BLUE

ECONOMY
IMPACT INVESTING THESIS
 Table of
CONTENTS

01 Executive summary

02 Industry overview

06 Climate impact and main challenges

09 Targeted solutions and startups of interest

10 Blue economy tech

11 Climate tech and blue economy tech

investment landscape

16 Sources of information

17 Disclaimer of liability
Executive Summary

Blue Economy Climate Tech investments lay where Blue Economy Tech and Climate Tech overlap and therefore
makes the following trends attractive for an early-stage VC-impact fund:

1. Reducing GHG emissions

Reduce, Recycle and Replace Plastics: (Ej. Bioplastics).
2. Preserving & Enhancing Ocean Sinks
Investment Thesis
Conservation and Restoration of Marine Ecosystems: (Study, observation, conservation and restoration of
ocean resources).
3. Reducing GHG and Preserving & Enhancing Ocean Sinks
Improvement of Aquaculture and Fisheries Practices: (RAS Systems, digital monitoring, genetic species
improvement, bycatch reduction devices, electronic monitoring, maritime surveillance, among others,
enhance sustainability and reduce environmental impact).

The blue economy encompasses various economic activities related to the ocean, which is essential for ecological
balance and climate control, but is threatened by overexploitation and pollution, among other threats. In 2020,
these activities generated significant economic output in the EU, especially notable in Spain, which led in
employment and contribution to Gross Value Added (GVA).
Industry Overview
We have identified 4 value chains that include all of the economic activities of the Blue Economy, but we have
focused on the 2 that affect, both positively and negatively, the health of ocean resources, and that depend
entirely on those resources (Direct Exploitation of Living Ocean Resources and Conservation & Restoration of
Ocean Resources).

The Blue Economy's expansion, driven by unsustainable practices such as industrial fishing and destructive
techniques like longline fishing and bottom trawling, has led to significant marine biodiversity loss, impacting
essential ocean functions like carbon sequestration and oxygen production.
Climate Impact and The industry is facing some trends and challenges that are increasing the volatility, complexity and scrutiny
Main Challenges throughout the value-chain:

1. Socio-demographic challenge: Feeding a growing population sustainably.

2. Climate change challenge: Protect & Restore Marine Ecosystems to move to zero-emissions.

In order to address key industry challenges, we’ve identified targeted solutions based on their “TAI” (Total
Addressable Impact) → Number of Gt CO2-eq reduced / sequestered 2020-2050 (1Gt = 1bn ton)
Top 3 Targeted Solutions and their TAI:
Targeted Solutions and
Gt CO2-eq reduced/sequestered 2020-2020 Gt CO2-eq reduced/sequestered /year
Startups of Interest
1. Conservation and Restoration of Marine Ecosystems 11.54 0.38

2. Reduce, Recycle and Replace Plastics 9.57 0.32

3. Improvement of Aquaculture and Fisheries Practices 7.04 0.24

Blue Economy Tech encompasses all startups operating in the 10 value chains of the corresponding segments.
Blue Economy Tech However, we focus on the 5 segments we encompass in i) Direct exploitation of living ocean resources and ii)
Conservation & restoration of ocean resources, either upstream or downstream.

In 2023, total investment in Venture Capital and Private Equity dropped 50.2% to US$638 billion, with ClimateTech
funding down 40.5% but increasing its share to 11.4% of total private market equity. On the other hand,
investment notably rose in industrial emissions-focused startups to 14%, while energy remains underfunded
ClimateTech and relative to its 34% emission contribution.
Blue Economy Tech
Investment Landscapes In 2023, the Blue Economy's investments reached $3.1 billion, marking it the second highest year despite a 32%
decline from 2022, and showing a robust long-term growth of nearly 300% over five years, outpacing sectors like
ClimateTech and Fintech, with significant leadership in investment from the U.S. and Europe.

1
 INDUSTRY
OVERVIEW

The Blue Economy is the combination of economic activities that exploit, directly or indirectly,
the resources of the sea, activities that use it as an instrument, and activities that conserve and
restore its resources.

