Sandra Phillips

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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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

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As Energy & Climatetech is one of the tracks at TechChill, I’ll be out there this week, looking for founders ambitious to ramp up their activities. SFV is in search of just that. A few noteworthy speakers to look out for if you’re attending and are curious about cleantech in general: 📣 Julia Bialetska from S.Lab striking the stage with the topic of “Eco-innovations unwrapped”. A great person, a recognized founder hitting the heights. 📣 Andris K. Berzins from Change Ventures, Jarna Hyvönen from Volare Solutions and Janis Putrams from Aerones are discussing “The dilemma of commercializing deeptech”. It is never an easy task and never should be too easy either, right? 📣 Agate S. Freimane from Norrsken VC brings us insights on “Building a thriving climate economy”. A topic Norrsken is superb at and gets to the nuts and bolts of making a real impact. At side-events: 📣 Beamline Accelerator is hosting the “DeepTech Demo Day”! 📣 EIC dials in on details on “Funding your deeptech startup to scaling in the EU”!

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This week we had Ashley Aviram from Wedbush Ventures and and Robert Berluti from RTP Global join us for our cohort deal room. Among the many valuable insights shared, these three particularly resonated: 🚫 Ignore "headline" venture rounds - Outsized venture rounds often flow to executives from well-funded VC companies or founders with very unique networks. These are not the typical startup trajectories - and not worth being distracted by. 🏃‍♀️ Execute with urgency - Early-stage investors care about how effectively you've used your time. Especially in the early days when there are not many metrics to benchmark your start-up -- executing with urgency and focus is super important. ❤️ Focus on customer love first, funding second - Building something users genuinely want creates natural market pull. While understanding venture is helpful, deep customer engagement is crucial.

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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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In the work I do at Earth Finance, I see everyday that the large companies, with complex value chains and net zero strategies, require and rely on innovative technologies to achieve their goals. Being able to meet their need is vital not only to their success, but also for an emerging technology startup’s success. In this episode (our third which I think officially makes this a series 🤠), we talk basics of securing the business and trust of a large customer when they take a chance on your new tech and aim to scale it across their business.

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Manufacturing and the use of traditional fertilizer accounts for 5-7% of global greenhouse gas emissions. Founders Nicolas Pinkowski, Joshua McEnaney, Jay Schwalbe and the Nitricity team utilize air, water, and clean energy to make fertilizer that has a meaningful impact on climate change. Nitricity’s breakthrough technology decarbonizes the production, distribution, and application of nitrogen fertilizers. Change Forces invested in Nitricity to help decarbonize an essential industry, create jobs, and deliver an economical and sustainable solution to farmers and communities. Watch Nitricity’s journey to support local communities and promote a more resilient food system, part of “Reinventing Tomorrow,” presented by Change Forces and Pique Action. https://lnkd.in/epPA6G43

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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.

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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

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Absolutely thrilled to welcome Eliot Brooks, Freddie Scott, William Knapp, and the entire Cocoon team to the Wireframe portfolio, and lead their pre-seed round! Steel and concrete are widely considered some of the toughest industries to decarbonize; responsible for 14%+ of GHG emissions today. The scale of these sectors -- with concrete being the second most used substance in the world after water -- makes it extremely difficult for any new technology to make a dent on operations or emissions. But with demand for building materials growing rapidly as we invest in modern cities and infrastructure, solutions that can deliver cost-effective carbon impacts in the short-term is exactly what we need. Enter Cocoon. The company's novel approach leverages existing feedstocks, flow sheets, and supply chains to produce low-carbon cement from slag, all while increasing the profitability of sustainable steel operations. More on why we're convinced that their scalable, shipping container sized system can be the winning solution for these historically hard-to-abate sectors + the progress they've made in just 15 months here: https://lnkd.in/ezzTWtaw

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Rich Powell knows the politics of power. He’s CEO of the Clean Energy Buyers Association (CEBA) and has been a leading voice for bipartisan clean energy policy in DC. He joined the Watershed community last week to talk about what's next after the election. He predicts the rest of this decade will be all about electricity. Data center energy consumption to power the AI boom is scrambling the landscape – from decades of flat demand to a future of a growing grid that creates both opportunity and challenge for clean energy. “Decarbonizing electricity is not done. "Electricity in the remainder of this decade is going to be a bigger conversation than oil or fuel in U.S. energy policymaking. “If you're not educated about electricity, get educated about it because you're going to have to start answering all kinds of new and harder questions.” Thanks for joining us, Rich. Full video (including former SEC Commissioner Rob Jackson on the disclosure landscape) in comments.

