GenLogs

Freight Intelligence Product Launch + SPV Opportunity

Background: GenLogs is a supply chain & logistics technology company that uses proprietary data + AI to track and analyze US long-haul freight in real-time. In the US, there are 27K brokers tasked with moving $1T of goods each year by placing loads from shippers on one of the 4M trucks operated by 500K individual carriers. Today, brokers attempt this market matching without the single most important piece of data for doing it efficiently: the location of each of these trucks at any point in time. Vast amounts of data are being generated by the trucking industry daily, including mobile-ad-IDs and electronic logging devices. The issue is that this data is anonymized and thus not linked to a specific truck. The same problem applies to satellite imagery and traffic camera data that only reveal the presence of a truck at a certain time and place without identifying the specific vehicle (DOT number, carrier name, etc). GenLogs has developed a proprietary approach for solving this problem scalably and without need for permission from individual truck owners. By deploying only sensors across the US to act as virtual gates, GenLogs is able to generate a distinct ID for each truck that passes a sensor that can be used to deanonymize the previously mentioned datasets. This breakthrough allows GenLogs to passively track all trucks in real-time using a fusion of disparate datasets, including satellite data, mobile ad IDs, and public traffic cameras. Using this data, GenLogs is developing best in class tools for the trucking industry.

Update: As of the end of Q2, GenLogs booked $1.6M in ARR across 14 customers with an average contract value (ACV) of $118K. These bookings were all a part of GenLogs pilot release that capped the number of customers to ensure product quality before opening the product up to their growing waitlist of customers. Their top contract is with Knight-Swift Transportation, the largest full truckload carrier service in the US, at $300K per year. GenLogs' now counts 4 of the Top 20 US truck carriers as customers as well as the 7th largest freight brokerage. GenLogs has also continued to expand its team with high quality recruits. To keep up with growing demand, GenLogs hired a head of product to speed up development - Heather Holcomb, ex-Head of Product at PayPal. They have been able to secure high quality talent at below market rates for equity compensation. Candidates have had a strong desire to join the company due to its high quality performance. With this, GenLogs was able to release two products during this quarter.

By breaking their originally planned Freight Intelligence Platform into two products, Asset Locator and Freight Intelligence, GenLogs has been able to recognize more revenue sooner and increase product pricing. The lower price Asset Locator that carriers can use to quickly identify missing and stolen equipment serves as an instant way to demonstrate the power of GenLogs' data. Within two weeks of releasing the Asset Locator, GenLogs located 36 lost or stolen trailers accounting for $1.44M of equipment. One customer has since gone on to recover $5M worth of stolen and missing equipment.

Seeing the power of GenLogs data in Asset Locator makes customers willing to quickly convert to the premium, ~$118K ACV Freight Intelligence Platform. We highly recommend watching a demo of the GenLogs Freight Intelligence Platform to understand the impact of the product. Despite leading GenLogs seed round less than a year ago, the company is already demonstrating breakout performance. Initial customer feedback shows that we should preempt the Series A raise with a term sheet to accelerate hiring and scale the product and features. GenLogs has enormous growth potential once they begin onboarding customers from their waitlist. We see a clear path for them to close $1M in ARR per month based on current ACVs and accelerate even faster the following year as they grow their sales team.

We at Steel Atlas have received immense interest from external investors and family offices to facilitate a direct investment into GenLogs. As Fund I LPs, we would like to give you priority for this Special Purpose Vehicle (SPV). If you are interested in participating, please contact Cameron or Talal immediately to secure an allocation.

