#1211 Bill Clerico On Investing MILLIONS To Solve Wildfire Crisis
Jun 15, 2023
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Bill Clerico, investor at Convective Capital and former CEO of WePay, talks about his firm's focus on investing in technology, software, and hardware related to wildfires. They discuss the increasing frequency of extreme wildfires, the use of cameras, satellites, and drones for detection and suppression, investments in companies addressing the crisis, the impact of wildfires on air quality, and founders solving the wildfire crisis.
Investing in technology, software, and hardware related to wildfires provides a compelling investment space with large addressable markets in industries such as utilities, insurance, timber, and real estate.
Startups are utilizing cameras, artificial intelligence, and satellite imagery to rapidly detect and assess fire starts, aiding in efficient fire suppression strategies.
Deep dives
Investing in Technology for Wildfires
Bill Clerico, an investor at Convective Capital, focuses on investing in technology, software, and hardware related to wildfires. His firm is interested in startups that help mitigate, treat, and prevent wildfires. This market opportunity has attracted a mix of entrepreneurs, including those with firefighting experience and tech entrepreneurs looking to solve meaningful problems. The impact of wildfires is not limited to the West Coast, as it has become a national and global issue. The potential for innovative solutions and large addressable markets in industries such as utilities, insurance, timber, and real estate make this a compelling investment space.
The Importance of Early Detection and Situational Awareness
Startups like Pano AI are using cameras and artificial intelligence (AI) to analyze video footage from mountain tops and cell phone towers. This technology helps rapidly detect and assess the severity of fire starts, enabling quick intervention before fires become uncontrollable. Satellite imagery is also utilized by companies like Overstory to help utilities identify vegetation risks near power lines and prioritize tree trimming efforts. By using a layered approach that combines cameras and satellites, valuable situational awareness is achieved, aiding in efficient fire suppression strategies.
Investing in Fire Suppression Technologies
Investments in fire suppression technologies focus on combating wildfires once they have started. Companies like Rain are developing autonomous drones for rapid initial attack, delivering firefighting measures in the critical early minutes of a fire. Other startups are working on innovative solutions such as new chemicals for safer and more environmentally friendly fire suppression and machinery for efficient and controlled prescribed burning, promoting landscape resilience. Hardware-intensive solutions require significant capital investment, while software-based companies may have a capital-light approach.
Addressing Home Protection and Air Quality
Investments are being made in startups that aim to protect homes from wildfires and improve air quality. Companies like Delos provide improved homeowners insurance by better evaluating wildfire risk. Startups like Fire Maps analyze homes to assess wildfire defensibility and incentivize homeowners to make improvements that reduce risk. Additionally, there is a focus on developing technology for air filtration systems in homes, offering whole-home filtration for smoke and other airborne pollutants. As air quality deteriorates due to wildfires, these solutions become crucial for public health and safety.
Bill Clerico is an investor at Convective Capital. He is an early investor in 50+ companies, and he is the former CEO of WePay which was acquired by JPMorgan. In this conversation, we talk about Bill's investment thesis - his entire firm is focused on investing in technology, software, & hardware related to wildfires. Bill and his team are looking for startups that are trying to help mitigate, treat, & prevent all of those issues.
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Pomp writes a daily letter to over 235,000+ investors about business, technology, and finance. He breaks down complex topics into easy-to-understand language while sharing opinions on various aspects of each industry. You can subscribe at https://pomp.substack.com/
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