On the one hand, to better understand the The growing importance of the oceans in the global
dimension of the ocean's role in the planet's economy and in the fight against climate change
environment and climate, it is important to know has boosted efforts for their sustainable
that it covers more than 70% of the Earth's management, resulting, for example, in the
surface and plays a key role in maintaining the incorporation of UN Sustainable Development Goal
Earth's ecological balance. Ocean systems include 14, which promotes the conservation and
vast depths that vary from the sunlit epipelagic sustainable use of the oceans and highlights the
zone, essential for photosynthesis that supports target of protecting 30% of the seas by 2030. Ocean
complex marine food chains, to the bathypelagic management includes economic zones and
and abyssopelagic zones, in perpetual darkness. international areas, with a key development being
the 2023 High Seas Treaty, which establishes
According to Project Drawdown, the ocean Marine Protected Areas outside countries'
absorbs up to 17% of CO2 emissions and more jurisdictional waters and regulates activities such
than 90% of excess human-generated heat, as deep mining. This treaty builds on other
functioning as a crucial carbon sink for mitigating initiatives such as the United Nations Convention
climate change. It also produces approximately on the Law of the Sea and regulations against
70% of the oxygen we breathe, highlighting its illegal fishing and on maritime transport and
essential role in human survival and well-being. represents a significant advance in ocean
Despite its importance, only 1.5%[1] of the ocean protection.
are Marine Protected Areas (MPAs). This is
worrying, considering that the ocean faces serious Given that the Blue Economy comprises a broad set
threats such as warming, sea level rise, acidification of economic activities, each independent of the
and pollution from sources such as oil spills, toxic others, we have focused primarily on the two
chemicals and plastics, including ghost nets and value chains whose direct activity not only has
microplastics. In addition, the loss of biodiversity the greatest impact on the health of the oceans
poses a serious risk to its health and sustainability. and their resources, but which are also
completely dependent on it.
On the other hand, on a more economic level, the
Blue Economy, if considered as a nation, would be Although we only focus on these two value chains
the eighth largest economy in the world, with a (they are identified with an * below), it is important
gross marine product of $2.5 trillion annually in to note that we have classified the activities
goods and services[2]. The value of ocean assets belonging to the Blue Economy as follows:
has been estimated at $24 trillion[3]. However, if
we continue to do what we have done so far, the
potential economic damage increases from $400
billion per year in 2050 to $2 trillion in 2100 if the
current deterioration in its health continues[4].

[1] Data from the World Wildlife Fund (WWF) [3] Data from the World Wildlife Fund (WWF)
[2] Data from the World Economic Forum [4] Data from the High Level Panel for A Sustainable Ocean Economy

2
INDUSTRY OVERVIEW

a) Direct exploitation of ocean resources:

i) Living resources*: The direct exploitation of In economic terms, it generated in the EU more
the living resources sector ranges from pre- than €19.4 billion Gross Value Added (GVA) and
harvesting to distribution of renewable ocean recorded a turnover of approximately €119 billion
living resources. This sector faces significant in 2020. Although employment has decreased
challenges due to external factors such as slightly, Spain remains the largest employer in the
recent increases in energy and fuel costs sector, standing out for its significant contribution
following the conflict in Ukraine. to GVA and employment.

Production Transformation Distribution and Consumption

Pre-Harvesting Harvesting Landing & Transport Processing & Packaging Wholesale Retail Consumer

Input Companies

Fishers
Fish Farmers

Logistic companies

Seafood companies (processors and canneries)

Retailers

End-consummers

Biotechnology Companies Agrifood / Cosmetics /

Pharma / Energy

3
INDUSTRY OVERVIEW

Fishers & Fish Logistics Seafood Biotechnology

Input Companies Retailers Different Sectors
Farmers Companies companies Companies

Fishing:
38.98M people
#Players (4.56M vessels) 100s of
Thousands Millions
Globally Aquaculture: thousands
20.53M people (+2M
fish farms*)

