PaleBlue, a company with a focus on VR and AR solutions, has impressive clients like NASA, ESA, and Saudi Aramco among their references. The entrepreneur of the company is now predicting super growth.
In 4-5 years we will have annual revenue of 100 MnoK. Our revenue has the shape of a hockey stick, and we have just started this journey. Felix Gorbatsevich, the CEO and Entrepreneur of PaleBlue
PaleBlue, with headquarters in Stavanger, is recognized as one related to VR and immersive simulator-based solutions.
When the company started in 2013, its first contract was to deliver a digital solution for the training of diving supervisors. However, instead of continuing to develop solutions for the diving industry, PaleBlue in recent years has helped out in the aerospace industry in developing simulator training solutions to prepare astronauts for their missions in space with the big space organizations, NASA and ESA as their clients.
PaleBlue is providing their clients with VR software and content to ensure that the clients actually have real benefits of using VR Technology.
Felix Gorbatsevich was born in Russia and moved to Norway in 2008. He was the chief software architect in Aker Solutions, prior to establishing PaleBlue together with Svein Rune Reinhardtsenin 2013.
Reinhartsen’s vision was to develop simulator solutions to the diving industry, and Felix Gorbatsevich had all the competence and skills to actually realize the ideas into products. Prior to working for Aker Solution, Gorbatsevich had been working for both Sun Microsystems and First Interactive.
In the last couple of years, PaleBlue has expanded its client portfolio with prestigious clients in the energy sector, such as Saudi Aramco, Neptune Energy, Aker Solutions, and MHWirth. In addition, we find Oslo Kommune (Oslo Municipality) as one of their customers.
Last summer Saudi Aramco picked PaleBlue as their vendor to provide VR simulator training solutions. This contract represents a potential value of 120 MnoK in future revenue in the coming 2-4 years. This contract is one of several long-term contracts PaleBlue has signed with our clients. Egil Thomas Andersen, Account Director at PaleBlue
The company has traditionally established project-based contracts with its customers.
However, a repetitive element comes into use when PaleBlue reuses program codes and/or graphical elements from their library of code modules.
A chair, a coffee cup, or screwdriver originally designed for NASA, can reappear when PaleBlue is designing the interior in Oslo Municipalities new administration building at Alna in Oslo. Ever since PaleBlue started they have built up a large library of code elements their developers can pick from when new applications are developed.
“We will see a huge increase in our earnings as soon as our applications have become scalable. This is a key element, and we are in the process of building this.” Egil Thomas Andersen says. ”Almost all kinds of new technology have over the years met resistance and skepticism. The same happened with VR technology, but as soon as users realize all the benefits and earnings you achieve by using VR solutions, the resistance disappears and is replaced with enthusiasm and creative ideas of how the VR technology will help their business in a lot new areas. Our experience is that a lot of the new users have some kind of “WOW-experience”.
Resistance in the market
If you google “VR design for business” you will have 147 million hits, including several sponsored links. One of the sponsored hits says: ”11 best VR Designers – Hire in 48 hours”. Another link is luring with the following text: ”VR Business One-stop Solution”. A third sample is: ”31 Virtual Reality Companies to know”.
“You are definitely not alone in providing VR solutions for training for Businesses”
“Of course, we are not alone in a market segment showing great expansion. But with several solution providers, the attention and acceptance of VR technology grow. You have to bear in mind that there are a lot of different niches inside VR technology solutions. We are focusing on providing the best available quality in the areas we are focusing on.” Egil Thomas Andersen is stating.
In January 2021 PaleBlue raised 4 million in capital in a combination of loans and new investors. The company was at that stage valued at 23 MnoK. Among the new investors, last January were investors like Brage Johansen, one of the entrepreneurs of Zaptec and Heimdal Power. Another investor was Christian Rokseth, the founder of the company Pixavi.
PaleBlue is now preparing new funding for 10 MnoK. The market capitalization of PaleBlue is now 50 MnoK.
“We are looking for some new investors with a medium-range horizon of their investment, who can contribute with strategic competence, knowing the market’s mechanisms and the ability to contribute so that we meet our long term targets.”
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When will PaleBlue have a positive contribution on earnings?
“That is probably not going to happen this year. But as of 2023 we expect a turnaround in this area. This is planned for and in a controlled state and our investors are both familiar and comfortable with these facts”, Andersen replies.
Read the article at Finansavisen’s website (in Norwegian).
Finansavisen is a Norwegian business newspaper published by Hegnar Media in Oslo, Norway. It covers stock market news and the financial industry, as well as news from everything that deals with the economy and business, reports on housing and commercial property, as well as in-depth interviews and leisure material.
PaleBlue is the leading provider of immersive technologies and training solutions. Our focus is on achieving excellence by delivering value-driven solutions enabled with AR and VR technology. PaleBlue 3D simulators are built for the real world and help businesses worldwide better prepare for real-life situations and emergencies.