Validere raises $7M to bring IoT and AI to oil and gas sector
October 31, 2018
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Validere, a venture-backed oil and gas IoT and artificial intelligence platform, announced that it has raised $7 million in seed funding to transform oil and gas trading and logistics through reliable data and Artificial Intelligence (AI) insights.
According to a company press release, oil and gas companies currently use unreliable product quality data to make critical operational decisions. To address this problem, Validere is using Internet of Things (IoT) to radically improve confidence in product quality and AI predictive insights to guide optimal blending, logistics, and trading decisions. This optimization helps oil and gas companies get up to $9 more out of a barrel.
“More than $2T worth of crude oil is traded annually,” said Ian Burgess, Validere’s co-founder and CTO. “As oil constantly changes hands, batches mix together irreversibly changing the product’s quality. The industry largely bases important operational decisions on poor quality data. Our platform not only informs product quality reliably and in real time, but it also uses AI to help oil and gas companies optimize product movement.”
The financial backers include lead investor, Sallyport Investments, alongside Y Combinator, Real Ventures, Moment Ventures and ZhenFund.
A new round of funding will fuel Validere’s U.S. expansion and further the development of Validere’s new AI-powered blending, logistics, and trading optimization platform.
Doug Foshee, former CEO of El Paso Corporation and current owner of Sallyport Investments, added that “quality analytics represents a massive opportunity to push the industry forward. Validere’s strong cross-functional team, proprietary AI platform, and deep understanding of the industry uniquely positions them to add tremendous value to midstream and upstream businesses.”
Validere’s funding announcement comes on the heels of a breakthrough year, having successfully completed IoT and AI platform deployments with large Canadian oil and gas clients, and having recently expanded into the U.S. market by opening a Houston office.