Scale Newsletter

THE EFFECTS OF LACK OF TRANSPARENCY IN BESS OPTIMIZATION 🔋 Let me share my subjective view on what's going on in emerging BESS markets and why things are not optimal regarding BESS investments. 💰 BESS investors are looking for high IRR and chat with every potential optimizer to get a better understanding of their services. The result 👉 due to missing transparency and proof of capabilities, investors ask for backtests, which they finally do not use for decision making. ⬆ Most optimizers don't have large portfolios in operation (even if they claim it) as a ton of assets is currently under construction. The result 👉 a battle on backtesting/simulation results as a proxy for the technical capabilities of the optimizer. Fun fact: there is no way for the investor to figure out if an optimizer (such as enspired) has invested 4 years into their in-house framework with cutting-edge tech behind it or if they just came up with an arbitrary number from a spreadsheet. 🏦 Due to the lack of transparency, bankable forecasts (which are slightly pessimistic by nature) are the only source to model revenues in the business case. The result 👉 IRR is lower, financing is trickier and potentially slows down the project, and, with that, the overall rollout of much-needed BESS assets. At least this situation provides the source for even more "duck curve" posts in the future 😉 📈 Optimizers are reduced to cost positions instead of revenue-enabling allies. The result 👉 as investors currently have no way to compare optimizer performance, they sometimes just go for the cheapest option. Now let that sink: if an optimizer is 10% better than another optimizer (that you might have chosen for 0.5% less revenue share) ... just take a second and calculate the impact of your decision on your IRR. My very strategic angle is that if you cannot compete on quality, you need to compete on price - and some investors will only realize when it's too late. As soon as the new assets go live, the market will face a big showdown 😁 Simply ask yourself: Would you choose the cheapest BESS provider, ignoring safety, performance, and reliability? How do we fix this situation while markets are still emerging? I'm looking forward to your ideas! We're working on this challenge, stay tuned 😎 #artificialintelligence #batterystorage #energytransition

📢 Newsletter #6: enspired 📢 We're thrilled to share our latest edition featuring an exclusive interview with Juergen Mayerhofer, CEO of enspired, on how they're revolutionizing energy trading. Initially bootstrapped, enspired trading recently secured a €25.5M Series B round to accelerate their expansion from several leading investors:  like Zouk Capital LLP, PUSH, Banpu NEXT Company Limited, Emerald Technology Ventures, Helen Ventures, 360 Capital and EnBW New Ventures. In this edition, we dive into: + Their funding journey from public grants to Series B + Innovative pricing models that align interests with customers + Strategies for building a diverse, values-driven team across multiple countries + Pivoting to focus on battery storage optimization during the energy crisis + Balancing consistent storytelling with adaptability in a rapidly evolving market Don't miss this deep dive into one of energy tech's most exciting players, as featured in S&P Global, Tech.eu, FinSMEs, Energy-Storage.news, and other leading publications. Read the full story here 👉: https://lnkd.in/gNTgxwf5 #EnergyTech #AITrading #StartupGrowth #CleanEnergy #RenewableEnergy #VentureCapital #EuropeanStartups #DeepTech #EnergyTransition #ClimateInnovation #AutomatedTrading #SeriesB #FounderInsights #ScaleUp

UP NEXT ON SCALE… 👀 We interview an Austria-based, Series B, AI-powered energy trading founder. This week we uncover: + How to identify a market shift before it happens + Bootstrapping vs. grants: Funding strategies for deep tech + Building an automated trading platform with no human traders + Scaling a team across 20+ nationalities in 6 countries + The journey from handshake deals to €25.5M Series B Subscribe now to get this edition of SCALE Newsletter delivered straight to your inbox 👉 https://lnkd.in/gbvQsAC7 #EnergyTrading #AI #SeriesB #CleanTech #AutomatedTrading #StartupScaling #InternationalTeam #DeepTech #EnergyTransition #VentureCapital #EuropeanStartups #ClimateInnovation #FundraisingStrategy #RenewableEnergy #EntrepreneurialInsights

There’s a lot to learn from Stan Smith’s journey with Gradient AI including how you take a business from bootstrapped to Series C! 💼 “Bootstrapping forces you to make smart, efficient decisions. It teaches you that every choice is a trade-off.” Check out our newsletter below 👇 https://lnkd.in/enDwhjnX #Bootstrapping #StartupAdvice #Entrepreneurship #AI #InsurTech

