Things that we've had sort of this year are related to Accelsius. AeroFlexx, our flexible liquid packaging solution, business has seen six quarters of revenue and has recently announced a deal with Aveda, an Estée Lauder company. We're really excited about what's going on there. Then of course, Refinity, our newest recycling company. We just recently executed a pilot scale validation from real world commercial waste, so excited about the progress that we're making there. To your point, maybe taking a step back and talking a little bit about the model. Essentially, you can think of Innventure as an operating company that's in the business of launching companies.
We focus on technologies that have been invented or adopted by multinationals, where we're launching wholly owned newcos to take advantage of those technology solutions that we found that they have either adopted or invented. What we're looking for are these solutions where they're looking to solve large unmet market needs, and they've invented these technologies to do so. The technology solution itself is outside of their core operating mandate in terms of what it is that they do from a day-to-day perspective.
They're so interested in that end use of that technology that both the multinational and Innventure underwrite the technology solution itself in their hands to provide them with immediate and highly compelling, you know, economic value the moment that they have it, such that they're interested in then partnering with us to build and scale that technology towards them. When we're building companies, everything that we do really comes back to underwriting towards our closed loop model, which is our process to try and mitigate as much risk as possible and increase the likelihood of success as we launch these companies. The four main aspects of that model is the first that each technology should be unique to the multinational that has either invented it or adopted it, so we shouldn't see it replicated on the street otherwise.
The second is that it's been funded beyond the proof of concept, so there's a well-developed, like, the science has been proven, there's a well-developed patent family in place, and we quite often will set up some sort of a technical relationship with a multinational, certainly, so that we get that knowledge transfer in the early days when we're building and scaling. The third piece is that we start evaluating the opportunity based upon all the reasoning that they've put together to either invent or adopt this technology and all the R&D that they've put together to invent it otherwise.
That's our starting point to evaluate the technology itself and validate the science, to look at the size of the unmet market need that they're looking to solve, to look at how unique the technology is, and as a separate and distinct idea, how unique is the solution that it's providing to this unmet market need so that we can understand the long-term advantage of working with this technology solution. The final piece is the closing of the loop, where we're looking for that partnership with the multinational to, well, the center of the bull's-eye for us is that they wanna be one of the first customers and/or a channel to the marketplace otherwise, so that we know who wants to buy the technology before we actually go ahead and launch that company.
Just a quick follow-up there, just to be clear, you know, the technology you're commercializing, even though it's a little more far along the pipe, you're starting these companies essentially from scratch at a zero cost basis or close to?
That's correct. You know, it's interesting. The relationship with the multinational, because what they're ultimately interested in is having that technology solution in their hands, that end product. It's not about a relationship where they're trying to sell us that technology for a big X. We are skipping over that three, five, seven years of development, the $30 million-$50 million that might go into developing that technology solution and the patents around it, and we're launching then from what's almost a zero basis off the balance sheet at that point, to grow in this accelerated commercialization model.
If we do our jobs correctly from our perspective, we will have mitigated a lot of the early-stage risks in understanding who's created it, why they've created it, what the market opportunity is, who wants to buy it, and what they'll pay for it, and we're launching a company at that stage, which is much more akin to a B round in this accelerated commercialization model. We think you're gonna get early-stage economics 'cause you're gonna share in the founder shared economics that we get, but a much later stage risk profile based upon the facets of the model and sort of how we launch these companies.
I think the other thing that's worth maybe touching on a little bit here is that, again, you know, we're the founders, funders, owners, and operators of these companies, and we take that operating mindset to looking at these technology solutions and to determine which companies we're gonna launch and how they're gonna get to market. Within that, we want to then maintain majority ownership and control of these companies throughout their life cycle, handle the funding from seed all the way through and at least till they're generating sales off of our balance sheet. We will, of course, then reserve the right to raise capital with strategics and others that might make sense to increase the value of the company and in its strategic positioning otherwise.
By executing in this manner, again, we can maintain majority in ownership, majority consolidation of these companies so we can consolidate cash flows at topco, manage Innventure cash flow positive from the underlying companies, and then focus on each underlying company in terms of managing it to what we think is a maximum value on the growth curve before we make any sale or long-term hold or other decisions, et cetera. By executing the public company model and consolidating cash flows, it actually frees up our focus to be focused on value creation. Because if we're increasing value at the company level, that's how our investors make money at the stock level.
Rather than being in some sort of false timeframe of three, five, seven years that we need to exit, we can more focus on hitting that value inflection curve and going from there.
Maybe we stop there and just talk about the team's track record, right? Your execution. You took technology from P&G and were behind PureCycle. Maybe talk about some of the past history.
Yeah, no, absolutely. You know, PureCycle, great company. They were a public company now here doing a Fireside Chat yesterday. PureCycle was the first company that we launched under the Innventure umbrella. It's a technology that we took from Procter and Gamble, and we seeded that company with just under $10 million in 2015, and we took it public at a $1.2 billion post in March 2021. It's emblematic of our model, right? Here you have P&G that invented a new way to recycle polypropylene plastic, and you can understand the value that they would have in holding that within their product, if you will. P&G doesn't make plastic bottles.
