#115: 🌎💸 23 books for CEOs in 2023
4 bullets on climate, startups, productivity, leadership (2 minutes)
Good morning, folks.
In today’s 2-minute read, we’ll cover these 4 nuggets below — as delightful as a cold plunge in an alpine lake. (Thank you, Olympic National Park.)
Climate Startups & Investment:
#1 — 💸 500 climate tech unicorns in the next 20 years
#2 — 📈 How tax credits can boost your IRR
Productivity & Leadership:
#3 — 📚 23 books for CEOs in 2023
#4 — 💀 A premortem analysis can prevent business death
Onward and upward,
Chris
P.S. Want more? Read 100+ prior newsletter issues here.
#1 — 💸 500 climate tech unicorns in the next 20 years
That’s the prediction by Sean O’Sullivan, who founded the venture capital firm SOSV in 1995.
Since 2007, they have invested in more than 250 climate-tech startups and now manage $1.5B in assets, specializing in early-stage investments.
Partly in response to news that climate tech venture capital investment was down 40% in the first half of 2023, Sean reminds us of the economic opportunity in these sectors:
“We are reinventing how we produce all means of materials.
We’re talking about probably $50 trillion worth of new industries that need to be created.
There are going to be hundreds of major companies that are coming out of this.”
He further reflects on the financial motivation to do so (on top of the obvious humanitarian and planetary benefits):
“Up until now, our gross internal rate of return (IRR) at SOSV for climate tech companies has outperformed our non-climate tech companies, and it is in the range of around 50% over the course of eight years from 2015 to 2022.
It’s in the top decile of venture capital returns.”
#2 — 📈 How tax credits can boost your IRR.
When I first began financing solar projects in 2010, I recall the brain pain of understanding how to monetize tax credits.
It’s plagued by high transaction costs, complicated legal relationships, and accounting terms that we non-accountants shouldn’t need to understand.
So…
Why should you care?
“Of the much anticipated $1.7T (yes, with a T) public and private bonanza of IRA climate spend provisions, tax credits alone are predicted to make up over 2/3rds of all spending.” (CTVC)
“Tax equity investors cover ~35% of typical solar project costs and ~65% of typical wind project costs in exchange for tax credit incentives, as well as cash returns once the project is generating and selling clean electrons.”
Get CTVC’s primer on tax credits here.
#3 — 📚 23 books for CEOs in 2023
Former President Harry Truman once said:
“Not all readers are leaders, but all leaders are readers.”
To that end, here are 23 books recommended for business leaders.
For a little inspiration, here’s a quote from one of these books — No Filter: The Inside Story of Instagram by Sarah Frier.
“People who don’t take risks work for people who do.”
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On top of these books, here are a few on my summer reading list:
Talk Like TED: The 9 Public-Speaking Secrets of the World's Top Minds
Influence, New and Expanded: The Psychology of Persuasion
Your Next Five Moves: Master the Art of Business Strategy
The Journey Home: Autobiography of an American Swami
Zen Masters of Japan: The Second Step East
Happy reading!
#4 — 💀 A premortem analysis can prevent business death.
The premortem analysis is a managing consulting tool used by McKinsey & Company and other leaders firms and a technique I teach to my MBA students at Duke University.
It’s not complicated. But it’s powerful.
It’s not easy. But it’s simple.
Why use it?
To “predict” future causes of your failure (e.g., business, product, market) BEFORE they happen in order to plan risk mitigation strategies ahead of time.
Here’s a how-to guide on how to run one.
📓 Two final notes
(1) Tell a friend
If you enjoyed this newsletter, I’d really appreciate it if you sent it to a friend or two (or 20). 🙏
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(2) Fundraising for startups
If you’d like to learn how to raise capital for your climate tech startup, I’m teaching a short course about this in September. It’s taught live, online, with a cohort of peers.
That’s all, y’all.
Make it a great week, because it’s usually a choice.
Cheers,
Chris
The #1 climate CEO peer group in North America
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(As evidenced by these photos, I’m a real human. Not an AI. 🤫 I promise.)
