From Horseback to Carbon Curves: Decarbonizing with Diane Frachon of SLB New Energy
Interviewed November 27th, 2024

Introduction

Diane Frachon’s career journey is as dynamic and unconventional as it is inspiring. Growing up with a love of horseback riding, she dreamed of becoming a veterinarian. This passion for animals and the natural world shaped her early aspirations and fostered a deep connection to sustainability. However, an accident during her youth derailed these plans and set her on a path toward engineering—a pivot that would ultimately lead her to corporate venture capital. She sat down with Nicolas Sauvage, host of Corporate Venturing Insider and President of TDK Ventures, in November 2024 to discuss her career and journey.

Today, Diane is a key figure at SLB New Energy Corporate Ventures, where she plays a pivotal role in building a portfolio of decarbonization technologies aimed at creating a balanced planet. For Diane, this work aligns perfectly with her personal values, giving her a sense of purpose and motivation.

"It's so deeply rooted. I don't even think about it. My values and purpose perfectly align with what we're doing today. It’s a very deep, powerful motivation to problem-solve and move forward," she reflects.

A Nonobvious Path to Corporate Venturing

Diane’s path to corporate venturing is anything but traditional. Her career has spanned multiple industries and geographies, from the food and automotive sectors to entrepreneurship. These diverse experiences shaped her understanding of customer-centricity, operational frugality, and strategic problem-solving.

A pivotal moment came during a conversation with her now manager, where Diane realized how her eclectic background uniquely positioned her for corporate venturing.

"I hadn’t considered venture capital until that conversation. It was an 'aha!' moment where I saw how my experiences aligned perfectly with the demands of this field," she recalls.

Her entrepreneurial journey also plays a significant role in her approach. Diane has consistently stayed connected to local entrepreneurial ecosystems, advising incubators and mentoring startups.

"Having my own entrepreneurial journey allowed me to deeply connect with the challenges founders face. These experiences are highly transferable and inform how I engage with startups today," she says.

SLB New Energy Ventures: Investing in a Sustainable Future

SLB New Energy Ventures represents Schlumberger’s commitment to sustainability and decarbonization. Unlike traditional corporate venture capital (CVC) groups, SLB measures success not by financial exits but by the ability to bring transformative technologies to commercial maturity.

The team focuses on three investment domains: molecules, electrons, and minerals. Within these areas, they strategically target specific parts of the value chain. For instance, they’ve invested in advancing hydrogen production (molecules), improving renewable energy storage (electrons), and sustainably extracting critical materials (minerals).

Collaboration is a cornerstone of SLB New Energy’s approach. By engaging with startups, industry players, and academia, they create an ecosystem where innovation thrives.

The Power of "Asynchronous Engagement"

A unique aspect of SLB New Energy’s strategy is engaging with startups beyond traditional fundraising rounds. Diane calls this "asynchronous engagement."

"We are very keen to engage regardless of the stage of the company. The best time to engage is when startups are not actively fundraising. They’re more relaxed, and we can build genuine relationships without the pressure," she explains.

This approach fosters deeper trust and allows for more meaningful collaborations, avoiding transactional interactions solely focused on investment decisions.

The Art of Saying "No" While Building Bridges

SLB New Energy places great emphasis on providing value to startups, even when declining investment opportunities. Diane and her team pride themselves on offering detailed feedback and maintaining transparency.

"We take pride in offering constructive feedback, sharing our views on the technology and challenges, and outlining how we might fit into their journey in the future," Diane shares.

This practice not only reinforces SLB’s reputation as a supportive partner but also leaves the door open for future collaborations as technologies mature or market conditions shift.

The Equity and In-Kind Advantage

SLB New Energy’s investment model is unique in its combination of equity investments with in-kind support. This approach provides startups with access to SLB’s extensive resources, from R&D facilities and technical experts to global supply chain networks.

"We can second people, provide access to labs or R&D centers, and support deployment efforts. For example, we can help a small venture from Europe reach the Middle East, propelling their growth," Diane notes.

This tangible support accelerates the growth of portfolio companies and sets SLB apart from traditional venture capital firms.

"What we do not want is to limit the company in what it can do, in what markets it can reach, or what clients it can serve. While we want access to the technology for business purposes, we’re very mindful of ensuring that ventures aren’t dependent on SLB," she emphasizes.

Navigating Investment Challenges

Corporate venturing in clean tech comes with its own complexities. Diane frequently faces questions from a risk-averse investment committee, such as, "What does this equity and in-kind arrangement give you that a commercial arrangement wouldn’t?"

To address these concerns, Diane focuses on demonstrating the strategic value of investments and the unique advantages of SLB’s model. This requires clear communication and a strong vision for long-term impact.

The clean tech landscape itself presents additional challenges, from fluctuating commodity prices to evolving regulations. Navigating these uncertainties demands courage, vision, and an unwavering commitment to sustainability.

Balancing Business Alignment with Startup Freedom

SLB New Energy carefully balances aligning investments with Schlumberger’s strategic priorities while ensuring startups have the freedom to innovate. This approach fosters a symbiotic relationship that maximizes growth potential.

"We want to ensure startups can explore diverse markets and applications without limitations. This freedom is essential for fostering innovation and ensuring their long-term success," Diane explains.

This balance is key to SLB’s strategy, enabling startups to operate independently while leveraging SLB’s resources for growth.

Looking Ahead

Diane Frachon’s journey from horseback riding to decarbonization exemplifies the power of adaptability and purpose-driven work. Her leadership at SLB New Energy Ventures is rooted in trust, collaboration, and a commitment to supporting entrepreneurs.

Through a clear strategic thesis, innovative partnerships, and a unique investment model, SLB New Energy is driving transformative solutions to one of the world’s most pressing challenges.

"We’re investing in companies that have the potential to make a massive contribution to society. That’s what excites me most about the future," Diane concludes.

As SLB New Energy continues to champion groundbreaking technologies, Diane’s vision and approach will remain central to their mission of building a sustainable and balanced planet.