The Weekly Deal CW13/24 - LISUS
The Weekly Deal CW13/24 - LISUS
One startup, once a week. LISUS is a Californian clean-tech company helping miners to identify better sites and to reduce the environmental impact of material recovery using remote sensing data.
#cleanenergy #sustainability #bigdata
🥜 In a nutshell
Company: LISUS
Industry: Energy & Mining
Sub-Industry: Big Data, Clean Energy, Satellite Communication
Year Founded: 2021
HQ: El Segundo, CA, US
Stage: Pre-Seed
Founders: Oscar Neyra-Nazarrett, Zeynep Karaibrahim
Funding Amount: >120K$
Main Investors: Techstars, Rumbo Ventures
In a sentence: Lisus identifies better sites to source materials for batteries and reduces the environmental impact of its production.
🔭 The Context
Today, the demand for critical minerals (lithium, cobalt, rare earth elements etc.), especially those essential for battery production, is skyrocketing due to the exponential growth of electric vehicles (EVs) and renewable energy technologies.
By 2050, critical minerals like lithium, graphite, cobalt, nickel, REEs, and others will require significant growth to meet low-carbon energy demands. Demand for these minerals is projected to surge nearly 20-fold, with minerals for battery storage seeing a 40-fold increase and those for low-carbon power tripling. This demand peak is expected between 2020 and 2030 before stabilizing.
Main Problems
Traditional methods of mineral exploration and extraction often come with significant environmental costs and are not always efficient.
Challenges such as environmental degradation, habitat destruction, and geopolitical tensions surrounding mineral-rich regions underscore the urgent need for innovative solutions in resource management.
One of the main hurdles in mineral exploration is the lack of accurate and reliable methods for identifying viable sites for sourcing these critical minerals. Conventional approaches rely heavily on ground-based surveys, which can be time-consuming, expensive, and limited in scope. Moreover, environmental concerns associated with traditional mining practices further exacerbate the need for sustainable alternatives.
💡 LISUS' Solution
Enter LISUS, a startup that is revolutionizing mineral exploration through the innovative use of satellite technology and advanced data analytics.
By harnessing the power of multi-satellite synergies and cutting-edge retrieval techniques, LISUS offers a solution to the challenges plaguing traditional mineral prospecting methods.
At the heart of LISUS' approach lies its patent-pending Evaporation measurements, which leverage satellite data to assess spatio-temporal shifts indicative of Lithium-rich brine locations. This novel technique not only expedites the identification of potential mineral deposits but also minimizes the environmental impact by reducing the need for invasive exploration methods.
Additionally, LISUS utilizes gravimetry-based approaches to detect subtle changes in acceleration and gravity, providing valuable insights into underground mass redistribution and mineral-rich deposits. By integrating geophysical attributes and inverse problems into its analyses, LISUS ensures accuracy and reliability in remote sensing measurements, setting a new standard for sustainable mineral exploration practices.
LISUS’ applications vary from mineral exploration, ESG monitoring of mining sites, discovery of unconventional sources and field reconnaissance.
In essence, by harnessing remote sensing and cutting-edge AI technologies, LISUS identifies locations rich in essential minerals, conducts sustainability monitoring, and enhances production processes for maximum efficiency.
🔍 Some Info
📈 Market Size → $16B Serviceable and Obtainable Market
According to their estimates: $1T TAM, $21B SAM, $16B SOM
👨🏻🔬 Technology & IP → US Provisional Patent
Their provisional patent uses a synergistic remote sensing gravimetry approach helps detect subtle changes in acceleration and gravity, driven by mass redistribution and transport within the Earth’s subsystems. These gravity field variations serve as valuable indicators of mineral-rich deposits and assess spatio-temporal shifts to find areas apt for Direct Lithium Extraction.
🛒 Business Model → B2B
They are a Full-Stack battery materials company.
Step 1: They use their products to provide software-based solutions to mining companies.
Step 2: They use their technologies as tools to partner with mining companies and leverage their partnerships to get access to the materials. A concept they call mine-to-market.
🤝 Team → 3 Full-time + 6 alumni + 4 advisors
Dr. Oscar Neyra-Nazarrett - Founder, CEO and technology lead. Doctorate in Environmental Science and Engineering at the UCLA Institute of the Environment and Sustainability. Master studies USC and Johns Hopkins. Research Associate at the NASA Jet Propulsion Laboratory. Founded an organization with more than 5,000 active members. First generation graduate student, and first generation entrepreneur.
Designated as an Alien of Exceptional Ability in the National Interest by USCIS, allowing Lawful Permanent Resident Status (Green Card).
