Aclima is the only solution for high definition air quality measuring and monitoring on a block by block basis, providing a cheaper, faster and better way to monitor air quality at the urban scale.
Aclima is providing that missing link via a proprietary, first-to-market, multi-modal solution that combines advanced mobile sensors and a software platform capable of generating real-time, high-resolution mapping of GHGs, criteria pollutants, and toxics including BTEX and more on a block by block level. Through data collected around the country, Aclima has become a leading voice for environmental justice and establishing the link between areas of increased air pollution and the health impact on local communities that are often low income areas or communities of color.
* A Growing and Recognized Market Opportunity: The market opportunity for Aclima’s hyperlocal air quality measurement and monitoring platform represents a massive $18.4B opportunity. This is fueled by recent legislation and regulations, including programs through the EPA, Department of Transportation, state governments like New York, and federal acts including the Inflation and Reduction Act of 2022, which provide dedicated pools of funding that must be deployed in set time frames. Of this, a significant amount is earmarked for hyperlocal air quality monitoring and measurement.
* Verified and Accurate Data: Over the past 15 years, Aclima has established itself as the only solution for high definition air quality measuring and monitoring on a block by block basis. Aclima has worked with industry partners to prove the efficacy and accuracy of the Company’s proprietary technology and data analysis systems. Through testing with leading utility National Grid, Aclima achieved an accuracy rating of 100% in detecting leaks, compared to just 30% accuracy with legacy technologies.
* Technical Moat & First Mover Advantage: Aclima’s business model and market leadership position has been built on the back of its technical innovation. An extensive patent portfolio covering the Company’s cutting-edge hardware, methodology and algorithmic signal processing has allowed Aclima to generate a massive hyperlocal data set and a significant moat against potential competitors in the space.
* Rapidly Scaling Revenues: Aclima has real revenue generation from long term multi-year contracts. With an Annual Contract Value (ACV) of $12M at the end of 2022, the Company projects reaching nearly $40M in realized revenue in 2023 in a base case scenario. These projections are supported by several signed contracts set to launch in 2023. The Pre-C SAFE funding will primarily be used as working capital to expand Aclima’s business development team to pursue and close over 30 contracts across the country.
* Established Leadership Team: Aclima is led by an experienced group of executives with extensive domain expertise with a team of more than 80 FTEs. CEO & Co-Founder Davida Herzl has received multiple recognitions as a pioneering leader in air quality. Aclima has also built an advisory board with experts in climate policy, business, technology and regulation.
* Pre-Series C SAFE Opportunity: The Company is raising a $25M Pre-Series C round at a 20% discount to the Series C, with participation from new and prior investors. The funds will be used to grow the sales and operations team to capitalize on closing current customer contracts in 2023 to set the Company up for an attractive Series C funding in the next year.
Plum Alley is excited to announce a new Pre-Series C investment opportunity in Aclima. The Company is raising a $25M SAFE at a 20% discount to the Series C. Plum Alley has secured allocation for both our SPV Investor Members and the Plum Alley Ventures Fund I.
The SAFE funds will be used to continue building out the business development team to support capitalizing on the current market opportunity, and operations teams, including in-field operations. In light of the rapid transformation of the market landscape, Aclima seeks to pursue significant revenue opportunities in advance of the Company’s next priced equity round, targeted for year end.
Fundraising History: Aclima has raised $60.5M to date, primarily via the Series A (2018) and Series B (2019) funding rounds. Plum Alley has invested in both funding rounds. Notable existing investors in Aclima include Social Capital, Clearvision Ventures, Microsoft, Robert Bosch Venture Capital, ReThink Impact, Kapor Capital, Radicle Impact, and the Emerson Collective.
Investment Timeline
Founder Discussion: Thursday, February 23rd, 12:00pm ET // 9:00am PT
Dial-in details were shared via a Google Calendar invite, and are available here.
Commitment Deadline: Friday, March 10th
Please submit commitments via the Investment Form. Note these are considered your final investment order amount.
Funding & Documents Due: Friday, March 17th
Upon submitting your commitment, you will receive details regarding closing documentation and wiring instructions.
The Company's confidential financing documents, diligence materials, and Plum Alley Investment Memo are available for review in DropBox. Please request access to Dropbox materials on the left side panel. All documents are confidential and not for further distribution. If you have specific questions or are interested in investing in Aclima, please email Ben Robbins (ben@plumalley.co), and submit your investment total here.
Since our first investment in their Series A in 2018, Aclima has made significant progress in its mission to provide actionable air quality intelligence for all stakeholders.
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Following a broad slate of recently passed federal, state and local legislation that Aclima played a key role in drafting and supporting, the Company is poised to capitalize on an immense market opportunity with a proven track record and significant existing customers. The Company has laid the foundation over the past 13 years, with a proven technology and service that has widespread demand across the country. Aclima is entering an immense inflection point as it works to capitalize on the opportunities it's played a significant role in establishing. For detailed information on these opportunities, please request access to the Company Data Room.
