Tech-Enabled Businesses: Tech for good
Impacted SDGs
Key megatrends
Technology disruption
Energy transition
Global population growth
We address three main tech specific challenges…
Risk & vulnerabilities
Extreme weather, natural disasters and cyberattacks have been among most likely global risks since 2018
Inefficient systems and processes
Robotics process automation
can cut costs for financial services firms by up to 75%
Regulatory complexity
USD ~330m in fines have
been issued under GDPR
We have used our Nordic legacy and identified challenges as a foundation for our investment areas
1. Safety & Security
2. Digitalization of workflows
3. Compliance and transparency
4. Digitalization of care
5. Digitalization of physical flows
- Workers safety (HSEQ)
- Cyber security
- Digital identities
- Asset security
- Product safety and compliance
- Traceability
- Digital collaboration tools
- Robotic Process
- Automation (RPA)
- Supply chain management
- Workforce management
- Edtech
- Reg tech
- Gov tech
- Reporting tools
- Payment value chain
- Digital auditing tools
- Digital healthcare solutions and platforms
- Welfare tech
- Well-being and sports tools
- Consumption and emission tracking
- Waste management sorting
- Green fuel storage and transport risk management
- Energy production and efficiency optimization
- Source IBM, DLA Piper, KPMG, World Economic Forum Global Risks Report
IPO exit case: EcoOnline
Investment snapshot
- Summa partially exited EcoOnline in March 2021. (Fund I with close to full realization)
- Listed on Euronext Growth in Oslo, March 2021.
- Diversified customer base (~6 500 customers across 86 industries)
- International expansion to UK and Ireland post investment
SDG value creation impact
Summa identified EcoOnline as an attractive investment case with a flexible, and user-friendly platform, showing strong potential for growth. EcoOnline already showed strong alignment towards the EU regulatory framework for regulatory compliance and environmental sustainability, making it well prepared for vertical integration as well as international expansion which is now ongoing.
During our ownership period, EcoOnline has expanded their customer base and enhanced their product offering. EcoOnline’s platform responds directly to the challenge of workplace safety while ensuring compliance and reductions of hazardous emissions. By increasing the number of performed risk assessments they have assisted employers to implement necessary measures to improve their control of chemicals.
- Values from EcoOnline Q1 2021 report: https://www.ecoonline.com/ir. NOK/SEK FX as of Q1 2021: 1.0299
- Spring 2021 Chemical Safety Software Customer Success Report: https://cdn.featuredcustomers.com/customer_success_report/FC-CUSTOMER-SUCCESS-REPORT-SPRING-2021-CHEMICAL-SAFETY.pdf
- https://www.ecoonline.com/green-quadrant-ehs-software-report-for-2021
- https://www.ecoonline.com/investor-relations
- Values from EcoOnline Q1 2021 report: https://www.ecoonline.com/ir. NOK/SEK FX as of Q1 2021: 1.0299
- Spring 2021 Chemical Safety Software Customer Success Report: https://cdn.featuredcustomers.com/customer_success_report/FC-CUSTOMER-SUCCESS-REPORT-SPRING-2021-CHEMICAL-SAFETY.pdf
- https://www.ecoonline.com/green-quadrant-ehs-software-report-for-2021
- https://www.ecoonline.com/investor-relations
EcoOnline - Ensuring a safe workplace
Revenue
SDG alignment
Industries covered
Registered users
% Female 2020
-
Total
39% -
Management
22% -
Board
14%
No. of employees
Staff turnover rate PORTFOLIO AVERAGE 8%
EcoOnline at a glance
EcoOnline is a HSEQ provider of SaaS solutions for chemical management and occupational safety, helping businesses in the Nordics, UK and Ireland to comply with complex regulations and ensuring a safe workplace for workers across sectors, company size, and geographies. By year-end 2020, the company had approximately 6 500 customers, where more than 80% of revenues are recurring with low churn. The company has built a strong position as the market leader in the Nordics and Ireland and has the ambition to become a holistic HSEQ software provider at a Pan- European scale.