They make what goes inside plastic bottles, so the last thing they wanna do is then get into the waste collection and recycling business. That'd be a big distraction, right? That's where we stepped in. We took the technology, launched the first pilot plant in Ironton, Ohio, went through several rounds of financings, launched a public bond to commercialize that first plant, and then took the company public. Short stroking, six years and a lot of hard work, but that's emblematic of the value that we look to create, and the type of relationships we look to structure with the multinationals.
Great. You know, if we look, I think in early March, you had some pretty big news about more momentum inflecting across your portfolio, and I think, you know, part of that was 50 million or more in bookings in Q1. Just talk about that and the momentum you're seeing here more recently.
Yeah. Again, you're correct. We announced greater than $50 million so far to date, this quarter, and more and more of that, and it's not insignificant cost, especially as the chipsets get more and more expensive.
You know, maybe if we think about, you know, how we should think about adoption, you know, with the capital you have, relationships you have in place that you've put in place, a number of partners beyond Johnson Controls, and Legrand in the latest round, manufacturing as well, your strategy there, contract manufacturing in-house, et cetera.
Yeah, sure. We've had a pretty big focus on working with just the integrators across the space, right? Whether it's co-location providers, AI as a service, large OEM providers, contract manufacturers to get the hyperscalers, the focus has really been to work through that ecosystem. It works both from a scalability perspective because, you know, the products have been designed very smartly. They all have a male-female configuration, so the swapping out of servers, the swapping out of pumps, et cetera, can be handled by the smart hands at a data center. Then level two and level three servicing can then happen through the integrator level. Where that really helps us from a revenue perspective or a growth capture perspective is we're the two-phase direct-to-chip solution for those providers.
As their clients are then adopting, two-phase, we'll be able to catch that wave with them. That's really kind of how we're focusing on trying to take advantage of that, sort of first mover advantage that we hold today.
I think we have to talk about, you know, I think the high watermark was sort of Schneider buying Motivair back in 2024 for like $850 million in cash.
Right.
This week we've seen Ecolab is buying CoolIT for over 4 billion.
Yeah.
Pretty nice multiple. Just talk about your thoughts there. You know, would you ever consider monetizing Accelsius, you know, at the right price, et cetera?
Sure. Well, first of all, good on them. I think we're all excited to see those types of valuations happening in the space. I think it just really underscores the problem that everybody's trying to solve, and the value in providing that solution. It's again, you know, for us having JCI and Legrand coming into the picture and what that means from a relationship perspective, what that means from a future growth perspective, et cetera, from them, we, you know, we're excited about, you know, the prospects of increased adoption as a result of that. Really, I think it's just an abundance of information that makes us feel comfortable about and excited about what we're seeing.
It's not just our pipeline, but it's the growth in the chipsets. It's the inertia behind what's gonna actually be able to provide the right thermal solution for these chipsets in the future. It's hard to call the ball in the early stages like this of exactly how fast this ramp's gonna move. Based on what we see and being, you know, in the spot to take advantage of the first mover advantage, we think we're gonna get kinda early returns on seeing that. For us, it's really all about execution. You talked a little bit about scale, and I was sort of addressing working through some of the integrators, and that's also been to address the scaling issue, right?
If you're gonna wanna work with a hyperscaler, you have to have the relationships with the contract manufacturers to be able to handle that type of scale, and that was a big focus of Accelsius out of the gate, in addition to the larger OEMs and other kinda larger providers from that perspective. You know, and JCI and Legrand kinda add to that we're really trying to work to widen out as much as we can the supply chain and those that are offering in the space. I think, you know, we'll see other competitors downstream. We'll continue to see more movement. Those will all ultimately be a good thing for the marketplace and for Accelsius.
Yeah. The market's big enough for.
Yeah
for many players.
Absolutely.
Maybe we could pivot to, you've announced an agreement in Canada with DASTOR, I think a 300 MW campus. Walk us through that, you know, that relationship, where it stands, how to think about that progressing, that deployment.
Yeah. Again, this is the largest deployment of two-phase direct-to-chip cooling, so very excited about that. As you look back at that, the announcement is that we're gonna do a 65 MW implementation this year and then a similar one next year on the way to the 300. We'll expect that to be part of the 2026 orders and revenues, if you will, for Accelsius. Excited about that.
Yeah. That'll be one of the first big deployments, right?
Yes.
We'll be watching that.
Yeah.
In general, you know, to the piloting process, right, you've got, I think, a spot in an Equinix facility, you know, how customers approach that and how that's changed, right, since you've announced Johnson Controls and these relationships.
