Infraclear
Infraclear is building the Bloomberg of infrastructure. It has patiently gathered thousands of infrastructure project agreements and real-world financial models. Using machine learning and natural language processing tools, it is building the world's first large scale database of how thousands of infrastructure projects were structured, and how they performed. On top of this data, it is building
  1. Market intelligence and benchmarking products that can shave years off the time it takes to develop a project
  2. Portfolio management tools for banks and infrastructure investors
  3. A procurement platform that can standardize and simplify infrastructure procurement
  4. Tools to securitize nearly $4 trillion of infrastructure loans, while increasing returns for investors by up to 25%
Infraclear has entered into a partnership with Thomson Reuters (now owned by the London Stock Exchange Group), who is selling Infraclear's products to their thousands of customers. Infraclear was named by the G20 as one of the world's top 10 infratech startups, and its work was recently endorsed by the G20 Ministers of Finance and Central Bank Governors. It is also backed by NYSERDA. The company is run by a diverse team, including:
  • Project finance professionals with experience at IFC, Rothschild, and Blackstone;
  • A PhD in Engineering who was the lead data scientist for the Cornell Legal Information Institute-- the world's largest legal information platform with over 40 million users;
  • Employee #5 at Infosys
The company is backed by venture capitalists, and has raised over $5 million in a seed round.  

Purpose

Infraclear is on a mission to democratize infrastructure data.

Most of Infraclear’s senior team members grew up in emerging markets, where we felt the absence of basic infrastructure– power, water, transport, telecoms, and more. We are on a mission to democratize infrastructure data, and use it to radically transform the way we develop , finance, and manage projects. We have spent decades in the infrastructure market, and know the data and products needed to drive this transformation.

64% of all GHG emissions are tied to infrastructure. In order for us to bend the curve on climate change, we have to find ways to build sustainable infrastructure, much faster. But the problem is that there is no systematic data on how prior projects were structured, or how they performed. Without this data, each project has to be structured from scratch, each time. The agreements underlying projects are complex and opaque. The G20, World Bank, and OECD have fretted that the lack of useful data is the single biggest barrier to making infrastructure a transparent, liquid asset class.

Developers, lenders, and governments spend over $600 billion every year trying to develop new projects. But 90% of those projects never see a shovel hit the ground. 50% of the projects that do get built, get restructured in some manner.

Enter Infraclear. For years, project finance professionals thought that this data was confidential, and “impossible” to analyze. Infraclear is changing this paradigm. We have gathered thousands of project agreements and financial models. We are using natural language processing and data analytics to extract never-been-seen, granular data on projects’ terms, risks, and structure.

Our goals:

  • We want to use data to make it radically easier to develop projects. The world’s biggest banks believe our products can save 30-40% of the time to bring a project to market.
  • 50% of projects get renegotiated, and the world’s largest asset owners believe our tools can help them create early-warning systems to help them spot and act on problems in their portfolio, much earlier
  • 30% of infrastructure costs are lost to corruption, and the CEO of one of the world’s biggest multilateral banks believes that our platform can make infrastructure procurement simple and transparent
  • Infrastructure is the last great asset class that has not yet been securitized. Despite all the capital going into infrastructure projects, retail investors and the workers who work on these projects don’t have an easy way to own the assets. While over 70% of real estate mortgages are securitized, less than 1% of infrastructure loans have been securitized. Major exchanges and banks want to use our data to securitize infrastructure. This can also have the effect of lowering capital charges, and increasing returns by up to 25%.
  • Finally, 20% of sovereign fiscal crises were triggered by defaults to infrastructure projects. On average, each event cost 1-3% of GDP.

 

 

 

Giridhar Srinivasan

Co-founder & CEO, Infraclear

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Summary

Infraclear intends to work with a multilateral/ NGO to provide critical data needed to help emerging market governments negotiate better infrastructure agreements. We intend to commence this work in the next 18 months.

Activities & Initiatives

Emerging market governments need help negotiating complex infrastructure agreements. Infraclear has valuable data on how thousands of prior infrastructure projects around the world, were structured. Four multilateral development agencies/ banks have approached Infraclear to see how this data could be used to help emerging market governments. Infraclear intends to work with one of these multilaterals to assist their client governments, at cost.  

Measures & Targets

1. Number of governments we assist

2. Number of projects the data is used to structure

3. Number of multilaterals we work through

 

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