Where We Want to Invest: Value from the Air
We’ve been on a quest to find startups that can produce valuable products directly from the air for more than two years. This endeavor began with water; our investment thesis has been, simply: “Pure water in the palms of your hands.” With global warming looming, resources dwindling, pollution locked into existing processes, and attitudes toward keeping the planet functional shifting, it seemed like smart, ambitious, clever people should be taking up this challenge. But initially, we saw disappointing levels of entrepreneurial activity.
This year, though, somebody must have flipped the entrepreneurial switch. Suddenly, we’re seeing many startups extracting value from the air, not only in water, but in many other surprising areas.
Here are a few of the companies we’re looking at now:
Water. Aquaria makes potable water from humidity. Their units can serve as backups to traditional water systems or as standalone water systems for remote homes or worksites. The science here is somewhat akin to that of a heat pump — super clever and it really works.
Diamonds. Aether Diamonds is building gems from the air. Their process pulls carbon from the atmosphere and squeezes it into diamonds- no mines, no massive water use, and no runoff. Traditional diamonds produce 143 pounds of emissions per carat, but this process is carbon negative and saves 127 gallons of fresh water typically used in mining. Plus, since the process takes place above ground, these diamonds can be created anywhere, and so aren’t subject to the geopolitical machinations that roil traditional diamond production.
Food. Air Protein is turning greenhouse gases into next-gen meat. They have a bioreactor process that translates the gases into small protein-rich pellets that can then be shaped into multiple kinds of meat replacements.
Materials. Through a process called biochar, which uses pyrolyzed biomass with high carbon content as its basis, Made of Air creates thermoplastic compounds that produce a wide range of materials. They are currently working with car companies on carbon-negative replacements for traditional materials.
Another company, Newlight Technologies, is using microorganisms from the ocean to create a plastic-like biomaterial called AirCarbon. They make carbon-negative eyewear and purses, as well as plates and other food services products. Dell Computers is now using AirCarbon for PC packaging!
Perfume. Air Company makes Air Eau de Parfum, a fragrance made from the air by capturing CO2. Using a process similar to photosynthesis, the company breaks the waste gas down into pure alcohol and then builds it back up into a perfume. The production of this luscious and environmentally beneficial product actually reduces greenhouse gas-causing compounds.
Vodka. The same company uses the same process to produce carbon-capturing vodka. Air Vodka is utterly pure so not only helps the environment but ostensibly produces the smallest possible hangovers.
We are excited by these companies and expect to see many more brilliant approaches here. We feel that decoupling key processes like food, beauty, and water from their traditional locations and methods holds great promise for lifting the health and happiness of people worldwide, and look forward to being active investors in this space.
By Managing Partner Mike Edelhart
@MikeEdelhart
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