Case Study > Venture Capital
Due diligence on a green ammonia production technology startup for a European growth fund
The client need
A European growth fund aimed to conduct technical due diligence on a startup developing a novel electrochemical process for producing renewable ammonia. The fund sought an assessment to evaluate the techno-economic assumptions, assess the technology’s overall viability, and compare it to conventional production methods (Haber-Bosch).
Additionally, the client required insights into the potential challenges related to broader industry adoption of the technology, particularly concerning scalability and regulatory hurdles.
Choosing Deepsense
Based on our proprietary, modular science-tech due diligence framework, Deepsense provided the client with a custom proposal tailored to their investment thesis, using technology-specific guidelines and subject matter expert input.
The due diligence was conducted by two complementary, high-profile experts with extensive industry and research experience from senior technical management roles at SABIC, Bayer, and BASF, as well as research roles at the Net Zero Innovation Institute and a leading UK university. The process was led by a dedicated in-house professional at Deepsense, supported by our experience with over 100 successful tech assessments.
After a kick-off call to thoroughly understand the investor’s investment thesis, timeline, and access to the target, the experts conducted a detailed review of technology documents, technical memos, techno-economic assessments, competitor analyses, and CO2 abatement calculations. They assessed the fundamental science behind the electrochemical process, its scalability, and the potential technical risks compared to established methods, as well as the techno-economic aspects, followed by a management call with the founding team.
As the deliverable, a comprehensive written summary report was provided, covering the evaluation of the technology, including a side-by-side comparison with conventional methods, key value drivers, key risks and related actionable mitigants, and critical milestones. In a final debrief call, we proposed strategic next steps, including key questions for the management team and recommendations for further technical validation.
Outcomes
With Deepsense’s insights, the client was able to dive deep into the critical assumptions underlying the investment opportunity. Our approach delivered a comprehensive assessment with clear, explicit output, focusing on key risks, actionable mitigants, milestones, and value creation opportunities. This enabled the fund to make a scientifically informed decision, ultimately supporting a more robust investment process as they evaluated whether to proceed with the investment.
Additionally, the final report was shared and discussed with the target company to enable value creation opportunities and provide portfolio support.
