HG Ventures first invested in Gauge in 2019, and we have been proud supporters as Gauge has pushed asset management forward. We are thrilled to see Gauge embark on this new chapter under the ownership of XBE.
Banneker Partners, a private equity firm specializing in enterprise software businesses, today announced that its portfolio company XBE has acquired Gauge, an integrated hardware and software solution provider specializing in equipment asset utilization.
Founded in 2009, Gauge has grown to service over 85 customers, deploying more than 40,000 devices to track equipment location and maintenance, maximizing asset availability and utilization. Gauge’s Smart Hub platform combines hardware and software solutions designed for different equipment types and environments, and integrates with various OEM and third-party telematics hardware.
This acquisition marks a significant step in XBE’s growth strategy following Banneker Partners’ investment in January 2024. It is XBE’s second acquisition in March 2025, following the purchase of PriceBee on March 3, which integrated advanced material pricing, quoting, and
ordering capabilities into XBE’s platform.
“This acquisition aligns perfectly with our investment thesis for XBE,” said Matt McDonald of Banneker Partners. “By adding Gauge’s telematics capabilities to XBE’s comprehensive operations management platform, we’re creating a more robust solution for heavy construction, bulk logistics, and bulk materials companies looking to maximize equipment utilization and operational efficiency.”
XBE customers have invested significantly in large equipment fleets to support their operations. The acquisition enhances XBE’s ability to provide differentiated service around equipment availability and utilization, addressing a critical concern for its customers.
Mike Paredes, Founder and CEO of Gauge, who will continue with XBE for the long-term and report directly to Sean Devine, Founder and CEO of XBE, stated, “By combining forces with XBE, we can create more differentiated value for more customers than we could independently. XBE’s proven track record of product development and customer success will allow our joint team to move further and faster together.”
The acquisition provides immediate benefits to both XBE and Gauge customers:
For XBE Customers:
– Immediate access to purchase Gauge devices and services for telematics needs
– Equipment tracked with Gauge devices will be visible in XBE
– Future innovations in equipment telematics, maintenance, and analytics to maximize asset availability and utilization
For Gauge Customers:
– Continued long-term support for the existing Gauge platform
– Option to access XBE’s fully integrated operations management platform with built-in Gauge telematics
In the immediate future, Gauge will continue to operate under Mike Paredes’ leadership, with plans for full integration into XBE in the medium term. The Gauge brand will be maintained, particularly for devices, and positioned within the overall context of XBE.
About Banneker Partners
Banneker Partners is a private equity firm specializing in investing in and growing enterprise software businesses. They focus on sustainable value through best practices, growth initiatives, and strategic acquisitions—supporting founders and management teams in enhancing customer
value. For more information, visit bannekerpartners.com.
About XBE
XBE’s mission is to integrate the physical and financial operations of heavy construction, bulk logistics, and bulk materials. With XBE, customers maximize profitability, reinvest in growth, and scale with confidence. XBE provides a comprehensive operations management platform that
includes scheduling and resource planning, financial management, dispatch and logistics optimization, rate agreements, materials and inventory management, reporting and analytics, compliance monitoring, and collaboration tools. For more information, visit x-b-e.com.
About Gauge
Founded in 2009, Gauge provides an integrated hardware and software solution designed to maximize equipment asset utilization through tracking, maintenance, and analytics. Gauge’s Smart Hub offers various hardware solutions suited to different equipment and environments and integrates with various OEM and third-party telematics hardware. For more information, visit gaugecorp.com.
HG Ventures’ Jon Schalliol shares some key moments from 2024, reflects on some of the firm’s activities from what was another year of uncertainty for venture capital, and looks ahead to what 2025 may have in store.
Venture capital is a forward-looking industry; we are in the business of making big bets on the future, and on the industries and companies that will have a hand in shaping it. But this is a good moment to look back on the past year as well as look forward. Under the leadership of John Glushik, HG Ventures continues its commitment to fostering innovation and supporting transformative technologies, even amidst a dynamic market environment.
