Founders' Spotlight Series | Vanguard Tech
Learn more about Motion Ventures' portfolio companies through these founders' personal stories.
With several thousand years worth of history, it is exciting to witness the next wave of innovators and entrepreneurs challenging the status quo and using technology to challenge age-old problems in the maritime industry. The Founders Spotlight Series is a platform dedicated to showcasing the remarkable journeys of maritime startups founders who have transformed their ideas into reality.
Through these compelling narratives, we will dive into the minds of these game-changers, exploring their motivations, discovering how they overcame obstacles and navigated uncharted waters, and understanding the lasting impact they have made on their industry and beyond.
Join us on this captivating journey through the Founders Spotlight Series as we unveil the stories of maritime trailblazers reshaping the industry.
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Vanguard Tech: Intelligent Risk Transfer for the Maritime Industry
The maritime industry faces numerous threats daily, from natural hazards like sea mammal movements, to man-made dangers such as piracy and war-risk. Many existing solutions offer vessel routing and optimisation platforms, producing some level of risk mitigation as a by-product. However, these solutions often fall short in fully assuring vessel owners and managers of comprehensive safety and security.
Vanguard Tech has developed an all-encompassing platform that prioritises vessel risk management. Positioned at the intersection of maritime cybersecurity, data analytics, and risk & intelligence, their platform helps ship owners and managers better understand and mitigate risks. By utilising onboard data, Vanguard directly addresses navigation, cyber, environmental, and security risks, leading to safer operations and reduced insurance premiums for their customers.
The Founding Story
Vanguard's journey began through a shared frustration towards the one-dimensional approach to maritime security, which led co-founders, and long-term peers, Kfir Magen (Co-founder) and Gilad Appelbaum (Co-founder and CFO) to develop a solution that leveraged technology to solve complex issues. With over 20 years combined experience working with ship owners and vessels, and diverse backgrounds in maritime operations, digital technology, and business strategy, Vanguard was established.
Fig. 1. Co-founder of Vanguard Tech, Kfir Magen.
The founders recognised the paramount importance of safer and more secure operations, and that the industry was ready for digital transformation. They envisioned Vanguard as a vehicle to continuously learn, adapt, and strive to make an impact for their clients.
Early Beginnings
In the early days, Vanguard engaged with various industry stakeholders to understand their challenges and explore how different technologies could effectively address these needs. Extensive market research was also conducted to validate their problem statement and refine their offerings to align with actual industry needs.
Once they were able to accurately validate the problem statements, including the need for a product focusing on vessel risk management and aspects of risks including navigation, cybersecurity and more, Vanguard began identifying strategic insurance partners to create an industry-first business model. Since their inception in 2022, Vanguard has made significant strides in the Maritime Tech scene. Their services, particularly their flagship remote risk management solution - ‘Digital Guard’ - go beyond risk mitigation and directly impact profit margins by unlocking reduced premiums and insurance costs.
A significant partnership with insurance brokerage and risk management company AJ Gallagher has been a key achievement for Vanguard. This collaboration provides maritime customers with access to the Vanguard platform to better manage risk exposure and ensure premiums reflect mature risk management practices.
Partnering with Motion Ventures was also a strategic decision that provided not only capital but also access to a network of maritime leaders. This partnership fostered innovation and accelerated their market penetration with tailored expertise and support.
Growth and Evolution
Vanguard has received good momentum and positive feedback from over 70 blue-chip clients in the shipping industry. Through Digital Guard, they monitor and support approximately 150-200 commercial vessels transiting through elevated threat areas, providing excellent visibility and enabling timely threat assessments. This visibility has allowed the team to confirm or discount threats with accuracy, improving operational security.
Fig. 2. Screenshot of Vanguard’s platform interface with Joint War Committee Listed Areas, Important Marine Mammal Areas, and May datasets toggled on.
With private, public, and military maritime partners spanning across the United States, United Kingdom, Singapore, and beyond, Vanguard’s solution balances the need for timely response and careful analysis, eliminating the opportunities for customers to receive exaggerated or unfounded security threats. Their customers praise Vanguard for their rich and useful information and up-to-date comprehensive reports that improve morale onboard, especially during piracy threats. This success signals that their model works and reassures investors about scaling their offering while streamlining marine insurance management for buyers.
Fig. 3. Screenshot showing conflict-related incidents (Sep 23 - June 24) and sample vessel tracks and risk rating.
When asked about their secret to success, the team emphasised the importance of building strong relationships with clients by understanding their unique needs, and committing to delivering exceptional value through frequent check-ins to ensure that needs are met, and concerns alleviated. Their approach includes continuous innovation, responsive customer support, and leveraging successful case studies that showcase their impact.
In the grand scheme of things, the team aims to drive a 20%-30% reduction in marine insurance premiums across War, Cyber, Hull & Machinery (H&M), and Protection & Indemnity (P&I) sectors, making insurance more efficient, cost-effective, and secure.
Looking Ahead
Vanguard is committed to utilising its unique Intelligent Risk Transfer approach to revolutionise the maritime insurance industry, an industry long plagued by outdated processes and legacy systems. They envision expanding their product lines to cover more exposure categories and rolling out innovative products and services across risk mitigation. Their goal is to pave the way towards intelligent risk transfer and reduced margins for shippers, ensuring continuous innovation and excellence in service.
If you resonate with Vanguard’s story and vision, whether you are a potential client, partner, or investor, feel free to reach out to Vanguard through their LinkedIn page or website.
We'd love to hear your thoughts and maritime stories. Stay connected with us as we navigate through more maritime success stories in our next Founders’ Spotlight article, unveiling groundbreaking shifts that are shaping the future of maritime.