協業事例

[Commemoration of Investment]
Interview with Mr. Scott Graybeal, Representative of Caelux Corporation, and the venture capitalists of 31VENTURES and Global Brain.

2023-9-25

31VENTURES, the CVC (Corporate Venture Capital) of Mitsui Fudosan, has invested in Caelux Corporation, a pioneer in utilizing perovskites to make solar energy more powerful and cost-effective. We had an interview with Mr. Scott Graybeal, the representative of Caelux Corporation, about the business overview, strengths of the business, and future prospects. Additionally, Mr. Shun Nakano, who was responsible for this investment at 31VENTURES, and Mr. Sho Ohtani from Global Brain , co-operator of the CVC fund, will share their evaluation criteria and the background of this investment.

[Part 1: Interview with Mr. Scott Graybeal, Representative of Caelux Corporation]

"We want to leverage our three strengths: 1. high technical expertise, 2. strong business model, and 3. the presence of strategic partners, to achieve the world's first full-scale launch of perovskite solar cells."

First, please tell us about the business overview.

We have developed proprietary technology related to perovskite solar cells to improve the power generation efficiency of silicon-based solar modules, which are widely used worldwide, at a low cost. Perovskite solar cell is a next-generation solar cell technology that, theoretically, can achieve cost-effective mass production by high power generation efficiency even in thin-film form and coating methods. We are developing a product called 'CaeluxTM One,' which integrates perovskite solar cells into the glass protective panel of existing silicon-based solar panels. While conventional silicon-based solar cell typically achieve an efficiency of around 20%, we believe that we can achieve approximately 30% power generation efficiency by combining the bottom silicon-based solar cells with the top perovskite solar cells of 'CaeluxTM One'.

Next, please tell us about the unique aspects and strengths of your business.

First and foremost is the high level of technical expertise. We have a team of exceptional R&D professionals to establish a complete production technology process, from the molecular structure design of perovskite to mass production. Secondly, our strong business model. We position ourselves as suppliers offering glass protective panels with integrated perovskite solar cells to solar module manufacturers, so solar module manufacturers are our customers. In contrast, many competing companies developing perovskite solar cells also manufacture solar modules, putting them in direct competition with solar module manufacturers. Lastly, the presence of highly valuable strategic partners. In our recent Series A3 funding round, the strategic partners we needed to drive our business forward have invested capital. Among them, we expect Reliance Industries, one of the India's largest conglomerates, to be a strong partner in supporting the downstream value chain of our business, because they acquired REC in 2021, a well-established solar module manufacturer, and they plan to operate mega solar plants in India. We hope that Mitsui Fudosan will assist us in expanding our market presence in Japan and Southeast Asia."

What are the current development challenges?

The biggest challenge is the prevention of moisture ingress. The photovoltaic material of perovskite solar cells is highly sensitive to water, and even a single molecule of water can lead to degradation. However, through multiple outdoor demonstrations using prototypes, we have started to see potential solutions. In the future, we will mitigate the moisture ingress and improve the durability to practical levels in larger-scale production of Minimum Viable Products (MVPs).

Lastly, please tell us about your future outlook.

In the near future, we aim to achieve full-scale operation of the pilot factory currently under construction in California, USA, and achieve the production of Minimum Viable Products (MVPs). Subsequently, we aim to achieve mass production of 'CaeluxTM One' as the world's first full-scale launch of perovskite solar cells. We would like Mitsui Fudosan to assist us in conducting PoC demonstrations, starting with Japan and Southeast Asian countries.

Mr. Shun Nakano from Mitsui Fudosan 31VENTURES (left) and Mr. Sho Ohtani from Global Brain(right).

Please tell us about the points you evaluated when making this investment.

Mr. Ohtani: This applies to startup investments in general, but it's important whether the startup is targeting a large market when we consider investments. We calculated the market size for solar cells by application, and founded that outdoor solar power generation, such as mega solar and rooftop installations on buildings, is currently the largest market and a future growth driver.

Based on this, we conducted a thorough analysis to determine whether Caelux Corporation, with its unique strengths of high efficiency and low cost of perovskite solar cells, could become a startup capable of innovating the huge market of existing silicon solar cells. As a result, we concluded that Caelux Corporation was ahead of other startups developing perovskite solar cells targeting the vast solar cell market. However, even though they are at the forefront, it's still uncertain whether they will succeed in bringing their product to market and achieving widespread commercialization. Therefore, we evaluated this investment opportunity as having a favourable market but with development risk.
Furthermore, regarding the attractiveness of perovskite solar cells in general, in addition to their high efficiency and low cost, they also possess new features such as “generating power even in low light conditions”, “flexibility”, and “thinness”. These attributes open up opportunities for expanding their use in applications like indoor IoT or adhering to building walls, which can contribute to the growth of the market.