Fishing:
Motorized vessels-
SMEs (local trade)
63% (<12m-82%)
/ Startups/
Small, medium Aquaculture: Small and Biotech Startups/
Multinational Fishmongers/ Cosmetics &
Size range and large Hatcheries/ medium-sized SMEs/
(local & Supermarkets Pharma
companies Specialized fish companies Multinationals
international Multinationals
farms/
trade)
Generalist fish
farms/
Fishing:
Shipbuilding &
Genetic
refit/
improvements and Dietary
Fishing gear/
Primary vaccines/ supplements/
Bait/ Fish/ Transport and
Processing/ Commercializati Novel foods and Skin care and
Equipment/ Crustaceans/ refrigerated
Products / Secondary on/ nutrients/ anti-aging/
Aquaculture: Mollusks/ storage/
Segments processing/ Marketing and Disease control and Pharmaceuticals/
Hatchery and Aquatic plants/ Customs
Packaging and promotion health management Antibiotics and
genetics/ By-products management
labeling solutions/ other medicines/
Feed/
Bioactive Biofuels
Health mgmt/
compounds
Tank
manufacturers/
Fishing:
Fishing:
Hyundai Heavy
Maruha Nichiro, Marubeni
Industries
Nippon Suisan America, Maruha Walmart, Sea Balance,
Aquaculture: DHL, Dachser, Amgen, Gilead,
Top Players Kaisha, Mowi Nichiro, Jealsa Carrefour, Sarga Agriscience,
Skretting, AKVA Maersk Line AbbVie, Biogen
Aquaculture: Foods Costco Ficosterra
group, Cargill
Mowi, Cooke
Aqua Nutrition,
Aquaculture
Zoetis

EU Gross Value Harvesting: €4.8 Processing: €5.6 Distribution:

Added billion billion €8.9 billion

Marine pollution,
GHG emissions,
GHG
Seafloor GHG
emissions,
degradation, GHG emissions, emissions,
Environmental Marine pollution, Food and GHG emissions,
Ecosystem Food and Food and
Impact GHG emissions packaging waste, High resource
destruction, packaging waste packaging
High water consumption
Overfishing & waste
consumption
bycatch (Biodiversity
loss)

Recirculating
Aquaculture
Genetic Microalgae-based
Systems (RAS), Smart Sensors
Innovation Improvement of Nutrients &
Aquaculture for Ocean Photobioreactors
Themes Species, Bycatch Supplements,
Digitalisation, Monitoring
Reduction Devices Biofuels
Electronic
Monitoring Systems

Source: The EU Blue Economy Report 2023; Blue Invest Investor Report: An ocean of Opportunities; FAO: The State of World Fisheries and
Aquaculture 2022

4
INDUSTRY OVERVIEW

ii) Non-Living resources: Extraction from the For an ocean resource restoration project to be
ocean of non-living resources (oil, gas, effective and therefore successful, it is crucial that
minerals), generation of marine renewable ocean resources are protected from the damage
energy (waves & tides), and water management. that led to their need for restoration, both before
and after the restoration process. Ensuring that the
area is protected from previous threats throughout
b) Indirect exploitation of ocean resources:
the restoration process ensures the long-term
Offshore energy generation (wind & solar),
sustainability and effectiveness of the restoration
Shipping & port activities and coastal tourism.
efforts. Such protection can include cleanups,
recurrent monitoring, education and awareness,
c) Conservation & Restoration of ocean
and the implementation of protective regulations
resources*:
and legislation.
In recent times, there has been an increased
interest in activities related to the study,
observation, conservation and restoration of ocean
The standard process undertaken by players and
resources. This is due to increased public and
activities dedicated to conservation efforts shapes
government awareness, as well as increased
the subsequent value chain:
regulatory pressures focused on promoting
sustainable exploitation of ocean resources.

Data Collection & Processing Project Development Monitoring

Environment Protection Environment Regeneration

Marine Researchers & Academics

Input Companies (equipment, structures, seeds,

Input Companies
surveillance cameras & sensors)

