#104: 🧭 Why More Is Less
4 bullets on climate tech, venture capital, productivity
Good morning, folks.
In today’s 3-minute read, we’ll cover these 4 juicy nuggets below — as satisfying as proving the haters and cynics wrong.
Climate Startups & Investment
#1 — 💥 Beware of doomsday headlines about climate tech’s future and SVB
#2 — 🌿 Agrifoodtech with a climate lens defied investment trends last year
Productivity & Living the Good Life
#3 — 📚 The Paradox of Choice: Why More Is Less (book highlight)
#4 — 🏆 How to get ahead of 99% of people (but why?)
Onward and upward,
Chris
#1 — 💥 Beware of doomsday headlines about climate tech’s future and SVB’s collapse.
Here’s one article to take with a grain of salt — “Climate tech startups face 'massive hole' after Silicon Valley Bank collapse.”
Are deal count and total deal value down year over year?
Sure.
But…
The article goes on to show how climate tech VC activity was down far less (3%) than VC investment overall (53%) in the last year.
In 2022, VC activity in climate tech dipped 3% from its peak in 2021, according to Climate Tech VC.
However, while climate tech funding has tapered off, it is holding up relatively better when compared to the decline in broader VC funding, which fell 53% globally year over year.
Also…
The article seems to comingle lots of types of capital under the same umbrella:
VC equity investment — Not the kind of capital that SVB focused on
Venture debt — SVB was a leader in this kind of capital, but of the dozens of startups I work with, none use this expensive loan product
Renewable energy project investment — SVB provided this, especially for community solar, but this is not risky capital; it’s low-risk infrastructure
Finally…
Here’s a provocative LinkedIn post — from my friend Ryan Jeffery, Senior Managing Director at gener8tor Sustainability —on what the SVB collapse should NOT cause:
If you're a climate tech investor sitting on your hands waiting for better market conditions before deploying more capital, then you're not a real climate tech investor.
The climate doesn't care about market conditions.
This crisis is not going to wait for you to feel better about the economy.
The world is rapidly approaching a catastrophic warming threshold that we must address with "deep, rapid and immediate action."
#2 — 🌿 Agrifoodtech with a climate lens defied investment trends last year.
Overall, investment in agrifoodtech was down 44% year over year, “according to a new report from food, agriculture, and climate-tech venture capital firm AgFunder, in collaboration with global ecosystem partner [and major investor] Temasek.”
But…
Four categories related to climate tech and efficiency experienced an increase in funding:
Bioenergy & Biomaterials funding increased to $2.3bn, up 15% from 2021. This highlights the growing momentum for novel alternatives to plastics and animal-based materials as well as clean energy sources.
Ag Biotech funding increased to $2.7bn versus $2.5bn in 2021 and was almost flat by number of deals, down just six to 216 (meaning it was not outlier driven).
Novel Farming Systems funding increased 21% YoY to $2.85bn with the number of deals remaining flat year-over-year with significant deals across both insect and crop-based systems.
Farm Management Software, Sensing & IoT funding increased $430m to $1.7 billion, albeit with a decline in deal activity, hinting at some large deals.
—
So, before we throw out entire sectors as “losing investor favor,” let’s get a little more nuanced about *sub*sectors first.
#3 — 📚 The Paradox of Choice: Why More Is Less.
This is the title of a best-selling book by Barry Schwartz from almost 20 years ago.
But it’s still just as relevant today.
Here’s the takeaway:
When humans face too many choices — i.e., “choice overload” — we tend to question the decisions we make before we even make them; have unrealistically high expectations; blame ourselves for any and all failures; and get stuck in decision-making paralysis, anxiety, and perpetual stress.
Want an example?
Deciding which cereal to pick from the 250 options in the average grocery store.
How about a business example?
A website or product line that offers so many options that potential customers do not click or buy at all.
Said differently, less is more.
#4 — 🏆 How to Get Ahead of 99% of People (Starting Today).
Actually, that title is deceiving.
And doesn’t sound like the greatest goal anyway.
Yet I still clicked on this YouTube video’s link.
(I can run, but not hide, from Type A tendencies.)
Plus, it’s from Mark Manson, the author of The Subtle Art of Not Giving a F*ck: A Counterintuitive Approach to Living a Good Life.
This book has been a big hit in my household (plus 20 million others).
Predictably, he talks like a sailor, makes you laugh, and then unexpectedly asks this great question (read: what psychology needs should we be addressing instead?) —
"Why do I want to become more successful than 99% of people?"
—
Disclaimer:
One of his unfunny jokes is pretending to snort cocaine. 🙄
But otherwise, his batting average for insight and humor is pretty solid.
🤐 Finally, here’s a little secret.
If you hit reply to this email, it actually comes directly to me.
Not to a calculating AI bot.
Nor to a delightful PR firm.
But right to my inbox.
So, drop me a line sometime. I actually read all your responses.
🙏 That’s all, y’all.
Make it a great week, because it’s usually a choice.
⛰️ When you’re ready, here are 3 ways that I can help you:
Climate CEO peer groups — The #1 community in North America for growth-stage startup CEOs & investors fighting climate change. Capped at 36. Join the waitlist.
1:1 Executive Coaching — Discover blind spots, get unbiased feedback, set more ambitious goals, get accountability, grow faster. Capped at 5. Join the waitlist.
Podcast — 115+ interviews with CEOs and VC investors discussing climate tech, venture capital, and life lessons. Listen here.
Cheers,
Chris