TL;DR:
- Thread, a robotics startup, raises $15 million in Series A funding round.
- Investors include Badlands Capital, Minnkota Power Cooperative, and more.
- It was founded by Joshua Riedy, Jim Higgins, and Travis Desell, with a focus on energy asset digitization.
- Thread offers a self-contained device with AI algorithms for data collection from various energy assets.
- They compete in the market against traditional inspection services and drone-based providers.
- Notable customers include Xcel Energy and Constellation Energy.
- Collaboration with the U.S. Air Force on a $1.2 million contract for enhanced security.
- The funds will be used for talent recruitment and expanding product offerings.
Main AI News:
In a significant stride toward revolutionizing the utility asset inspection landscape, Thread, a pioneering startup specializing in robotics-driven data collection, has successfully raised $15 million in a Series A funding round. Spearheaded by Badlands Capital and bolstered by enthusiastic participation from influential players such as Minnkota Power Cooperative, Generational Partners, Rosecliff Ventures, Excell Partners, Homegrown Capital, and Kevin O’Leary’s Wonder Fund North Dakota, this financing underscores Thread’s commitment to reshaping the energy sector.
Thread was co-founded by Joshua Riedy, Jim Higgins, an experienced aviator, and Travis Desell, a distinguished computer scientist. Their journey began at the University of North Dakota, where they collaborated on developing software for FedEx. Drawing from this experience, they decided to channel their collective expertise toward the digital transformation and modernization of critical energy assets, particularly wind turbines.
The trio initiated their transformative journey by collaborating with Xcel Energy, a prominent regional investor-owned utility, in their digital transformation endeavors. With the initial backing from Microsoft’s TechSpark program, Thread emerged as a trailblazing company from North Dakota to secure a coveted Series A round.
In an exclusive email interview with TechCrunch, Joshua Riedy, Thread’s co-founder, emphasized the importance of their venture in the wake of the pandemic. He pointed out how the disruption in supply chains highlighted the energy industry’s reliance on third-party service providers for asset inspection and monitoring. Customers in this sector have long grappled with the challenge of digitizing assets and optimizing data and workflows associated with inspections and other asset management sources.
Thread’s groundbreaking product is a self-contained device equipped with an on-board processor, AI algorithms, and sophisticated back-end management software. This innovative platform autonomously collects data from a diverse range of energy assets, including oil, wind, gas, solar, power transmission, and distribution, by enabling customers to deploy and control drones and robots for asset monitoring.
Thread offers energy and utility operators a comprehensive suite of integrations that seamlessly pull in real-time asset data from their existing software stacks. Additionally, customers gain access to templated data pipelines, ensuring predictability and governance throughout the process.
Riedy emphasized the importance of Thread’s solution, stating, “By enabling customers to perform in-house, on-demand inspections, they’re able to create a digital record that represents asset health through the use of common methodology across entire ecosystems — including power generation, transmission, and distribution. The structure to be able to service data with analytics, as well as aggregate with other sources, gives C-suite leaders the opportunity to have comprehensive views of asset performance and maintenance strategies to manage financial and reputational risk.“
While the market offers various drone-based options for inspecting energy utility assets, Thread distinguishes itself by competing on three key fronts: traditional manual inspection service providers, drone service providers supplying pilots and software, and autonomous drone-based asset inspection providers with a focus on utility assets.
Noteworthy competitors in this space include Zeitview (formerly known as DroneBase), which recently secured a $55 million investment for its platform using airborne robotics and sensors to capture data about solar panels, turbines, and other assets over time. Aerones is building a robotics fleet for inspecting wind turbines, and Skyqraft offers a robotic powerline issue-detection system.
Thread has already gained traction with several key customers, including Xcel Energy, Constellation Energy, and Otter Tail Power. Additionally, they have established strategic partnerships with asset protection companies, including Mistras Group. Notably, Thread is collaborating with the U.S. Air Force to develop a drone system aimed at enhancing security at Grand Forks Air Force Base in North Dakota. The Air Force contract, valued at approximately $1.2 million, will fortify the base against threats, intrusions, and breaches, while reallocating resources to address other security concerns.
Joshua Riedy hinted at the potential for Thread to emulate the trajectory of Skydio, a drone startup that transitioned from the consumer sector to prioritize defense and law enforcement. However, Riedy emphasized that, for the time being, Thread remains steadfast in its commitment to the utilities industry.
Riedy shared insights into the allocation of funds from Thread’s Series A round, initially announced almost a year ago. The capital will be directed toward recruiting top-tier technical talent and launching Thread’s product for the inspection of power lines along highways. Moreover, Thread aims to bolster its business development efforts, including expanding its sales team and workforce, which currently consists of 50 full-time employees.
Conclusion:
Thread’s successful funding round reflects the growing demand for autonomous solutions in the utility asset inspection sector. With key partnerships and a strong customer base, Thread is well-positioned to make a significant impact on asset performance management. This signals a continued trend toward digitization and automation in the energy industry.