Local Communities

Restoration companies

NGOs

Needs funding from NGOs or Governmental entities

5
 CLIMATE IMPACT AND
MAIN CHALLENGES

Understanding the climate impact of Blue

Economy activities on the ocean, requires
understanding it as a network of complex and
interconnected ecosystems, rich in resources
and sub-ecosystems that depend on the
biodiversity they harbor [5]. Economic growth
driven by the Blue Economy has led to the
overexploitation of marine resources, based on
the false premise of their inexhaustibility. In this
scenario, industrial fishing stands out as one of
the most harmful practices, not only because of
its greenhouse gas emissions but also because of
its direct impact on marine biodiversity. It is crucial to emphasize the loss of biodiversity
because of its fundamental importance in
Fishing has eliminated 90% of the world's maintaining ocean balance, which directly impacts
large fish [6], an alarming sign that underscores CO2 uptake by large marine animals such as
the seriousness of the situation. This practice is whales and supports vital processes such as
photosynthesis and oxygen production carried out
considered the greatest threat to marine life,
by phytoplankton. These microscopic plants
destabilizing food chains and entire ecosystems.
depend on a diverse marine ecosystem to thrive,
Techniques such as longline fishing, with the which in turn contributes to the "biological pump".
ability to deploy lines that would circle the Earth This process involves the absorption of CO2 during
500 times in a single day, and bottom trawling, photosynthesis and the subsequent sinking of
which emits enormous amounts of GHG, worsen dead organic matter in the deep ocean, effectively
the situation. These activities not only threaten sequestering carbon. In addition, dissolved CO2
ocean wildlife with bycatch of non-target species, participates in chemical processes that regulate the
but are also responsible for plastic pollution, as ocean's carbon cycle and influence its acidity. The
depletion of marine biodiversity, therefore,
up to 70% (by weight) of the macroplastics found
threatens key processes such as carbon
floating on the ocean surface are related to
sequestration and oxygen production, crucial to
fishing. the health of our planet and our survival. Thus, it is
imperative to mitigate the negative impact of
fishing on the ocean, and sustainability must
become a priority in blue economy policies.

With the above in mind, the Blue Economy faces a

number of challenges that need to be addressed.
The most impactful are: Socio-demographic
challenge and Climate change.

% of large fish

[5] [6] Data from the United Nations (UN)

6
CLIMATE IMPACT AND
MAIN CHALLENGES

1. Socio-demographic challenge: feeding a This phenomenon has devastating socio-economic

growing population sustainably consequences for the countries concerned and
their coastal communities. The presence of these
Today, +3 billion people rely on seafood as their massive fleets depletes local fish stocks, severely
main source of protein [7]. With a projected affecting the local economy and food security of
population of 10 billion by 2050 on our planet, the these communities, which are mostly represented
demand for these resources can only be expected to by artisanal fishermen and poor people.
increase. This growing demand intensifies pressures
on the oceans and exacerbates the scarcity of
natural resources, putting additional pressure on 2. Climate change: protect and restore marine
marine species, a third of which are already ecosystems to preserve the ocean as a carbon
overfished. In addition, due to unsustainable sink
fisheries management, 72 million people are
unable to feed themselves with the 16 million The changes that climate change is causing in the
tons of seafood per year that could be caught ocean fall into two main categories: physical and
through the adoption of sustainable fishing chemical changes [10]. First, physical changes
practices [8]. include ocean warming, climate velocities and
marine heat waves; sea level rise; changes in ocean
The situation is exacerbated by pollution and the circulation, stratification and coastal upwelling; and
effects of climate change, which seriously threatens modifications in sea ice. On the other hand,
marine species and their ecosystems. In 2019, one chemical effects include ocean acidification, ocean
third (35.4%) of global fish stocks were deoxygenation and changes in nutrient availability.
overexploited [9], indicating unsustainable
management of marine resources. The alarming The physical impacts of climate change are
scarcity of these resources is manifested, for widespread and profound. Ocean warming is
example, in the disappearance of 90% of large causing poleward shifts of marine species, altering
predatory fish such as sharks, tuna, marlin and ecosystems and food chains. Climate velocities,
swordfish in recent decades and that more than half which indicate the speed and direction of change in
of Mediterranean shark and ray species are at risk of ocean habitats, force species to adapt, migrate or
extinction. If the current course is not changed, it is face possible extinction. In addition, marine heat
projected that by 2050 there will be more plastics waves are becoming more frequent and severe,
than fish in the sea. causing coral bleaching on an unprecedented scale.
Rising sea levels threaten coastal communities,
The overexploitation of national waters in developed eroding beaches and increasing the salinity of
countries has in recent years driven the rise of what aquifers. Changes in ocean circulation, stratification
is called "neo-colonial fishing". This practice involves and coastal upwelling alter nutrient distribution,
large fishing fleets, generally subsidized by their impacting primary productivity and fish stocks.
countries of origin, traveling long distances to the Likewise, changes in sea ice, especially in polar
exclusive economic zones of African countries to regions, not only affect dependent species such as
exploit their not yet overexploited fishery resources. polar bears and seals, but also modify atmospheric
and oceanic circulation patterns, influencing global
climate.

