Andrew Finkelstein, MBA

🔦 Spotlight on Emerging Investment Trends: Energy Transition, Robotics, and Early-Stage Unicorn Sourcing 💡 At PaperJet Ventures, we’re always looking beyond the horizon for where technology and capital are converging to create transformative opportunities. In my latest Substack post, I dive into three major themes that are shaping our investment strategy: 1️⃣ Energy Transition & Data Centers: With the rising demand for AI infrastructure, energy consumption is set to skyrocket. We’re looking at novel material technologies that can make data centers scalable and sustainable. 🌍⚡ 2️⃣ Robotics Revolution: The race to build the next-gen robotics market is heating up, but it’s not just about software. Tackling hardware challenges will be key to unlocking the potential of humanoid robotics and solving global labor shortages. 🤖✨ 3️⃣ Sourcing Early-Stage Unicorns: With over 800 unicorns emerging in recent years, early-stage investment remains highly fragmented. That’s where we see an opportunity to identify and back outlier founders before they gain broader attention. 🚀🔍 Curious about our approach or want to share your thoughts? Check out the full post below and let’s connect on these emerging themes!👇 https://lnkd.in/gU9pfgUk #DeepTech #AI #VentureCapital #Investing #Robotics #EnergyTech #TechTrends

9

Check out my recent post on why President Trump is the forcing function for us to solve the “Missing Middle” and catch the industrial Tsunami of onshoring coming to the US!

83

9 Comments

🌱🚀 Exciting News! Xefco, one of our portfolio companies, just secured A$10.5 million in funding to revolutionize the textile industry and reduce emissions! 🌎💡 With their innovative water-free textile finishing and dyeing solution, Ausora, Xefco is poised to make a significant impact. Their technology not only preserves precious resources but also cuts energy consumption and costs. Plus, it's already gaining traction with leading apparel brands like Zara and The North Face. At Investible, we're committed to backing visionary companies like Xefco that are driving positive change. This investment reaffirms our belief in their potential to transform industries and tackle pressing environmental challenges. #ClimateTech #SustainableInvesting #ImpactInvesting #MandiriInvestibleGlobalClimateTechFund 🌿📈

30

3 Comments

Are electric vehicles as green as we think? I recently joined the 'ESG Detectives' podcast to discuss the true environmental impact of EVs, from manufacturing to energy consumption. We also explored the vital role of AI and semiconductors in shaping the future of sustainable transportation. Tune in to discover the surprising realities behind this rapidly evolving industry. What are your thoughts on the environmental impact of EVs? Share in the comments below! #EV #AI #Sustainability #GreenTech #Podcast #Discussion

20

INVESTING IN CLIMATE TECH IS SOOO SIMPLE: PART I After a spectacular closing session to #ClimateWeekSF at 9Zero, I thought I'd share a few morsels from our sustainable VC session (organized by Niki Gastinel & moderated by Ron Erd w/ fellow panelists Joshua Posamentier Nare Janvelyan, PhD & Shaun Chaudhuri). Top 3 DD questions I seek to answer: I         Would I work for this person? I've been a founder 5x (3 startups, 2 VC funds) & always seeking to grow. When I'm being pitched by a founder, I imagine what it would be like to work for them, because, while team is important, the CEO is everything. The CEOs I back have: ·     Command of the Market: They are intimate with & drive discourse on distro channels, market players/dynamics, the competitive landscape & where the ball is going. All about founder-market fit! ·     Evangelical Sales Ability: They’re always selling, intelligently, whether it’s for recruiting, fund-raising, distribution... ·     EQ IQ: I back intelligent founders but I want that paired with street savvy & deep understanding of what to prioritize & when, not just how to do it. I look for emotional intelligence & how they read the room & adjust comms. I look for CEOs that have done the hard work on their own personal growth & have the right lens to make big decisions. ·     Battle-tested: I look for founders that are resilient & risk-tolerant. They have been tested in some aspect of their lives: personal challenges (athletics, hardship, military) and/or professional challenges. II        Is there a Big Accessible Market (BAM)? ·     Big TAM: I invest in companies seeking unicorn performance (financial & impact). Matters less where the TAM is today but more importantly where it's going. ·     Clear and Present Sales Channel: I want to see a beefy sales channel(s) with a clear decision maker; tangible, massive pain for this painkiller solution (not a vitamin); and an accretive path for the customer. Know who your actual buyer is. Hint: It’s not the sustainability exec! ·     Weighted Average Pipeline: I want to see a well thought out, organized sales pipeline that is dynamically linked to your financial forecasts & produces a justifiable exciting ARR forecast. ·     Product Market Fit: Because we do seed, we only see the beginnings of traction & sometimes focusing too much on fit can lead to a false negative. This is the time for risk-taking & iteration so you can learn. It’s more about DDing the product as an extension of how the team thinks & executes. III      Is There Big Accessible Impact? ·     Paul Hawken: We have Paul & he is unabashed about rooting out pretenders when it comes to impact. If he doesn’t buy your impact, we won’t invest. It’s that simple. ·     Qualitative: Because we are software first & seed stage investors, we don’t do hard core quant on your impact. We do our best to gauge the potential decarbonization impact of your company at scale. You know it when you see it. What questions do you ask?

