2024 BLUMORPHO's lessons learnt

What lessons did we learn from 2024 that are shaping our actions for 2025 and beyond

The Blumorpho team during Inpho Venture Summit 2024.

From left to right: Marine Hamelin, Radia Lahlou, Géraldine Andrieux – CEO, Olivia Uguen, Lucie Guedez, Régis Hamelin – CTO.

2024 coming to its end, the Blumorpho team is happy to open the discussion on what we have
learnt from our 2024 activities that could contribute to shape 2025.

AI for ever

No doubt AI has been the rockstar of 2024…

2024 started with AI i on everyone’s lips with the impressive breakthrough of GenAI.

In early 2024 we had the great pleasure to organize a series of discussions with leading deeptech private investors to challenge the question “what’s next to invest in deeptech”. At that time the discussion focused deeply on AI, questioning the existing usages, opportunities, challenges, but especially the key question : “Who will really benefit from it”.

We must admit that for a long time many people pointed out that when companies claimed to do “AI” we were closer to highly advanced excel sheet and data processing. These efforts were limited by a lack of industrial knowledge and applications-specific expertise to turn data into valuable assets.

Generative AI, with its transformative capabilities, has reignited interest in AI by advancing beyond traditional neural network architectures to deliver increasingly sophisticated and human-like functionalities. However, the business model of LLMs is questionable, as they require significant investment. Their value might be limited to a few deep-pocketed players, particularly those dominating the data and digital ecosystems.

2024 made it clear that the value of AI and GenAI is mainly on unlocking specific use cases with a verticalization approach to capture trapped value. The added-value relies more on domain-specific expertise than on the AI itself, becoming a mean and not a goal.

The magic is in AI, but the value on the use case and targeted trapped value

By the end of the year, investors at the INPHO Venture Summit clearly stated that doing AI is no longer a differentiating factor, and avoiding explicit mention of AI can enhance credibility.

We cannot speak about AI and its expected impact without mentioning the high expectations surrounding its potential use in disrupting US government operations and reduce federal expenses particularly in the context of post-election claims about leveraging AI and process optimization.”.

For those who have been part of our ecosystem for many years, let’s look back to 2020, when, during our digital think tank session embedded in the INPHO Venture Summit, Geoffrey Moore clearly stated that the next wave of disruption would evolve from systems to government tech.

At that time, we might not have anticipated that it would take only four years for this prediction to start becoming a reality. Innovation is accelerating rapidly, leaving us to wonder where we stand in the current wave…

AI and its huge potential in TechBio, Healthtech and better inclusion

When discussing the potential of leveraging AI within specific verticals, TechBio and Healthtech represent highly attractive markets where AI has the potential to transform complex processes, from R&D to clinical validation in drug development and commercialization, all the way to personalized treatments.

Beyond pharmatech, healthcare services are intricately linked to government structures and policies. Health must be a national priority for every country, each with its own healthcare system. This fragmentation, with its unique challenges, makes the healthcare market complex for innovative companies, often leading to long development cycles and slow market adoption.

While the level of R&D and investment in health-related technologies is impressive, it remains underexplored. We believe that AI has the potential to unlock this untapped potential and disrupt the existing value chain. At Blumorpho, we are convinced that the true disruption will come from players we may not have initially expected in this field. The use of Artificial Intelligence, Robotics and Data Analytics for biological and Healthcare systems (a.k.a. TechBio) will favour the emergence of new actors on the map.

In 2024, we had the privilege of meeting inspiring individuals including 16 start-ups in the TechBio categories selected for As well as various governments who are committed to making health an economic driver.

Finally, in our last panel, “What company would you launch today to present at Inpho 2026?”, some investors highlighted the importance of investing in mental health. This recognition

We are honored to be part of this health leapfrogging journey, aiming to build a more inclusive society and enabling new business models focused on prevention and a holistic approach to better health.

Hardware is definitely back into the investment game

If value distribution of AI disruption is still uncertain, its impact on the hardware business is unquestionable.

Hardware technologies are back in the game and attract interest of the investment world as the enabler of economic growth.

Semiconductor: Nvidia, the big winner of the AI revolution.

Nvidia has emerged as the big winner of the AI revolution, capitalizing on its dominance in GPU technology, which powers the vast majority of AI models and machine learning processes. This has not only solidified its position as a key player in the AI ecosystem but also driven remarkable growth, with Nvidia reporting a 50% increase in revenue in 2023, reaching $26.9 billion, fueled by the surging demand for AI-driven solutions.

AI into semiconductors expanded beyond data centers to personal devices. AI-enabled smartphones, PCs, and wearables began entering the market.

Interesting to notice that advanced Semiconductor Packaging received rapid adoption to support workloads, redefining performance, efficiency, and innovation in computing. But what’s in it for the key sectors of the European economy such as automotive, telecom or aeronautics?

In 2024 Blumorpho performed a deep dive in this field, considered as the next milestone in semiconductor innovation. We coordinated the Pack4EU initiative supported by the CHIPS JU, to analyse this question. 9 recommendations have been validated and are now used by the Chips JU, as a basis for current planning on what should be supported in this broad area. In 2025 we will continue our collaboration with the CHIPS JU with the coordination of the emerging network of Chips Competence Centers in Europe. Stay tuned for more information.

The U.S.-China tech competition influenced the industry, with China ramping up its semiconductor production capacity to counteract sanctions. At the same time, regions with a focus on IC design, saw a growth rebound due to innovation in AI and automotive technologies.

For the last 5 years we have witnessed how the usage of AI in robotics for manufacturing has created innovation opportunity targeting mostly better productivity. Edge computing, data sharing and low code programming facilitating interaction between machines and humans were the focus, but they are also enablers of new business models such as Manufacturing as a Service. The fabless business model is standard in semiconductor but is only in its infancy in machining or Electronic Manufacturing Service. In 2025, at Blumorpho we will explore the applications of Cloud Manufacturing to push the concept further and define new collaborations models in Coopetition mode.

