Invenergy Blog: February 01, 2017
Introducing the Invenergy Future Fund & Its First Investment: Aquilon, Improving Energy Trading
By Juan Muldoon, New Ventures
At Invenergy, our entrepreneurial spirit permeates our culture. We constantly look for ways to innovate and we encourage employees across the company – in every aspect of the business – to do the same. No creative idea is ignored.
As an extension of that spirit, we launched the Invenergy Future Fund to invest in businesses that are using technology to make the energy value chain more affordable, reliable and secure. Anchored by Invenergy LLC, and including outside strategic and financial investors, the Fund aims to leverage Invenergy’s engineering and operational expertise to source, diligence, and grow innovative businesses. The Fund invests in the application layer of technologies that specialize in Data Analytics & Cybersecurity, Distributed Energy Resources, Operational Efficiency, Energy Storage and New Power Generation.
A Next-Generation Robust Solution: The Invenergy Future Fund is thrilled to invest in Aquilon Energy Services and its platform designed to bring automation and efficiency to energy settlements in Power, Natural Gas, Crude, and for Independent System Operator (ISO) products. A large volume of monthly tie-outs have discrepancies and can take several days to properly reconcile. This slows down trading volumes, adds complexity to the audit process, and can create financial liabilities and costs for trading firms that have to maintain capital on their balance sheets to cover unsettled trades.
Improvements in cloud computing and the ability to aggregate and optimize data through software platforms allow companies to drive out inefficiencies in complex processes.
Aquilon Energy Services is developing the first cloud-based platform that enables buyers and sellers to automatically settle both physical and financial energy transactions. With Aquilon, traders can track, review, and approve transactions as well as identify discrepancies and collaborate with their counterparties to resolve issues – all through a single, simple and robust platform. Aquilon enables users to strengthen their financial controls and minimize risk effectively. As operators and traders ourselves, we understand the impact that this can have in the industry.
Strong Business Model: Aquilon unlocks massive growth potential with a capital efficient model: with “Pro” access, paying customers can use the portal to settle with all of their counterparties who in turn can use the platform to access the transaction data and invoices at a “Basic” access level. More users on the platform invite other counterparties, driving additional traffic and volume and amplifying the network effects. Major counterparties like Citi, Goldman Sachs, Macquarie, Invenergy, (all investors in the company) as well as Dynegy and Talen Energy are already signed up on the system, powering Aquilon on its way to becoming the gold standard in the industry. The growing strength of both the product portfolio and the counterparty network create powerful and self-reinforcing advantages that in turn fuel greater adoption.
Team: Aquilon is led by Jeff Wagner and Mike Egan, who previously worked together to develop Textura -- a similar platform for automating transactions in the construction industry (Textura went public and was recently acquired by Oracle). Jeff and Mike are seasoned entrepreneurs with experience building and scaling solutions for financial operations across a variety of sectors. The team is driven and – importantly – not afraid of dealing with a complicated industry. In addition to management, Aquilon’s strategic investors (Citi, Goldman Sachs, Invenergy, Macquarie) are committed to providing resources and support as Aquilon expands its product offering and develops the network, both crucial elements of the company’s success.
Our Value Add: Invenergy can drive broader industry adoption, provide insights into product development, and be a champion for the company.
Invenergy is helping to grow the volume and scale of Aquilon’s counterparty network, and we are committed to helping Aquilon reach a broad set of additional customers – from asset owners and operators to utilities and financial traders. Furthermore, as a progressive insider in the energy industry, we can help inform the design of additional solutions, particularly for ISO products.
We are excited to partner with the Aquilon team and our co-investors to bring solutions that lower costs, improve efficiency, and deliver better outcomes for the energy value chain.
Interested in joining Aquilon? Job openings are posted HERE.