[9] Data from the United Nations (UN)

[7] Data form the World Wildlife Fund (WWF)
[10] Data from Intergovernmental Panel on Climate
[8] Data from the Marine Stewardship Council (MSC)
Change (IPCC)
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CLIMATE IMPACT AND
MAIN CHALLENGES

In terms of chemical changes, ocean acidification, 2.2. Reduce, Recycle and Replace Plastics →
caused by the absorption of atmospheric carbon 5.61-9.57 Gt CO2-eq reduced/sequestered
dioxide, is lowering the pH of the water (2020-2050)
(acidification) and complicating the formation of
skeletons and shells in organisms such as corals and Bioplastics represent an innovative approach to
mollusks. Deoxygenation is creating dead zones that traditional plastics production, as they use
cannot support aquatic life, negatively impacting plant-based raw materials instead of fossil fuels.
biodiversity and fisheries. In addition, changes in This alternative not only tends to generate
nutrient availability, driven by both warming waters fewer emissions, but can also result in
and altered currents, could reduce ocean biodegradable products. Similarly, plastics
productivity and alter species composition, thus recycling saves energy compared to the
affecting human food security and the global production of new materials, reduces
economy. dependence on fossil fuel-derived raw materials
and contributes to waste reduction. In addition,
A recent study indicates that trawling, the production of plastics has increased
considered the most destructive method for considerably in the last century, especially for
marine biodiversity, is also one of the largest short-term applications. By reducing the use of
sources of greenhouse gas (GHG) emissions, plastics in non-durable goods, significant
contributing approximately 1% of total annual progress can be made in reducing both
global emissions [11]. Although CO2 emissions greenhouse gas emissions and the
from industries directly related to the exploitation of accumulation of plastic waste.
marine resources are not the most significant
globally, the combination of these emissions with 2.3. Improvement of Aquaculture and
extractive activities presents a considerable Fisheries Practices → 4.01-7.04 Gt CO2-eq
environmental challenge. To move towards a goal of reduced/sequestered (2020-2050)
net zero emissions and simultaneously preserve
marine ecosystems, ensure food security and Aquaculture, fisheries and seaweed farming are
safeguard human health, it is crucial to focus on the key to sustainability in marine resource
following main objectives: management. In the aquaculture sector, where
57% of greenhouse gas emissions come from
2.1. Conservation and Restoration of Marine feed raw material production, fishmeal
Ecosystems → 8.37-11.54 Gt CO2-eq production, feed mixing and transportation [12],
reduced/sequestered (2020-2050) it is crucial to seek more sustainable
alternatives. Fisheries management reform
Restoration and protection of coastal wetlands, focuses on combating overfishing and
including mangroves, salt marshes and seagrass preserving ecosystems, thereby improving
beds, are crucial to reactivate and preserve their carbon sequestration. In addition, the
carbon sequestration functions. expansion of algae cultivation not only
facilitates carbon sequestration, but also
Similarly, protection and restoration of increases biomass production for various uses,
macroalgal forests enhance seafloor carbon such as biomass for biofuels, bioplastics,
sequestration. Protecting the seafloor by livestock feed and human consumption.
restricting trawling and creating marine
protected areas is essential to maintain carbon-
rich sediments. These integrated strategies are
vital to mitigate climate change through
sustainable management of marine ecosystems.

[11] Data from Frontiers in Marine Science

[12] Data from Project Drawdown (PD)

8
 TARGETED SOLUTIONS AND
STARTUPS OF INTEREST
In this section, we present a list of targeted solutions in the Blue Economy sorted by the Total Addressable Impact (“TAI”). The TAI is based on the projected emissions impact globally
and measured by the Gigatons CO2-eq reduced/sequestered (2020-2050). This list is extensive but not exhaustive, and we continue to add to it as a living project.

