Chesapeake Bay Seed Capital Fund invests $200,000 in Dynamhex
COLLEGE PARK, Md.—The Chesapeake Bay Seed Capital Fund, an initiative of the University of Maryland’s Maryland Technology Enterprise Institute (Mtech), has invested $200,000 in Baltimore-based Dynamhex, an early stage company developing a software platform that helps utilities, municipalities, and corporations reduce their greenhouse gas (GHG) emissions, fund officials announced today.
The investment is part of a $1.5 million seed round, which includes Intelis Capital, the Exelon Climate Change Investment Initiative, the KCRise Fund, and the University System of Maryland Momentum Fund.
The Chesapeake Bay Seed Capital Fund invests in Maryland-based startup companies with innovative technologies that may help improve air and water quality in the Chesapeake Bay area. Supported by the Maryland Department of Natural Resources (DNR), the fund is administered by Mtech, a unit of the A. James Clark School of Engineering at the University of Maryland. Chesapeake Bay Seed Capital Fund recipients are jointly selected by Mtech and DNR.
Dynamhex’s “decarbonization as a service” software looks at an organization’s entire emissions footprint across its operations, including buildings, transportation, and recycling, and employs artificial intelligence to create a personalized, actionable roadmap for reducing carbon output.
The company’s platform goes beyond making recommendations, however, with a built-in solutions marketplace, connecting users with providers to implement emissions reduction solutions.
“Right now, organizations spend 90 percent of their time, effort and money on finding the problems; they lose steam and don’t get to solve them with the remaining 10 percent of their time and effort,” said Sunny Sanwar, founder and CEO of Dynamhex. “Our software takes away 80 percent of the time finding problems. We want to spend time on solutions. Tell me, what should I do about it? Who should I talk to? How much will it cost? How long will it take? Organizations need someone to tell them what the solutions ought to be. That’s where we come in.”
Dynamhex’s software tracks proposed changes over time, with reporting and real-time recommendations.
“What is special about Dynamhex’s software is its ability to update data dynamically and to evaluate the net emissions impact of disparate programs,” said Jolene Gurevich, Manager of Mtech Ventures and the Chesapeake Bay Seed Capital Fund. “The platform can measure the emissions impact of electrifying a fleet of buses, but also the impact of increased electricity demand given the current power mix. Most current competitors cannot do this.”
Dynamhex’s software also offers a community component, through which individuals can look up their own carbon footprint, along with recommended solutions to reduce it.
Utilities could use Dynamhex’s platform to engage municipalities, reduce their regulatory reporting burden, and increase customer participation, according to Gurevich. Municipalities could use it to create emission reduction plans and track outcomes, while corporations could employ the software to meet internal Corporate Social Responsibility (CSR) goals, local, state and federal pollution reduction targets, and be good stewards of the environment.
“Through its Greenhouse Gas Emissions Reduction Act, Maryland is committed to reducing statewide GHG emissions,” said Sarah Lane, Innovative Technology Coordinator for the Chesapeake and Coastal Service in the Maryland Department of Natural Resources. “When successfully utilized the Dynamhex platform will reduce GHG emissions that contribute to climate change and decrease nitrogen deposition to the Chesapeake Bay and its local waterways.”
Founded in 2019 as a spin-off of Sanwar’s Ph.D. thesis, Dynamhex has seven customers, including Duke Energy, Appalachian State University, and the City of Roeland Park, Mo. The company has five employees.
Dynamhex secured a $20,000 grant to develop its intellectual property in 2019 from Digital Sandbox KC. The company has also received server credits from both Amazon and Microsoft, for $25,000 and $120,000, respectively.
Dyanmhex plans to utilize its investment funding to further develop its product, including adding new features and integrations, as well as to hire both engineers and sales staff to grow its team, according to Sanwar.
Sanwar is an Assistant Professor in the Department of Marketing and Entrepreneurship at the University of Baltimore.
Dynamhex is a deep-learning optimization and resource planning platform for corporate, utility and municipal customers looking to set and meet climate targets. The company’s proprietary technology renders AI-based analytics in cloud, hybrid, and multi-cloud environments for decision-makers and clients through a subscription model. The Dynamhex software platform ingests, monitors and visualizes complex, multilevel energy consumption and emissions data for enterprise and municipal clients.
About the Chesapeake Bay Seed Capital Fund
The Chesapeake Bay Seed Capital Fund invests in Maryland-based startup companies with innovative technologies that may help improve air and water quality in the Chesapeake Bay area. Supported by the Maryland Department of Natural Resources (DNR), the fund is administered by the Maryland Technology Enterprise Institute (Mtech), in the A. James Clark School of Engineering at the University of Maryland. Chesapeake Bay Seed Capital Fund recipients are jointly selected by Mtech and DNR.
March 11, 2021