Kleppe, Norway,  31 July 2024: AI Seed has successfully exited Observe Technologies with the recent buyout by Norwegian firm AKVA. As one of the first investments in the specialist AI aquaculture feeding business for fish stocks, AI Seed has seen its pre-seed commitment multiply eightfold. The full exit deal had a maximum value of £20.7 million, with AKVA increasing their ownership to full control from a 33.7% share.

Observe Technologies developed its own AI to provide actionable insights for fish farm owners and operators, enabling them to create the best and healthiest environment for fish to grow, reduce food and antibiotic waste, and maintain monitoring to respond to any deviations. The AI provides alerts to farmers when to increase or decrease feeding, with the software continuously learning at a per cage level to provide optimum conditions. Collectively Observe’s AI delivered huge efficiency gains for operators with an easy plug-and-play system.

The acquisition by AKVA complements its in-house digital products in the same markets as Observe Technologies, now known as AKVA Observe. Global giants AKVA specialise in precision farming solutions as well as broader aquaculture projects, both land- and sea-based.

Commenting on their success, Managing Partner, Jacques de Cock said:

“Observe Technologies is an exemplar of a vertical AI application that pinpoints its ability to scale. What might be seen as niche does not necessarily mean low commercial viability, it means potential market dominance. The team at Observe Technologies knew their market, knew how AI could deliver real bottom-line transformations, and knew how this would result in better-quality produce for salmon farms, a traditional low-tech industry.

“It was easy to make our decision on whether to invest due to Observe Technologies’ thorough market research, sector expertise and in-house capability to develop their AI platform. Coming in at the pre-seed stage, we helped the team gain momentum and secure their first commercial deals, which are necessary for any start-up.

“When we commit to investment in vertical AI firms, we provide more than cash flow. From an investment perspective, we assisted the team at Observe Technologies with technical AI support and customer acquisition before negotiating their exit to AKVA.

Our AI investment strategies focus on vertical, proprietary AI with a medium- to long-term outlook, with a founding team combining deep market knowledge and deep AI expertise. This is the only way to unlock sustainable value in the forever-shifting AI marketplace.