SVARMI
Iceland-based B2B Software & Analytics as a Service aiming to turn
Kolbeinn HILMARSSON Tryggvi STEFÁNSSON Silvia GARCIA Snjólaug ÓLAFSDÓTTIR CPO
Co-Founder Founder COO & CSO & Client Relations Lead
CEO CTO
Team
K.Hilmarsson: serving as CEO, oversees Commercial Pilot and Financials. Board
Member of Fasta Center Sustainability and Yggdrasil Carbon.
T. Stefánsson: functioning as CTO and worked at Ístak, overseeing the
installation of a power mast in Greenland for a newly hydropower station.
Experience in Héðinn's technical department, involved in CAD design for
projects like fish meal elevators and aluminium smelter platforms.
S.Garcia: serving as a COO, she initiated her career as a UAV expert at Svarmi.
S. Ólafsdóttir: serving as a CPO and Client Relations Lead, ex-Head of Climate
Chage at EY and PhD in Environmental Engineering at University of Iceland.
Problem
(i) Challenges in Infrastructure Projects: assessing nature and biodiversity risks
within the Area of Impact (AOI) of land-use projects poses difficulties.
(i) Global Financial Shift: Global Biodiversity Framework (2022) aims to protect
30% earth and coastal areas, creating a $200 billion funding opportunity.
(ii) Unawareness of Taskforce on Nature-Related Financial Disclosures : TNFD
provides a framework for companies to disclose evolving nature-related risks.
(iv) EU Taxonomy: opportunities for aligning revenue with biodiversity goals.
Addressed market & size:
i) Penetrating the Sustainability Reporting and Environmental Disclosure market
with a TAM of $35 billion (2022), targeting +49 companies in Europe disclosing
nature impact in the Energy, Mining, and Food & Beverage industries.
ii) Anticipating a CAGR of +15.9% from 2022 to 2027, the market is projected to
expand, reaching a TAM of $70 billion in 2027.
iii) Initially concentrating efforts on a commercial pipeline targeting companies
in Breweres (AB Inbev), Energy Production (Enel),and Mining industries, aiming
to penetrate a market with a SAM of $5 billion and a SOM of $100M.
Business Model
Subscription-based model offering Software & Analytics as a Service:
(i) Target: medium to large enterprises in energy, mining, and F&B sectors.
(ii) Pricing Model: ranges from €10k to +€100k per year, based on assets
managed, support level, and third-party data costs, focusing on integration
with existing sustainability solutions and services, including accounting &
advisory firms, to provide cost value for clients. In a recent €230k contract for
additional services, a client utilized their platform for data collection, with
Svarmi aiding client’s R&D’s department. Additionally, a contract signed with
AB Inveb for client’s optimization site costs, Svarmi shared with the client the
cost value per site. Generally, facility assessment includes nature impact, water
sourcing, material release, and biodiversity to streamline data collection.
Commercial strategy (go-to-market approach)
Initial GTM: Svarmi's strategy involves showcasing solutions at global nature and
biodiversity events like Grænar Lausnir, New York Climate Week, Bloom 24, and
COP16 in Colombia to boost market presence.
Deep Dive GTM: Svarmi aims to establish authority in nature reporting,
encompassing a variety of formats, including blogs, newsletters, and the
continued production of Svarmi's 'Nature Positive' podcast
GTM Plan: hosting impactful events, starting with Nature Day in Reykjavík,
followed by events in Oslo, Helsinki, and Zurich in 2024, featuring sessions on
sustainability and nature reporting to expand outreach and reinforce
environmental commitment to environmental stewardship targeting clients
with a global approach.
Miles achieved
Tech achievements:
(i) Commercialization: Interface finalized but investing in development needed
to integrate with existing solutions and face data collection challenges.
(ii) IP Process Initiated: Application underway for IP protection, focusing on
policies and information security of clients.
(ii) Revenue-Generating Cloud Interface: Developed interface assesses nature
influence, addressing data overload for clients.
Business achievements:
(i) Capital Injections: Grants received between 2018-2022, with a pending $75k
marketing grant. In 2017, Angel investment from Verkis + €100k in equipment. In
2020, private investor group led by David Blumer joined the cap table. In 2022,
Partnership with Softeq Venture, linking with US corporates.
(ii) Revenue Traction: in FY22 $530k and in FY23 increased to $560k.
Financials
Key indicators:
● Turnover YTD: €530k (FY23)
● Previous secured capital: Total funding to date of $3,3M (therefore of $1.3M
grants).
● Cash burn monthly: €20k per month projected in FY24.
● Breakeven and EBITDA: Projected EBITDA for FY24 is -$180,000, shifting to a
positive $50,000 in 2025, aiming for cash positivity by late 2024/early 2025.