The Inflection Point
In 2022, New York and California, two of the nation’s leaders in environmental justice legislation, committed to large, multi-year contracts with Aclima to provide critical air quality data to inform and guide billions of dollars in local investments to reduce emissions, protect public health, and resolve long standing issues in frontline communities.
The New York contract, the first of its kind nationally, provides $8M in annual revenue for hyperlocal air quality and GHG monitoring across 10 disadvantaged communities across the state. Read more about the contract via the NY State press release here. In California, Aclima worked with Governor Newsom’s office to secure an annual $30M budget for a statewide contract to begin in 2023.
These announcements paved the way for further milestones with customers across sectors.
Growing Market Opportunity
New legislation and regulations have opened up significant revenue opportunities for Aclima:
Revenue Generation
With the launch of the NY State contract and continued expansion with Aclima’s existing customers, the Company realized $10.8M in revenue for 2022. However, with the California contract kicking in this year and further developments across federal, state and local legislation and private sector initiatives (primarily in energy and utilities), Aclima is projecting for 2023 revenue to reach nearly $40M in a base case, and an ACV at year end of $64M, with high end projections reaching $57M in realized revenue and ACV over $100M for 2023. Detailed financial projections are available in the Company Data Room.
Upcoming Milestones
With several signed contracts set to launch in 2023, such as the California statewide program, and a rapidly growing market for hyperlocal air quality data, Aclima is poised for significant growth over the next 12 months. The Company is already in the process of building the relationships nationwide to serve as the default provider of data that Aclima is uniquely suited to collect, with significant revenue potential across government, utility and energy sectors. Aclima anticipates raising a Series C round in the second half of the year to further accelerate its growth. More information on the Company’s projections and market opportunity can be found in the Data Room.
According to the World Health Organization (WHO):
Measurement is critical to effective management and mitigation of emissions and a missing link in the ecosystem towards addressing global climate change and pollution, but the current status quo cannot provide the granularity required for appropriate policy and response.
Proven & Validated Technology
Over the past 13 years, Aclima has developed, tested and validated an advanced air quality measurement and analysis platform that provides customers with data insights that are impossible to replicate with legacy systems. Aclima’s proprietary sensor devices are low-cost hardware solutions that can be deployed in both vehicles and in stationary installations to do wide scale mapping, collecting data across more than 20 air pollutants with significant human and environmental health impacts. Aclima has conducted studies with multiple research institutions and customers that have established the accuracy and reliability of the technology, resulting in legislative and regulatory requirements that match Aclima’s specifications.
The sensor hardware is powered by a cloud-based infrastructure that enables the platform to collect and store large amounts of proprietary datasets, and apply artificial intelligence and machine learning to produce powerful visualization tools for customers. Aclima refers to this as enabling “environmental intelligence” and aims to be the first company to provide a cheaper, faster and better way to monitor air quality at the urban scale using its high-resolution data to help governments, cities, enterprises and citizens to drive action.
Aclima has built a leadership team with deep subject matter expertise from top tier academic and research institutions and technology companies.
Davida Herzl, CEO & Co-Founder - Since co-founding Aclima nearly 13 years ago, Davida Herzl has been recognized as a leader, operator and visionary from Goldman Sachs (100 Most Intriguing Entrepreneurs), Fast Company (100 Most Creative People in Business), Inc. Magazine (Top 100 Female Founders), the Entrepreneur (100 Women of Influence) and Worth Magazine (Worthy100). Davida earned her BA and JD from UC San Diego.
Dr. Meghan Thurlow, CTO - Dr. Thurlow achieved a BA in Chemistry from Carleton College before pursuing her PhD in Chemistry and Chemical Biology from Harvard University. During her post-doctoral studies, Dr. Thurlow developed advanced sensor instrumentation for detecting and monitoring GHG and other air pollutants and statistical analysis of collected data. She has also earned an MBA from UC Berkeley.
Meme Scherr, CFO - Meme Scherr brings experience from an extensive leadership career in institutional finance and large enterprises to Aclima, with a proven track record in building businesses, raising institutional assets and driving strong revenue growth. Meme earned her BS from Syracuse University and MBA from University of Virginia.
Matt Hill, COO - Matt joined the Aclima team in 2012, and has spent the last 10 years supporting the Company’s growth and operations. With significant experience in operational management and a BS from UCLA in Chemical Bioengineering, he brings domain leadership to the Aclima team.
Aclima has also developed a nationwide network of advisors and industry experts across climate policy, business and technology to support their efforts.
Impact
More than 3.5 billion people now live in cities, and that number is expected to increase to 6 billion by 2050. Deeper understanding of the impact air quality has on human health and longevity in addition to climate change requires decisive action to combat harmful emissions for the planet and in communities. Aclima provides individuals, private companies and governments with detailed, hyperlocal air quality measuring and monitoring to empower targeted efforts at curtailing the impact emissions and other harmful air pollutants have on communities and the environment.
Awards
Aclima’s work has been recognized extensively from the industry and more broadly. Aclima is one of Fast Company’s 50 Most Innovative Companies in the World and #1 in Data Science, Inc Magazine’s Best in Business, a Fast Company World Changing Idea, a WEF Technology Pioneer, and one of the top 100 companies in GovTech for 2022.
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