Validere raises $7m to bring IoT to oil and gas
November 13, 2018
Validere, a Canadian venture-backed oil and gas IoT and artificial intelligence platform, has raised $7m in seed funding to transform oil and gas trading and logistics through reliable data and AI insights.
The round included lead investor Sallyport Investments, alongside Y Combinator, Real Ventures, Moment Ventures, and ZhenFund. The round of funding will fuel Validere's US expansion and further the development of its AI-powered blending, logistics and trading optimisation platform.
Oil and gas companies often use unreliable product quality data to make critical operational decisions. To address this problem, Validere is using the IoT to improve confidence in product quality and AI predictive insights to guide optimal blending, logistics and trading decisions. This optimisation can help oil and gas companies get up to $9 more out of a barrel.
"More than $2tn worth of crude oil is traded annually," said Ian Burgess, Validere's co-founder and CTO. “As oil constantly changes hands, batches mix together irreversibly changing the product's quality. The industry largely bases important operational decisions on poor quality data. Our platform not only informs product quality reliably and in real time, but it also uses AI to help oil and gas companies optimise product movement.”
Validere's funding announcement comes on the heels of a breakthrough year. The company completed IoT and AI platform deployments with large Canadian oil and gas clients and recently expanded into the US market by opening a Houston office. Validere was also recently named one of Canada's top 20 most innovative tech companies by CIX (the Canadian Innovation Exchange).
"Quality analytics represents a massive opportunity to push the industry forward,” said Doug Foshee, former CEO of El Paso and owner of Sallyport Investments. “Validere's strong cross-functional team, proprietary AI platform, and deep understanding of the industry uniquely positions them to add tremendous value to midstream and upstream businesses."
Validere was founded in 2015 at Harvard by entrepreneurs who recognised the opportunity to bring data transparency and innovation to the oil and gas industry. The company graduated from San Francisco's Y-Combinator and Toronto's Creative Destruction Lab accelerators in 2016.