied Computing is venturing into a market filled with established industrial software providers as well as more specialized AI startups. AspenTech offers simulation and AI-powered modeling software for upstream, refining, and chemical processes, while AVEVA provides physics-based process simulation, optimization, and “what-if” modeling for industrial facilities. Cognite and Seeq concentrate on the data layer, assisting facilities in analyzing industrial data and implementing AI to create workflows.

Adamson contends that the company’s competitive edge lies not in access to industrial data or process expertise, but in assembling AI researchers to develop a model capable of rivaling Orbital.

“This is an AI challenge. It’s not solely a data issue, nor is it an energy matter,” he stated. “If you’re a top-tier AI researcher, where will you choose to work? … I doubt Shell is on that list.”

Adamson also highlighted the data that Orbital acquires through its deployments. Operational data from refineries and other energy plants is typically not publicly accessible, he explained, while simulated data fails to entirely replicate the conditions within a functioning plant.

The partnership with KBR might also be advantageous for the company. Adamson noted that this collaboration grants Applied Computing access to operational data, industry expertise, and introductions to further potential customers.

Applied Computing intends to utilize the $20 million to extend its international footprint, recruit for research and engineering positions, and explore deployments with energy clients.

On Thursday, the company announced the opening of an office in Houston, complementing its headquarters in London and operational base in Bengaluru. Adamson mentioned that the U.S. location positions the startup closer to two existing clients in North America, with plans for an expansion into the Middle East also underway.

Lululemon, a company specializing in activewear, has participated in the $30 million Series A funding round for Syntetica, a French startup that has created an innovative method for recycling nylon, which is both valuable and challenging to reuse.

Syntetica claims it can recycle two varieties of nylon — Nylon 6 and Nylon 6,6 — which are difficult to separate from each other in consumer textile waste, according to its CEO Marco Bertone in an interview with TechCrunch.

As vast amounts of clothing pile up in landfills annually, a major motivator for the fashion industry to pursue increased circularity is consumer viewpoints, particularly among high-end clothing brands. Companies like Syntetica also gain advantages from favorable regulations and recent price fluctuations that have notably impacted nylon.

In the past six months, geopolitical issues in the oil sector have resulted in frequent negotiations over nylon prices, Bertone noted. “It’s served as a wake-up call for many brands dependent on petrol-derived nylon and synthetic materials for their pricing strategies, which are now experiencing significant disruptions.”

As per Bertone, this aligns well with Syntetica’s practical outlook. “We’ve established the company with the understanding that there is no green premium. To expand genuine solutions for a sustainable future, it must be cost-effective, scalable, and built on partnerships from the outset.”

The startup collaborates with brands including Lululemon, Victoria’s Secret, and Etam, with a recycling initiative set to launch commercially early next year. Syntetica’s Series A was also supported by a major apparel manufacturer, MAS Holdings — “a testament to the seriousness of the issue,” Bertone remarked.

It is quite rare for a supply chain participant to invest in a company that hasn’t yet reached significant scale. However, prior to its Series A, Syntetica had formed a partnership with Michelin’s Centre for Sustainable Materials to create a commercial demonstration facility in Clermont-Ferrand, the industrial firm’s hometown.

Unlike other startups in the same sector, Syntetica will not manufacture textiles or create new materials. Instead, its recycling process will yield pellets, which can then be utilized by others to produce yarn for brands like MAS. “This illustrates a narrative of practical industrial collaborations with the right partners to secure buy-in from the entire value chain,” Bertone expressed.

With a background in fashion and second-hand online sales, Bertone serves as the business strategist for Syntetica. Through the matchmaking accelerator program at Paris’s Station F, hosted by Entrepreneur First, he collaborated with chemist Louis Monsigny. Their partnership was strengthened in Reims, where they utilized the AgroParisTech laboratory. 

Since then, they have also brought on a CTO, Ash Ward, who previously worked at the unsuccessful battery firm Northvolt, founded by Peter Carlsson, who is one of Syntetica’s advisors. For Bertone, their experiences and insights from navigating the challenges of scaling equip them with the knowledge of when and where to take chances. 

