Nick Cooney

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

14

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

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!

84

9 Comments

Over the summer, The New York Times' David Wallace-Wells put out an urgent notice around the need for a "food transition" at the speed and scale we've seen implemented around the energy transition that could deliver "better nutrition more equitably and more affordably to more people, all without devastating ecosystems or polluting local environments or pushing the planet further into climate disarray." This food transition won't happen without heavy innovation and heavy investment (like we've seen in the energy transition). The statistics Wallace-Wells cites are shocking: - About three-quarters of all global agricultural land is vulnerable to substantial climate disruptions. - The effects of climate change have reduced the growth of overall global agricultural productivity by between 30 and 35 percent. The climate threats to come loom even larger. - According to the World Resources Institute, we may need to add almost two Indias to the world’s existing farmland to meet food needs in the second half of this century. — but adding that farmland means cutting down forests, which store carbon, in order to graze more animals, which produce carbon. -Over a 30-year time horizon, the insurer Lloyd’s recently estimated a 50 percent chance of what it called a “major” global food shock. If you are passionate about the opportunity to innovate within food systems to mitigate climate risk and you are in our hometown for #NYClimateWeek, please come by the event we are co-hosting with FoodxClimate on Wednesday at the C16 Biosciences HQ. Link to register below. Article: https://lnkd.in/eYQ_Hh9P

41

3 Comments

In 2024, 736 AgTech startups raised a total of $5.7B. There were 37 AgTech exits last year, 36 M&A transactions and one IPO. This is up 32% from 2023. See all the data in my latest CropLife.com article.

113

8 Comments

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

Check out some of out Climate Solutions Portfolio (CSP) registrants - the programs and solutions to decarbonize the making of our clothes... #climatesolutionsportfolio #fashionclimatefund #apparelimpactinstitute

20

2 Comments

Announcing SolidSky - GHG-to-Value for Legacy Petrochemicals 🚀 SolidSky has been accepted into Berkeley Lab's Cradle to Commerce Accelerator program funded by DOE Office of Technology Transitions for emerging climatetech startups. Making it into the cohort secures several benefits, including a CRADA to validate the technology in an industry-relevant form factor that will make industry partnerships easier to achieve. ✍ I've been quietly working on SolidSky for a year now, and it started with a thesis: the transition to net-zero requires detaching from the carbon markets and finding economical ways to convert carbon to value, without assuming that electricity prices will arbitrarily converge to 0. With that in mind, I sought out novel methods for utilizing CO2 in ways that would be beneficial to legacy industry, and ultimately stumbled upon the tech that would become SolidSky. 📈 The last few months have been an absolute whirlwind. A cofounder breakup, 5 grant applications, licensing, 547 LinkedIn applicants for my first team roles and 54 interviews to fill them, and the endless cycle of realizing that I have no idea what I'm doing. I'm feeling better about the not knowing part, largely thanks to the incredible team I have been able to form: it is entirely thanks to them I am able to move forward with opportunities like this. To Joe Brindle and Jiahong Li, thank you! 🙏 I want to thank Shanshan Li Reshma Singh Ingrid Xhafa and the teams at Decisive Point and OneValley for all their help and support throughout the program leading up to the downselect and the pitch competition, as well as the staff and researchers at LBNL and the team at SolidSky who made this all possible. This all started with Lucian Sweitzer taking my meeting after a cold email outreach and suggesting I pitch writing this technology into the C2C program back in 2023, and here we are on the other side. 🏭 SolidSky is on a mission to develop catalysts and reactor systems that unlock GHG-to-Value for legacy petrochemical facilities. Our novel catalysts allow for the conversion of CO2 with basic petrochemical feedstocks to create precursor chemicals at costs well below market rates thanks purely to improved energy efficiency, without the needs for carbon credits or tax incentives. Put simply, SolidSky's method of making petrochemicals is less energy intensive than any other method out there, making adoption of carbon capture and utilization systems less daunting. Be sure to give SolidSky a follow to keep up with us! #climatetech #doe #decarbonization #carbontech #berkeleylab #cradletocommerce #cleantech

