The startup brings AI and IoT to the oil and gas industry to introduce more transparency. “More than $2 trillion worth of crude oil is traded annually. As oil constantly changes hands, batches mix together irreversibly changing the product’s quality. The industry largely bases important operational decisions on poor quality data,” said Ian Burgess, Validere’s co-founder and chief technology officer
The company aims to solve this issue by using IoT to make product quality reliable, consolidating and automating validated data on a single platform and use artificial intelligence to produce predictive insights that guide optimal blending of oil barrels, logistics and trading decisions.
With its platform and by improving these areas oil and gas companies can apparently get between $5 to $9 more out of a barrel according to a company report.
The startup was created at Harvard by Burgess who completed his PhD in applied physics at the university and also holds a bachelor in math and physics from the University of Waterloo, and his co-founder Nouman Ahmad, who previously worked for Toronto fintech startup Apexa.
Since its inception, Validere has graduated from Toronto’s Creative Destruction Labs and California-based Y-Combinator. It first launched its platform in Western Canada in 2016 and is headquartered in Toronto with offices in Calgary and and most recently Houston.
Earlier this year it was named one of Canada’s most innovative technology startups by the Canadian Innovation Exchange.
According to the release, this recent funding announcement adds another achievement onto a successful year for the company which deployed its IoT and AI platforms with large Canadian oil and gas clients and recently expanded to the U.S. as well.
It’s most recent funding round was backed by Sallyport Investments, Y Combinator, Real Ventures, Moment Ventures and ZhenFund.