● Shareholders shares: TBC % capital owned by Co-Founders. Prior to SAFE
conversion, the Cap Table includes private investors led by non-executive
co-founder David Blumer.
multi-source raw data from drones and satellites into high-resolution and
actionable insights.
Svarmi assists clients in making data-driven decisions regarding nature and
biodiversity in their Area of Impact (AOI), leading to reduced spatial
monitoring costs and offering a Software for medium to large enterprises with
a price based on assets managed, support level, and third-party data costs.
At a Glance and Impact Value
Revenue Digital Nature Acclerator
Generating Assessment Support
Impact-driven mission is to reshape relationship with nature by valuing and
making nature data accessible. By promoting accessible nature data for
informed decisions and enhancing transparency in addressing impacts on
nature, Svarmi connects global data to local action. Hence the name of
their nature data platform DATACT, which stands for DATa to ACTion.
Solution
Cloud-based platform to enhancing clients’ interaction with datasets.
(i) Enhanced Data Management: Basic ground info and drone data
collection to locate nature interface, evaluate Impacts and assess risks.
(ii) Relationship Strengthening: Correlating impact drivers with nature metrics,
turning global data into local action via risk management reports.
(iii) Reporting Value: Monitoring project* nature impact-related, including
pollution, water usage, and biodiversity, enabling risk reduction strategies.
*Example: Client’s facility expansion, the process is of sharing data on Sviarmi's platform for operational monitoring and reduce risk.
USP (unique selling proposition) & Metrics
(i) Bottom-Up Nature Assessment Reporting: Data integration for reporting,
including data from client’s drones or via 3d party data providers (global one
from NGOs like IUCN, BirdLife, WWF and satellite data, airplane and drone
data, ground sensors and eDNA).
(ii) Global-Local Data Bridge: Blend various datasets for actionable insights, no
solely relying on satellite data or global open-source databases.
(ii) Ecosystem Expertise: Auditors and NGO’s knowledge for tailored solutions.
Metrics: €530k Revenues in FY23, €450k secured for FY24’s €1M taget.
Competition (tbc)
Nature impact data's competitive landscape is rapidly evolving, necessitating
harmonized reporting standards and global collaboration.
(i) Alignment with corporates: Svarmi partners with corporate activity towards
Nature Positive goals, emphasizing nature's inherent value and transparency.
(ii) Scalable Platform: user-friendly platform adaptable to regulatory changes
and clients, aiming to integrate new metrics/modules with minimal effort.
(iii) Data Expertise: offering expertise in quantifying nature, enabling
developments tracking. Competitors include: Manual Data Collection,
Legacy Data Management Software, New Nature Reporting Platforms
(Natcap Research, Nadar and Sfeeri) Consulting Firms (e.g., Big 4), Satellite
Analytics Providers (RS Metrics) and Alternative Technologies (Nature Metrics)
The Vision
Svarmi's vision is to transform how nature is valued and integrated into
decision-making processes, ensuring its preservation and sustainability for
future generations.
(i) Nature Valuation: Attribute value to nature while it is living, making nature
data accessible and usable for informed decision-making.
(ii) Transparency and Trust: Build trust through transparency by providing
insights into existing impacts and dependencies on nature and
demonstrating how they are addressed.
(iii) Bridging Global and Local Action: Bridge the gap between global
datasets and local action through their nature data platform - DATACT -
facilitating actionable insights and initiatives.
Roadmap to roll-out (18-month vision)
Tech roadmap:
(i) Enhancing DATACT and ERP Integrations: Integrating with SAP S4HANA and
SAP Sustainability Control Tower.
(ii) Advancing Analytics Modules: Generating dynamic Areas of Nature
Influence based on user input and sensor data.
(iii) Enhanced Embedding DATACT: into websites, marketing materials, and
secure software like Microsoft Teams and Slack.
Business roadmap:
(i) Increasing Contract Scope: Expanding with current clients by charging for
more assets for top-down assessment and moving more assets into active
bottom-up assessment and reporting.
(ii) Big 4 Partnerships and Contracts : signing with one Big 4 and energy clients,
securing contracts with at least 5 new enterprise clients by Q4 2024.
Fundraising metrics
Svarmi is looking to raise a Pre-Series A round of $1.45M by Q2 FY24, via SAFEs
with a valuation capped at €9M pre-money with 15% discount. If not
extended, conversion set at a bottom of €5M pre-money by month-end.
65% ($0.95M) of the round has already been committed by existing investors.
Funding allocation of the Pre-Series A round:
(i) Scale sales and onboarding for AB InBev and other major clients.
(ii) Strengthen partnerships, especially with Big 4 firms.
(iii) Integrate with key third-party tech for site monitoring.
https://www.svarmi.com/