Why we invested in Sensorfact

Making things simple is very hard.?

Since Russia invaded Ukraine several months ago, Europe’s energy supplies are rapidly depleting, resulting in skyrocketing price levels. In the past weeks, the geopolitical situation deteriorated further and governments throughout Europe announced that we are in a gas crisis that will have severe consequences this winter. Energy efficiency – particularly in energy-intense industries – has become a more pressing topic than ever.?

At SET Ventures, we invest based on long-term strategic theses. Energy efficiency has been one of our three key pillars for the past 15 years (carbon-free generation and effective distribution & storage being the other two). Even though we did not anticipate today’s unfortunate acceleration of events, all long-term trends have pointed into the direction that we need to, among others, significantly reduce our energy consumption in the coming decades.?

We review hundreds of business plans addressing industrial energy efficiency. The biggest barrier we observed here is the level of complexity and heterogeneity amongst different industries and factories, obstructing an easy sales and implementation process for start-ups. On the other hand, when we met Pieter Broekema (CEO and founder of Sensorfact) back in 2018, we thought his solution to this problem was maybe too simple.?

The company’s mission is to reduce energy waste in industrial companies. They do this by making energy monitoring and saving extremely easy. Sensorfact developed a true ‘plug & play’ energy management system that consists of several wireless sensors and an online analytics platform. After self-installation by their customers, they receive immediate insights for actionable energy (cost) reductions and for mandatory reporting and certification.?

And that value proposition turns out to be a great fit with the target market. Customers are plant and/or quality managers of small- and medium-sized factories in energy-intensive industries, such as the plastics, chemicals, metal, and food & beverage industries. Realizing energy savings has a meaningful margin effect for these parties, as the energy bill is their largest cost component. On top of that, the clear-cut reports form the basis for ISO certification, which is becoming mandatory for energy-intensive industrials through the European Commission’s “Fit for 55” package.?

So far, the Utrecht-based company has achieved savings of around 100 GWh. This is equivalent to the annual energy consumption of more than 30,000 households. And this is only the beginning: with over 370,000 European SMEs, the market is huge. ?

The combination of the strong business execution by the team, the demonstrable value of their product and service, and the clear proof of customer acceptance drove our decision to invest. Together with FORWARD.one and Korys (the investment company of the Belgian Colruyt business family) we support Pieter and his team in establishing Sensorfact as the market leader in industrial energy efficiency – until far beyond the current war-induced energy crisis. Because the hard part will always remain relevant: making complex things very simple!?