Key developments in 2020
EcoOnline increased revenues through various organic initiatives and the acquisition of Airsweb, a UK-based leading provider of premium Environmental, Health and Safety (EHS) software to large enterprise customers. With an enhanced product offering and strengthened position in the UK, EcoOnline is set for further expansion into new geographic markets and product segments, continuing the trajectory of historic 33% organic ARR growth (2018-2020)
Impact dimensions
The challenges we face
A substantial share of companies with exposure to chemicals in the workplace fail to comply with EU legislation. This means that employees and communities may be exposed to various types of substances that are harmful to human health and/or to the environment. Occupational health and safety are moving into the spotlight, as regulatory requirements, environmental concerns, and production standards such as ISO certification, take hold. Although aware of the risks, many companies find it difficult and costly to ensure compliance.
For public and private sector employers, that means a growing need to manage health and environmental responsibilities in the workplace, proactively and comprehensively. Within this field, chemicals management in particular stands out as an important area of competence required.
What is the outcome
EcoOnline contributes to good health and well-being (SDG 3) by facilitating a safer workplace through control and handling of chemicals and incidents. Handling chemicals correctly also reduces the negative environmental impact of hazardous emissions (SDG 12). By combining high-end technology (like AI and machine learning) with the flexibility that lies in user-experience design, EcoOnline delivers a user-friendly tool tailored to fit every need in the market. The EcoOnline Platform delivers a flexible offering for all segments and markets where the customer can grow organically within a system of a wide variety of applications and services with similar design and build. The outcome is increased employee engagement and productivity (SDG 8).
Who are the stakeholders
EcoOnline's safety and chemical management solutions help companies in the Nordics, UK and Ireland by providing safer working conditions for its employees and reducing the negative impact on the environment.
How big is the effect, and does it last?
With low churn and a growing customer base (6 500 customers in 2020), EcoOnline was able to conduct millions of risk assessments in 2020. Risk assessments minimize the potential of workplace injuries, illnesses and accidents occurring by reviewing and recommending control measures. Furthermore, knowledge and education are key to create a sustainable, safe, and healthy working environment. By offering a complete educational platform, from classic classroom courses to events, seminars, and webinars, EcoOnline has contributed to build and increase employee engagement through knowledge.
If EcoOnline didn’t exist...
The company has an unmatched position in the Nordics; 20 years of history, strong local knowledge, and efforts in R&D have resulted in multiple benefits for companies, their employees and local environment, that potentially would not have otherwise been present if it were not for EcoOnline. In that case, that would imply higher costs and less efficient and unsafe workplaces not compliant with regulations.
Impact risk: what can go wrong?
Risks of EcoOnline not delivering the desired impact include less usage of the platform, stagnating growth in new customers, technological complications, and loss of local know-how. These risks are underpinned by the strong link between operational success and impact.
- Eurostats, 2020. Accidents at work statistics. https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Accidents_at_work_statistics#Number_of_accidents
- European Agency for Safety and Health at Work. https://osha.europa.eu/en/themes/work-related-diseases/work-related-cancer
Infobric - Welcome to a world of ease
Revenue (SEKm)1
SDG alignment
Active sites
Active Units - construction and TelliQ
Number of active app users
No. of employees
% Female 2020
-
Total
22% -
Management
23% -
Board
20%
Staff turnover rate PORTFOLIO AVERAGE 8%
Infobric at a glance
Infobric is a leading provider of software solutions with a mission to create socially sustainable and resource- efficient construction sites with a broad complimentary on-site and off-site offering and a growing European presence. The company offers end-to-end construction, infrastructure, and business services products and processes; access, attendance, time management, machine and energy control solutions, fleet management and telematics. With Infobric’s solutions, customers can optimize workflows, safety, and efficiency, ensure regulatory compliance, and monitor their assets and vehicle fleets.
