LinkedIn and 3rd parties use essential and non-essential cookies to provide, secure, analyze and improve our Services, and to show you relevant ads (including professional and job ads) on and off LinkedIn. Learn more in our Cookie Policy.
Select Accept to consent or Reject to decline non-essential cookies for this use. You can update your choices at any time in your settings.
This is a good and important read on #FOAK projects and the ClimateTech Valley of Death, with good insight from some very sharp investors.
One often overlooks aspect of this challenge is WHO will build these early commercial projects that are smaller and don't often appeal to top tier EPCs. Developing and building these projects will be a critical, often binary factor in the outcomes.
https://lnkd.in/gbedmkmt
"You can’t solve climate with SaaS" , says Matt Rogers in this smart TechCrunch article. His, and the author's, point is that cleantech is fundamentally different than software because each iteration/scale-up requires significant capital investment. This presents a challenge because often the funding needed for early deployments exceeds the amounts available from venture capitalist, but are too risky for private equity. Prime Coalition and Spring Lane Capital are addressing this with 'catalytic capital' and so are we at Ariel Green by offering technology performance insurance (TPI) to manage 'technology risk' and allow low-cost financing to participate in cleantech projects with confidence.
https://lnkd.in/gxu54Atp
🏗️ Amid the digital buzz, climate tech invests in tangible infrastructure 👇
Maeve Allsup from Latitude Media, recently published an article about the prevalence of physical infrastructure in climate tech, based on the findings from our 'State of Climate Tech 2023' report (link to the full report in the comments section).
The data points out that most climate funding over the last five years has actually gone towards physical solutions. For an in-depth perspective on this paradigm shift, don't miss out on Maeve's article.
📰 Read the article here: https://lnkd.in/enKujTs8#NetZeroInsights#StateofClimateTech2023#innovation#funding#startups
Climate tech is booming, with the sector raising more European funding in the first quarter of 2024 than another other. The question is, what specific types of solutions are more likely to inspire #climatetech investors to reach deep into their pockets?
Speaking to influential players at firms like Giant Ventures and Transition VC, Sifted has revealed what’s on investors’ most-wanted lists, including data centre decarbonisation and software-enabled marketplaces to spur timber use in construction. 👇
At G2, the "missing middle" in climate tech is not new. It is where our team has been focused for over 15 years.
In a recent Heatmap News article, our General Partner Brook Porter shared how G2's focused approach to early-growth-stage investing is helping bridge this critical funding gap.
Our team remains convinced that the key to generating strong returns in climate technology VC investing lies in identifying companies at their "inflection points" - that crucial moment when companies are poised for significant growth and impact.
Read more about the challenges and opportunities in climate tech's missing middle: https://lnkd.in/gUevzytp#CleanTech#ClimateInvesting#VentureCapital#Sustainability#ImpactInvesting
Founding Partner & GM @ Water Impact Partners | Strategic Growth Advisory Services for Water Technology Companies & Investors across Europe, MENA and North America.
This is EXACTLY why Sead Bajrovic and I started Water Impact Partners, we want to change this:
"....there are few large-scale investment opportunities: the water tech sector has just one billion-dollar start-up, or unicorn — Boston-based Gradiant — while, in climate tech, the world’s top 20 unicorns alone were valued at more than $140bn in early 2024".
"Investments in water start-ups remain small: an estimated $470mn in 2021, according to GWI WaterData, compared with almost $27bn for climate tech in the first half of 2022."
Since we come from both the startup, corporate and investors side of water we are able to support the founders and teams in the most promising water technology companies out there. By doing so, we can begin to do major impact within the water challenges we have today and tomorrow.
Funding climate solutions is not easy with it being a $200 trillion challenge by 2050. Unlike typical tech ventures, climate tech requires massive investment in infrastructure and long-term commitment. To hit net-zero targets, we need innovative investment strategies, patient capital, and diverse expertise. The green transition demands more than just money; it requires a complete rethink of how we finance and develop climate technologies.
#climatetech#VC#sustainableinnovation
A great article that highlights the challenges in the pathway from idea to scale inherent in the climate solutions industries. Covering why funding climate solutions is different.
As Mitch Gainer, partner at Yield Capital Partners says “To reduce emissions, we have to change atoms, not just bits. Although a lot of VC funding goes to software (and it should), most of the impact will come in the form of changing real industrial processes."
Giving an example of the funding and development journey of Green Cement- where in total, the journey from concept to market took about 15 years and nearly $700 million.
Most venture capital funds operate with a 10-year timeline, most tech unicorns in the U.S. (predominantly software companies in sectors such as fintech and e-commerce) require somewhere between 5 and 8 years to reach a one billion dollar valuation, and could need 7-10 years to IPO.
Amanda Price is right to call out that we need to rethink on how we finance and develop our climate industries.
Partner, KPMG Enterprise. Co-Lead Deals and Ventures
Funding climate solutions is not easy with it being a $200 trillion challenge by 2050. Unlike typical tech ventures, climate tech requires massive investment in infrastructure and long-term commitment. To hit net-zero targets, we need innovative investment strategies, patient capital, and diverse expertise. The green transition demands more than just money; it requires a complete rethink of how we finance and develop climate technologies.
#climatetech#VC#sustainableinnovation
CSO at dClimate
6moSo true Aaron !