Simon Leich’s Post

Let’s get real: Climate change is a hardware problem. While software can tweak how we interact with the environment, it can’t solve the root issue if the hardware still runs on fossil fuels. Here’s the catch: #Hardware is the beating heart of climate solutions, but it comes with risks, like the dreaded ‘Valley of Death’. This phase crushes many #ClimateTech startups as they struggle with: → High commercialization costs → Uncertain demand → Funding gaps But what if we could bridge that valley? Here’s why it’s worth the climb ✨ 1️⃣ Big rewards: A Congruent/SVB report shows 28% of climate startups raised over $500M, compared to the same percentage stuck below $50M. That’s serious growth potential for those who break through. 2️⃣ Market stability: Hardware, backed by patents and unique IP, offers long-term value in volatile markets—a safe bet when economic times are uncertain. 3️⃣ Untapped potential: Fewer VCs are competing in hardware, creating unique opportunities with a stronger risk-return profile than software-heavy solutions. The bottom line: To tackle climate change, we need both digital smarts and tangible progress. It’s not just about data; it’s about delivering real-world impact. 💡 Want to dive deeper? Check out our Substack for the full breakdown (link in the comments below). #EarthVC #ClimateTech #HardwareRevolution #SustainableInnovation

Green is the startup world's new gold. Sustainability is now intrinsic to future-forward startups. The rise in climate tech startups is undeniable, fueled by a commitment to the planet, not just profit. Yet, their success depends on an age-old factor–talent. The clamor for professionals passionate about sustainability is escalating, sparking a cross-sector hiring trend. Engineers, data scientists, and marketers are leaving mainstream sectors for climate tech, promoting rapid innovation. The challenge? Fierce competition for talent. To win, startups must offer more than just high salaries. They need flexible work, diversity, inclusion, and a clear impact vision. Looking forward, startups investing in sustainability and inventive hiring will lead the market and shape our sustainable future. Ready for the green revolution? Let's discuss how we can attract top talent in climate tech.

Is winter coming for #climatetech? There's a lot of whispering out there. Michael Sachse and I wrote a piece for Latitude Media to share our concerns as well as our suggestions for what we need to do to avoid it. In part one, we note that the lack of climate tech exits is a threat to the sector. In part two, we look at how we can rethink climate tech investing by taking a look at the biotech industry. In the last installment, which dropped today, we dispense advice for climate tech founders, which is also the topic of this month’s Gist. You can find the full series here: https://lnkd.in/eHgBtxYj Please read, share, tell us what we got right, and what we got wrong. Thank you Julia Hamm James Schulte Joshua Posamentier Veery Maxwell Max Tuttman Elaine Reddy for your excellent feedback, and to the amazing team at Latitude Media for all of their help, especially Jenna Herzog, Lisa Martine Jenkins Erin Hardick and Anne Bailey. #venturecapital #startups #VC #climatetech #cleantech

In an era where technology evolves at light speed 🌠, keeping up can feel like running a marathon with no finish line. But here’s a thought: Is the relentless pursuit of the latest tech doing more harm than good to startups and SMBs? Navigating the maze of new technologies can be overwhelming. Yet, many firms tumble into the trap of adopting new systems without fully understanding their practicality or impact on their existing ecosystems. The allure of cutting-edge solutions often overshadows the foundational question: Does this technology solve a real problem for us? The conversation shouldn't just revolve around innovation for innovation's sake but rather, on strategic alignment with business goals. For startups and SMBs, where resources are precious, making informed decisions about technological investments is crucial. It's not about having the newest tools in your shed; it's about having the right ones that drive your business forward. So, before jumping on the next tech bandwagon, let’s pause and reflect. Are we chasing technology trends because they genuinely benefit our business? Or are we getting swept up in the hype? Let's share thoughts and experiences on how to approach technology adoption strategically, ensuring every investment propels us closer to our goals, without unnecessary diversions. 💡🔄

