Heriberto Diarte

Data from the International Energy Agency (IEA) illustrates the current "readiness" of #ClimateTechs + their potential impact on carbon reduction. As shown, many techs are at an early stage of being able to have a material impact. Concerningly, some tech funds recently returned capital back to investors recently + closed their funds - citing inability to fund capital intensive techs, found in areas like ClimateTech. This in part may be contributing to the $2 trillion shortfall in ClimateTech, that Deloitte estimates. What this may mean for the future? - The migration of LPs to global, super VC funds within ClimateTech, given the large capital pools needed to fund tech development - Greater specialization from smaller funds, energizing more niche elements of the ClimateTech market - but also altering their / LP's risk profile - A greater role to be played by debt financing in funding growth entities at an earlier stage - impacting cashflow dynamics Will be an interesting space to watch moving forward. We at The Proptech Connection are constantly working with all parts of the Proptech ecosystem. From the leading LPs, funds, techs and adopters in market, providing an independent view. Reach out to us today to find out how we can help. #InvestorTrends #Strategy #Global Ivo van Breukelen Stuart Daun Kiki C. Ethan Ward

9

2 Comments

📢 Some big news this week that marks another pivotal step in the evolution of carbon markets… The Biden administration, led by Treasury Secretary Janet Yellen, will be unveiling the first broad US government guidelines on the use of carbon credits as part of decarbonization strategies. It’s a much needed step that will promote high-integrity carbon markets, and boost corporate confidence in using carbon credits. The Bloomberg article's sources suggest the upcoming framework will align with the government’s stance that: “voluntary carbon markets have a role in reaching net zero, as long as they promote high-integrity emissions reductions and channel meaningful amounts of capital into nature-based projects today as well as carbon-removal technologies in the future.” And that is the key. There is no silver bullet for the climate crisis. Whatever the critics may say about carbon credits, more transparency, clarity and official endorsement on their use will serve to unlock billions of much needed corporate dollars for carbon projects. Couple this news with recent initiatives by major tech companies like the Symbiosis Coalition of Google, Meta, Microsoft and Salesforce and we’re starting to stride in the right direction. Read more and sign up for the live stream: https://lnkd.in/ddDRA8yd #carbonmarkets #carboncredits #naturalcapital #climateaction #breakingnews

19

2 Comments

Listened to Bloomberg’s Zero: The Climate Race recently—worth a listen for anyone in the climate tech space. Akshat Rathi interviews Eric Toone from Breakthrough Energy Ventures. Key topics: ⚡️ Carbon removal ⚡️ Grid modernization ⚡️ Nuclear fusion and fission ⚡️ Green hydrogen—the hype, promise vs reality Good insights on where innovation is heading in sustainability and energy. #ClimateTech #Sustainability #Energy #Innovation

9

2 Comments

Stop this removal-only obsession in the carbon markets. What kind of hare-brained approach is that? We need avoidance even more than we need removals. This article reminds me of the analogy I made a few months ago about a sinking boat. No amount of bailing water with buckets will save you if the hole in the hull is getting bigger. Remember, if deforestation was a country, it would be the world's third largest emitter. And no, you cannot just demand/legislate that poor rural people stop deforesting without providing alternative income. That is why forest carbon exists. It takes some form of totalitarian mindset (and/or total lack of understanding of rural economies)to think one can just ban things they do not like. https://lnkd.in/eCddBRwt

49

5 Comments

That feeling when you watch the macro forces that undergird your Industrial Transformation & Supply Chain Technology investment thesis at ⁦‪REFASHIOND Ventures: The Industrial Transformation Fund unfolding every single day: Escalating Geopolitical Tensions; The Climate Crisis & Severe Weather; Consumer Behavior & Demographics. At most venture capital firms, Industrial Transformation & Supply Chain Technology is a tiny, emerging “area of interest” . . . At REFASHIOND Ventures, it’s our entire world. Join us. #IndustrialTransformation #SupplyChain #Innovation #Technology #Startups #VentureCapital

5

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.

10

Excited to announce our investment in Alta Resource Technologies alongside Leonardo Banchik (Voyager Ventures) with participation from Orion Resource Partners, Overture Ventures, and WovenEarth Ventures. Rare earths are critical in products from magnets to ceramics and it's important for the US to develop its own supply chain. While the US has some of the best rare earth resources, separating them has historically proven expensive and environmentally unfriendly. Alta through it's computationally designed and optimized proteins allows the US to bring back rare earth production with a cleaner, lower capex, and lower opex solution - and that's just the beginning. Congrats to Nathan Ratledge and the entire Alta team. Read more here: https://lnkd.in/gbGnAJn3

60

4 Comments

Rubicon Carbon, YvY capital Partner to Scale Carbon Investments in Brazil The partnership between Rubicon Carbon and YvY Capital will cover a wide range of activities including exploring both nature-based solutions (NBS) and non-NBS carbon solutions. Together, each party will leverage their expertise and resources to drive innovation and efficiency in carbon markets, and thereby contributing to global climate action efforts. https://hubs.li/Q02BSl780

9

From an outsider's perspective, it looks like direct air capture (DAC) companies are battling a two-front war. Last week, VC-backed startup CarbonCapture announced that it was scrapping plans to build its first commercial-scale DAC project in Wyoming, one of the world's largest facilities, expected to remove 5M metric tons of CO2 annually by 2030. To put that in context, there are only ~50 DAC facilities operating in the US, Canada, and Europe today, capturing about 0.1M metric tons of carbon annually. One the one hand, DAC and many other carbon-abating/sequestering technologies rely on clean electricity to power their operations. However, they face increasing competition from emerging, energy-intensive industries like AI and crypto for that resource. These industries, backed by some of the largest enterprises in the world like Microsoft and Alphabet, reflect a buying base that utilities are likely incentivized to service first. CarbonCapture's CEO directly mentioned competition for clean power as a core reason for pausing its Wyoming development. On the other hand, the product that comes out of DAC - carbon credits - has faced criticism as a form of greenwashing because it does not incentivize companies to address carbon emissions in their own operations. It's clear that technologies like DAC are needed as we look to achieve our target emissions, but there will inevitably be challenges in its rollout. I would love to learn more about what's going on at the heart of the industry if you're an operator or investor in the space!