Furthermore, we have identified a bunch of startups, both local and globally, that are contributing to these solutions.

9
 BLUE ECONOMY TECH

Blue Economy Tech encompasses all startups operating in the 10 value chains of the i) Direct exploitation of living ocean resources and ii) Conservation & restoration of ocean
segments mentioned in the following section 5 “ClimateTech and Blue Economy Tech resources, either upstream or downstream, which are (Aquaculture, Blue Biotechnology,
Investment Landscape”. However, we focus on the 5 segments we encompass in: Blue Tech & Ocean observation, Environmental protection and regeneration and,
Fisheries).

Direct Exploitation of Living Ocean Resources Conservation and Restoration of Ocean Resources

IMPROVED FISHERIES IMPROVED AQUACULTIURE BIOPLASTICS & RECYCLED PLASTICS

Alternative Seafood
PLANT BASED LAB GROWN BLUETECH AND OCEAN OBSERVATION

Source: Dealroom

10
 CLIMATE TECH AND BLUE
ECONOMY TECH INVESTMENT
LANDSCAPE
Clarification: ClimateTech encompasses the technologies that are explicitly focused on
reducing GHG emissions across the 5 grand challenge areas: Industrial Manufacturing, Energy,
Agrifood, Mobility and Transport and Buildings. Blue Economy Tech, however, does not fall into
this group as its primary goal is not to reduce GHG emissions nor does it generate as many
emissions as these industries. Instead, it is focused on protecting and restoring the health of
ocean resources and sustainably exploiting them

In the current context, total investment in Venture

Capital and Private Equity experienced a significant
decrease of 50.2% (year-over-year), reaching US$638
billion in 2023. However, specific investment in
ClimateTech startups decreased by 40.5% during the
same period. Despite this reduction, the proportion
of ClimateTech investment within total private
market equity and grant investment increased to
11.4% in Q3 2023, showing a 10% year-over-year
growth.
Data for 2023 is current through the third quarter of the year.
Source: Pitchbook, PwC analysis.

There is an increase in investment in sectors with Notably, the energy sector, which is the principal
high environmental impact, especially in industrial emitter accounting for 34% of emissions, continues
manufacturing. This year, ClimateTech investors to see disproportionate investment relative to its
invested a larger share of funds to startups focused environmental impact, with recent investments
on industrial emissions, reaching 14% between Q4 making up about 29%. This indicates ongoing
2022 and Q3 2023, compared to less than 8% in underinvestment. In contrast, the mobility sector
previous periods. In addition, CO2 capture, experiences substantial overinvestment, receiving
utilization, and storage is one of the few areas of around 45-50% of funding despite contributing 17%
ClimateTech that has seen an increase in to emissions.
investment.

Note: Sumes may not total 100 due to

rounding. Sectoral emissions are allocated
to the end-use sector.
Source: IPCC, Pitchbook, PwC analysis.

11
INVESTMENT LANDSCAPE

Despite the decline in early stage deals, the Climate Blue Economy Tech Investment Landscape in
Tech sector continues to attract new investors and, 2023
even with the decline in investment, the current
market is perceived as an opportunity for savvy Clarification: For the Blue Economy Tech
investors due to lower valuations and a wider Investment Landscape in 2023 study, we will
selection of investment opportunities. consider the following 10 sectors (even though our
Blue Economy investment thesis is not focused on
some of them as explained above):

Key sectors Short Definition

Aquaculture The cultivation and farming of aquatic organisms in a way that has minimal impact on air, water, quality and on fish welfare.

The application of science and technology to aquatic organisms in order to produce knowledge, goods, and services, in
Blue biotechnology
compliance with sustainability practices.

The offshore, inshore, and nearshore generation of clean and renewable power from natural sources, including wind, wave,
Blue renewable energy
tidal and solar

Blue tech and ocean The activities, technologies and infrastructure involved in ocean data collection, modelling and prediction, including for
observation maritime security and defence.