Key developments in 2020
Infobric is the market leader in Sweden with ~60% share, a top-three player in Norway, and has a growing presence in Finland, Denmark, and the UK. During Summa’s ownership, Infobric has more than doubled revenues through over five acquisitions of software companies and steady double-digit organic software growth, in addition to having established a new management team and significantly broadened its offering. Substantial increase in EBITDA and EBITDA margin is largely driven by the strong growth in software, as Infobric is gradually turning more towards a software company. Infobric launched several new products during 2020, with the most significant release being newly acquired applications through EquipmentLoop, Buildsafe, and HMSReg vendor control.
- The revenue figure has been adjusted to include Msite and Addmobile acquisitions. ESG figures in this report do not include these entitities, and the old revenue figures have therefore been used for purposes of intensity calculations etc.
Impact dimensions
The challenges we face
The productivity in the construction sector increased by only 2% in the past two decades – or in other words, since 1995 the global average value-added per hour has grown at around a quarter of the rate in manufacturing. No other sector has done worse1. Simultaneously, more than one in five fatal accidents at work in the EU took place within the construction sector2. There is thus a significant opportunity to improve safety, labor rights and efficiency through digitalization. Infobric is the leading technology platform in the industry, improving the safety and productivity of businesses and employees in the construction, infrastructure, and business services industries.
What is the outcome?
Infobric provides a wide range of software solutions to improve sustainability, efficiency, and safety of the entire construction site value chain, infrastructure, and business services customers. It encompasses access and attendance management, which provides clarity and compliance for the workforce and ensures only the right people have access to sites and tools. The company also monitors customers' vehicle fleets, equipment and CO2 footprint, identifying unsustainable driving patterns and improving efficiency, in addition to providing software to track tools and equipment.
Who are the stakeholders
Infobric's main markets are currently Sweden and Norway. Infobric has also started to build a presence in Finland, Denmark, and the UK – extending the range of impact to cover all the Nordics. The company's customers benefit from improved workforce (and vehicle) control, cost optimization, and the ability to guarantee the safety of all employees. The employees are not only safer but will also benefit from a more compliant sector with fair and transparent labor compensation. Governments of the markets where Infobric is active also benefit from modern ways to enforce legislation.
How big is the effect, and does it last?
~30k active sites used Infobric solutions in 2020. 100 additional sites were in the largest category (project value above SEK 50m). These sites are operated by more than 9 500 companies, with over 100k system users in admin roles, and 100k connected units. Infobric's mobile solutions have been downloaded by over 300k construction workers, who can use it on different projects and sites.
If Infobric didn’t exist...
There is no alternative to Infobric's solutions at scale. Without Infobric construction sites, it would run the risk of unauthorized access, creating health and safety risks not only for the site employees but for all in the vicinity. Tax avoidance and illegal workforce would be easier to use, harming not only governments but construction workers forced to accept illicit practices and lower wages. Finally, the construction industry would continue to lag other sectors in efficiency improvement, hindering construction and infrastructure activity globally.
Impact risk: what can go wrong?
Infobric manages personal data, and as such data privacy and security are of paramount importance and must be safeguarded. Additionally, illicit use, and/ or back solving the software are unlikely, but potential scenarios to avoid legislative compliance. Finally, if the company experiences technological disruption or superior competing solutions, the current product portfolio may not achieve its full impact. Infobric invests considerable amounts of capital and effort in R&D to counteract all these areas.
- The Economist, The Construction Industry's Productivity Problem, 2017 (available at https:// www.economist.com/leaders/2017/08/17/the-construction-industrys-productivity-problem)
- Eurostat, Accidents at work statistics (Available at https://ec.europa.eu/eurostat/statistics-explained/index.php/Accidents_at_work_statistics
Pagero - Facilitating global business through a single connection
Revenue (SEKm)
SDG alignment
Client accounts in Pagero Network
Number of markets
Trees saved
No. of employees
% Female 2020
-
Total
35% -
Management
27% -
Board
14%
Staff turnover rate PORTFOLIO AVERAGE 8%
Pagero at a glance
Pagero develops and markets Pagero Online, a cloud-based platform that enables customers to send, receive and handle documents electronically within the purchase-to-pay, order-to-cash and logistics-to-pay processes. Pagero also develops a suite of supporting applications to help customers automate their processes and ensure accurately and locally compliant documents, with minimum manual handling. As an open and interoperable multi-tenant cloud platform, Pagero Online is independent of ERP systems and is suitable for companies of all sizes and within all industries – as long as they send or receive business documents.
