📉 20% decrease in climate tech VC funding, but here's why there's hope
Your 3-minute summary of climate tech, startups, better habits, and deep work.
Good morning, folks.
In today’s 3-minute read, we’ll cover these juicy nuggets:
📉 20% decrease in climate tech VC funding, but…
📊 A review of 400 climate fintech companies showed that…
🎤 3 podcasts from me to you — $1T donors, Battery recycling, Hydrogen map
🏰 EU and UK climate tech — $450M more in evergreen dollars.
🎽 How to run a marathon at age 90.
Enjoy.
Chris
📉 20% decrease in climate tech VC funding, but…
Do we cry uncle after reading this sobering news via Pitchbook and Forbes?
Not quite.
There’s no crying in baseball.*
Venture capital firms funneled $9 billion into 273 climate tech startups in the first quarter of this year.
That was $2.2 billion less than the $11.2 billion invested per quarter, on average, in 2021.
Before we go and cry in our locally crafted hazy IPA… **
Here’s what a recent Bloomberg article proclaimed in its headline:
The Investors Putting Billions Into Climate Tech Don't Plan to Stop Now
Green startups have seen funding collapse in previous market downturns. This time will be different, according to investors, thanks to savvier companies and a broader set of backers.
They go on to quote Bill Gates, wherein you need to imagine a dimly lit room with ominous tornado-prone storm clouds looming in the background:
“We’re going to go through a winter period for a number of years.”
Again, there are no white flags being raised in the forest of my North Carolina HQ.
If you need a reminder of why this time is different than cleantech 1.0, check out the Catalyst podcast episode “How will the downturn affect climatetech?” with Shayle at Energy Impact Partners.
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* If you need a refresher on this movie line from A League of Their Own, filmed partly near my old Kentucky home, here’s the clip with Tom Hanks.
** This is possibly the best choice of beverage on a North Carolina summer evening where you can cut the humidity with a dull butter knife.
📊 A review of 400 climate fintech companies showed that…
Here are some highlights from the recent F10 report with 51 pages of juicy goodness.
First, what are we talking about when we say “climate fintech”?
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Over 26% of global climate fintech companies are US-based.
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Over 20% of climate fintech companies are focused on ESG data and analytics.
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Over 38% of climate fintech companies (where funding was known) have raised less than $6M.
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Over 26% of all known capital raised has been for digital risk analysis and insure-tech startups.
🎤 3 podcasts from me to you — $1T from donors, battery recycling, hydrogen map.
I’ve had the pleasure of interviewing 83 climate CEOs and investors via our Entrepreneurs for Impact podcast.
Here are three of the latest episodes that I think you’ll like.
And for the benefit of these three climate leaders, please consider sharing these with one friend today. 🙏 We gotta promote more stories of climate solutions among all the doom and gloom out there.
NthCycle is a metals processing technology company. They work with battery recyclers and miners. Their customizable and clean electro-extraction technology installs onsite to recover critical minerals from separated e-waste, low-grade ore, and mine tailings. They profitably separate critical minerals from other elements, transforming them into production-grade feedstocks for the clean energy transition.
Megan O'Connor is a Forbes 30 Under 30 and PhD graduate in environmental engineering from Duke University with scientific and entrepreneurial experience at Yale University and Innovation Crossroads. She cofounded Nth Cycle five years ago.
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Pillsbury is an international law firm with a particular focus on the technology & media, energy, financial, and real estate & construction sectors. They have been recognized as one of the most innovative law firms by Financial Times and one of the top firms for client service by BTI Consulting.
Mona Dajani, an industry thought leader and a partner at Pillsbury Winthrop Shaw Pittman LLP, is the global co-leader of the firm’s Energy and Infrastructure Projects Team and also leads the Renewable Energy practice, which covers clean energy, clean energy technology, hydrogen, and sustainable finance. She is qualified as a lawyer in the U.S., a registered foreign lawyer in England, and a licensed professional engineer.
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CapShift empowers philanthropic, donor-advised funds, and financial institutions (along with their clients) to mobilize capital for social and environmental change. They are a turnkey impact investment solution for the $1 trillion charitable investment market.
Adam Rein is the Cofounder and Chief Investment Officer. Since 2014, he has served as a Managing Director for MissionPoint Partners, an impact investment advisory and asset management firm. Previously, Adam co-founded Altaeros, an MIT startup bringing affordable broadband to rural communities. Adam is also a co-founder of Greentown Labs, the largest climate tech incubator in North America. Previously, Adam worked as a strategy consultant for Bain & Company. Adam has an MBA from MIT Sloan, an MPA from the Harvard Kennedy School, and a BA from Yale University.
🏰 EU and UK climate tech — $450M more in evergreen dollars.
Why is this news important?
First…
It’s not a typical VC fund with a limited term — e.g., 10 years to invest and exit its portfolio companies.
Instead, it’s created by the investment firm IP Group, a FTSE 250 listed entity with access to public markets via the London Stock Exchange.
Because it’s evergreen, the fund can be more flexible about what to invest in and when to exit. That might make for a more patient investment partner.
Or not.
Time will tell.
Second…
It’s focused on climate tech VC opportunities in the EU and UK (as far as I can tell).
This makes it the largest such fund when compared to others such as Astanor Ventures ($325 million), World Fund (€350 million), 2150 (€270 million), Norrsken VC (€125 million), Blue Horizon €183 million), Emerald Technology Ventures ($100 million) and Pale Blue Dot ($87 million).
Thanks to Techcrunch for that compilation.
🎽 How to run a marathon at age 90.
I’m not a runner so this is extra impressive.
In a recent Rich Roll podcast, his master class on longevity ends with guest Mike Fremont, who has run full marathons at age 88 and 90.
He's now 100 years old, looks amazing, runs 15 miles per week, and says these are the best days of his life.
And all of this started because of a family tragedy that catalyzed his daily running practice in his mid 30's which was "more rewarding than two martinis."
He has turned very sour lemons into lemonade.
And he attributes much of his success to a whole-food, plant-based diet for the last few decades.
Check out the YouTube or podcast versions for all the deets.
And check out other longevity experts in this inspiring episode via these YouTube timestamp links below.
00:02:51 - Dan Buettner
00:11:12 - David Sinclair
00:20:02 - Dr. Alan Goldhamer
00:32:44 - Dr. Matthew Walker
00:42:37 - Dr. Valter Longo
00:51:35 - Sergei Young
00:58:10 - Peter Diamandis
01:05:50 - Dr. Rangan Chatterjee
01:17:48 - Chip Conley
01:25:20 - Mike Fremont
That’s all, y’all.
Make it a great week, because it’s usually a choice.
— Chris
P.S. Do you want to learn how to fund a climate tech startup with me?
I’m launching the second cohort of my live, cohort-based course in a few months => “Fund Your Climate Tech Startup”.
With a small group of around 20-25 entrepreneurs (preseed and seed stage) and career-switchers, it’s very hands-on and practical. It includes:
500+ climate investor list (with emails)
Frequent pitch practice with peer feedback
5-step process for raising capital
9-step method for improving your 1-page business plan
7 tools for assessing your competitive edge
20 top startup mistakes to avoid
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Dr. Chris Wedding
Founder and Chief Catalyst, Entrepreneurs for Impact
We help CEOs and investors tackle climate change with mastermind peer groups, online courses, newsletters, and podcasts