Coastal and maritime The activities involved in providing services four tourism in and around coastal or marine environments that contribute to
tourism sustainable development in the local area

Environmental protection The protection and regeneration of marine ecosystems, including activities to prevent ocean pollution and restore and
and regeneration strenghten biodiversity in coastal areas.

Fisheries The sustainable harvesting of naturally occurring living resources in both marine and freshwater environments.

Shipbuilding and refit The products and services required for building, maintenance, repair and refitting of vessels for environmentally
responsible water transport.

The activities associated with ensuring sustainable maritime transport ecosystem, including the transportation of freight
Shipping and ports
and passengers by water and port services.

The services and infrastructure required for sustainable water collection, purification, desalination, decontamination and
Water management
distribution, as well as for sewage and waste treatment.

Source: Blue Invest Investor Report: Unlocking the potential of the Blue Economy

In the last 10 years, the Blue Economy has

Blue Economy VC funding globally
experienced impressive growth, multiplying its
investments by almost x10. According to recent
data, 2023 closed with $3.1 billion of investment in
the Blue Economy startups, positioning it as the
second best year in its history, second only to 2022.

Despite this strong growth track record, investment

in the Blue Economy saw a 32% decline from 2022 to
2023. However, this decline is considerably smaller
compared to other sectors, such as the entire
startup industry or Climate Tech, which experienced
steeper declines over the same period. This
phenomenon reflects a consolidation in the Blue
Economy after years of accelerated expansion.
Source:Dealroom

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INVESTMENT LANDSCAPE

In 2023, the United States and Europe led

investments in the Blue Economy, each with $1.3
billion. Asia experienced modest growth of 2%.
However, there were significant declines in
investment, with a 49% drop in the U.S. and a 57%
drop in other regions.
Source:Dealroom

Comparatively, the Blue Economy has shown growth Despite a significant 33% decrease in value from
of nearly 300% in the last five years, surpassing 2022 to 2023, indicating a recent market
other sectors such as ClimateTech and Fintech, contraction, the sector has demonstrated explosive
highlighting its emerging importance within the long-term growth from a possibly low base. This
technological and sustainable landscape. The Blue suggests that while it faces short-term volatility,
Economy is currently valued at $3 billion in 2023. there is a growing interest in its potential for
sustainable development.

Source:Dealroom

In conclusion, the Blue Economy ecosystem is still at Aquaculture → $556M of investment in 2023
an early stage of development relative to more
mature Venture Capital markets, such as Fintech or VC funding in aquaculture startups has reached a
even the broader ClimateTech space, indicating record level in 2023, growing 3x since 2021. The
ample opportunity for innovation and investment as major innovations in the sector to make these
it continues to evolve. practices more sustainable are:

As our Investment Thesis focuses on the Direct Recirculating Aquaculture Systems (RAS):
Sustainable Exploitation of Ocean Living Resources Reduces environmental footprint significantly by
and the Conservation & Restoration of Ocean recycling water and optimizing resources, with
Resources, within these two value chains, the great scalability and adaptability.
following sectors are found:

13
INVESTMENT LANDSCAPE

Aquaculture Digitalisation: Enhances monitoring

and management of aquaculture environments,
improving operational precision and reducing
waste. Significantly aids in the early detection
and prevention of diseases, increasing fish
health and reducing mortality rates.

Genetic Improvement of Species: Boosts

productivity and sustainability per species with
disease resistance and feed efficiency
improvements, but carries ethical
considerations.

Blue Biotechnology → $204M of investment in Blue Tech & Ocean observation→ $155M of
2023 investment in 2023

VC funding in Blue Biotechnology peaked at almost VC funding in Bluetech and ocean observation
$300M in 2022, then dropped 1/3 in 2023. Almost peaked at $255M in 2022, then dropped 40% in
$900M have been invested since 2016. The major 2023. Over $1B has been invested since 2016. The
innovations in the sector to make these practices major innovations in the sector to make these
more sustainable are: practices more sustainable are:

Photobioreactors: Enable controlled cultivation Smart Sensors for Ocean Monitoring and Vessel
of photosynthetic organisms, providing a Recognition: Utilizing advanced sensor
sustainable source of biomass for bioenergy, technology, these systems collect real-time
CO2 capture, and valuable bioproducts. Their environmental data such as ocean salt content
efficient use of space and reduction of and temperature. They provide comprehensive
contamination risks make them pivotal for insights into underwater ecosystems and vessel
environmental sustainability efforts. conditions.