44

7 Comments

🚨 Join the Food is Health Revolution 🚨 We have a bold vision: to eliminate the $1.9 trillion annual healthcare cost of poor nutrition. The pathway? A reimagined food system that prioritizes affordable, quality food over ultra-processed products—rooted in innovative policy, corporate action, and investment. Our Food is Health Substack is the definitive anchor point for this critical conversation, bringing together: ✅ Investors seeking transformative opportunities. ✅ Policymakers ready to champion better food systems. ✅ Industry leaders driving change toward affordability and health. We’re asking for your support to fuel this movement: 🌟 Subscribe for free, or $100/year to help us grow an editorial team laser-focused on educating the world. 🌟 Invite your network—because every voice counts in reshaping America’s food and health landscape. 🌟 Supply content—insights, research, and ideas that amplify the cause. Together, we’re building the foundation for a healthier America. 🌱💪 Join a network of people like you who care about reshaping our nation's health. Let’s build a future where food heals, taste rules, and sustainability thrives. Subscribe now and be part of the change. #FoodIsHealth #RegenerativeFarming #MAHA #HealthcareCosts #NutritionMatters https://lnkd.in/gC_EPBi3

16

1 Comment

🚨 🚘 An exciting day here at 8090 Industries as we ‘roll out’ our latest investment in ENSO - 2023 Earthshot Prize Finalist, to revolutionize a stagnant industry undergoing the largest shift since its inception, with no solution in place, an aging workforce, lacking ingenuity and a business model out of touch with the dynamic needs of its customers - TIRES. World, meet Gunnlaugur Erlendsson, the industrialist pioneering a new dawn for the tire industry. But first, a quick history lesson: __________________________ In 1898, Franklin "Frank" Seiberling, jobless, with a wife and three children, borrowed $3,500 for a down payment from his brother-in-law, to purchase an old strawboard factory in Ohio, to open a rubber company. A science and history nut, he named it after Charles Goodyear, the pioneer of vulcanization, the main method of how rubber was produced. Over the next decade, they brought mechanization and technology to the cumbersome and time-consuming process of hand building tires — enabling one man to produce 60 tires in ten hours as opposed to five tires built by hand in a day. His Seiberling State machine revolutionized tire building and led to an explosion in tire production output. By 1907 - it caught the attention of Henry Ford who purchased 1,200 sets of tires for the Model T. And as they say, the rest is history. By 1913 - Over half the tires made in the U.S. were manufactured on Seiberling’s machines. By 1916 - The The Goodyear Tire & Rubber Company became the largest tire producer in the world. _____________________ Today much has changed. @Goodyear is no longer the largest tire producer and tire manufacturers no longer own the direct relationship to fleets. That capitalistic, swashbuckling energy and entrepreneurial spirit that built Goodyear and pioneered the tire industry is in short supply, just when it needs it most as a global transition towards EVs compels the greatest growth opportunity for the tire industry in over a century. Led by Gunnlaugur Erlendsson, Enso produces tires perfectly fit for a world increasing run on EVs - that are tailored to endure the heavy weight and torque, last longer, cheaper and increase range by more than 10% today while bringing circularity to the supply chain and data through owning the direct relationship with fleets.  Don’t just take our word for it, some of the largest fleets in the world from Amazon to city cab fleets in Europe are already running on Enso tires and this is just the beginning. 👀 Stay tuned. Much to come! cc Kerem Ozmen Wes Mendenhall Filip Vurdelja Haluk Sabanci Dincer Grant Brown Ishan Meswani Garuth A. Andrew Irwin #climatetech #decarbonization

