Deep Tech Due Diligence

First Principles Analysis of Claims + Viability

Run Due Diligence
How It Works

Technical rigor in 30 minutes

01

Upload a pitch deck or describe the startup's approach.

02

Sparlo breaks down the problem and the startup's tech from first principles — the physics, cost drivers, scaling constraints.

03

Sparlo generates a full solution map — every approach to this problem, where the company sits, what they're betting against, who could win instead.

04

Receive a detailed report with a synthesis of the bet you're making, what could break, questions to ask the founders.

30min
Analysis Time
6
Analysis Stages
40+
Domains Covered
01
Input Startup Materials

"What are they claiming?"

Parallel CarbonElectrochemical DAC + H₂
Seed · Raising $8M
Claims Extracted
  • $100/ton CO₂ by 2030
  • $1/kg hydrogen co-production
  • "Same electrons produce both products"
Innovation Claimed

Proprietary electrode approach for calcium solutions

Evidence Provided

None

02
Cost Decomposition

"What assumptions are buried in $100/ton?"

Their Claim
$100/ton
Realistic Range
$140–180/ton
DriverCurrentTargetAchievable?
Electricity$30$15
YES

Texas solar PPAs already at $0.025/kWh

Electrodes$80$25
NO — REQUIRES INNOVATION

Unproven electrode durability in calcium solutions

Capital$80$40
PARTIAL

Scale helps, but electrode life affects plant sizing

Operations$30$20
YES

Standard learning curve at scale

Total$220$100GAP: $120
Innovation Dependency
46%

Achievable without innovation

$55 of $120 gap

54%

Requires unproven innovation

$65 of $120 gap

Scenarios
Innovation Works
$100–120/ton
Target achieved
Innovation Partial
$140–160/ton
40-60% above target
Innovation Fails
$180–200/ton
Not competitive

The investment thesis depends on a single technical bet: electrode durability in calcium solutions. Everything else is achievable with known approaches.

03
Key Risk Analysis

"Why is this hard — and what would solve it?"

The Problem

Electrode durability in carbonate-rich calcium solutions

This is the single technical challenge that determines whether the startup succeeds or fails. 54% of their cost reduction depends on solving it.

Why It's Hard
Governing Chemistry
Ca²⁺ + CO₃²⁻ → CaCO₃(Ksp = 3.3×10⁻⁹)

Calcium carbonate precipitates on electrode surfaces when local pH rises near the cathode. The precipitate is insulating — it blocks active sites and degrades performance over time.

Chlor-Alkali Industry
75M tons/year
Their Calcium Spec
<10 ppm in feed brine

The world's largest electrochemical industry avoids this problem entirely by specifying extremely low calcium content. This startup's process requires operating in the environment chlor-alkali actively prevents.

What Has Been Tried
Periodic acid washing
Works, but reduces capacity factor
-15% utilization
Membrane pre-treatment
Delays onset but doesn't eliminate
Temporary
NORAM electrochemical causticizing
Pilot program for pulp mills
Shelved 2008
What Would a Breakthrough Require?

Three possible pathways to solving electrode durability:

1
Surface chemistry that resists CaCO₃ nucleation

Prevent crystals from forming on the electrode surface

2
Electrode materials that tolerate fouling

Maintain performance despite deposit accumulation

3
Operating regime that continuously removes deposits

cf. electrodialysis reversal in desalination — polarity switching dissolves scale

Solvability Assessment
Hard Engineering Problem

Not forbidden by physics, but requires a novel approach to a problem that industry has avoided rather than solved.

How Long Do Similar Breakthroughs Take?
ProblemSolutionTimeline
Fuel cell catalyst degradationNovel supports + alloys15 years
Battery dendrite preventionSolid electrolytes10+ years, ongoing
PEM electrolyzer durabilityMembrane + catalyst advances12 years to commercial
Assessment

Solvable, but likely a 5–10 year problem if starting from scratch. The startup claims to have an approach — but no data has been provided.

Evidence Provided
None
04
The Bet

"What are you actually betting on?"

You Are Betting That

Their electrode approach survives calcium solutions at industrial scale before Heirloom proves thermal DAC is "good enough" or Heimdal solves ocean permitting.

What They're Racing Against
This Startup
Parallel CarbonElectrochemical
$100/ton target

Unproven innovation

Thermal DAC
HeirloomElectric calcination
$110/ton

Already operational

Ocean Capture
HeimdalSeawater extraction
$80/ton potential

Permitting unclear

Before Term Sheet
Request electrode durability data

>1000 hours at 3 kA/m² in carbonate-rich solution

Priority
Critical
Model economics without 45Q tax credit

Understand if this is a technology company or policy arbitrage

Priority
High
Technical call with independent electrochemist

Validate feasibility of their claimed approach

Priority
High
What Would Change This Assessment
CAUTIONPROCEED

Electrode durability data showing >1000 hours at 3 kA/m² with <10% efficiency degradation.

Third-party validation preferred.

CAUTIONPASS

Data showing >30% degradation in <500 hours.

Or expert consensus that calcium fouling is fundamentally unsolvable at their operating conditions.

Recommendation
CAUTION

Proceed contingent on electrode durability validation.

The mechanism is thermodynamically sound and the market is real. But 54% of the cost reduction depends on solving a problem that the chlor-alkali industry avoids entirely.

This is the make-or-break technical question. Get the data before committing capital.

Read Full Report

20-page technical due diligence · Generated in 28 minutes

Example Reports

Due Diligence Report Library

Questions

FAQ

By continuing, you agree to our use of cookies to improve your experience.