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Imagine sailing through fundraising rounds, proving your breakthrough technology's potential, only to hit a roadblock when you get to scaling up and building a commercial plant. Some call it the "commercial valley of death." The assumption is that once climate tech solutions are proven, then industry/corporates will scale them. The reality is they're pressured to invest where there's immediate shareholder value. #mindthegap Prime Coalition’s Trellis Climate Program wants to bridge that gap. Here's how: 🌍Tapping Philanthropy: They take a unique approach by tapping into philanthropic funds to fuel high-impact projects during the middle stages, where traditional capital falls short. 🌍 Investing in Innovation: For climate tech founders, this funding model offers a ray of hope. While there are plenty of early-stage funding options, Trellis Climate fills a crucial gap by propelling proven technologies toward commercialization. 🌏Philanthropy as a Catalyst: By using philanthropic dollars as catalysts, they attract infrastructure investors willing to take calculated risks. Together, they pave the way for scalable climate solutions. Trellis Climate is getting started with investments in startups Ample Carbon and Ebb Carbon. Lara Pierpoint #ClimateTech #Startup #Innovation #Philanthropy

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It is clear that there is a ripple effect of good that occurs when we invest in #CleanEnergy. Shoutout to the programs, startups, and organizations that allow us to prioritize #ImpactInvesting. They have significantly boosted investment in clean energy. Check out this World Economic Forum article for more information. #Sustainability

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True partnerships are transformative catalysts for change. They transcend mere funding, embracing deep listening, dynamic collaboration, and vibrant community-building. Recent experiences at the MARGULF FOUNDATION Grantee Convening, Culture Shifting Summit, EdLoC, and Google Impact Summit have reignited my passion for reimagining how funders can evolve to genuinely empower social impact leaders. In my latest Camelback Ventures blog, I dive into the heart of this crucial conversation: ➡️ How can we build partnerships that fuel innovation? ➡️ What does holistic support for entrepreneurs of color and women really look like? ➡️ How might we create an ecosystem where visionary ideas thrive? Join me in exploring how we can reshape the landscape of social impact. Together, we can craft a future where diverse voices lead the charge in solving our most pressing challenges. Read the full article and let's continue this vital dialogue. How are you reimagining partnerships in your work? 🔗 https://lnkd.in/eW7UrGXu #SocialImpact #EquitablePartnerships #InnovationInFunding #DiversityInEntrepreneurship #SystemicChange

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I have a podcast. If you’re into that sort of thing. It’s not good. But it is consistent. Every week. Wherever you listen to podcasts that are actually good. #podcast #pdx #portland #startups https://lnkd.in/g3gAhurv

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Calling all early-stage climate tech founders in the US, we'd love to hear from you!! Just a couple of weeks left to apply to NETI's Climate Tech Bootcamp Cohort 3.0, a pre-accelerator program powered by 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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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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As a Boston local, it’s energizing to see Activate link up with The Engine Accelerator. I believe strongly that scientists can make great #founders, and these two programs are a testament to that. Having seen up close the challenges that founders face - from untangling cap tables, to licensing IP, to immersing themselves in unfamiliar markets - the more robust ecosystem we can build around them, the better. I have had the good fortune to work with many of the #ActivateFellows past and present, and my hope is that partnerships like this lets us scale our impact further, faster. #deeptech #startups

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Wondering about the actual "how-to" to execute a great hiring plan for your startup? We've got you covered! Check out this Insights piece that we put together in collaboration with our friends over at Enduring Planet. Our team at Climate People has placed over 100 people into climate technology roles with dozens of Seed --> Series B/C startups. This insights piece reflects some of our learnings. If you're a startup looking for exceptional talent or help with your hiring process, reach out! Shout out to Natalie Lavery, Climate People's Marketing Lead for her contributions to this piece.

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