Undertanding Disaster Resilience Tech: Where Innovation Meets Impact**

Climate disasters cost $330B annually—private sector tech solutions are critical to bridging the humanitarian funding gap (PSHA, 2025). - **High-Growth Segments**: AI-powered early warning systems, blockchain aid distribution, and emergency ops automation are scaling fast (see Vanuatu/Ukraine case studies). - **Investor Advantage**: Early movers in "resilience tech" tap into $50B+ in UN/private sector partnership funding. - **Key Action**: Target startups with **proven field deployments** (e.g., 1.6M daily users in Peru) and **government contracts**. The Private Sector Humanitarian Alliance (PSHA) reveals a seismic shift: **85% of disaster response innovations now come from startups**, not NGOs (PSHA.org, 2025). For angels, this spells opportunity—especially in technologies that: - **Prevent** (AI forecasting), - **Respond** (digital cash systems), - **Rebuild** (blockchain supply chains). The flagship initiatives to decode where to invest. --- ### **1. Top Investment Trends ** **a) AI That Saves Lives** - **Hombro a Hombro (Peru)**: AI curates disaster data into actionable alerts for 1.6M people daily. **Revenue model**: B2G contracts with municipal agencies. - **Sayuru (Sri Lanka)**: Fisherfolk death rates dropped to **zero** after deploying location-based SMS warnings. **Scale potential**: Expand to other coastal nations. **Investor Takeaway**: ✔ Prioritize startups with **geospatial AI** + local language support. ✖ Avoid "generic" predictive models without government buy-in. **b) Blockchain for Aid Transparency** - **Vanuatu Business Resilience Council**: Blockchain cash transfers cut fraud by 22% post-cyclone. **Key tech**: Smartphones + tap-to-pay cards for unbanked populations. **Deal Structure Tip**: - Demand **working pilots** (e.g., 6-month NGO partnerships). - Look for **dual-use** tech (e.g., same blockchain can track climate credits). **c) Emergency Ops Automation** - **Philippines’ BEOC**: First business-led emergency hub reduced disaster prep time by 65%. **Exit path**: Acquired by Palantir or Anduril for defense synergies. --- ### **2. Due Diligence Checklist** **a) Traction That Matters** | **Metric** | **Green Flags** | |---------------------|-----------------------------------------| | Partnerships | UNDP, Red Cross, or national agencies | | Unit Economics | <$0.10 cost per alert (AI) or transfer (blockchain) | | Founder Fit | Ex-humanitarian leaders with tech scaling experience | **b) Regulatory Risks** - **Data Privacy**: Ensure GDPR/CCPA compliance if handling refugee data (e.g., Ukraine’s Telegram bot). - **Aid Restrictions**: Sanction-proof tech (e.g., Mastercard’s workarounds for crisis zones). --- ### **3. How to Invest (PSHA’s Blueprint)** **a) Syndicate Opportunities** - PSHA’s **AI Needs-Matching Platform**: Backed by Schmidt Futures, it connects investors to vetted startups like: - **Automation Anywhere**: Saved 200 volunteer hours/week in Ukraine. - **Localized clones** in Southeast Asia/Middle East now raising seed rounds. **b) Term Sheet Must-Haves** - **Pro Rata Rights**: Critical for follow-ons in hyper-growth sectors (e.g., digital cash aid grew 400% since 2022). - **Liquidation Preference**: 1.5x for angels in hardware-heavy plays (e.g., drone delivery startups). --- ### **4. Exits & ROI Timelines** - **Acquirers**: - **Tech**: IBM (AI analytics), Visa (digital cash), SpaceX (connectivity for disaster zones). - **Defense**: Raytheon’s $300M acquisition of drone-mapping startup BlackSky (2024). - **Hold Period**: 4–6 years for 10x returns (per PSHA’s portfolio data). --- ### **Conclusion: Invest with Impact** Disaster resilience tech is **not charity**—it’s a **$1T+ market** hiding in plain sight (World Bank, 2025). To capitalize: 1. **Join PSHA’s Investor Cohort**: Access pre-vetted deals like Vanuatu’s blockchain pilot. 2. **Diversify**: Allocate 5–15% of your portfolio across AI, fintech, and logistics. 3. **Measure Impact**: Demand **dual KPIs**—financial returns + lives saved (e.g., "zero fisherfolk deaths" = social proof that drives valuations). **Act Now**: [Download PSHA’s 2025 Disaster Tech Startup Pipeline](https://thepsha.org/dealflow). --- **Sources**: PSHA.org innovation reports, UNDP case studies, PitchBook defense-tech exits. **Why This Matters**: The startups you fund today could literally rewrite disaster response—while delivering top-quartile VC returns.