47

13 Comments

REDD up by 27% YOY, for 1Q2024. If you read about Carbon crisis, prices crashing, double check the source. Likely the author has an agenda that opposes Voluntary Carbon Markets(VCM) and/or anything that smells of capitalism.

16

Excellent blog post on the realities of Climate & VC. While these are "tough times for the transition," there are also many opportunities. Significant capital will continue to flow, with Corporate VCs playing a larger role in financing this transition. Through this process, they will strengthen their LP positions in funds tackling climate challenges. I receive weekly calls from large Holding & Corporate VCs seeking introductions to Climate / Energy / Infra VC Funds. When I ask about their target sub-verticals within Climate / Energy, they often mention that they default to focusing on specific regions due to limited resources and coverage. In other words, rather than evaluating whether a DACH VC is better positioned for solar or grid-tech compared to a Nordic or US VC, they simply pursue whichever regions they can access—a haphazard approach at best. I always advise LPs to evaluate VCs within their operating market context. Since sourcing is crucial in venture capital, Holding Cos. and Family Offices should carefully assess a VC's location, regulatory context, and market environment before investing and building a portfolio of Funds. I've heard "I wish I had discovered this VC / region sooner" far too many times... * At ComposeVC's Built World Fund, we do not invest in Climatetech or Energytech directly, only as it relates to our Built World thesis.

6

S2G Ventures’ new report, The Climate Finance Relay Race, highlights how asset owners have the opportunity to fill a critical funding gap for climate-focused innovations and how having a solid ecosystem can help them do so. I think this is an important read for anyone interested in #climate #finance. https://lnkd.in/gjtFhHPy Mike Wise Sanjeev Krishnan Jinchen Zou

20

2 Comments

https://lnkd.in/d8Fh2HXR FOAK (and my quote) has made it to the WSJ. Thanks Ed Ballard and Amrith Ramkumar. Yet the WSJ missed the “why” behind first of-a-kind. It is about catalyzing audacious climate solutions - the next generation of Teslas. We all know that FOAK is very very hard. And not every FOAK company will succeed. But the ones that do have a potential to transform their sector. A shout out to all the future climate giants who embrace the daily grind of FOAK and are succeeding. Solugen, Antora Energy, Fervo Energy, Boston Metal, Electric Hydrogen, LanzaTech, CO280, Carbon Upcycling Technologies, NET Power Climeworks, Heirloom, Arbor, Panthalassa, H2 Green Steel, Northvolt, Koloma, Syzygy Plasmonics to just name a few… #FOAK As JFK said, "We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard.”

122

9 Comments

Absolutely thrilled to welcome Eliot Brooks, Freddie Scott, William Knapp, and the entire Cocoon team to the Wireframe portfolio, and lead their pre-seed round! Steel and concrete are widely considered some of the toughest industries to decarbonize; responsible for 14%+ of GHG emissions today. The scale of these sectors -- with concrete being the second most used substance in the world after water -- makes it extremely difficult for any new technology to make a dent on operations or emissions. But with demand for building materials growing rapidly as we invest in modern cities and infrastructure, solutions that can deliver cost-effective carbon impacts in the short-term is exactly what we need. Enter Cocoon. The company's novel approach leverages existing feedstocks, flow sheets, and supply chains to produce low-carbon cement from slag, all while increasing the profitability of sustainable steel operations. More on why we're convinced that their scalable, shipping container sized system can be the winning solution for these historically hard-to-abate sectors + the progress they've made in just 15 months here: https://lnkd.in/ezzTWtaw

44

2 Comments

Cost-effective geothermal energy has the ability to fully transition and decarbonize our grids and industrial systems - in the near term! We believe the team and technology at XGS Energy will realize this vision and we couldn't be happier to be working with them on a geothermal-powered reality.

27

DestinE is out! This is significant in itself, but also on a Meta Level: The AI Genie is out of the bottle, and I strongly believe there is no technical solition (anymore) to contain its dangers. The answer is governance, and Purpose! As every technology, AI is a tool, and its risks and benefits depend on what it is used for. Much as a blade can be a sword or a scalpel, AI has great risks and even greater opportunity to benefit humanity and the planet. What we use it for thus depends on our purpose: money, power, or public good? In that light, DestinE can be seen as a step towards a use of AI for the public good, beyond the wet dreams of Plutocrats and Autocrats alike, one that benefits humanity and the Planet, and is subject to some sort of collective democratic governance. Onwards!!