“As a startup, we must be willing to take more risks than established industrial players; otherwise, innovation would stall. However, there’s a boundary— if you spread your risks too thin, things can get complicated,” he stated. That’s why Syntetica is not diversifying at this stage. 

While it could potentially recycle other materials or expand into different industries in the future, its primary goal is to utilize its funding to prove its capacity to generate hundreds of tons of pellets annually and supply them to clients within the apparel supply chain. After that, Bertone remarked, “Syntetica plans to establish facilities globally, situated near waste sources and textile production sites.”

Although it harbors international aspirations, the startup benefits from its presence in France. Its Series A was led by the Ecotechnologies 2 fund, which is managed by the Green Venture group at Bpifrance, France’s public investment bank, as part of the France 2030 initiative. It has also received backing from the European Innovation Council (EIC) through equity, grants, and its acceleration program.

For these public investors, startups like Syntetica contribute to a broader strategy aimed at bolstering Europe’s industrial strength while minimizing dependency on fossil fuels. Nevertheless, the startup also intends to generate returns and is supported by private investors like EQT Ventures, SWEN Capital Partners, and family offices.

Syntetica faces competition as well — with some utilizing an enzymatic method to “digest” plastics and chemical titan BASF, which has developed recycled nylon. Still, after participating in industry gatherings, Bertone expresses hope for collective growth. “Even if everyone expands to operate numerous factories, the problem will not be solved,” he remarked. “Collective success is necessary for societal advancement.”

Lululemon has also made investments in other textile recycling startups such as Epoch Biodesign and Samsara Eco.

While numerous elite venture capital firms are consistently raising significantly larger funds, Greylock Ventures, one of the oldest and most esteemed venture firms in Silicon Valley, is purposefully countering the trend of inflating fund sizes.

On Tuesday, the 61-year-old firm declared that it had secured a $1.5 billion 18th fund. This amount is 50% greater than its prior $1 billion fund from 2023 and closely aligns with the capital the firm accumulated across seed and flagship funds during the pandemic. Nonetheless, Greylock partner Saam Motamedi informed TechCrunch that Greylock could have effortlessly raised a “multiple” of that amount, indicating that the partnership opted for restraint as fund sizes continue to rise in the industry.

“Our mission is to be the most vital partner to the most significant entrepreneurs,” Motamedi remarked. The firm takes pride in connecting its portfolio companies with top engineers and potential clients, as it did for Baseten, an AI infrastructure startup now valued at $13 billion, after its initial investment in its Series A in 2022. However, Motamedi noted that Greylock can provide that level of assistance only by limiting the number of companies it supports.

The firm’s 10 partners undertake only one or two new investments each year, a tempo Motamedi asserted will yield approximately 25 portfolio companies from this fund.

Similar to its previous funds, the new fund will primarily emphasize nurturing companies from the earliest phases and spearheading seed and Series A rounds. This is where Greylock has established its reputation; the firm has an impressive history of launching companies from the ground up, most notably security powerhouse Palo Alto Networks, which was founded within Greylock’s offices 21 years ago, and the email security startup Abnormal, which Greylock incubated in 2018 and was last valued at $5.1 billion.

That said, Greylock does not strictly adhere to early-stage investments. It will also support promising, later-stage companies even if it “missed them early on,” Motamedi stated. The firm’s 17th fund encompassed three such growth-stage investments: Anthropic, Revolut, and Wiz.

The firm made its initial investment in Anthropic when the AI company secured its Series F at a $183 billion valuation. “It’s the largest investment in the firm’s history,” Motamedi asserted.

Motamedi estimates that about 15% of the new fund will be allocated to later-stage startups, yet he asserts that Greylock fundamentally remains an early-stage investor.

As evidence, Motamedi shared that when the partners convene every Monday to evaluate their investment pipeline, the agenda comprises primarily individuals’ names rather than company names.

“We’re getting to know people even before they establish a company. It’s truly a wager on the individual,” he explained. “Often the company doesn’t even exist.’”