The Venture Capital Landscape in 2024
The venture capital sector experienced a year of recalibration. According to PitchBook, global deal activity in Q3 slowed for the third consecutive quarter, as the market sought balance amid looming rate cuts. Despite this, certain sectors saw substantial investments, with U.S. VC funding reaching $55.6 billion in Q2 2024, the highest level in two years. In contrast to this high level of investment, exits have been historically low at $69 billion for 938 companies, according to NVCA through Q3.
Now in 2025, the market looks to be the most investor friendly in more than a decade for late-stage deals and swinging less-so for early-stage startups. PitchBook has made its VC Dealmaking Indicator (below) publicly available, which takes account of a range of factors like capital demand to supply ratio, valuation change, years between rounds, etc. There are many factors geek-out on – dig into the methodology here.
New Portfolio Companies in 2024
In the last year, HG Ventures welcomed more innovative companies into our portfolio:
INERATEC: We started 2024 by participating in INERATEC’s $129 million raise. Headquartered in Karlsruhe, Germany, INERATEC has developed a microstructured reactor technology that transforms renewable electricity and CO2 into synthetic fuels. Its products include e-fuels for sustainable aviation fuel (SAF) and diesel, as well as chemical feedstocks (waxes and methanol) – all of which contribute to the reduction of carbon emissions.
Aclarity: We also announced our funding in Aclarity, which specializes in destroying PFAS contamination in water. Aclarity complements one of our earliest portfolio companies, UK-based Puraffinity, which is focused on PFAS filtration. This aligns with our focus on adding value to portfolio companies through The Heritage Group research group and environmental businesses, as well as our commitment to environmental sustainability. Ginger Rothrock led this deal for HG Ventures and writes about the investment rationale here.
PinPoint Analytics: In September we led the investment round for AI-powered construction data platform, PinPoint Analytics. PinPoint leverages AI to enhance efficiency and decision-making in the construction industry, reflecting our interest in driving advancements in the heavy-duty construction industries. Read more about PinPoint Analytics here.
More to Come! We also added two new portfolio companies toward the end of 2024 that will be announced soon.
Follow-On Investments in 2024
We also continued to support the growth of our existing portfolio companies through a range of follow-on investments. While not all follow-ons are announced, we can share the following:
Vartega: In March, we announced our participation in Vartega’s Series A, with $10 million to fund the expansion of its recycling capabilities for advanced materials, promoting sustainability in manufacturing. Vartega co-founder and CEO, Andrew Maxey tells his story here, and Ginger Rothrock saw his vision brought to life when she visited Vartega’s new plant in Colorado.
ZwitterCo: We made a follow-on investment in ZwitterCo, as part of its $58.4 million Series B funding round. This will enable ZwitterCo to scale its innovative membrane solutions for wastewater treatment, addressing critical water security challenges. Ginger Rothrock is a ZwitterCo board observer and recently interviewed founder and CEO, Alex Rappaport, to compare notes on what makes a successful founder-investor partnership. We shared excerpts from that conversation here.
Pretred: We were an early investor in Pretred, a waste-to-value company manufacturing rubber safety barriers from discarded tires. In the past year the company has started to gain important recognition for its innovative work, securing some important grants and being named of ‘The Coolest Things Made in Colorado’. Recently, we were proud to co-lead Pretred’s Series A raise, and we look forward to new innovations planned for 2025.
Portfolio Milestones and Accolades
We were proud to see so many of our portfolio companies achieve notable milestones last year:
The Puraffinity leadership team
Puraffinity, a UK-based startup focused on removing harmful PFAS (‘forever chemicals’) from water, reached a level of maturity with a seasoned new CEO (Vincent Caillaud), as well as a new COO and CTO. Meanwhile, co-founder and CEO Henrik Hagemann moved into the role of Chief Product and Innovation Officer. With this expanded and strengthened senior team, and a fresh injection of capital from its raise, Puraffinity is well-placed to continue scaling its operations and its impact.
