Why I invested in Batch.Works

The end of 2023 was a very busy period for me, and I am very excited to announce that I angel invested in the latest funding round of Batch.Works , a circular manufacturing company aiming to to become the leading supplier of sustainable production and manufacturing capabilities to brands and designers around the world.

I am sure it is evident by now that Sustainability is a core pillar of my investment thesis, with several investments in energy storage, EV charging, biopackaging, seaweed tech, transport pollution reduction, circular economy solutions in fashion, etc. etc. - and I am always looking to support more opportunities that aim to reduce pollution and waste, in any form. And of course, when looking for solutions to reduce waste, you have to look at ones focusing on the manufacturing industry - why? because it is an industry that follows a pretty linear production approach, in which raw materials are mined or grown, transformed into manufactured goods, used for a period, and then discarded. Given Earth has finite resources and finite capacity to transform waste (did you know that 20% of the raw material types currently in use will run out in the next 50 years, and 35% of them within 100 years?), manufacturing must adopt a sustainable approach. Sustainable (or Circular, if you prefer) Manufacturing adopts a lifecycle approach, which recognises the interplay of the full product system, from acquiring or generating raw materials from natural resources to final disposal.

Manufacturing waste is a big problem. Here are some stats from PWC to highlight to scale of the problem: The construction industry produces 5.2 billion tonnes of concrete every year, which has a substantial impact on the environment, accounting for more than 5% of annual CO2 emissions; 1 kg cement production leads to almost the same amount of CO2 production; the yearly steel production of the Earth comes to 1.030 million tons, from which the construction industry accounts for 50%. And this is of course a global problem. Countries with a large manufacturing and industry economy, such as China (28%), the US (17%), Japan (7%) and Germany (6%) make up over half of all of the manufacturing output in the world (ECIU analysis). In the US, manufacturing accounts for almost a quarter (23%) of direct carbon emissions, according to the Environmental Protection Agency. In Europe the situation is equally dire: the industry emits an annual total of 880 million tonnes of carbon dioxide equivalents making it one of the largest emitters of greenhouse gases on the continent. ECIU says that the picture is slightly better in the UK, where manufacturing is responsible for a lesser proportion of emissions at 12%, reflecting that the UK has moved from a secondary economy (manufacturing) to a tertiary and services economy.

There is no question that a more sustainable, circular approach is required. In a Circular Manufacturing industry, products and parts are not thrown away or recycled in a low-grade way but, after inspection and processing, are used again in a high-quality manner. This means a radical change in the current way of producing, manufacturing and also selling. Designs become crucial, as they need to aim at an optimal lifespan. Products that can be adapted every time, so that they remain relevant for the user for much, much longer. And, if/ when there is no other option, recover usable and valuable materials as pure as possible, so that they can be repurposed and reused. By rethinking through the entire lifecycle use of products (with a circular/ sustainability mindset), many manufacturers would be able to reduce disposal and waste, by making their products available for lease or rent rather than selling them outright so that they can ensure proper product maintenance and extend the product lifespan. In addition to incentivising manufacturers to improve production quality in an effort to extend product life, this approach can also open the doors to new streams of revenue through service and support contracts.

As such, it is very encouraging to see activity and innovation in this space, pushing more circular ways of manufacturing. Most manufacturers now publicly list their Sustainability/ Net Zero initiatives, but as an early stage investor, on my watch list are companies like Molg (circular manufacturing for electronics companies using robotics), Agave Networks (pairing off the right manufacturing excess waste with the right consumers), Minus Works (bringing innovative products to the cold chain industry, including sustainable, high-performance coolant for the shipping of perishables), Rexcon (circular designed constructions systems for the building industry), Aectual (furniture & finishes manufacturing platform using XL 3D printing of recycled waste materials), and Kenoteq (sustainable brick with 95% less embodied carbon than a traditional masonry brick). And this is just a selection of a much longer (and, thankfully, growing) list of companies looking at innovative circular ways of solving the manufacturing waste problem.

So what is it about Batch.Works that stood out for me then? Batch.Works leverages circular materials, on-demand production, re-manufacturing, short supply chains, digital warehousing, and digital manufacturing to transform manufacturing with its circular capabilities, partnering with several clients in med-tech, retail, furniture, and consumer electronics to 3D print over 150,000 parts from bio-sourced or recycled materials. What I really like about Batch.Works is their sustainable and scalable business model, enabled by their proprietary tech. With one patent in progress and two more identified, Batch.Works combines hardware with software developed in-house: clients can get the parts they need on-demand (and 24/7) or subscribe (via monthly retainer) for more scalability (in effect a Circular Manufacturing as a Service model). So while the current revenue model involves design consultancy and direct manufacturing services, Batch.Works is launching a CMaaS subscription model to further innovate and disrupt traditional models. This forward-looking cloud-based warehouse and scheduling software will enable clients to internalise circular manufacturing processes for a monthly fee.

It should be no surprise then that Julien Vaissieres , founder and CEO, has managed to not only secure 1.8m in government grants, but also further financial support from Sustainable Ventures. Julien has a digital manufacturing master from ULB Belgium and over 10+ years of experience in 3D printing and DFAM and has successfully built a strong team of 19, including Milo Mcloughlin-Greening as Head of R&D and Jared Bellingham as Lead Engineer. But what has really impressed me with Julien, is his ability to not only innovate but also validate and commercialise. As other early stage investors would attest to, it is rare to see a team combining seamlessly product development with revenue generation; and more importantly, even at this early stages of development (and as the value proposition is still evolving), Batch.Works is able to demonstrate through its client work important CO2e savings and a significant reduction in parts needed.

As with all early-stage start-ups of course, there are (plenty) challenges ahead. Global supply chain issues (in what remains a challenging economic and geopolitical backdrop as we enter 2024) continue to create uncertainty. While initial commercialisation efforts to-date have been promising (Batch.Works is revenue generating), the business is still at the early stages of commercialisation and hasn't achieved full Product Market fit yet. The CMaaS revenue stream needs to be proven; scalability relying only on Direct Manufacturing is challenging, and a more agile, scalable (subscription-based) model will clearly differentiate Batch.Works from competition. And speaking of competition; as Circular Manufacturing becomes more recognised and popular, more tech-enabled/ digital Circular Manufacturing solutions are certain to emerge - to be amongst the winners, Batch.Works will need to continue to innovate whilst increasing the benefits to the end customer.

In summary, I am a big believer in the importance of circular manufacturing for our economies and our lives and hence, I am very proud to be supporting Batch.Works’ journey.