119

20 Comments

Agtech unicorn Bowery Farming, once valued at over $2 billion with more than $700 million raised from top investors, is shutting down. Known for its vertical farms producing lettuces, herbs, and berries, Bowery’s closure follows multiple 2023 layoffs and mirrors the financial struggles faced by AeroFarms and AppHarvest, both of which also filed for bankruptcy despite substantial funding. Bowery’s shutdown highlights the challenges of scaling capital-intensive agtech businesses under venture capital’s rapid growth demands. Adam DeMartino’s brilliant reflection on Smallhold provides timely insights into the risks of branding agricultural ventures as tech companies and the misalignment between VC expectations and agriculture’s unique dynamics. Here are key takeaways from his experience: The Risk of Branding #Agtech as “Tech” 🧑‍💻 Smallhold positioned itself as a “technology” company, which created a disconnect between investor expectations and the realities of running a farm. DeMartino reflects, “We should have admitted much earlier that we weren’t a ‘technology’ company,” revealing how misaligned branding can lead to overextension in an industry with different economics. The Cost of Prioritizing Scale Over Sustainability 🌍 Smallhold’s pursuit of rapid expansion—launching “seven new products simultaneously”—resulted in high cash burn and thin margins. “We lost well over a dollar for every package we sold,” DeMartino shares, highlighting the dangers of a “growth at all costs” mentality where profitability lags. Erosion of Core Values in Pursuit of Survival 🙏 As financial pressures increased, Smallhold's commitment to sustainability and fair treatment of employees was compromised by a series of cost-cutting measures. Investor-driven decisions led to reduced product quality, layoffs without severance, and other actions that, as DeMartino puts it, “objectively undermined the brand’s integrity and mission.” This theme highlights a broader risk for mission-driven companies: the loss of core values when financial sustainability becomes an urgent priority. VC Misalignment with Agriculture’s Long Cycles 💰 Agriculture’s long timelines and modest margins often clash with VC expectations for quick returns. As DeMartino notes, “VC bets are inherently speculative, and if you want to ride that dragon, you need to be a literal dragon rider.” This highlights the need for more suitable funding models that respect agriculture’s inherent cycles. A Call for Realism and Transparency 📞 DeMartino’s advice for founders is clear: set realistic expectations. “If you want to make lasting change… the most statistically viable path is slow and steady.” His words reflect a call for transparent investor relations and sustainable growth over hype. Thoughts here: Janette Barnard Shane Thomas Michael Lavin Brett Morris, CFA Rob Leclerc, PhD Adam Bergman Alison Sunstrum Sarah Nolet Matt Coutts. Thanks for sharing Jonathan Goodkey, CPA, CFA https://lnkd.in/gQVAYqri

280

55 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

We (Climate VC) need to stop making excuses for the growth trajectories of our companies There’s a reason why Matthew Stotts and I chose the venture capital asset class to focus on - it has to GROW fast. And there are a lot of fast-growing, money-making opportunity areas with huge problems that could benefit from highly motivated well-funded and skilled teams looking to build a large company. If you need to make an excuse or caveat for any of the statements in the previous paragraph, you’re in the wrong asset class The good thing about VC is it grows fast and BIG. The clock is ticking on our biggest problem areas - let’s get to work!

11

We've been working under the hood at LIVSN on the execution behind the word "sustainability" and what it means to put our money where our mouth is. And by "we" I mean Abby Hollis and Wyatt Rice - who have gone above and beyond in this pursuit. I hope you take some time to read the article linked below for context on the how.

21

1 Comment

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

6

https://lnkd.in/eGnqfMwF Rosy Soil Raises $3.6M in Seed Funding Rosy Soil, a NYC-based sustainable soil company created to offset the negative environmental impact of producing traditional peat-based potting mixes, raised $3.6M in Seed funding. Backers included Draper Associates, Superorganism, Climate Capital, and Boost VC. Rosy Soil is also backed by Seth Goldman, co-founder of Honest Tea, Brandin Cohen, founder of LiquidIV and Ben Chesler, co-founder of Imperfect Foods. The company intends to use the funds to accelerate its product development efforts, expand its retail presence, and grow its team. Founded by Chad Massura, Rosy Soil is a sustainable soil company dedicated to improving the gardening industry via performing soils. Empowered by biochar, the soils promote plant health, reduce environmental impact and are perfect for a variety of plants including houseplants, cacti, succulents, and seedlings. It is available online, at Target, and at select retailers nationwide.