When Tech Funding News asked me to talk about what it's like exiting a company and raising a US$7m seed round, I did a lot of reflection. Here's what I thought. 👇 Starting a company is really bloody hard for lots of reasons. Convincing investors you're worth backing is a big one. Here's what I've learnt. Find a problem. Define your niche. Fix it incredibly well. The world is full of problems - climate change is no exception. These challenges are opportunities to innovate, define markets, and deliver value. But trying to tackle everything often leads to doing nothing well. When Ben and I started Zevero in 2021, we wanted to tackle it all. Climate tech is a massive space, and it’s easy to fall into the trap of trying to solve every problem. But advice from brilliant people - like Jos White at Notion VC - taught us the power of focus. 🌍 Clarity is critical: The best startups define what they do exceptionally well and, equally, what they don’t do. Dominating a niche creates defensibility, wins customers, and builds a foundation for scaling. 🛠 Build around your customers: Your most important investors are your customers. Deeply understanding their pain points and solving them better than anyone else is what makes products stick. ❤️ Be mission-obsessed: Helping tackle climate change is something I'm dedicated today - it's crucial you have a passion for tackling the problem you're solving. I had no experience starting a company, but my drive to tackle climate change gave me a foundation. You can read the article in the comments. What am I missing?

Visionaries Tomorrow is a recently founded climate tech fund, focusing on industrial decarbonization and working together with a large network of big-industry investors and stakeholders to help startups scale and grow. "Thong Le Hoang, Co-founder of Visionaries Tomorrow, sees a bright future for the climate tech investment market: "Availability and access to capital, both equity and non-dilutive funding, remain strong." “This is a fantastic time to start a company in this space,” adds Sebastian Pollok, Visionaries Tomorrow Founding Partner. He believes climate tech has reached an inflection point with founders and innovators just as aware of the urgent change needed as incumbent industry stakeholders. This comes alongside massively increased government support through legislation and non-dilutive funding." 💵 At first glance, it may seem like climate tech investment is on a downwards spiral - it has lost 20% of global investment figures in the first half of 2024 compared to 2023. But that's not the whole story. Climate tech is actually growing in investment market share and increasing numbers of talent, founders and investors are entering the game to make a difference for the climate. Read more in Forbes Subscribe to The Green Techpreneur (link in comments) to hear more from leading climate investors and entrepreneurs. #climatechange #innovation #climatetech #investors #funds #startup

Jonathan Weitz and Claire Broido Johnson from MCJ Collective provide a detailed analysis on how climate tech startups can navigate challenges and avoid common pitfalls in their quest for impactful scaling and sustainable growth. Here’s a concise breakdown of their insights: 1. 𝗟𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 𝗮𝗻𝗱 𝗖𝘂𝗹𝘁𝘂𝗿𝗲: Prioritize a strong culture and efficient communication, develop a robust HR function, align on decision-making, and maintain a balance between growth and profitability. 2. 𝗠𝗮𝗿𝗸𝗲𝘁 𝗦𝗶𝘇𝗶𝗻𝗴 𝗮𝗻𝗱 𝗚𝗼-𝘁𝗼-𝗠𝗮𝗿𝗸𝗲𝘁 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆: Avoid overestimating market size. Regular feedback and realistic assessments of market readiness and differentiation are crucial. 3. 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 𝗩𝗲𝗹𝗼𝗰𝗶𝘁𝘆 𝗮𝗻𝗱 𝗗𝗶𝗿𝗲𝗰𝘁𝗶𝗼𝗻: Ensure timely product development aligned with financial and market demands, follow a logical product roadmap, and address scalability early on. 4. 𝗨𝗻𝗶𝘁 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 𝗮𝗻𝗱 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗠𝗼𝗱𝗲𝗹: Focus on scalable unit economics by considering customer willingness to pay, reducing costs of sales and service, and adjusting to market conditions. 5. 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗦𝗰𝗮𝗹𝗶𝗻𝗴: Emphasize standards in operational processes, enhance customer experience, leverage automation, and manage the supply chain effectively. 6. 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗦𝘁𝗮𝗰𝗸: Diversify funding sources, plan for different capital needs, and focus on financial derisking to attract larger pools of capital. 7. 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻: Recognize the power of entrenched competitors and adapt strategies, accordingly, focusing on niches or innovative offerings where possible. 8. 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗮𝗻𝗱 𝗣𝗼𝗹𝗶𝗰𝘆: Engage proactively with regulators and understand political risks, ensuring compliance and adaptability to regulatory changes. These insights guide climate tech startups toward sustainable growth and significant environmental impact, emphasizing the importance of strategic planning and adaptability. #ClimateTech #StartupStrategy #SustainableBusiness