12

1 Comment

Prime Coalition has long taken a different tack to climate finance compared to its for-profit brethren. It makes the usual venture-style investments in startups through Azolla Ventures and also helps philanthropists direct their money to climate-related projects that it deems high impact. Trellis Climate follows the latter model with a focus on middle stages, where capital has grown scarce. #climatetech #climateVC #climatefinance

14

Summary: Crosscut Ventures, a venture capital firm in Los Angeles, is launching a $100 million fund focused on hardware-centric technologies, particularly in the areas of energy and power, space and underwater exploration, and advanced manufacturing. This shift in focus is driven by the emergence of talented entrepreneurs from companies like SpaceX and a recognition of the potential impact that hardware startups can have in solving big problems like climate change. Key takeaways: Crosscut Ventures is shifting its focus from solely investing in software startups to also including hardware startups, particularly those addressing frontier tech. The firm sees a growing number of talented entrepreneurs coming from companies like SpaceX and recognizes the potential impact of hardware startups in solving big problems like climate change. With the launch of the new hardware-centric fund, Crosscut is also bringing on a new partner with expertise in growth and project finance to help bridge the funding gap for hardware startups. Counter arguments: Some may argue that investing in hardware startups is riskier and more capital-intensive compared to software startups, making it a less attractive option for investors. Others may question the broad range of verticals that Crosscut Ventures is targeting with its new fund and the potential lack of specialization in any one area. #venturecapital #spacetech #vc

1

👋 I want to share some additional context on the amazing milestone that Absolute Climate and Evident announced today. ICYMI: Today, AC announced the adoption of the Absolute Carbon Standard (ACS) by Evident Global, a leader in sustainability certification. This is a really big deal. The carbon removal industry has struggled with conflicts of interest and a lack of consist project evaluation throughout it’s 30+ year history. Evident’s adoption of the ACS is a major step in the right direction. Why this partnership matters: 1️⃣ Independence and incentive alignment in credit issuance: ACS separates the roles of setting standards and issuing credits, addressing one of the most persistent conflicts of interest in carbon removal. 2️⃣ Universal and consistent standards: ACS is the first standard to apply the same rigorous criteria across all pathways, enabling fair, transparent comparisons between projects. 3️⃣ A sophisticated registry with deep experience: Evident’s track record and diversified business bring unparalleled credibility and stability to carbon removal. While my co-founder Peter Minor has written about the importance of independence in certification, I want to focus on why Evident is the ideal partner to bring this model to market. Why Evident stands out: For project developers, the lack of experienced registries with long-track records is a major challenge. Many existing registries are relatively new, have no experience in compliance markets, and are entirely reliant on carbon removal—a narrow focus that introduces significant business model and longevity risks. If you’re a project developer investing in a facility with a 20+ year lifespan, these are very real concerns. Will your registry still be around in two decades? Can it help you transition from voluntary to compliance markets as regulations evolve? That’s where Evident really shines: - A proven track record: Evident has over two decades of experience in sustainability certification, crediting thousands of projects across voluntary and compliance markets in more than 60 countries. - Business model stability: Unlike registries solely reliant on carbon removal, Evident’s diversified portfolio—anchored by its renewable energy credit business—ensures financial resilience and multi-decade staying power. - Policy expertise: Evident’s experience working directly with governments in compliance and voluntary markets positions it to support carbon removal as our industry integrates with policy frameworks and scales into compliance markets. For Absolute Climate, there isn’t a better partner to bring a new certification model to life. Evident brings the credibility, expertise, and stability that carbon removal urgently needs to build trust and scale responsibly. We’re thrilled to welcome Evident Global to the carbon removal space and are so excited for the impact we’re going to create together. 👉 Curious to learn more? Check out details here: https://shorturl.at/Vz9P1

17

1 Comment

I am kicking off my exploration of tech hubs with the state of Massachusetts. Over the next month, I hope to share the exciting innovations coming out of the state, specifically around two new tech hubs focused on climate and marine tech. Let's start this journey by exploring the incredible roles that Massachusetts Institute of Technology and Harvard University play in driving innovation. It’s clear how both institutions have contributed to Boston’s reputation as a global tech hub. MIT and Harvard create a powerhouse ecosystem that fuels progress across diverse fields, from #AI and #biotech to #entrepreneurship and #climate tech. Their unique contributions are essential to #Greater Boston’s role as a beacon of #global #innovation. #Innovation #TechEcosystem #GreaterBoston #MIT #Harvard #Entrepreneurship #ToughTech #AI #LifeSciences #DataScience #AcademicExcellence

