A groundbreaking investment approach that has propelled several of the globe’s most rapidly expanding firms is set to be introduced in Aberdeen to speed up the shift towards renewable energy.
Over 15 companies valued at over a billion dollars have emerged from American venture firms, employing a distinctive strategy that combines the expertise of top executives with financial backing for some of the nation’s most promising ventures.
Now, two of Scotland’s top tech innovators – Steve Gray and Stuart McLeod – aim to achieve similar achievements locally with the establishment of Ventex, a venture studio dedicated to climate technology.
Ventex is set to manage a worldwide collection of assets from Aberdeen, with a primary emphasis on reusing existing companies, technologies, skills, and knowledge within the current supply chain to aid in the shift towards achieving net zero emissions.
Additionally, it will allocate funds to startups with technologies that show great promise in addressing the challenges posed by the climate crisis. Previous ventures by the studio have seen success stories like Moderna, the entity responsible for developing the Covid-19 vaccines.
The studio has already made its initial two investments, with Aberdeen firm High Performance Robotics (HPR) and Rahd ai, a company specialising in artificial intelligence for decommissioning, located in Perth, Australia.
HPR is leveraging its expertise in inspecting oil and gas facilities to provide cost-effective inspection solutions for the offshore wind industry, while Rahd ai is on the verge of significantly lowering the expenses associated with decommissioning oil and gas facilities.
Ventex’s managing partners, Steve Gray and Stuart McLeod, boast a history of achievement and have each established multinational enterprises in their careers.
Steve Gray pioneered and once headed ROVOP, which expanded to become the world’s largest independent operator of Remotely Operated Vehicles (ROVs), with a workforce exceeding 250 individuals.
Stuart McLeod is an experienced entrepreneur who has also achieved considerable success, particularly in the oil and gas industry, notably leading Qedi, a company specialising in oil and gas completion and technology, to a £33 million acquisition by Amec plc in 2011.
Stuart McLeod said: “Scaling repurposed solutions at the pace required by the climate emergency enables Ventex to unlock value in the new industrial revolution. Rather than relying solely on start-ups, which burn cash and have higher barriers to entry to build trust and credibility, we will leverage the track record of proven concepts.
“The valuation multiples for many energy service companies have hit an all-time low due to the current political environment in the UK. By opening up renewable energy opportunities for our portfolio, Ventex secures a dramatic upgrading of their valuation multiples, unlocking long-term value, enabling access to growth capital and rerating the economic trajectory of entire communities.”
Steve Gray said: “A generation of oil and gas service companies have been left in a decade long permafrost. This began with the downturn in 2014, followed by Covid just as recovery had begun, and then the current political environment. This has starved companies of the capital, skills and courage they need to take advantage of the transition.
“The energy transition and journey to net zero represent the largest industrial and investment opportunity globally, but investment is held back by a dichotomy; a toxic political environment around oil and gas on the one hand, and the difficult financial metrics around renewables on the other.
“By underpinning a validated venture studio playbook, or growth strategy, with the track record of delivery, cashflow, and customers of a mature business, we solve that dichotomy.”
Ventex is currently finalising its leadership board and will be announcing further investments in the coming weeks.