1

I'm looking forward to moderating a panel on June 17th at the Future Food-Tech Alt Protein Conference titled: "Boosting Investor Confidence: Adapting Innovative Financing Models to Overcome the Trough of Disillusionment" ___________________________________________________________________ I'll be joined by a great group of investors in the space, including: Shayna Harris of Supply Change Capital Ashley Hartman of Bluestein Ventures Nadav Berger of PeakBridge Rosie Wardle of Synthesis Capital We plan to hit on various topics: 🔵 Current fundraising environment for alt protein companies 🔵 How this varies by stage 🔵 What investors are looking for that help a company stand out 🔵 What needs to change in the space 🔵 Innovative financing approaches being taken beyond VC 🔵 and more Should be a great discussion, and I'm looking forward to hearing questions from the audience as well - from startups to corporates to other investors - hoping to get questions about what's really on everyone's minds If you'll be at the conference, let me know, as I'd love to connect! 💻 PS: If you were wondering what AI Image Generators create if you type in "Boosting Investor Confidence in Alternative Proteins" the pic below is one of the ones you get. Good? Bad? Odd? Not sure - but who knows what actually goes on within AI

79

20 Comments

When a startup tells you they're turning sunlight into seafood, you listen! 🌊 Meet Blue Planet Ecosystems and Paul Schmitzberger, who are REVOLUTIONIZING aquaculture with location-independent farms. We recently had the pleasure of helping them craft their pitch deck, transforming complex technology into a clear, compelling narrative 🐟 Blue Planet Ecosystems develops automated, modular aquaculture systems based on a circular economy. These systems combine cutting-edge technology and sustainable practices to make fish production efficient and environmentally friendly. Monitoring and optimizing the entire life cycle of fish is possible through their unique system, improving both the quality and sustainability of fish farming. ✍️ When creating their pitch deck, we worked intensively with Blue Planet Ecosystems to develop a clear and compelling storyline that gets to the heart of their complex systems and vision. We focused on presenting their solutions' market positioning and added value, ensuring that every detail reflected Blue Planet Ecosystems' unique expertise. The result is investor marketing materials optimally crafted to generate interest from potential partners. Here’s what Blue Planet Ecosystems had to say about working with us! 📣 "Magdalena and her team have been passionate and dedicated from day 1. They got to grips with our complex subject matter incredibly quickly and managed to get straight to the heart of the matter. Through detailed feedback, clear guidelines and industry-specific instructions, we were able to put together a next-level read deck in close and reliable cooperation. An absolutely great process!” – Paul Schmitzberger, CEO @ Blue Planet Ecosystems. Want to get involved in the future of sustainable food production? Paul Schmitzberger is always excited to connect with investors or fellow innovators – reach out! Check out some highlights from the Blue Planet Ecosystems pitch deck below 👇 #aquaculture #sustainability #innovativetechnology #blueplanetecosystems #pitchdeck #startupgrowth

14

5 Comments

A SAFE and convertible note had a baby and Wilson Sonsini Goodrich & Rosati was the midwife- out popped the D-SAFE! 👶🏽🎉 A new #climatetech funding instrument was announced by Elemental Excelerator last week. One of the company’s main goals is to support smaller, up and coming companies during the awkward “Scale Gap” phase between #VC funding and natural growth. It’s called the #DSAFE (Development Simple Agreement for Future Equity) and it aims to aid the process by giving companies a small amount of cash to overcome initial risks and expenses during the developmental stages of a product launch or company. How does it work? D-SAFE has a redemption clause meaning companies can choose to have their payments offered as a loan or convert to equity at the investor’s discretion. Funders and companies will have clear communication and expectations about where the money is going and how it will be applied to either the company or the projects at hand. Financiers and companies will work together with more #transparency, and that’s a great boon for #startups and VC alike. As of this month, Elemental has already invested using D-SAFE in eight different companies, including Dimensional Energy and Origen — both companies investing in innovative and out-of-the-box solutions to environmental issues! Seems like a win-win on the surface. What do you all think about the D-SAFE? Alfredo Coppola Momoka Ueda Tim Wagner Stephen D. Torres Olya Irzak Natsuho Toyama Noriya Tarutani Shin Ogawa

15

6 Comments