🌱 Just wrapped up an inspiring week at VERGE, where I gained firsthand insights into how startups, investors, corporates, and policymakers are tackling some of the biggest challenges in climate tech. It was especially valuable to bring together different perspectives—from my role at San Francisco Environment Department focusing on clean transportation, to my Cleantech to Market (C2M) MBA class at University of California, Berkeley, Haas School of Business on renewable energy, and my work with the Accelerate Investment Group group researching frontier climate tech. Each lens added a new layer to understanding the trends and dynamics driving this climate tech space. 👉 Check out my takeaways from #VERGE2024: 🌱 Climate tech investment tightens but grows more focused Seed rounds in climate tech have seen a 30% drop in volume, but the deals that do close are larger, reflecting investors’ focus on high-conviction bets. Series A benchmarks are tougher too, prioritizing companies with clear ARR and strong margins. 🌱 VCs still love hardware Though software play a critical role in scaling and optimizing climate solutions, Shayle Kann noted that big tech breakthroughs are still often hardware-driven. Real-world impact often demands physical solutions, and climate-focused VCs are betting on hardware’s crucial role in driving sustainable change. As Emily Kirsch emphasized, we already possess 65% of the technology we need; it’s now a matter of deploying it effectively! 🌱 AI’s energy demand is growing faster than its ROI AI’s everywhere, but the revenue payoff still lags. Training energy use is on the rise, and while big players like Google are looking to SMRs to power their data centers, questions remain on ROI. Moving from large to smaller language models may help, but finding the right balance of efficiency and cost remains a work in progress. 🌱 Climate tech recruiting: the hardest part of the equation Andrew Beebe highlighted the importance of team dynamics and the role of VCs in helping startups recruit the right talent. Technology alone won’t solve the climate crisis, attracting talent and building the right partnerships is crucial. A capable team is crucial for navigating future challenges, and both founders and investors recognize that having a strong team can make all the difference in a competitive landscape. Some promising early-stage climate startups from the pitch events I attended: OpenGrid: Hassle-free build-out of DC fast-charging networks for grocery stores, enabling grocers to sell energy at checkout. Matcha: An EV charging reservation system that bundles parking and charging for property owners. H Quest Vanguard, Inc: Modular pyrolysis systems that produces zero-CO2 hydrogen at the point of use Aquarry: Converts abandoned mines for capturing and permanently storing CO2 from the air Lastly, a big thank you Trellis Group and Morganne Sigismonti for the opportunity to learn and collaborate. Looking forward to VERGE2025! 🌎

The untold reason most climate tech startups struggle to scale: They can't tell their story effectively. After years of working with climate innovators, I've noticed a pattern. The companies that scale successfully aren't just those with the best technology - they're the ones that master the art of storytelling. Here's what separates successful climate tech companies: 1️⃣ They translate complexity into clarity Your breakthrough solution means nothing if customers can't understand its value. The best companies make the complex simple. 2️⃣ They connect with the right networks Success isn't just about what you know - it's about who knows about you. Strategic storytelling opens doors to partners, investors, and customers. 3️⃣ They build trust through transparency Climate tech requires patient capital and long-term partnerships. Clear, consistent storytelling builds the trust needed for these relationships. 4️⃣ They focus on impact, not just innovation Leading companies don't just explain how their technology works - they show how it changes lives and transforms industries. 5️⃣ They create emotional connection The most successful climate tech companies don't just share data - they tell stories that inspire action. At Climate Hive, we help climate innovators craft and share stories that drive growth. Because great technology deserves a great story.