Key developments in 2020
Despite the impact of Covid-19, Pagero's top-linegrowth increased by 12% and the customer base grew by +30% in 2020: The number of companies connected to Pagero's network grew to c.50k during 2020, with more premium brands also starting to join. Pagero now has customers in 135 countries. Pagero increased its international footprint through industry partnerships as well as product development and local establishments in new countries to ensure full compliance in 60+ markets worldwide. Furthermore, the company intensified its product development and added 2 700 new features during 2020 without any interruption to the production environment.
Impact dimensions
The challenges we face
Compliance, efficiency and waste reduction are increasingly important business considerations. A lack of standardization for business communications and the existence of multiple, closed business networks has led to many trading partners being unable to communicate digitally. Consequently, businesses are struggling to optimize the use of their resources while meeting increasingly stringent compliance and reporting requirements and reducing paper waste.
What is the outcome?
Pagero's vision is to build the largest, open business network which will enable more governments and businesses to achieve 100% digital document flows and to comply with tax and regulatory requirements. The product helps reduce the VAT gap and increases tax recovery and thus benefits governments worldwide. Moreover, it improves efficiency by automating global format and standards translations and by eliminating errors and busywork in important sectors, e.g. the healthcare and the public sector, where Pagero has a large customer base. This also helps reduce the environmental footprint by reducing companies' use of paper.
Who are the stakeholders
Pagero's services allow businesses to meet changing local regulatory and industry requirements, meaning governments from around the world benefit from Pagero's services by increasing VAT collection. Pagero’s clients experience efficiency gains, and so do their suppliers who also interact with the network, even if they are not themselves customers of Pagero. Moreover, Pagero benefits the environment by reducing the amount of paper used and ensures accurate documents with minimum manual handling.
How big is the effect, and does it last?
In 2018, EUR 140bn of VAT revenue is estimated to have been lost due to non- compliance across the EU1 and worldwide this number is estimated to be closer to EUR 500bn2. Furthermore, businesses can achieve a 62% accounts payable cost reduction, reduce their e-document error, and better meet regulatory requirements through e-documents3. Through Pagero's 24 local offices across four continents and network of millions of businesses, Pagero helps both governments close the VAT gap and businesses increase productivity, in developed and developing markets alike. From an environmental perspective, Pagero saved 174k tress by turning its customers' documents digital.
If Pagero didn’t exist...
Without Pagero's services, managing e-document compliance regulations per country would be a cumbersome process for businesses worldwide. Pagero currently offers compliance services in over 130 countries, allowing companies to fulfill legal and tax requirements globally and without disruption. There are alternative solutions to Pagero, but arguably none with the same ease of use and price/performance ratio. Moreover, Pagero’s large network gives it an advantage against other players and creates low barriers to entry for Pagero.
Impact risk: what can go wrong?
Data protection and cybersecurity are significant issues in the industry. Being a driver of the digital transition also means facing adoption risk from resistance to change within organizations. Risks also include major technology and competitive disruption, but this is regarded as a relatively small risk as Pagero’s network of businesses would be hard for any one competitor to replicate. In order to remain at the forefront with regards to technology, Pagero expanded their R&D team and invested 180 000+ hours into developing their platform and product offering during 2020. Moreover, the company was able to maintain zero downtime and no security breaches across the Pagero Network throughout 2020.
- EC, 2020. Available at: https://ec.europa.eu/taxation_customs/business/tax-cooperation-control/vat-gap_en
- iPayables, inc., 2016. Available at: https://www.ipayables.com//data/wordpress/htdocs/wp-content/uploads/2014/11/SWP7.pdf
- Bloomberg, 2019. Available at: https://news.bloombergtax.com/daily-tax- report-international/insight-how-are-governments-tackling-the-great-vat-gap
Documaster - Enabling digital compliance
Revenue (SEKm)
SDG alignment
Private sector customers
Public sector customers
Datasources per customer
No. of employees
% Female 2020
-
Total
20% -
Management
29% -
Board
25%
Staff turnover rate PORTFOLIO AVERAGE 8%
Documaster at a glance
Documaster is a Norwegian digital information management company, with core competence in digitization, compliant information management and cloud-based archiving of valuable data. The company offers solutions that enable organizations to capture, process, preserve and easily access data through a system-agnostic archiving core, compliant with EU and local regulations. Documaster was founded in 2014 after several years of product development, together with the incubator Norselab.
