Why BADideas.fund invested €220K in Value.Space

We invested €220K in Value.Space, our largest ticket so far. It uses satellites to spot damage to dams, bridges and mines.

Recently we made our biggest ticket to date when we decided to back Value.Space with a €220K check in their oversubscribed second close, a part of their €2.1M seed round.

Why Value.Space?

Value.Space uses satellite data to find problems early in dams, bridges and mines, so insurers, finance companies and governments can prevent damage.

It combines data from several maps and can look years back or at today. Aging and deteriorating infrastructure is a global problem, and climate change is only accelerating the risks associated with these structures. Right now Value.Space's technology helps insurers assess risks more accurately and effectively, providing them an edge over competitors.

Just one use-case could lead to 410,000,000 one-time assessments, generating up to €340B in revenue, and that’s without considering the potential of other sectors: governments, international organizations, large scale infrastructure owners, and more.

How we scored it

BADideas.fund evaluated Value.Space's potential based on four critical aspects: team, market, product/traction, and distribution. With a weighted score of 3.52 out of 4, our investors highlight a number of reasons why they believe in Value.Space:

✅ Team: A big part of Value.Space's appeal is its strong founding team, which boasts deep technical and domain (insurance) expertise. They've demonstrated the ability to engage policy makers, which is key in educating the market about their novel solution.

💡 Team is always hands down the most important aspect we look for so it was important that all investors were equally excited.

✅ Market potential: with a huge opportunity in the insurance sector alone, it was clear that the team operates in the right segment. This, alongside the experienced team and Value.Space's proprietary product, was the key consideration for Janis Krums.

✅ Product: the technology and its possible future uses, and the key reason why Lauris Lietavietis was excited to back them

✅ Distribution strategy: Ben Leblois pointed to the team's own experience with their target customers and their plan to reach product-market fit.

Value.Space's Growth and Risks

Value.Space has already achieved considerable traction, generating revenue and working with Tier-1 insurance companies.

However, as with any investment, there are risks. To name a few, sales cycles in insurance are long, and the market is highly concentrated. There's also the challenge of educating the market about this new approach. However, Value.Space is well-positioned to overcome these hurdles, given that the team has demonstrated the ability to engage policy makers and use funding to keep building the product in order to increase the number of assessments per month.

The recent €2.1 million funding round is a significant boost for Value.Space's growth plans. Not only will this allow them to capture a bigger market share in the insurance industry, but will also open doors for them to expand their product offer to other segments in the finance industry.

Value.Space in the Context of Climate Change

Climate change is damaging old infrastructure, and that costs economies a lot. Value.Space finds these risks before they cause damage.

As Reijo Pold, founder of Value.Space, puts it:

"The facts speak for themselves: Swiss Re estimates that in 2021, the economic loss from natural catastrophes amounted to $270 billion, $111 billion of which were insured losses. That is a huge protection gap. We are now able to provide a new and scalable way to make risks and opportunities quantifiable, which the insurance market desperately needs in order to manage and absorb future risks."