INERATEC also bolstered its senior team, with the appointment of a new Chief Commercial Officer, Maximilian Backhaus. The firm has also reached an agreement with Chile’s premier fuel distributor, COPEC, to potentially construct and operate a power-to-Liquid plant.
Meanwhile, Circulor, a supply chain traceability solution, was included in the Global Cleantech 100 list, which recognizes the most promising companies that can transform commitments in innovation and sustainability into real actions that achieve net zero. Circulor was also named by Bloomberg as one of the top 25 UK startups to watch.
Valerann, which uses AI and advanced data analytics in its traffic management solutions, was the recipient of the Prince Michael International Road Safety Award in recognition of its technology’s contribution to mitigating traffic injuries and fatalities.
Electric commercial vehicle manufacturer, Battle Motors has this year continued its drive to revolutionize that sector, signing new customers and expanding its production. HG Ventures’ Managing Director, John Glushik visited the firm’s Oklahoma facility to see the latest developments for himself.
SOLARCYCLE, in addition to the announcement of its $62M investment in its new Georgia plant, has this year inked a number of deals with major partners and customers, including Runergy Alabama, Inc., Heliene, and Canadian Solar.
A New Entrepreneur-in-Residence
These and our other portfolio companies all stand to benefit from our appointment of Mitch Black to the position of Entrepreneur-in-Residence. Mitch brings a wealth of experience in scaling startups and driving business growth, making him an invaluable resource for our portfolio companies. He will provide strategic guidance, support founders in navigating growth challenges, and leverage his expertise to help bring innovative ideas to market. Read more about this in Mitch’s own words, here.
Leading the Conversation
In February we partnered with Global Corporate Venturing (GCV) to host an event that focused on best practice in operations and finance for corporate venture capital (CVC) teams. Delegates from more than two dozen CVCs had the opportunity to network and share best practices vital areas including: financial and non-financial benchmarking and reporting; portfolio data collection and management; parent company services and obligations; platform management; and the role of incubation and innovation.
The GCV Operations and Finance Summit
We also convened an action-packed conference of thought leaders who share a vision of a future for roads that is safe, efficient, and sustainable. The Future of Roads event was a follow-up to the Future of Roads report we published a few months prior. Its goal was to address road infrastructure challenges and opportunities with a diverse group of stakeholders, including entrepreneurs, investors, academics, and leaders across government and the private sector. Speakers talked about more sustainable and durable materials, the incorporation of electrification, management of autonomous vehicles, technologies to improve flow and reduce traffic accidents, artificial intelligence, and more. HG Ventures’ Platform Manager, Meghan Hunt coordinated the event and summarizes the key take-aways here.
The Future of Roads eventGinger Rothrock joined representatives of portfolio companies Puraffinity, Aclarity, Transcend and ZwitterCo at the Global Water Summit 2024Jon Schalliol at the Counter Club meeting of corporate VCs
Senior Director, Ginger Rothrock was invited to address the Global Water Summit in London, where she spoke about water security in a changing climate, reinforcing our commitment to investing in technologies that ensure sustainable water resources. You can read a summary of her thoughts on the most pressing issues, here.
Ginger also spoke at the CIEX Chemical Innovation Summit, which we were pleased to host at The Heritage Group’s headquarters in Indianapolis.
HG Ventures’ Nick Arnold remained plugged into the latest technological developments through his attendance at major industry events, including Cleantech Forum North America and the Hello Tomorrow Summit, in Paris.
Ginger Rothrock and Meghan Hunt represented HG Ventures at the Envita Solutions Sustainability Innovators Summit; and I was pleased to lead a session on finance and operations best practices at the fifth Counter Club gathering of corporate VCs, in San Francisco.
Industry Recognition
We are proud once again to have been included in the influential Climate50 list of leading climate tech investors. Inclusion in league tables such as this one is an important means of coming to the attention of more founders and reaching potential new investments.