Zeynep Karaibrahim is a research geologist with a unique blend of geology and software development skills, hailing from the University of Southern California and a member of the American Society of Female Engineers. Meanwhile, Claudio Aliaga is a seasoned senior software engineer with over 20 years of experience, including a stint at the Cortex Intelligence Platform, backed by a distinguished 1st Class Degree in Mathematics and Computer Science. Together, they bring a wealth of expertise to their respective fields.
💰 Financials → $500k of revenues in the next 19 months
They are targeting to generate 500k of revenue within the next 19 months. As their fundraising situation, more below in the CEO’s answers during our conversation.
🥊 Competitors → 3 main competitors in the subsurface discovery of critical materials
The competition is focused on developing subsurface discovery of critical minerals. The companies in this sector are:
Kobold metals (US) uses a combination of AI and big data to find rock-based minerals, they are focused on Cobalt.
Earth AI (Australia→US) is a mineral exploration company using AI and new drilling technology to uncover new deposits of metals.
VerAI (US) is using AI to increase the probability of new geological discoveries of mineral deposits, with a particular focus on Copper.
❓Q&A with the Team
I had the chance to ask some questions to Oscar Neyra, Founder and CEO at LISUS.
1. Why are you the best team to build this?
We are hungry, we are outsiders, we are diverse, and we are proud alumni of what I call “The university of life”. When I assembled this team, I wanted to put bring people that for one reason or the other had been underestimated in their roles, I didn’t search for the Tier 1 University alumni, I searched for talent from less well known places, who were hungry, and that when given the opportunity, would give anything to demonstrate they are the best.
We don’t come from the mining sector, so we don’t know what we don’t know. To me, that is one of the best attributes of a founder. When you know too much, you are skeptical of everything. Because we come from outside, we have successfully innovated in the critical minerals space.
We are good because we are diverse. Most of the teams in this sector are very homogenous; they come from a particular lab, or from a particular region, I focused on building a diverse team with a combination of experience and youth because I believe diverse teams constantly outperform homogeneous teams.
Most importantly, when I was recruiting for a team, I looked for Alumni of what I call “The University of Life”. This is a common joke in Latin America because you say you went to the University of Life when you were trained on the streets. Being a founder is really tough, and you need to have a very thick skin and be clever. Our competitive advantage is that we are scrappy, we can do a lot with very little, and we have a few tricks in our hands.
2. What progress has been made?
We are currently conducting a pilot with a lithium mining company known as Silver Valley Metals. We have successfully tested our lithium exploration technology in a case study conducted in San Bernardino County. Additionally, we are negotiating the signature of a pilot with an oil and gas company that is engaged in exploration activities in Arkansas. We have launched the beta version of our Mineral Exploration Product, Alchemist, and our state-of-the-art platform called Lisus Labs, which are both available online. One of our technologies has recently been patented under US provisional patent No. 63/444,669.
3. What is your fundraising situation?
Things are going well for us. We consider ourselves lucky to be operating in a thriving sector and receiving good referrals from investors. I would say that around 90% of the investors we’ve built relationships with have reached out to us directly, and we rarely ask for introductions. It does take a bit longer these days to secure funding than it did in 2021, but as a founder, we don’t want to take just anyone’s money. After all, venture capital is a business of venture assistance.
3. What are your next steps?
We are bringing on new teammates and implementing an interesting business model. We have two important announcements coming soon. Stay tuned!
Many thanks to Oscar for the interesting conversation!
👨🏻💻 My Critical View
Market Opportunity: The critical minerals market is booming due to increased demand for battery materials and renewable energy technologies. LISUS offers innovative solutions to streamline mineral exploration and extraction, positioning itself to capitalize on this lucrative market.
Innovative Technology: LISUS utilizes advanced satellite technology and data analytics to revolutionize mineral exploration. Their proprietary approach enables rapid and accurate identification of mineral-rich deposits, reducing environmental impact and expediting the exploration process.
Disruptive Business Model: LISUS employs a unique B2B model, combining upfront payments with performance-based milestones and royalties. This aligns incentives across the mineral exploration ecosystem and establishes LISUS as a full-stack battery materials company, capturing value at every stage of the supply chain.
Points of attention:
Algorithmic Limitations: There's a risk of generating biologically unproven structures, requiring careful management of client expectations.
Revenue Dependency: Reliance on non-recurring revenue streams may hinder consistent growth, necessitating strategic diversification efforts.
Technology Validation and Scalability: Evaluate pilot study results to assess the scalability and viability of Lisus's technology for widespread adoption.
Partnerships and Strategic Alliances: Monitor Lisus's progress in securing partnerships with mining companies, essential for validating its technology and accessing critical resources.
Competitive Landscape: Analyze Lisus's position relative to competitors in terms of technology, market presence, and financial backing.
Financial Performance and Growth Strategy: Scrutinize Lisus's financials and growth plans to assess revenue projections, sustainability, and expansion strategies.
Stay tuned to discover the next startup on The Weekly Deal!