17

2 Comments

🌍 NY Climate Week is a powerful reminder of the incredible climate innovations emerging each year. I’m excited to share a few key highlights from this year’s event: 🔹 UN Climate Change UGIH Innovation Workshop continues to rally outstanding partners to drive need-based climate solutions. As a proud partner of UGIH, a big shout-out to Massamba Thioye and the team for their impactful work! 🔹 Global Blockchain Business Council (GBBC) is playing a pivotal role in convening the community to harness blockchain technology in the fight against the climate crisis. Their leadership is invaluable. As a GBBC observer, I am a big fan of the great work led by Sandra Ro 🇺🇦, Arry Y., Emma Joyce and other GBBC leaders! 🔹 SustainableIT.org launched the AI Sustainability Principles, setting a new standard for responsible AI in the ICT industry and beyond. This is a crucial step toward aligning AI with sustainable goals. I see tremendous synergies and potential in our partnership as we work together to drive the adoption of the principles through the Responsible AI Pledge. I can't wait to advance this together with Rick Pastore, Ann Rosenberg, Ben Christensen and many others in the future. On a personal note, I’m honored to see our 2018 book chapter, Utilizing Blockchain for Better Enforcement of Green Finance Law and Regulations" being cited again and again. It's rewarding to know that our publication remains relevant to today’s climate innovation discussions. Matias Aranguiz, Duoqi Xu Xing Zhang Xinran Xu "Abstract: This chapter explores how Blockchain technology, integrated with Smart Contracts, can enhance climate actions by enabling automatic execution, reducing costs, increasing security, and improving analytics. It examines the potential of Blockchain in enforcing climate law and green finance, offering international and China-specific use cases. The chapter also highlights regulatory challenges and opportunities, advocating for legal reforms and supportive frameworks to unlock Blockchain's potential in advancing the Sustainable Development Goals (SDGs). Link to the chapter: https://lnkd.in/gyHEQycs Just saw an article citing our chapter—worth a read! Vangelis Malamas Thomas K. Dasaklis Veni Arakelian GREGORY CHONDROCOUKIS https://lnkd.in/gkAQCeMX #NYClimateWeek #Sustainability #ClimateInnovation #BlockchainForGood #AIForGood #ResponsibleAI #ClimateAction #fintech4good #ai2030 🔗 Stay Connected & Engaged: Join our LinkedIn Group: https://lnkd.in/e_CrPkc Join the next Tech Pulse 2030 at 1871: https://lnkd.in/deWDaz32 Don't miss out on our AI 2030 Summit Series: https://www.ai2030.org/ Sponsor our Summits, click here: https://lnkd.in/gNvxHXdJ Join the Movement: Become a Member of AI2030: https://lnkd.in/gN5PcC Submit your Women in AI Leadership nominations here: https://lnkd.in/g_hMXgKw

19

2 Comments

Last week, I had the pleasure of moderating a discussion on navigating FOAK in climate tech at the Greentown Labs Summit in Boston (which had >600 people!!). Here’s a quick rundown of what was shared by Katherine St. James of Spring Lane Capital, Paris Smalls, PhD of Eden GeoPower, and Hannah Friedman of Planeteer Capital: 🌱 What is the definition of FOAK? We discussed how the term can be controversial - it's almost too general because it doesn't identify what kind of "First" FOAK refers to - first team project? First geography? First of a technology in a sector? First time for the integration of a system? It's also too specific because it has the word "first" in it, which can be anathema to later stage / project finance investors. 💰 Partnerships for Funding FOAK Projects We discussed how important it is to build a blended capital stack & use off-balance sheet capital for a project so you're not using the most expensive equity dollars to fund an infrastructure project with low-ish IRR. We also talked through being creative about using corporate partners to provide in-kind services or ink some agreement (at least an LOI) to attract this funding. 🏛 Role of Government We talked about how government capital is seen by investors & how it can be catalytic for FOAK. Government capital can provide validation that a startup has passed a rigorous diligence process by a third party - and incentives like grants or credits can help improve returns for the first project- but it's important to be doing this in conjunction with getting customer validation and to be able to present line of sight to competitive economics without concessionary capital. 👥 Advice for FOAK startups The panelists offered some very specific pieces of advice for startups going through FOAK: how to get creative with things like revenue sharing agreements or convertible notes, getting smart with project development early on (like with DeveloperU), being careful about using FOAK too liberally with certain investor groups, getting the right commercialization / FOAK talent in and around you early Huge thanks to the panelists and the team at Greentown Labs (Jill Kirkpatrick, Julia Travaglini, Aisling Carlson, etc you rocked it!!) for hosting this discussion on bridging the FOAK gap. Also immensely enjoyed the rest of the agenda. Check out the full recap & videos here: https://lnkd.in/d9ApYe9Y #ClimateTech #FOAK #ClimateFinance #ProjectDevelopment #GreenTech #CleanEnergy

55

5 Comments

Great episode for early stage VC's and capital allocators to check out. https://lnkd.in/ekz7JHJd #vc #fundraising #venturecapital

11