Galen K.

Indoor farming has attracted over $6 billion in investments since 2019: It's a year-round method of crop production that optimizes space through its use of vertically stacked layers. It’s projected to grow (10% by 2032, reaching $96 billion*), yet many are struggling to deliver returns. Notably, AppHarvest recently filed for bankruptcy after reporting a net loss of $177 million, highlighting the challenges in achieving profitability in this sector. ⬆️On the up - Plenty® is one to watch - they are flush with funding from SoftBank and have formed a JV with Abu Dhabi-based Mawarid Holding Investment .They are building a network of indoor farms, likely starting with an indoor strawberry farm in Abu Dhabi. If successful, it would help elevate indoor farming as a more marketable proposition - particularly in locations that are too dry for traditional farms. Indoor farming has appeal for sure..but they an infrastructure-heavy, pricey endeavor that has proven incompatible with venture exit time frames. This begs the question around the sustainability of funding models in industries focused on longer-term growth. #VentureCapital #IndoorFarming #Investment #Sustainability #Agriculture *Statista

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🌍 Exciting news! Apparel Impact Institute (Aii) has just announced the newest round of Climate Solutions Portfolio (CSP) grants, part of the $250 million Fashion Climate Fund aimed at unlocking $2 billion in blended capital for industry-wide decarbonization. These grants provide essential funding and support for scalable, science-based solutions that help the fashion industry reduce its environmental impact.🌱 This round of grantees – Pozzi, Grant Thornton, and Amphico – are tackling unique supply chain challenges with innovative technologies, offering measurable greenhouse gas reductions. Collectively, these projects have the potential to save over 24,000 tCO2e within their first year of implementation! 💡 Highlights include: * Pozzi's advanced heat recovery system for the textile wet processing sector * Grant Thornton's innovative approach to energy conservation in the lubricant industry * Amphico's cutting-edge color-mixing technology for textiles, creating vibrant fabrics with reduced environmental impact A huge congratulations to these trailblazers for their commitment to a sustainable future. Learn more about their projects and how Aii is driving decarbonization efforts across the industry #Sustainability #ClimateAction #Decarbonization #FashionIndustry #ApparelImpactInstitute #InnovationForImpact #CSPGrantees #SustainableFashion #Decarbonization

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🛍️ Retailers: you can say goodbye to excess inventory headaches! Ganas Ventures is proud to invest in LiquiDonate, the tech that makes it happen, in community. Disney Petit, MBA, and the LiquiDonate team are transforming how retailers manage returns and inventory sustainably. Get in touch with Disney to learn more. #circulareconomy

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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?

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Summary: The article discusses the challenges faced by climate tech startups as they transition from the lab to commercial outfit. These companies, which work on hardware and infrastructure projects for climate solutions, struggle to raise necessary funds and often face difficulties in scaling up production. Key takeaways: The transition from early-stage startup to commercial operation is difficult, especially for hardware and infrastructure projects in the climate tech industry. The lack of financing options and specialized expertise for these types of projects creates a "commercial valley of death" that many companies struggle to overcome. Startups often fall into the trap of trying to expand their business too quickly, losing sight of their core value proposition and failing to ensure proper execution. Counter arguments: Some may argue that this "first of a kind" problem is not unique to the climate tech industry and can be seen in other industries as well. Others may argue that with the increasing focus on climate change and need for sustainable solutions, more funding and support will become available for these startups. #venturecapital #vc #startups

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This resonates and is a terrific introspective piece by Andre Menezes. Love that he ends on an ambitious note: 🌱🍽️ "By focusing on addressing genuine consumer needs, fortifying health claims, and cultivating sustainable demand, the plant-based food industry can chart a course toward resilience and resurgence." 👉🏽As an early investor in both wins and losses in this space, I believe there is much more to come for alt proteins, and a resurgence is around the corner. #AlternativeProteins #Sustainability #FoodInnovation #FutureOfFood #ClimateAction #GlobalFoodSecurity https://lnkd.in/g8FwTivt

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With roots in food systems investing, I know how complex and entrenched the issues are when it comes to ensuring communities have fresh, accessible, nutritional, and sustainable food options. The PATH Foundation’s grant work with 4P Foods is an excellent case study for how to drive meaningful change in local food systems. It also underlines that such transformative efforts require radical collaboration, mission alignment across stakeholders, and various forms of capital. This evaluation report from Hudson Varick Resources is a valuable read for anyone in food systems-oriented impact investing, philanthropy, grantmaking, etc!

