Valtec AI, a tech startup co-founded by John Keh, has recently gained significant attention for its innovative use of artificial intelligence (AI) and drones in the fishing industry. The company's technological approach targets a market traditionally underserved by modern tech solutions—commercial fishing vessels.
Keh graduated from UC Berkeley and later joined the U.S. Air Force, where he gained extensive experience in geospatial analysis and drone applications. During his service, he was stationed in South Korea and the Middle East, completing over 250 missions. After leaving the military, he transitioned into the startup world. Over the past decade, he has had successful experiences as a serial entrepreneur. During the pandemic, he found his way back to Taiwan with his family and, by chance, shifted his military drone operations expertise toward fishing applications.
Game-Changing Solution for Commercial Fishing
Commercial fishing is a high-stakes, high-reward industry where efficiency in locating and capturing fish can mean millions of dollars in revenue per vessel. Traditionally, fishing vessels use helicopters to locate schools of tuna within a 100-kilometer radius. "The helicopters are very high maintenance, very cumbersome to take care of, and it takes up a lot of space. Not only are drones cheaper, but with multiple drones, you can now search 3 to 5 times the area, reducing your time to catch, thereby saving a lot more gas from the ship," Keh said.
Valtec AI's drones are particularly tailored for purse-seine fishing vessels, a type of ship that targets tuna schools. The company's core technology allows for multi-drone command and control, as well as AI-powered object identification. Their system can operate several drones simultaneously, collecting real-time data about fish locations, estimated sizes, and even environmental factors like the current direction, which can tear fishing nets. By eliminating the need for helicopters, Valtec AI's drones reduce operational costs and risks while improving search efficiency.
In terms of competition, Valtec AI's primary rivals are helicopter companies, but the company's technology is likened to the replacement of horses by cars. The advantages in cost, safety, and efficiency make drones a clear disruptor in the market. Moreover, as the fishing industry deals in a commodity (tuna), any tool that improves yield and efficiency is likely to be rapidly adopted across the board, making Valtec AI a strong player in the space.
A Service-Based Business Model
Valtec AI operates on a service-based business model, providing a "system as a service." This includes not only the drones and software but also ground control stations and operators. The company's revenue stream is built on offering an all-in-one service, reducing the burden on fishing vessels to maintain and operate their drone systems independently.
"We buy the drones from the hardware providers, then provide the drones to the fishing vessels, to our customers, and provide the software, provide that ground control station that handles the whole system. We even provide an operator," Keh said. "We're creating a new profession. Originally there were no drone operators on fishing vessels or boats. Now we will provide the trained personnel to be able to operate our system and the multi-drone capability, and that way the customer does not have to worry about if this drone breaks or whatever."
Valtec AI's drones have already been deployed to gather data from fishing vessels in Taiwan and the Philippines, with plans to expand globally. Keh emphasizes the potential to scale this system as more fishing companies see the clear cost and time savings from drone adoption. By cutting down the time required at sea from one month to two weeks, Valtec AI's system can significantly boost revenue for fishing companies, turning what is typically a slow, labor-intensive process into a streamlined operation.
Future Expansion and Strategic Focus
While the current focus is on the fishing industry, Keh sees future applications in other maritime industries, such as surveillance for shipping. However, the company is cautious about entering more complex sectors like defense, where factors such as weight limitations and operational range present new challenges for drone technology.
In the short term, Valtec AI aims to perfect its solution for the fishing industry, expanding its customer base and proving its value proposition. The company recently closed a $2 million seed round, with investments facilitated through its close connections with Taiwan's startup ecosystem, including investment from Spark Labs Taiwan. The funds will help Valtec AI deploy its technology on 40 vessels of current customers, focusing on proving the system's effectiveness in reducing fishing time and increasing revenue for them.
Valtec AI revolutionizes commercial fishing with drone and AI technologies