13

5 Comments

This piece from Sonnet Frisbie underscores the interconnectedness of tech regulation, geopolitics, and the challenges of operating in politically divided markets. I expect the Trump administration to favor light-touch regulation and oppose foreign rules on U.S. tech firms. However, domestic and international antitrust debates will influence U.S. and foreign approaches to regulating big tech. Policy paralysis has left the U.S. behind as the EU's Digital Markets Act shapes global standards, affecting countries like Brazil. Social media companies face growing scrutiny, with political factions worldwide using these platforms to advance agendas. Tech firms must navigate these challenges while addressing accusations of censorship and partisanship. #geopolitics #bigtech #socialmedia #politicaleconomy

2

There's a well researched article on the (now more widely covered) topic of Bitcoin mining's positive environmental impacts that just came out in Microgrid Media . TL;DR:  Bitcoin mining is 55% sustainable energy powered, the major energy source is hydro Bitcoin mining helps stabilize grids and utilize otherwise wasted renewable energy https://lnkd.in/gcGmQYai Great work Jonas Muthoni.

16

One of the reasons we invested in Carbon Ridge is the team’s pragmatic approach to decarbonizing up to 90% of shipping vessels’ total CO2 emissions. Chase Dwyer and I had the pleasure of diving into Carbon Ridge’s potential for massive global impact with Jamie Hailstone at Forbes this week. To learn more about Carbon Ridge’s onboard #carboncapture and storage solutions for the #maritime sector, check out the full article: https://bit.ly/48jrMPK

44

5 Comments

'Drill, baby, drill' isn't just for oil and gas - it could unlock geothermal energy and geologic hydrogen too. That's the fascinating paradox of climate tech I discussed in a recent TechCrunch feature examining how VCs are viewing the sector's future. The reality is that policy impacts are rarely straightforward - deregulation of drilling and permitting, such as for overhauls in transmission and distribution, could actually accelerate clean energy solutions. Furthermore, the sector has shown remarkable resilience through multiple administrations and market cycles. The core message I shared with Tim De Chant and Rebecca Szkutak rings true: technological advancement and declining cost curves will keep driving solutions forward, regardless of the political situation. The energy landscape continually presents new opportunities at every turn. Worth a read for anyone interested in the exciting future of climatetech investing. https://lnkd.in/gjNdm4DW #ClimateInnovation #VentureCapital #Geothermal #GeologicHydrogen

139

3 Comments

We are living in a world that embodies our Industrial Transformation & Supply Chain Technology investment thesis at REFASHIOND Ventures: The Industrial Transformation Fund: Escalating Geopolitical Tensions & Great Power Competition; The Climate Crisis & Severe Weather; Consumer Behavior & Demographics. Join us. #IndustrialTransformation #SupplyChain #Innovation #Technology #Startups #VentureCapital 

11

1 Comment

Last week Peak Energy announced its $55M oversubscribed series A, which Xora Innovation led, joined by lead seed investor Eclipse (Greg Reichow, Ryan Gibson), as well as TDK Ventures (Anil Achyuta), TechEnergy Ventures (Alejandro Solé), Doral Energy-Tech Ventures (Roee Furman), Lachy Groom, and Tishman Speyer (David Aron). Special thanks to 🌱🤝🌍 Anil Achyuta for the original introduction.   Peak is commercializing a new standard in grid-scale energy storage systems based on sodium-ion batteries. Peak’s market is benefiting from the twin tailwinds of renewables and AI, and the company has just the right founding team to scale at "ludicrous speed".   Landon Mossburg, Co-Founder and CEO, is one of the most phenomenal team builders we have had the privilege of backing. He brings deep experience in building battery gigafactories from his prior role as Chief Automation Officer of Northvolt, where he didn’t shy away from sleeping on factory floors for months in Northern Europe.   We have a special place in our hearts for entrepreneurs who have the grit to spend 10 years+ building deep tech startups from the foundational stage to commercialization. Cameron Dales, Co-Founder, President and Chief Commercial Officer, has done it not only once, but twice, at Symyx Technologies and Enovix (current market cap $2.65B).   Liam O'Connor O’Connor, Co-Founder and COO, previously scaled major portions of Tesla’s and Apple’s supply chains, flying over 500,000 miles a year when required. Liam has a deep understanding of what it takes to build resilient supply chains in hypergrowth mode, having previously scaled from <$5B to $40B in spend over a matter of a few years.   The climate tech sector is in need of more entrepreneurs who truly understand what building on a massive industrial scale means. We couldn’t be more excited that Landon, Cam and Liam have decided to apply their talents to enabling grid-scale energy storage.

208

13 Comments

Renewable energy is expensive … ok Compared to what? Compared to responsible fossil fuel where emissions are fully compensated or mitigated? We have paid simply for the fossil fuel for decades but not for all the rest … History should not be a benchmark in this debate, corrected history or future oriented might be. Changing that perspective might well give a different outcome to most of the sustainability debates but should also have political and policy consequences. Who dares?

17

1 Comment

Great coverage on Carbon Quest and their amazing #carboncapture solution for decarbonizing “hard-to-abate” sectors, especially in regions where facilities like data centers are significantly increasing power demand👏🏼👏🏼👏🏼

9