Transmutex

Saudi Delegation Visits Geneva & LOIs with Belgium + Canada

Background: Transmutex, founded in 2019 in Geneva, is reinventing nuclear energy for a safer, cleaner future. Transmutex's innovative approach addresses the core concerns associated with nuclear energy, notably waste, safety, and proliferation. Transmutex's technology is a significant advancement in carbon-free energy generation that is deployable around the world. Unlike traditional fission systems, Transmutex's system can use multiple types of fuels, including thorium, by using a particle accelerator to drive a safer, non-self-sustaining reaction. Applications of this technology are extensive including; efficiently breeding new fuel to replace uranium enrichment, enabling a new thorium-based fuel cycle for national security, burning the existing stockpile of long-lived nuclear waste to lower long term costs, and scalably producing medical radio-isotopes for cancer treatments. Transmutex has also developed simulation software with applications beyond nuclear energy.

Update: Transmutex's primary focus is securing a government commitment to lead the construction of their first-of-a-kind system (FOAK). With that, we at Steel Atlas have worked to bring Saudi Arabia to the table as a potential partner. Transmutex has been simultaneously engaging Belgium, Canada, India, and others. With these efforts, we hope to create a competitive process for the FOAK to ensure Transmutex receives the best terms possible for the system. This July, Talal led a delegation of nuclear scientists from the Saudi Ministry of Energy on a visit to Transmutex in Geneva. Transmutex's non-proliferant system is uniquely positioned to bring nuclear power to Saudi Arabia as the country has traditionally been held back by the US due to the proliferant nature of the traditional uranium fuel cycle. The delegation included the Head of Saudi Nuclear Planning, Dr. Mohammed Garwan, from the King Abdullah City for Atomic and Renewable Energy (K.A. CARE). This is the government body tasked with developing civilian nuclear energy in Saudi Arabia.

During this past quarter, Belgium's and Canada's federal particle accelerator programs (MYRRHA in Belgium, TRIUMF in Canada) LOIs to deploy Transmutex's system using their existing infrastructure and licensing. Assuming, these LOIs move forward to binding agreements under the expected terms, these would be a huge win for three key reasons:

Accelerated Licensing: The sites in Belgium and Canada are already licensed for nuclear systems. This would mean accelerating Transmutex's timeline by at least two years.

Shared Costs: These partnerships would enable for shared development costs, lowering the amount of equity financing Transmutex needs to raise.

Reusable Infrastructure: In Belgium, MYRRHA has already broken ground on the first portion of the particle accelerator. In Canada, TRIUMF already has an operational cyclotron. Both of these components can be used by Transmutex to build and test their system faster.

To fund these efforts, Transmutex plans to raise a Series B in the next 6-9 months. We are also considering a small Special Purpose Vehicle to continue to accelerate Transmutex's transition to this commercialization phase of the business. If you are interested in learning more, please reach out to Cameron or Talal.

Group1

World's First Potassium Ion 18650 Cells Delivered

Background: Group1 is commercializing potassium-ion batteries (KIBs) which are poised to become a significant player in the energy transition, offering an attractive alternative to lithium-ion batteries due to their cost-effectiveness, resource availability, and environmental benefits. Unlike traditional lithium-ion batteries, which rely on critical minerals sourced from regions of geopolitical instability, KIBs utilize potassium, a more abundant and cheaper alternative. This reduces supply chain vulnerabilities. Group1's KIBs are critical-mineral-free and "drop-in" compatible with existing LIB infrastructure, ensuring a capital efficient path to scale. KIBs are on path to having energy density on par with LFP-based LIBs, comparable cycle life, faster charging, and superior low- temperature performance.

Update: Increasing battery performance will remain the top priority for Group1. However, with Group1's announcement of the world's first18650-sized potassium-ion battery (KIB), they will begin introducing their cells to customers. Group1 expects that the initial product will be well-received by customers with supply chain concerns around lithium and a desire for improved low-temperature performance. One example of this customer type is Lockheed Martin.

