🌏 The Geography of Startups — Newsletter #1
A lot of news in finance and energy
Hello dear reader,
We’re back at it again with a new format.
Each week, we will cover startups solving geography-specific problems or those enabled by local context, as well as look at those expanding beyond their current markets.
This week:
Solar in Germany (and other energy news)
Making remittances free in Central America
And the British are expanding into Ireland
Location, Location, Location
Germany: Farming Goes Solar
feld.energy, a German company, has raised €1.7 million in pre-seed funding. The startup offers photovoltaic (PV) systems that generate electricity from agricultural land. feld.energy claims farmers could earn up to €4,000 per hectare, boosting their resilience against crop failures.
The Local Angle
57.8% of energy in Germany’s agricultural sector comes from non-renewable sources, but the country aims to generate 60% of its total energy from renewables by 2050. With 50.3% of Germany’s land used for agriculture, agri-PV could generate 2,900 GW. That would cover electricity consumption…for the whole world.
A typical German farm profits ~€800 per hectare annually. While I assume the €4,000 projected by feld.energy likely isn’t pure profit, that’s still a nice revenue contribution.
Germany’s reliance on fossil fuels, including imports from Russia, has made electricity prices volatile, making renewable solutions attractive.
Portugal: Offshoring Wind
Portuguese Gazelle Wind Power, which designs and builds offshore wind turbines, raised €11.4 million to finance its ‘grid-connected demonstrator’ in Aguçadoura, Portugal. The company promises a lighter, more compact, and cheaper solution compared to existing offshore wind farms.
The Local Angle
While Portugal isn’t a major player in offshore wind yet, it’s already generating three-quarters of its electricity from renewables, with 26.9% coming from wind. The country’s offshore wind potential is 10 times greater than its onshore potential.
Europe is aggressively pushing to expand its wind energy capacity. The EU plans to add 22 GW of new wind farms by 2030, and while most recent installations have been onshore, upcoming auctions are increasingly focused on offshore wind.
Germany: Recycling Instead of Mining
Tozero, a German startup that extracts raw materials like lithium, nickel, and cobalt from lithium-ion batteries, closed a €11 million seed round. The company currently operates a pilot plant, processing nine tonnes of batteries per day. Once scaled, Tozero aims for unlimited extraction capacity.
The Local Angle
Germany is expected to produce one-third of Europe’s lithium-ion batteries.
The country is the third-largest electric vehicle (EV) market in the world, trailing only China and the US. With Germany leading European car manufacturing, including BMW, Tozero’s Munich neighbor, there will be no shortage of demand for the final product.
Mexico: Saving Private Schooling
Mexican fintech company Cometa raised a $12 million Series A round to help local private schools optimize their financial operations. The company automates billing, sends payment reminders to parents, provides payment rails, and generates detailed financial reports.
The Local Angle
Mexico’s private school enrolment lags behind the Latin American average (11% vs 20%)—if it caught up, that would mean 2.25 million additional students and, you guessed it, a lot more billing.
90% of Mexican private schools are family-owned and struggling with business administration side of things.
Cometa isn’t just a management tool; it aims to help schools increase revenue. Although private school tuition in Mexico is relatively affordable (70% are in the $100-300 per month range), with 77% of schools earning from services beyond tuition, Cometa could help boost those extra income streams.
Mexico: Payday Helper
Minu, a Mexican wellness fintech, raised $30 million in a Series B round. The company provides a comprehensive benefits solution for both companies and employees, offering a wide range of services, from savings accounts and loans with preferential rates to financial education and reward cards.
The Local Angle
80% of Mexicans live paycheck to paycheck, with some needing loans to cover basic needs. Minu helps employees save and access loans with lower interest rates than traditional banks.
Only 55% of adults have bank accounts, and although not a traditional bank, Minu offers bank-like features to fill the gap.
Mexico’s employee turnover is among the highest in Latin America, with some reports claiming it reaches as high as 32%. Minu promises to reduce turnover by 20%.
Nicaragua: Freeing Remittances
Aiming to reduce remittances transaction costs, Tumoni, a company from Nicaragua raised $2.29 million in pre-seed funding. The company promises free remittances between Central America and the US. Tumoni operates as a traditional bank in the US, earning commissions on payments made at conventional retail establishments, similar to other banks. Thus, it allows the company to forgo revenue on remittances.
The Local Angle
To send money from the US to Nicaragua would on average result in a 4.6% commission. The UN’s plan is to bring the average commission globally to 3% by 2030. Tumoni promises to bring it to zero by year’s end.
Each year $45 billion is sent in remittances from the US to Central America, with $1-2 billion of that being lost on commissions.
Nicaragua alone received $4.2 billion in remittances last year, which made up a staggering 26.1% of the country’s GDP. Eliminating commissions would raise Nicaragua’s GDP by 1%.
From Here to There
Sympower: Scaling Energy Efficiency Across Europe
Sympower raised €21.3M in a Series B round to expand its energy flexibility platform further into Europe. The company helps manufacturers optimize energy usage and generate supplementary income by reselling excess energy. Currently, the Dutch firm is focusing on the Nordic and Greek markets.
Etpa: Expanding Energy Spot-Trading into Austria and Belgium
Dutch energy trading platform Etpa secured €5.5M to enter the Austrian and Belgian markets. The company specializes in energy spot-trading and currently operates in Germany and the Netherlands.
Ooodles: Growing IT Procurement Services in Ireland
British IT procurement company Ooodles raised $2.7M to establish operations in Ireland. Along with selling office equipment, Ooodles offers IT support, device loans, and decommissioning services.
Cervello: Bringing Low-Code ESM Solutions to Latin America
Brazilian Enterprise Service Management (ESM) provider Cervello raised $2.2M to expand beyond Brazil into other Latin American markets. Its low-code platform integrates processes across IT, HR, finance, and legal departments.