Key members of our team were also recognized for their individual achievements: Our Managing Director, John Glushik was named one of the world’s 100 most influential figures in corporate venture capital, through his inclusion in the 2024 ‘Powerlist’ compiled by Global Corporate Venturing (GCV), an acknowledgment of his leadership and contributions to the venture capital industry. John shared some of his insights on an episode of the Liberty Ventures podcast earlier this year.
Ginger Rothrock was recognized as one of just 50 Emerging Leaders in corporate venturing. Ginger’s expertise continues to drive our investment strategies and support for many of our portfolio companies.
Looking Ahead
As we think about the year ahead, HG Ventures remains steadfast in its mission to support transformative technologies and exceptional entrepreneurs. While 2024 was a year of recalibration in the venture capital market, we enter 2025 with optimism, fueled by the resilience and creativity of the companies we back and the sectors in which we invest.
The venture investment climate is showing signs of stabilization, with PitchBook predicting a rebound in late-stage dealmaking as market confidence improves. Climate tech, sustainability innovation, and advanced manufacturing—core focus areas for HG Ventures—are expected to continue attracting significant interest, driven by both regulatory momentum and corporate commitments to achieving net-zero goals. According to BloombergNEF, investment in global clean energy alone is forecasted to exceed $1 trillion in 2025, marking a pivotal moment for sectors like renewable energy, water technology, and circular economy solutions.
We remain confident that innovation will continue to lead the way in addressing the world’s most pressing challenges. Together with our partners, founders, and team, we look forward to making 2025 another year of meaningful progress and impact.
As we begin 2024, HG Ventures’ Jon Schalliol looks back on a tumultuous year for venture capital and sustainability tech investment, the strategic investments the firm has made, and other highlights.
Jon Schalliol, Finance & Operations Lead at HG Ventures
2023 has been a year of mixed signals and mixed fortunes for the world of venture capital, with Pitchbook-NVCA data showing both the number and the value of investments failing to match 2022 levels, let alone the highs of 2021.
Early-stage founders in particular are finding the current environment tough. Many VC firms have become more demanding about the path to a revenue-positive position, and the data shows more investment going into later stage companies, with a reduction in relative share of investment in early-stage companies.
Sustainability-related tech is not immune to this overall market funk, although there are some indications that investment in this area have not fallen quite as fast as they have in other areas. One factor skewing this trend is the Inflation Reduction Act of 2022, whose effects are only just beginning to be felt as eligible companies reap the benefits of grants, loans, tax breaks and other incentives.
At HG Ventures, while we of course feel the effects of macroeconomic changes, we are relatively insulated when it comes to the tumults of the VC market through the strength and steady leadership of The Heritage Group. This has allowed us to continue investing in new companies and support our existing portfolio in 2023.
New Portfolio Companies in 2023
We could not be more excited about the new founders and teams to join our portfolio in the past year:
SOLARCYCLE: In March, we joined Fifth Wall and others in investing in the $30M Series A funding round of SOLARCYCLE, a company focused on recycling and extracting value from end-of-life solar panels, projected to be a $2.7B market by the end of the decade. HG Ventures’, Ginger Rothrock outlined our investment rationale here.
Bind-X: In August, we were excited to participate in the €10M raise for our first investment in a German startup, the industrial biotechnology company, Bind-X. The team at Bind-X has developed a microbe-based binding technology that is able to control dust arising from construction, in a significantly more cost-effective and environmentally friendly way than existing alternatives. The technology has multiple other applications, as HG Ventures’, Nick Arnold explains.
Aclarity: The issue of PFAS removal and destruction is one on which many are working to develop solutions, and in November we were pleased to invest in Aclarity, another such company. Aclarity’s technology is a cost-effective chemical alternative to the incineration of PFAS; it centers on a proprietary anode that attracts PFAS in water and breaks down the core carbon-fluorine bond into carbon dioxide, fluorine, and hydrogen fluoride. We’ve known CEO, Julie Bliss Mullen, for a few years, and we were excited the company’s progress built to the right spot for us to join (no company is too early to connect!). Aclarity’s $15.9M Series A round was led by Aqualateral.