Key developments in 2020
2020 saw continued strong topline growth, with year-on-year growth of 59%, ending at NOK ~35m. With growth in new customers and 0% churn, the revenue increase was mainly driven by growth in recurring revenues. The year closed with a significant confirmation of Documaster's ability to improve value for existing customers when Værnesregionen committed to subscribe to 25 new data sources. This client relationship started in 2014 with only a single data source, and the total number is now 43.
Impact dimensions
The challenges we face
Insufficient data management is a source of great loss for business and society. Unless information is properly digitally archived and processed, public and private organizations will suffer from data privacy issues, corruption, threats to democratic processes, and resource inefficiency. For example, between 2011 and 2016 the NHS lost 500 000 pieces of patient data (including blood tests and diagnoses) because they got stored in a warehouse.1 The recovery effort has cost the UK taxpayers over GBP 2.2m, with potentially life-endangering diagnosis errors and delays. The 2019 Verizon Data Breach Investigations Report found that of 17 310 data incidents, nearly 20% were related to data loss, the second-highest category after Denial of Service attacks.
What is the outcome?
With Documaster, public and private organizations can ensure regulatory compliance, strengthen democracies, security and transparency, and minimize the very severe risks of data losses (see the healthcare example stated above). Furthermore, managing information in a modern manner will minimize loss of data and enable organizations as they change to work more remotely, collaborate across different teams and organizations, and career spans shorten.
Who are the stakeholders
~80% of Documaster’s ARR base is currently public sector. Citizens in a municipality or state using Documaster will benefit from less risk of sensitive data loss, more efficient government functions, and increased security and transparency. Organizations, both public and private, will have the ability to operate more fluidly, spend less time and resources on archiving and ensuring continuity – while remaining compliant to regulations.
How big is the effect, and does it last?
Documaster has >300 customers which currently subscribe to ~2 data sources per customer. These subscribers can rest assured that even 1 000 years from now, researchers can understand what happened in the organizations of today and access public data. This is achieved in part by conversion of all files to PDF-A (ISO 19005-long term preservation format), and through compliant data extracts sent to central depots. In Norway, Documaster supports NOARK 5.5. compliant data transfer, in Sweden the same is achieved through the OAIS standard (Open Archival Information System - ISO 14721).
If Documaster didn’t exist...
Without Documaster, customers would have to turn to either using less secure, more labor-intensive, and opaque legacy systems – or as often is the case, paper archiving. Paper archiving not only drives increased deforestation but is a huge liability in terms of data loss, privacy concerns, lack of compliance and security issues. Arguably privacy laws such as GDPR are much harder to comply with and enforce without digital information management. Finally, with Documaster customers are not only in control of their data during its storage and retrieval, but also during its eventual disposal. This makes obsolete secure disposal bins, landfills filled with old archives, and all the associated data loss risks.
Impact risk: what can go wrong?
Documaster manages sensitive data. As such, data privacy and security are of paramount importance and must be safeguarded. Also, if the company experiences superior competing solutions, the current product portfolio may not achieve its full impact. Documaster invests considerable amounts of capital and effort in R&D to counter these risks and is the de-facto disruptor in an industry of legacy incumbents.
- The Guardian, NHS accused of covering up huge data loss that put thousands at risk, 2017 (accessible at https://www.theguardian.com/society/2017/feb/26/nhs-accused-of-covering-up-huge-data-loss-that-put-thousands-at-risk)
- Verizon Data Breach Investigations Report, 2019. (accessible at https://enterprise.verizon.com/resources/reports/2019-data-breach-investigations-report-emea.pdf)