Energy and decarbonization, the reality check

The Jevons Paradox is an economic theory that suggests that as a technology improves the efficiency of a resource, it can lead to an increase in demand for that resource, rather than a reduction in its consumption. This concept was introduced by British economist William Stanley Jevons in 1865.

During the Industrial Revolution, Jevons observed that the improvement in the efficiency of steam engines using coal did not result in a decrease in coal consumption but rather an increase. In other words, as steam engines became more efficient and used less coal to produce the same amount of work, their use expanded. This led to an increased demand for coal to power these new machines and other growing industries.

In summary, even though technology improved the utilization of coal, the efficiency gains ultimately enabled broader use and a greater consumption of the resource, thus validating the Jevons Paradox

Back to commodities business reality

Reaching the net zero objectives by 2050 is becoming a harder challenge, especially when we know that in 2024, the global average surface air temperature reached 1.54°C above pre-industrial levels, marking the highest temperature on record for the January–September period, according to the World Meteorological Organization (WMO).

Energy is key to achieving decarbonization objectives. This field is undergoing a reality check and a paradigm shift, where the key success factors will remain the basics of commodities: cost, efficiency, and sustainable availability.

When it deals with energy, part of the key highlights of 2024 is the resurgence of nuclear, identified as one of the key solutions to address the growing energy demand including of data centers with Small Modular Reactors (SMR). The time to scale is questionable although very promising companies got strong recognition this year including Transmutex, winner of the 2024 INPHO Venture Summit Award.

As long as these decarbonization challenges are not anchored in an economic reality that creates value, they will remain vulnerable to being questioned and potentially sidelined, subject to the shifting tides of various crises.

At Blumorpho we aim at contributing to support the shift toward a climate economy while addressing key industries with strong carbon footprint and high growth. We aim at triggering new business models rewarding decarbonization. We are structuring ecosystem building virtuous collaborations of key stakeholders matching objective of each to reach a global achievement.

Blumorpho and the Blue economy playground

2024 was the year of the launch of Financing Maritime Innovation and Infrastructure for Climate and Ocean initiative during Monaco Ocean Week with the support of the Foundation Prince Albert II of Monaco, which attracted 180 participants including leading banks such as Société Générale, Crédit Agricole, BNP Paribas, and UBS, alongside VC investors including Reocean Fund, family offices, corporates from the maritime and energy industries, and innovators. We have strengthened our ecosystem of companies active in CCUS, biofuels, AI for navigation, advanced batteries, biofouling, material recycling, and biodiversity conservation. We made also the blue economy topic central to discussion with deeptech investors who acknowledge the attractiveness of the maritime for disruption.

As a member of AIVP, the leading and international association of port cities, Blumorpho is building up on Financing Maritime Innovation.

Our action is amplifying in 2025. Part of our results will be introduced in June 2025, in the context of UNOC. 2025 will start with breaking news… and invitation to join us.

Balancing globalization, sovereignty and alliances

As a result of the COVID-19 crisis and the growing significance of the data economy, sovereignty has become a key concept. Strengthening manufacturing capacities has emerged as a critical objective for governments to ensure national sovereignty, raising important questions regarding skills, human resources, agility, and execution capabilities. Industry 5.0 has become a key ambition, focusing on enhanced productivity, environmentally friendly, and human-centric manufacturing processes. While this approach applies globally where differentiation can be questioned, sovereignty primarily relates to supply chain management, particularly in strategic sectors such as semiconductors, healthcare, and logistics—key areas essential for economic stability.

We firmly believe that fair international collaborations and ethical alliances are the drivers of major breakthroughs that can foster innovation for positive environmental and societal impact. At Blumorpho, we are action-driven to deliver value, so in 2024, we expanded our global activities, building strong relationships in Southeast Asia and Africa to reinforce collective impact. Our expertise in data management protocols, combined with cybersecurity, will play a crucial role in supporting the emergence of impactful business opportunities in the coming years.

PEOPLE, GROWTH AND DEBT

As the year comes to a close, macro-economic discussions are increasingly centered around two critical topics: growth and debt. Innovation remains the expected major driver of economic growth, the challenge is to make it happen.

This year has once again demonstrated the unique competitive advantage of frontrunners in capturing the lion’s share of growing markets, with Nvidia serving as a prime example. In transformative technologies, resilience and access to capital make the difference.

Beyond technologies whatever it concerns AI or hardware, Blumorpho’s mantra is that innovation always relies on people and on the access to a relevant ecosystem to make it happen.

Blumorpho will celebrate its 10 years in 2025 and has prepared a quite ambitious program for the ones sharing our vision of collective intelligence and cooperations to succeed in innovation with positive impact. Whether you are interested or active within semiconductor, maritime or health related ecosystems, do not hesitate to join us

And as a teaser… for the one who have reached this part, we are pleased to invite you to join a 30 mn live discussion with Eric Benhamou, Founder and General Partner of BGV, leading Silicon Valley based and global deeptech investor, on February 10^th at 5.30 pm CET. Eric will challenge 2025 deep tech investment opportunities in a collective intelligence approach.

We wish you a great end of the year celebration period.

Looking Ahead

2024 has shown us the immense potential of innovation to address global challenges. At Blumorpho, we are excited to continue empowering startups, connecting industries, and shaping a future where technology serves humanity and the planet. As we move into 2025, we remain committed to connecting visionaries, innovators, and industry leaders to build a future where technology serves humanity and the planet. Together, let’s build a smarter, more sustainable tomorrow.