One More! We made one new investment in the last week of 2023 (we’re here to support even during the holidays!), and we’re excited to tell you about it shortly.
Follow-on Financings in 2023
As companies continued to drive forward in their plans, we were glad to continue our support. The following are just the announced funding rounds we supported, with several more that did not announce:
P2 Science: In February, we participated in a funding round by P2 Science, which was led by Lewis & Clark AgriFood. P2 is a green chemistry company, whose proprietary process transforms renewable forest-derived feedstocks into high-performance ingredients for use in a variety of personal care, cosmetics, and beauty products, as a sustainable alternative to petrochemical-based ingredients. We first invested in the company four years ago, when we co-led the Series C with Chanel.
Material Evolution: In May, we increased our investment in UK-based Material Evolution, as part of the company’s £15M Series A round, led by Kompas VC. Material Evolution has developed a low-carbon alternative to Portland cement, and in this post, Ginger Rothrock expands on our investment rationale, while HG Ventures’ managing director, John Glushik got hands-on with the technology when he visited the company’s facility in Britain.
Transcend: Also in August, we joined Autodesk and others in participating in the $20M Series B raise for Transcend, whose market-leading generative design software automates the conceptual and preliminary design of critical infrastructure assets, such as water treatment facilities, enabling asset owners to reduce design costs and timelines and prioritizes the incorporation of innovative and sustainable technologies. HG Ventures was one of three original investors in Transcend, and we were only too happy to renew our commitment in this funding round.
Puraffinity: The following month, in September we made a follow-on investment in London-based Puraffinity, as part of that firm’s $13.9M Series A round, led by Octopus Ventures. Puraffinity is focused on the removal of PFAS, or ‘forever chemicals’, from water. We were an early investor in the company, and I was excited to meet the team at Imperial College in London in early 2019, ahead of our investment shortly thereafter.
Other Highlights
Beyond these investments, the team has been deeply engaged in the VC and hardtech communities, seeking out new investment opportunities and fostering partnerships that add value to our portfolio companies. Highlights this year have included:
The Heritage Group Accelerator: The Heritage Group’s accelerator program is also part of the New Ventures Group at THG, and this year it welcomed a new leader, Arvind Murthy, to the already outstanding team. They brought in an exceptional cohort of visionary founders (9 companies from 5 countries!), who resided just down the hall from my office for the intensive 13-week program. The program exposed them not only to venture capital expertise, but the invaluable technical resources of Heritage Research Group and THG operating companies. I can’t wait to see what these visionary individuals go on to achieve.
Industry recognition: Our managing director, John Glushik was named by Global Corporate Venturing (GCV) as one of its “50 Emerging Leaders”, while senior director, Ginger Rothrock was recognized as one of “50 Rising Stars”. HG Ventures was also once again included in the Climate 50, an annually published list of the most recognized climate tech investors.
Innovate UK partnership: The UK has a thriving climate tech ecosystem and is home to a number of companies in which we have invested. This year we renewed our partnership with Innovate UK, the government-backed organization that makes grants and other funding available to climate-focused startups. I wrote more about our commitment to this important partnership here.
Leading the conversation around the future of roads: In November we published a report on the future of roads, and specifically the role that venture-backed technologies have to play in securing a sustainable future for this vital infrastructure. We will continue to drive the conversation around this important topic. The Future of Roads report is downloadable here.
We have also been excited to see so many of our portfolio companies achieve significant milestones in 2023, just a handful which follows:
Following our introduction, Heritage Environmental Services will be running a pilot with a number of electric vehicles from Battle Motors. This is exactly the sort of practical added value we like to deliver to our portfolio companies.