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“We have always been inspired by the realization that hunger isn't a scarcity problem, so we've built our entire platform around solving the logistical challenges associated with food redistribution. By addressing these hurdles head-on, we aim to improve the broader problem of hunger and food waste more effectively.” – Kimberly Trouville Smith, CEO of Copia With a swelling global population and a food system that's already over-taxing water, land, and energy resources, it's imperative to tackle hunger and food insecurity sustainably. However, mere food production escalation isn’t the answer. Shockingly, nearly one-third of all food produced worldwide goes to waste – and it comes at a massive environmental and social cost. In the United States alone, the EPA estimates that food waste generates a staggering 170 million metric tons of CO2 equivalent GHG emissions annually—equivalent to the combined yearly CO2 emissions of 42 coal-fired power plants.   Companies like Copia are leading the charge in this area and connecting the dots, leveraging its innovative platform to redistribute surplus food to those in need. They recognize that curbing waste isn't just about addressing food insecurity; it's about catalyzing decarbonization, easing strain on natural resources, and bolstering bottom lines.

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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

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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.”

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Corporate investments in climate-tech have consistently increased since 2005, even when other sources of investment declined. The startups they invest in are more likely to achieve a successful exit. Public grants are not significantly associated with exits on their own but are likely to act as catalysts for high-risk startups. Publicly funded startups exit at a higher rate with the addition of corporate investment (155% increase) compared with other private investment (78% increase). #climatetech #corporateVC #venturecapital

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Attention investors seeking to align financial returns with ESG impact: Now is the time to invest in Agrifood! With technology advancing rapidly, valuations at attractive levels, increasing adoption by farmers and industry, and highly experienced teams leading the way, the sector is ripe for opportunity. Take a look at Gullspång Re:food report, detailing the challenges, opportunists and even a Treasure Map. https://lnkd.in/dtU7sp5p

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“Hardware is hard.” I had an investor tell me that once, and he was dead right. If you’re in the hardware start-up business, you know that VCs are basically allergic to you. Here’s why: at Farmshelf for instance, to make an indoor farm a consumer doesn’t have to think twice about before growing delicious produce, we assemble more than 2000 individual parts sourced from nearly 50 different vendors. It needs to be put together in just a few hours and then run through an intensive QA process before being packaged and shipped. Worth it once you taste it but so much work before it reaches our customer. #FarmshelfDiaries part five

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I'm a firm believer that we need a more sustainable food supply chain in the US, one that is attentive to natural resource consumption and emissions. According to McKinsey, food and agriculture account for 27% of the world's GHG emissions, and over half of that stems from animal farming. With urbanization and incomes rising, demand for more animal-sourced foods will only increase. There is a need for a better solution to our agricultural needs; however, future food sectors like controlled environment agriculture and alternative meats have faced a harsh reality over the last few years, with many promising companies like AppHarvest (greenhouses) and New Age Eats (cultivated pork) filing for bankruptcy. At the end of the day, it's hard to justify hundreds of millions of dollars in capital and operating expenditures to produce lettuce, meat, or other staple foods. While I am a strong supporter of agrifoodtech, there must be consideration for unit economics. If you are producing a commodity product, particularly in stressed economic periods, then you must charge a commodity price. Factors like sustainability and impact get thrown out the window when the numbers don't add up. If you're building a next generation agrifoodtech company that shares this idea, I would love to connect.

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Not enough people are paying attention to the massive effect AI and robotics will have on local food systems. Right now, large players are getting most of the benefit. Take Chef Robotics; they recently came out of stealth, sharing that they've produced 20 million meals for brands like Amy’s Kitchen, Sunbasket, and Chef Bombay. These AI-enabled robotics are deeply impressive. It’s early days, but it seems that Chef Robotics is addressing significant labor shortages and inefficiencies in food production, achieving remarkable improvements in productivity and waste reduction. These are massively expensive systems, but I anticipate the deprecation effect will be significant enough to make robotics a staple in most commercial kitchens. Within 10 years, automation will add a multiplier effect to local food systems, making it easier for people to eat higher quality, prepared foods at much lower costs.

