PitchIT No. 3 - SLY

For our third issue, we'll take a look at SLY: a startup aiding in the fight against wildfires using cutting-edge software and sensors.

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Sep 21, 2023

Hello! I’m Alessio from Ulixes Capital Partners and I’d like to welcome you to PitchIT: a weekly snapshot describing one of the most interesting early-stage companies in the Italian startup ecosystem (in 3 minutes or less). For our third issue, we'll be taking a look at SLY: a startup aiding in the fight against wildfires using cutting-edge software and sensors.

In a sentence:

Accelerating decarbonization by effectively mitigating wildfires.

Problem:

Wildfires contribute to approximately 18% of total global carbon emissions. However, since wildfires follow a fat tail distribution, curbing just the top 1% of these fires could reduce wildfire-induced emissions and overall damage by 50%. SLY’s focus is on mitigating fires deriving from powerlines, which are responsible for 10% of all fires and 20% of the damage caused.

Why now?

The frequency and intensity of wildfires are on the rise due to climate change, causing vast devastation, while response resources are remaining relatively unchanged. Historically, large scale fire detection has been either slow, expensive, or both. As technology has significantly advanced and become more affordable in recent years, there is now an ideal alignment between demand and supply to support SLY’s solution. By harnessing technology to detect wildfires in their earliest stages, identifying the events that pose the most significant risk, and optimizing the response, SLY saves crucial time and resources, and significantly mitigates the environmental impact. In addition, direct to satellite connectivity of sensors ensures seamless communication from the most remote areas.

Market:

SLY operates in the forest fire detection and prevention markets, which compose SLY’s TAM and are collectively estimated to be worth $11B globally in 2023. Within those markets, SLY focuses on the ground-based sensing segment, which is estimated to be worth $1.8B in 2023 growing to $9.7B by 2030, implying a CAGR of 27.1%. Considering 30% of this market, SLY’s SAM is estimated at $540M.

Business model:

SLY utilizes an enterprise B2B sales model. Their initial target customer-base is powerline operators in the electric utility sector, but they are also engaging the oil/gas pipeline industry, as the technology can monitor right-of-way integrity. SLY tailors their solutions to each customer, focusing on long-term partnerships. Their revenue model comprises:
- An IoT solution of edge IA sensors and gateways, sold per-unit, to detect early-stage wildfires
- A subscription-based platform
- Custom premium features

Team:

Davide De Marchi, Co-Founder and Head of Science: Previously, Davide conducted studies at Harvard Medical School working on cutting-edge machine learning techniques with applications in the field of computational biology. He holds a PhD in Bioengineering and Biomedical Engineering from Università di Pavia.
Kseniya Lenarciak, Co-Founder & CEO: Previously, Kseniya had a 10-year corporate career in high finance at BlackRock culminating with a senior leadership position running institutional client relationships in Canada. She holds an MBA in Investment Management from Concordia University and is a CFA charterholder.
Max Lenarciak, Co-Founder and Head of Platform: Previously, Max led a team of developers at a $100+ billion asset management firm implementing machine learning algorithms using edge computing technology on bare-metal servers. He holds a Masters in Management and is a CFA charterholder.
SLY’s broader team is composed of seven people, primarily based in Calabria, including PhDs and Engineers with deep expertise in the fields of microcontroller PCB board design, SMT manufacturing, sensor fusion, signal processing, artificial intelligence, localization, and decision support platform development.

Traction/Achievements:

Manufactured and deployed data-gathering sensor devices on a large-scale beta in southern Italy during the 2023 burn season
Currently engaged in active proof-of-concept discussions with three major corporates: a systems integrator, an oil & gas producer, and a solutions provider to electric utility companies
Participated in B4i’s Acceleration program and CDP’s Zero CleanTech acceleration program, as well as in Innovit - the Italian Innovation and Culture Hub in San Francisco

Basic info:

Founding Date: 02/2023
Headquarters: Calabria, Italy
VAT: 03902410798
Employee Count: 7
Past Investors: CDP VC, B4i
Stage: Seed round in progress

Contact info:

For more information about SLY, please reach out to Kseniya, co-founder/CEO:

Email: kseniya@sly.eco
Phone: +39 334 741 7560
Website: http://www.sly.eco/

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The sole purpose of the present company assessment (the “Pitch”) is to give to the recipient some additional background elements to decide whether to proceed with an investigation of the company who is the focus of the aforementioned Pitch (the “Company”). This Pitch is based on information, data, and estimates provided by the Company which may be inaccurate and may have not been audited, and publicly available information which have not been independently verified by Ulixes Capital Partners Srl. Any estimates and projections contained herein have been prepared by the Company and involve significant elements of subjective judgment and analysis, which may or may not be correct. This Pitch should not be considered as a recommendation by Ulixes Capital Partners or the Company or any of its direct or indirect shareholders and subsidiaries to invest in or otherwise acquire any interest in the Company.