🚀INSIGHT ROUND UP #3 OUT NOW🚀 Subscribe 👇to get insights on #AI, #SaaS, #Sales including tips on how founders should structure their sales processes and pricing This week we cover insights from Sequoia Capital, Andreessen Horowitz, Menlo Ventures, General Catalyst, Battery Ventures, Bessemer Venture Partners. Check out this week's round up here 👉https://lnkd.in/gPFjSSpD

🚀Bootstrapping to Success – The Early Days of Gradient AI 💼 “Bootstrapping forces you to make smart, efficient decisions. It teaches you that every choice is a trade-off.” In the early days of Gradient AI, Stan Smith wore multiple hats—CEO, CTO, even part-time CFO. With limited resources and no salary, every dollar was reinvested into the business. This bootstrapped approach taught invaluable lessons in efficiency and strategic decision-making, setting the foundation for the company’s future success. As Gradient AI scaled, the focus shifted from scrappy early-stage hires to bringing in seasoned executives, but the lessons from bootstrapping continue to influence their strategy today. Explore the challenges and rewards of bootstrapping in the early stages of Gradient AI: https://lnkd.in/enDwhjnX

🚀Bootstrapping to Success – The Early Days of Gradient AI 💼 “Bootstrapping forces you to make smart, efficient decisions. It teaches you that every choice is a trade-off.” In the early days of Gradient AI, Stan Smith wore multiple hats—CEO, CTO, even part-time CFO. With limited resources and no salary, every dollar was reinvested into the business. This bootstrapped approach taught invaluable lessons in efficiency and strategic decision-making, setting the foundation for the company’s future success. As Gradient AI scaled, the focus shifted from scrappy early-stage hires to bringing in seasoned executives, but the lessons from bootstrapping continue to influence their strategy today. Explore the challenges and rewards of bootstrapping in the early stages of Gradient AI: https://lnkd.in/enDwhjnX

📢 Newsletter #5: Gradient AI - How do you take on a $1Tn Market? 📢 We are excited to share our latest edition featuring an in-depth interview with Stan Smith, CEO of Gradient AI, on how he is redefining insurance technology using Artificial Intelligence. Gradient AI most recently raised a $56m Series C round to continue scaling across the US. In this edition, we cover: + Knowing the difference between a product problem vs consulting problem + What is it like spinning out of an established business? + Go-to-market strategy for a $1tn industry + How to know if VC funding is right for you Discover how Gradient AI, backed by leading investors (e.g., MassMutual Ventures, Forté Ventures, Sandbox Ventures, Centana Growth Partners, Plug and Play Tech Center, and Stone Point Capital, amongst others) is improving insurer performance across the US. Read the full story here 👉 https://lnkd.in/enDwhjnX

UP NEXT ON SCALE… 👀 We interviewed, Stan Smith, CEO of Gradient AI, a USA-based, Series C stage business redefining a $1 trillion+ insurance vertical. In this edition we cover: + How do you know when you have a “product”? + What is it like spinning out of an established business? + Go-to-market strategy for a $1tn industry + Raise VC funding or bootstrap? Subscribe now to get Scale Newsletter delivered straight to your inbox 👉 https://lnkd.in/gTbzpuzM #StartupJourney #Spinout #Insurance #SeriesC #Entrepreneurship #ScalingBusiness #FundraisingTips #BusinessGrowth #Innovation #FounderAdvice #TechStartups #VentureCapital #Venture #GrowthEquity #InsurTech

🚀 Why France is Becoming an AI Powerhouse 🚀 The AI landscape in France is thriving, and the country's ambitions to lead in AI are gaining momentum. Sarah Stebbins, from ICONIQ Capital has put together an amazing read on France's growing strength in AI in her article here: https://lnkd.in/gnyZyjG2 ICONIQ Capital outlines several reasons why they believe France will be Europe's AI powerhouse: 🤑 Public & Private Support: With €1.5 billion invested in AI, France's National AI Strategy is driving innovation, emphasizing ethical AI, data privacy, and inclusive development. 🤖 Thriving Ecosystem: A robust network of startups, research institutions, and corporate partnerships is fueling AI advancements, particularly in Paris, which is a hotspot for AI innovation e.g., Mistral AI, Hugging Face, Modjo, Twin 👩🔬 Top Talent: France’s world-class educational institutions are producing over 500,000 AI researchers and engineers, driving cutting-edge advancements in machine learning, NLP, and more At SCALE, we summarize stories like these directly in your inbox every week! If you want to stay informed, subscribe here: https://lnkd.in/gbvQsAC7 #AI #Innovation #France #TechNews #Newsletter #ArtificialIntelligence #Growth, #Startups, #ICONIQ