Microalgae-based Nutrients & Supplements: Unmanned Sea Systems for Data Collection and
These products harness microalgae's rich Surveillance: Employing drones, underwater
nutritional profile, including proteins, vitamins, robots, and other automated systems, these
and essential nutrients. They offer sustainable technologies gather real-time data from the
protein sources essential for global food security ocean. They are used for various purposes
and nutritional needs, especially where arable including environmental monitoring, rescue
land is scarce. missions, and enforcement of maritime laws.

Biofuels from Marine Resources: Marine-based Digital Technologies for Ocean Observation: This
biofuels provide cleaner, sustainable alternatives solution incorporates high-performance
to fossil fuels, reducing environmental pollution computing, AI, big data, and the Internet of
and dependency on non-renewable resources. Underwater Things (IoUT). These technologies
This innovation is key to the global energy enhance the connectivity and data processing
transition and environmental conservation. capabilities of underwater monitoring systems.

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INVESTMENT LANDSCAPE

Environmental protection and regeneration→ Fisheries→ $38M of investment in 2023

$108M of investment in 2023
The fisheries startup sector is very nascent, having
VC funding in Ocean environmental protection and attracted just over $250M since 2016. The major
regeneration has increased strongly in the last two innovations in the sector to make these practices
years. Over $300M have been invested since 2016. more sustainable are:
The major innovations in the sector to make these
practices more sustainable are: Bycatch Reduction Devices: These devices use
advanced technologies like lasers, LEDs, sensors,
Solutions to Prevent Ocean Plastic Pollution: and IoT to selectively target desired species
These innovations use artificial shorelines and while deterring others, significantly reducing
floating devices to capture plastic waste before it bycatch and improving fishing sustainability.
enters the oceans, significantly reducing
pollution and protecting marine life from harm. Electronic Monitoring Systems: These systems
utilize sensors, computer vision, and machine
Carbon Removal Technologies: This approach learning to monitor and record detailed
includes sequestering carbon on the deep-sea information about fish catches, helping to
floor and transforming CO₂ into valuable manage quotas and improve the survival rates of
products, effectively reducing greenhouse gas bycatch through rapid return to the ocean.
emissions and promoting sustainable industry
practices. Maritime Surveillance Technologies to Prevent
IUU Fisheries: These technologies include drones
Nature-based Solutions (NBS) to Restore and and advanced sensors that provide real-time
Regenerate Marine Environments: These monitoring of fishing activities, enhancing the
solutions involve constructing protective ability to prevent illegal fishing practices and
structures and regenerating vital habitats like support sustainable fishery management.
coral reefs, helping to preserve biodiversity and
tackle global challenges like climate change
through natural methods.

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SOURCES OF
INFORMATION
REPORTS

The EU Blue Economy Report 2023 (European Commission, 2023)

Investor Report: An ocean of opportunities (Blue Invest, 2023)
State of the oceans (Statista, 2023)
The State of World Fisheries and Aquaculture (FAO, 2020)
Tracking Blue (High level panel for a Sustainable Ocean Economy, 2022)
Value Chain approaches in Fisheries Planning (CRFM, 2014)
Atmospheric CO2 emissions and ocean acidification from bottom-trawling (Frontiers, 2024)
Blue Economy (Dealroom, 2024)
IPCC Sixth Assessment Report; Chapter 3: Oceans and Coastal Ecosystems and their Services (IPCC,
2022)
The State of World Fisheries and Aquaculture (FAO, 2022)
Investor Report: Unlocking the potential of the Blue Economy (Blue Invest, 2024)
State of Climate Tech 2023 (PWC, 2023)

NEWS

What is the blue economy? (The London School of Economics, May 2023)
Who are the main actors in the fishing industry? (Sinay, Mar 2023)
Sólo quedan el 10% de todos los peces grandes del mar (Climaterra, Aug 2023)
World missing out on nutrition for 72 million due to overfishing (MSC, Jan 2021)
África, el caladero de pesca neocolonial (EOM, Feb 2020)

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