Net Zero Insights’ Post

🌎 Our State of Climate Tech report for the very first quarter of 2024 is out! Our research team has been eager to explore the climate tech investment scene for the start of 2024, following a challenging year for funding and deals in the sector. Let’s go through some of our key takeaways: 📊 Q1 2024 marked the most impressive funding quarter ever recorded, with just north of $30B in funding. However, this was primarily due to the five debt-structured giga-rounds recorded this quarter. Amid this, deal activity continues its downward decline, falling for a fourth consecutive quarter. 💵 Keeping to 2023’s tune, Q1 2024 characteristically shows over 60% of funding being channeled to physical solutions at the adoption level. 🏢 Mergers and acquisitions continue to be the exit type of choice for investors, growing by 12% compared to the fourth quarter of 2023, and on par with 2023’s quarterly average. These takeaways offer a coup d’oeil into the 100 page report, where you’ll also find information about our exhaustive methodology, taxonomy, and insights sourced from Net Zero Insights’ market intelligence platform. Access the full report here to dive deeper: https://lnkd.in/eVR7Anky, and reach out to our team of Sofia Dinis Esteves and Chigozie Ubah if you have any thoughts! #NetZeroInsights #StateofClimateTech #innovation #funding #startups

🌎 Exciting news! Our Q1 2024 State of Climate Tech report is here! Main key takeaways: 📊 Q1 saw record-breaking funding of over $30B, driven by debt-structured giga-rounds. Deal activity continued to decline. 💵 Over 60% of funding went to physical solutions, mirroring 2023 trends. 🏢 Mergers and acquisitions remained the top exit strategy, increasing by 12% from Q4 2023. Access the full report here: https://lnkd.in/eVR7Anky #climatetech #report #netzeroinsights #funding #startups

Heartcore Capital makes a bold pivot with its newly closed $180M fund, targeting infrastructure, synthetic biology, and climate technologies. In 2021, Heartcore focused on consumer tech with a $200M fund. Fast forward to 2024, and they've taken a broader approach, becoming more generalist with their investment strategies. Fund V continues as an early-stage fund, now encompassing a wider scope, including productivity/AI, software infrastructure, travel, and climate tech. 🎯 Key Points: - Heartcore is among the top VCs globally, ranking 9th in the HEC Paris-Dow Jones VC ranking. - The firm, led by Jimmy Nielsen, is dedicated to being the first institutional money in startups, reinforcing its pioneering spirit even after 17 years in the game. - They've already strategically invested in sectors like LLM compute infrastructure and carbon capture software, aligning with future-forward industries. With €800 million in cumulative committed capital, Heartcore's shift highlights the increasing importance of resilient and adaptable strategies in venture capital. The firm anticipates a warming EU market and a potential uptick in IPO activities. As Emil Eifrem, CEO of Neo4j, reflects, Heartcore's steadfast belief and support have been instrumental to their growth into a multi-billion-dollar company. This commitment continues as they chart new territories. What’s your take on the future of investing in synthetic biology and climate tech? Do you see these sectors as critical for shaping the next wave of technological advancement? #VentureCapital #ClimateTech #Innovation #SyntheticBiology #Startups

Calling carbon reduction climate ventures. Applications for Earth Tech: 2050 are open for Sept 2024 start. This program is supported by Foresight Canada and Social Innovation Canada

As we step into 2025, the landscape for VCs and PE firms is evolving rapidly. The next 12 months won’t just test adaptability—it will reward those who predict and seize transformative opportunities. Here’s what’s shaping up: 🚀 Emerging Trends to Watch 1️⃣ Sustainability-Driven Investments: Climate tech, renewable energy, and circular economy solutions are not just buzzwords—they’re the future. Regulations and consumer expectations are reshaping portfolios, with agri-tech and carbon capture leading the charge. 2️⃣ AI Everywhere: Generative AI, automation, and robotics will continue disrupting industries. Think beyond tech—AI-driven solutions in healthcare, logistics, and education will create entirely new markets. 3️⃣ Emerging Markets, Exploding Potential: Africa, Southeast Asia, and Latin America are ripe for disruption. Fintech and edtech solutions are building the future in markets that were once underserved. 💡 Strategic Shifts in the Game 🔄 Smaller, Agile Deals: Rising interest rates are making smaller, high-potential investments the new norm. 📈 Alternative Exit Strategies: Secondary sales, strategic M&A, and roll-ups will outpace IPOs in uncertain markets. 🌍 Impact Investing Goes Big: Measurable social and environmental returns will move from niche to necessity. 👩💻 What This Means for VCs and PEs Success in 2025 will come to those who: Prioritize founder resilience over valuations. Blend profit with purpose by aligning with impact-driven ventures. Stay ahead of the curve by diving into early-stage opportunities in emerging sectors. The question is: Are you ready to lead the charge into this bold, new era? 💬 Let’s discuss! What do you see as the most exciting opportunities or challenges for VCs and PEs in 2025? Sequoia Capital Blume Ventures 16VC 2am VC Nexus Venture Partners Accel Accel-KKR Blackstone KKR Elevation Capital Kalaari Capital IvyCap Ventures Advisors Private Limited #VentureCapital #PrivateEquity #Innovation #Sustainability #2025Vision #EmergingMarkets #AI