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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!

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One month left to apply!!!! Apply to NETI's Climate Tech Bootcamp Cohort 3.0, a pre-accelerator program powered by Riffle Ventures, Climate Tech Bootcamp, OHUB and Greater New Orleans, Inc. – GNO, Inc. part of H2TheFuture, a Build Back Better Regional Challenge of The Economic Development Administration. This bootcamp is a 10-week pre-accelerator program for climate tech and new energy entrepreneurs in the United States that have an interest in building in or expanding to South Louisiana. ‍ Five (5) founders from the program will pitch for a $100,000 (US) investment on the terms of their current round. Application is in the comments and here's a quick overview as well: - 📆 When: September 3 - October 31, 2024 - ⏰ Deadline to Apply: August 27, 2024 - 💻 Location: Virtual - 🆓 Cost: Free. The $5,000 per person fee is waived thanks to GNO, Inc. and The Economic Development Administration's Build Back Better Regional Challenge. - 💰 Funding: Up to $100,000 US (equity investment) in current round to the top startup selected at the end of the cohort. - 🈺 Cohort Size: 25-30 entrepreneurs - 🌍 Cohort Geography: United States - 📈 Stage: We welcome applicants from multiple stages, though having a minimum viable product is ideal.

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"There's plenty of capital available in multiple flavors for Climate Tech Companies..." 🌍💸 Did you know that in 2023, 50 VC deals for climate tech companies exceeded $150 million, with nine of those surpassing $500 million? Venture capitalists are increasingly turning their focus toward startups to tackle the climate crisis, marking a significant shift in investment priorities. Despite the challenging environment for venture capital in 2023, with overall investment in climate tech falling by 14.5% to $41.1 billion, the commitment to climate solutions remains robust. Key trends and insights are shaping the evolving landscape of climate tech investment. Are you an early-stage Climate Tech founder looking to fundraise? Curious about the main drivers for the industry? ⬇ Dive into my latest Forbes article to learn more. Special thanks to Hannah Sieber & Arun Gupta for sharing your invaluable insights! https://lnkd.in/gNhe8jew #ClimateTech #VentureCapital #Forbes Artyc Skyven Technologies

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Fascinating guest talk at Climate Drift today with Manuela Zoninsein, CEO and Founder of Kadeya. What is it? Zero-waste beverage kiosk. Grab a stainless steel from a bottle filled with your beverage of choice. When you want a refill, bring it back to the machine where it will wash and sanitize your bottle, and give you another bottle with your beverage of choice. Why? 💚 It is simply better. ♻ It's zero waste. No more single use containers. 😎 SS keeps the beverage colder. 💧 The app encourages hydration. 👨‍💼 Reduces operational overhead to truck, unload, stock hundreds of bottles/cans into a refrigerator. 💪 Reduces the need for people to carry around heavy personal water bottles. 😍 Flexibile - water, soda, latest beverage fad, the classics. Tailor it to what you want. 💰 Saves money! If the above already does not make for an incredible business, here's the gravy! 🌎 The GHG Footprint of Kadeya’s 500ml serving of water is 74.8% ⬇ than PET bottled water, 64.1% ⬇ than PLA bottled water, 74.2% ⬇ than aluminum can water, 66.1% ⬇ than boxed water, and 84.6% ⬇ than single-use glass bottled water. When over 1,000,000 plastic bottles are purchased every minute around the world, and much of it ending up in landfills of the ocean (Thank goodness for companies like The Ocean Cleanup), Kadeya will literally save the planet from billions of tons of plastic pollution, and in doing so, save our health. Would you like to see Kadeya in your workplace, school, organization? Check them out at https://www.kadeya.com/ Thank you Climate Drift for the opportunity to engage with incredible leaders and companies - and thank you Manuela for your leadership and crystal-clear focus on solving a logistics problem that also solves for climate.

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