Mr. Nakano: From Mitsui Fudosan's perspective, we highly value the potential of future collaboration with Caelux Corporation to increase renewable energy generation. Mitsui Fudosan has formulated a 'Group Action Plan for Achieving a Decarbonized Society' to achieve net-zero emissions by 2050 and is actively working towards its realization. From a user's perspective, it's clear that simply generating renewable energy indoors is a limited contribution to achieving net-zero emissions. We believe that large scale power generation is necessary to approach net-zero emissions, such as outdoor solar power generation and mega solar facilities.

Mr. Ohtani: Furthermore, from a geopolitical perspective in various countries around the world, there were several favourable aspects as well.

Mr. Sho Ohtani from Global Brain

Mr. Nakano: In the United States, the Inflation Reduction Act (IRA) has been enacted, and there are numerous subsidies available for domestic decarbonization-promoting companies. In India, there are protection policies in place to protect domestic manufacturing, such as high tariff barriers on imported goods from foreign countries, including China. Additionally, in March 2023, Ministry of Power in India selected Reliance Industries for economic support in the solar module sector. We believe that if Caelux Corporation collaborates with Reliance Industries to produce perovskite solar cells in India, it would create a competitive advantage against Chinese competitors.

Mr. Ohtani: Furthermore, in considering this investment, we had the opportunity to engage in discussions not only with Reliance Industries but also with globally renowned venture capitals such as Khosla Ventures and Temasek. All of the investors held Caelux Corporation's prospects in high regard, and we were able to confirm their intention to support the company in the future. This further reinforced our decision to proceed with this investment.

Please tell us about the process leading up to the investment in Caelux Corporation.

Mr. Ohtani: In the Strategic Technology Investment (STI) team at Global Brain, we conduct research to identify next-generation innovative technologies that have the potential to shape markets in the next 5 to10 years. We analyze global players in these emerging markets and proactively approach promising startups that seem to benefit from being early leaders in those markets. Caelux Corporation was included in our list of promising startups in the perovskite solar cell space, and we had our initial meeting in June of last year. At that time, Caelux had not yet conducted fundraising activities, and Reliance Industries' participation had not been announced. At that point, we thought that it was early to consider an investment and decided to continue communication for the next fundraising round.

Mr. Nakano: Rounds where well-known VCs participate like in this case often fill up quickly with investment commitments. It's a fundamental strategy in startup investing to establish early communication with promising startups and secure investment opportunities when the timing is right.

Mr. Ohtani: In negotiations with startups, it's crucial to consider what investors can offer to the startup. In this case, we needed to respond to Caelux Corporation's question, "Why Mitsui Fudosan?"

Mr. Shun Nakano from Mitsui Fudosan 31VENTURES

Mr. Nakano: In addition to Mitsui Fudosan’s real estate business operations worldwide, we have taken steps towards reducing emissions from our owned properties. We currently own five mega solar power plants in Japan for self-supply, and we have also installed solar panels on the rooftops of commercial and logistics facilities. We believe that such achievements were evaluated and appreciated.

Expectations for Caelux Corporation in the future and expectations for startups working on decarbonization Deep Tech.

Mr. Ohtani: Caelux Corporation has announced its aim to start mass production in early 2024, while other competitors in China have also publicly stated their intentions to begin mass production of perovskite solar cells around the same time. We anticipate that the market entry competition will intensify in the future. However, we have high expectations for Caelux Corporation to become what we might call a 'first penguin', and we are also eager to support them in achieving this.

Mr. Nakano: At this point, none of the companies developing perovskite solar cells have a product ready for mass sales. The fact that we invested in Caelux Corporation despite the absence of a product reflects our strong belief in their potential.

Mr. Ohtani: Investment in Deep Tech space like this, where the market is undeveloped and no product has been launched, is inherently high-risk. We explained to Mitsui Fudosan the results of our extensive research and analysis, but we also acknowledged that there were still unknown aspects. Ultimately, Mitsui Fudosan decided to proceed with the investment, taking it seriously as part of their commitment to achieving the goal of 'net-zero emissions by 2050' and obtaining understanding and support from related departments within their organization.

Mr. Nakano: Even for 31VENTURES, investing in startups without a track record of product sales is quite uncommon. However, the achievement of net-zero emissions by 2050 has become a company-wide challenge, and we believe that it is essential to actively explore decarbonization technologies. Since CO2 emissions are particularly significant when we construct and operate buildings, we are also focusing on technologies of decarbonizing building materials, improving energy efficiency in buildings, and generating renewable energy.

Mr. Ohtani: As a message to startups in the Deep Tech space, I would be delighted if we could start with a conversation. I come from a research background, so I understand how challenging it is to explain the potential of cutting-edge technologies to investors. Personally, as a venture capitalist in the Deep Tech space, I strive to provide a comfortable environment for discussions. I do my research and preliminary studies prior to meetings and make an effort to engage in conversations with startups, using technical terminology when necessary. I look forward to hearing from startups in the Deep Tech space all over the world.