Senior Climate Reporter at TechCrunch, Founder and Editor at Future Proof, Lecturer in Science Writing at MIT
It's a dirty secret in climate tech circles: it's far easier for startups to get enough funding to get started. But once they need money to scale, things get a lot harder. It wouldn't be an issue if we had time to let the market sort it out. Problem is, we have about 25 years to eliminate carbon pollution, and to hit the target, we'll need lots of startups to help decarbonize every corner of the economy. I spoke with a dozen investors, including (in alphabetical order) Tom Chi, Shomik Dutta, Mario Fernandez, Saloni Multani, Francis O'Sullivan, Lara Pierpoint, Matthew Rogers, Sean Sandbach, Adam Sharkawy, Ashwin Shashindranath, and Abe Yokell, gathering their insights regarding what they think will be needed to tackle the problem.
Amy Wombwell
2mo
Thank you--This is so true. There is so much information for SaaS startups; the same metrics and advice don't translate to the Hardware startup experience.
Dan Harkins
2mo
There are times when scaling is a technological or biological limit (I am thinking algae-oil, which was very promising but nobody has scaled in 15 years). However, often the "scale" problem is the Go-To-Market strategy. In the space industry, people think you will come running once you provide better data. In ClimateTech, people think the money will flow in the same way.
Matt S.
2mo
There is no such thing as “carbon pollution.” Carbon is not a pollutant. Unless you consider yourself as constantly emitting a “pollutant” simply because you are breathing. So called “climate tech” isn’t failing because of lack of funding. There is no real business model because there are no real problems to solve and therefore no customers.
Abe Yokell
2mo
Well penned Tim De Chant! Arguably the biggest source of friction in the climate innovation world --> appreciate you shining a light on it.
Joash Lee
2mo
Super insightful piece with great examples, thanks for sharing, Tim De Chant! It actually brings up some points I also mentioned in a piece I wrote about the challenges with ClimateTech (https://www.techinasia.com/climate-tech-bankability-problem-3-ways-fix). The good news is that I think we can overcome these hurdles by demystifying, de-risking, and designing deal mechanics suitable for ClimateTech innovations.
Great article, excellent insights. “From science project to commercial outfit” - love that. Check this article out James McKissick, MBA Mike McCuen - we are at that adolescent, need-to-scale stage entering the valley of death but hopefully we make it! KAHUenergy, LLC Thanks Tim De Chant for shining light on this important topic and sharing so much helpful information.
I've been surprised for a while now that there has been almost no focus on global deployment of US created innovation - shocking really, and disappointing - something we are working in Asia
It's a struggle for climate tech startups to scale due to funding challenges. Time is ticking; we need innovative solutions fast. Excited to hear insights from those investors. Tim De Chant
Angelo Campus
2mo
Excellent article Tim! The number of 'software only' Climate VCs is hilarious. SaaS cant stop the climate crisis!
Helping energy disruptors compete for the $4 trillion in available federal investments
2moRight now growth stage climate tech should have a playbook to attract federal funding. The money is there. You need to master the process.