Customers will be charged for these initial samples. This approach ensures that only serious inquiries are pursued, encouraging commitment to subsequent stages of collaboration. These initial contracts will allow Group1 to continue to improve cell performance while scaling their manufacturing capabilities, which is currently at 1 ton of cathode material per year. This incremental process is needed to meet the requirements of the large automotive OEMs. Group1 announced the world's first 18650 KIB cell at one of the marquee battery conferences called "Beyond Lithium", hosted for the 14th time by Oak Ridge National Labs. Per Alexander Girau, CEO of Group1, "this innovation represents years of dedicated research and product development. By distributing samples to our partners among Tier 1 OEMs and cell manufacturers, we are paving the way for widespread adoption of this transformative technology."

The 18650 form factor is the most widely used cell format. Group1's new 18650 batteries use commercially available graphite anodes, separators, and electrolyte formulations, enabling an easier path to scale relative to other chemistries, such as sodium-ion. Group1's cells offer superior cycle life and excellent discharge capability, operating at 3.7V. This release exceeds our initial performance expectations and demonstrates a practical path to achieving a gravimetric energy density of 160-180 Wh/kg, which is standard for LFP-LIB used by the automotive industry. In our last quarterly update, we indicated that Group1 would be pursuing a $20M Series A. After an initial set of conversations with investors, this process has been put on hold so that Group1 can demonstrate the commercial viability of its cells.

Hedral

Wins Grant from US Department of Defense

Background: Hedral is an AI structural engineering firm based in New York that enables real estate developers to build faster, cheaper, and with lower environmental impact. Today, Hedral is already the most efficient structural engineering firm in the world, delivering stamped drawings and 3D building models to developers 10x faster than legacy firms. Hedral's core technology automates the creation of the drawings and models that takes traditional firms weeks to months to produce manually. This is positioning Hedral to roll-up the fragmented, multi-hundred billion dollar market for construction design and engineering.

Update: After closing an oversubscribed Seed round led by Silicon Valley veteran, Vinod Khosla of Khosla Ventures, Hedral has made product development improvements and begun negotiating contracts with the US Department of Defense (DOD). The DOD is looking for AI-driven solutions to optimize building design across disciplines, codes, and site conditions to save time and money for their domestic base build outs. The US DOD's National Security Innovation Network (NSIN) recently held a competition to identify potential technology providers. Not only did Hedral win first prize and $175,000, Hedral will now be able to win sole-source contracts (i.e. contracts without a bidding process) from the DOD. From the NSIN announcement:

Hedral's solution edged out the others with an approach based on generative AI and advanced computational geometry and physics. The solution not only automates design work while optimizing cost and constructability — taking into account the metrics required by the challenge — but also produces more accurate cost models. This approach delivers unprecedented productivity while minimizing costly mistakes and requests for information and change orders that can emerge downstream in the design process. The goal is be able to execute real-time adjustments across multiple disciplines—foundation, architecture, structural, mechanical, and electrical engineering—by considering factors like local codes, site conditions, and historical designs to expedite design exploration, develop optimized design solutions in terms of cost, schedule, and performance, and produce more accurate cost models," explained Mark Edelson, Program Executive Officer for Industrial Infrastructure.

Going forward, Hedral will negotiate sole source contracts from the US Navy through the Program Executive Officer for Industrial Infrastructure (PEO II). PEO II is the executive responsible for cost, schedule, and performance of the Navy's $21B effort to integrate facilities, utilities, and industrial plant equipment investments to meet nuclear fleet maintenance requirements. This represents a significant long-term revenue opportunity for Hedral. Hedral plans to focus on Type 2 structures, also known as non-combustible construction. Type 2 structures are often used for simple but expensive builds like data centers, warehouses, and government buildings. Although this is where Hedral has seen the most success to date, they also recently booked projects retrofitting offices into hotels and designing large complex skyscrapers in the Middle East. Until now, Hedral has been operating in stealth (without marketing their services or technology). However, with the DOD announcement Hedral is already receiving enough inbound that they are preparing a self-serve version of their internal tooling. The first tool will allow potential customers to immediately get an estimate of Hedral's work to see the massive cost difference between them and legacy players. We expect this to expedite Hedral's sales process going forward.