London-based supply chain traceability firm, Circulor entered into a partnership with Deloitte, unlocking enormous potential for the platform to be implemented with global companies.
Currents is a marketplace for end-of-life electric vehicle (EV) batteries and has just signed an agreement with Nissan North America to be the exclusive marketplace for its vehicles’ batteries. Check out the official announcement .
Carbon fiber recycling company, Vartega this year increased its production capacity tenfold, moving into a new 82,000 sq ft facility in Denver, Colorado.
ZwitterCo, whose fouling-resistant membranes make it practical and affordable to treat and reuse the world’s most challenging water, has just opened a new Innovation Center at its Massachusetts HQ. Forbes wrote about it here.
Ateios Systems, an HG Accelerator alum, landed a $2.4M Defense Department contract, to improve battery performance and production.
Looking ahead to 2024, there are many reasons to be optimistic. In spite of the challenging funding environment, we continue to see incredible innovation in materials science, chemistry, environmental solutions, industrial systems and more, from all over the world.
We will continue to back founders with the vision to develop innovative solutions to industrial scale environmental challenges, and leverage The Heritage Group’s technical and market expertise to accelerate their path to success.
HG Ventures’, Jon Schalliol outlines an important initiative that creates connections with some of the UK’s leading climate tech innovators.
The United Kingdom has a thriving climate tech startup ecosystem, with a significant number of companies dedicated to developing innovative solutions for addressing climate change. UK startups working in this field attracted more than $7.5B in venture capital funding in 2022, and we have been investing in sustainability-oriented companies since our inception.
In 2019 we made our first investment in London-based Puraffinity, a company that is developing innovative solutions to the global problem of PFAS in water. In 2021 we invested in Belfast-based Material Evolution, a company dedicated to developing a low-carbon alternative to traditional traditional cement. The company just closed a £15 MM investment round, in which we were pleased to invest as our third round with the company.
That same year, 2021, we partnered for the first time with Innovate UK, to invest in UK startups that can reduce energy and resource use, or otherwise drive sustainable innovation as part of Innovate UK’s Transforming Foundation Industries Investor Partnership Programme. Innovate UK is part of United Kingdom Research and Innovation, which directs research and innovation funding for the UK government, and startups funded by investor partners like us can access grants to fund relevant efforts. This enabled Puraffinity to tap into a £1.5 MM grant as a part of an additional funding round we led into the company, which really turned the corner in its industrial applications.
I am particularly excited to be part of this initiative for three reasons:
Firstly, Innovate UK is this year placing an emphasis on areas that are of great interest to HG Ventures, namely: Net Zero; Healthy Living and Agriculture; Digital and Technologies; Equality, Diversity and Inclusion. We continue to invest in many of these fields, and while we talk a lot about Hard Tech, we invest at the intersection of these technologies wherever we can add meaningful value to our portfolio companies.
Secondly, the UK remains a hotbed of innovation. Companies headquartered there are working in a wide range of areas, including renewable energy, energy efficiency, carbon capture and storage, sustainable transportation, the circular economy, and energy. The UK offers a supportive environment for climate tech startups, including accelerator programs and government initiatives and grants, like Innovate UK’s Investor Partnership Programme. These resources all help to foster innovation and accelerate the growth of startups, and UK entrepreneurs in these areas often see opportunities where those in other markets do not.
Thirdly, Innovate UK has been a fantastic partner to work with. It afforded us the trust to be the only investor in North America in the initial Transforming Foundation Industries Investor Partnership Programme, and the entire team is working hard to improve the chances for the success of startups – while minimizing red tape many may equate with government efforts. We are proud to help them drive progress.
I am optimistic that through our relationship with Innovate UK and the Investor Partnership Programme we will uncover more inspiring UK founders in whom we will want to invest. Many of those companies will also be able to tap into these grants from the government to move the company, industry, and UK economy forward.
PinPoint Analytics: In September we led the investment round for AI-powered construction data platform, 