Very much enjoyed my first #nytechweek event hosted by @industrybloc at HOF Capital's stunning offices: https://lnkd.in/gx3T9Nny Some impressions: + Deep tech VCs are in the business of building generational companies, and actively looking for founders with transformational ideas and solutions - i.e. the hard stuff. + There are roles for different-sized VCs in the ecosystem. They bring different perspectives and attributes.  Smaller VCs may be the better partners for testing the tech – but larger VCs may be the better partners for delivering exits. + Founders need to be able to demonstrate a clear pathway and a sophisticated thought process for their companies’ capital journey. + Bringing in expertise early, whether that is through employees or external advisers (or a combination of both), will help founders' engagements with investment partners down the track. + When choosing an investor, founders should consider the degree of staying power / permanence of that investor. Would they continue investing – and if not, could that (wrongly) signal risk in the business? Would that investor’s support be ongoing if there are personnel movements? + Deep tech VCs are excited about the impact of AI, and the entirely new infrastructure opportunities that could be created as a result. + Deep tech VCs are also buoyant about the opportunities that remain for “traditional” software and hardware propositions – including robotic solutions for healthcare, bio-tech, manufacturing, logistics / supply chain. Energy tech and climate tech (including nuclear fusion technology) are also “hot”. + The US Government is becoming more deliberate about its efforts to engage with the early-stage ecosystem, because they are starting to see real benefits of doing so. Would the New Zealand Government follow suit? #DentonsVentureTechnology

Investors taking a shine to the Indian climate tech space! 🌿💰 Investors like Blume Ventures, enterprise software and fintech-focused Leo Capital, and new firms like Synapses have been raising climate bets over the last 12-15 months. 🚀💡 Read more at: https://lnkd.in/dewx6K_Y Source: The Economic Times #eoroe #climate #investors #blumeventures #leocapital #climatetech #investment #synapses 📈🌍

As a leading force in bridging emerging technologies with market opportunities, the NREL Innovation and Entrepreneurship Center plays a critical role in connecting innovators with investors and industry stakeholders to drive climate solutions forward. Discussions at the Innovation Showcase on October 15 highlighted how industry demand drives investability, as signals from large corporate partners help guide startups and investors toward the most promising technologies. Learn more about this IEC event and its role in connecting startups with industry and investor groups, https://bit.ly/4ftEVsn #climatetech #cleantech #cleantechinvesting

Good summary about the Climate Tech Market by Adam Thatcher, Emily Townsend and Amie-Louise Corry from Goodwin. It's clear that the Climate Tech market is not going anywhere, and relatively to the investment numbers in general in the Ventures industry, climate tech is fairly resilient. I do think that the main problem we have is down to this sentence: " Certain climate tech companies may therefore not fit neatly into the traditional venture capital model because, while they can offer the potential for extraordinary growth, they tend to require a longer-term commitment from investors. As a result, investors are pushing companies to find other use cases for their technology in an attempt to generate new lines of business and potentially earlier returns, or to speed up the development process by designing and scaling in parallel rather than optimising each stage of the journey before proceeding to the next." I think we are in a situation, where we apply in some cases the wrong financing models to the wrong types of businesses. The VC model, is about high risk, fast-paced ventures that grow faster than the ongoing market and they disrupt the market. I think that taking risk in deep tech, infra startups and things that are high CAPEX and require 30 years to become commercially viable are extremely important, but both founders and investors should face the reality and seek the truth to do the right thing. I have seen CEOs pushed to do things that serve the return of the funds to their LPs, and distract themselves then building their business. Bottom line, it's Ok also NOT to raise from venture! remember that. It's OK to build a business with traditional funds. We need to use the right financing mechanisms to accelerate the right companies and the right founders and innovation! #climatetech #technology #venturecapital #venturedebt #sustainability #greeneconomy #investments

🌍 At the SOSV Climate Tech Summit, the panel "2024: A New Chapter in Climate VC" brought together three of the most experienced climate investors—Milo Werner (DCVC), Gabriel Kra (Prelude Ventures), and Mike Schroepfer (Gigascale Capital)—to share their insights on the current state of climate tech investing amidst a rapidly shifting landscape. Despite major funding rounds for companies like Fervo Energy ($244M) and Koloma ($246M), climate tech investment has slowed, with total investment down by 20% and the number of deals decreasing by 26% year-over-year. 🛑 Here are 3 key takeaways that really stood out: 1️⃣ Investment Gap in Industrialization: While climate tech sees about $20B in early-stage funding and $100B in growth-stage funding, only $7B is invested in industrialization—the critical step between pilot projects and early commercialization (post-FOAK). This gap creates a steep decline in startups able to scale, even with a strong operational focus. Closing this gap is crucial for accelerating the growth of climate solutions. 🏭 2️⃣ Challenges in Capital Structure: There's a significant misalignment in the capital landscape—early-stage valuations often conflict with later-stage revenue expectations, and CAPEX requirements aren't being met in the middle. The rising interest rates and high cost of capital are particularly challenging for startups. While larger corporations traditionally use debt to finance this industrialization phase, startups struggle to access these options. 💸 3️⃣ Re-Industrialization & Opportunity: The U.S. has a golden opportunity to address climate change, create equitable jobs, and strengthen supply chain resilience. Supporting climate tech founders during this re-industrialization effort is critical, especially as new technologies seek to transform key industries. Backing these founders is essential to drive impactful climate solutions and long-term change. 💼 Let’s ensure we’re all *rallying behind these climate tech entrepreneurs* to pave the way for innovative, sustainable solutions that tackle the most pressing global challenges. #ClimateTech #VentureCapital #SOSVClimateTechSummit #Industrialization #ClimateVC #Startups #SustainableInvesting #ReIndustrialization #GreenTech #Innovation #SupplyChainResilience #Equity #ImpactInvesting