Yeah. I would say in general, what we've continued to see in the pipeline is the pipeline has gotten bigger, and where it's gotten slower, each order individually has also gotten bigger as a result. You know, in that billion-dollar pipeline, there's well over 100 prospective clients, and it ranges from some of the integrator-type solutions that you're mentioning, and being able to service their direct clients as well as some larger individual deployments as well.
Great. If anyone has any questions on Accelsius, feel free to raise your hand. Maybe we get some questions in on the other pieces of the business as well. AeroFlexx, more like a Tetra Pak type business. Talk about that, your ownership, where it is. I think certifications and brand testing have been critical, but where it stands and what you're excited about.
Yeah, AeroFlexx is a flexible liquid packaging solution. It's the world's first and only flexible liquid packaging solution that's also curbside recyclable wherever a plastic bottle is recyclable. We're really excited about that. What it provides is significant sustainability benefits. There is up to 85% less virgin plastic than a rigid bottle alternative. The flat pouch solution provides a significant total cost of ownership benefit to the end client, right? Rather than buying a bottle cap and label in three different places, we're receiving rolled up film, if you will, and we receive it as a big roll of film that has thousands of bottles on it versus shipping those bottles with empty air.
We have a converter mechanism that converts that into the flat pouch, if you will, and that's where the IP is and what Innventure will maintain control over. We then ship that out to where the product is being made, where there's fillers. There can also be co-manufacturing capabilities kinda put into that as well. It creates a really efficient mechanism where then again, we're shipping out flat packs, which is a, you know, form factor of 20 over shipping bottles with air in them to where the product is made and then shipped out from there. You get supply chain benefits, manufacturing benefits for a significantly lower total cost of ownership. Again, we've seen sort of the last six quarters of proof of concept orders there.
As a part of creating or turning Accelsius's package into a fully recyclable package, we had to go through a number of different certifications. We reached a really big one towards the end of the summer, the APR certification, Association of Plastic Recyclers, and that was sort of a gating certification that some of our larger potential clients were looking for. Then you've more recently seen us then announce the Aveda deal, which is owned by Estée Lauder. Really excited about that. It's the first sort of premium brand a client that we've announced for AeroFlexx.
When you think about AeroFlexx, it's got a huge TAM, like a $400 billion TAM, 'cause you're talking about, you know, oil, specialty lubricants, you're talking about pet care, food stocks, and then when you think about human care, childcare, intimate care, there's lots of different solutions that we can provide into. We're, you know, pretty excited about where that company's going. Now, you asked me specifically about holdings. That company was launched before we moved to the conglomerate, where we're doing all the seeding off of balance sheet and all the financing off the balance sheet. Innventure owns about 30% of AeroFlexx on the balance sheet directly. We also have a fund from the earlier life cycle that owns another third, roughly, of AeroFlexx as well.
This was P&G Technology.
That's correct. Yeah. Both PureCycle and AeroFlexx were from P&G. Accelsius was a technology that we took from Nokia Bell Labs. The newest company that we launched is a company called Refinity. It's our second foray into the recycling space. A really exciting technology that was invented by VTT, the Finnish lab. We've brought in Dow Chemical as the partnering multinational there. I won't try and bore you with the details of the technology, but I'll tell you that some of the benefits, it has a significantly greater capacity to bring in mixed plastic waste. We like to say we're going after the trash that is actually what we're using as the feedstock for this.
It has a really interesting tuning mechanism in it, where we can control the temperature, the pressure, and the latency of how long the reaction's occurring inside the reaction itself. That creates a much greater yield. Like a typical yield might be in the 20% range. We're seeing 70% on our end. The third piece is what it's actually then recycling into. It's taking mixed plastic waste, and it's turning it into the chemical precursor of what then could become either gasoline or could become plastics or could become lipsticks or all sorts of different valuable monomer streams. It's recycling back into that chemical precursor. We're really excited about that. VTT already had a pilot scale, but we just recently did a larger scale using real-world mixed plastic.
We put out a metric ton, if you will, and it was another scale-up, and all of the readings were the same for the technology from an execution standpoint. Really excited about where that company's going.
Yeah. We'll look for, right, scale up there in phases. Real quick, I know we're running out of time, like how would you contrast that with a PureCycle, for instance? It's in certain similar spaces.
Well, you know, it's a very big space, and PureCycle has its own specific use in the polypropylene space. I think that it's a more efficient technology that will allow us a lot more flexibility in how we can either co-locate some of these solutions directly with the multinational, like with Dow, et cetera, or create independent plants on their own. Certainly excited about the wide variety of different streams that we can mo-
Capital intensity, perhaps, you know.
Significantly lower.
Yeah.
Yeah.
Questions from the audience here. We've got time for perhaps one. Tom.
The contract with JCI, do they have some exclusivity with your technology that would prevent you from partnering with another that wants to do the same thing?
The question is just about the contract with JCI and any exclusivity.
I mean, the short answer is no. There's nothing in that contract that would preclude us from working with anybody else.
Okay. With that, I think we're out of time. Lucas, thank you so much.
Yeah. Thank you so much for.