Shen Tong

🌍💡 Embracing Interoperability: The Evolution of Carbon Markets 💡🌍 The landscape of carbon markets is rapidly evolving, with a significant shift towards fungibility and interoperability. What does this mean? We (at the SoHo Global Climate Fund) spoke with leading climate fund manager, Charles Bedford of Carbon Growth Partners, to shed light on this important trend in the carbon markets. It's about creating seamless connections between compliance and voluntary markets, allowing for the exchange and recognition of carbon credits across borders and sectors. This trend marks a pivotal moment in our collective efforts towards combating climate change. By enabling carbon credits to be fungible and interoperable, we're fostering a more efficient and scalable approach to carbon pricing and emissions reduction strategies. Companies and organizations now have greater flexibility to participate in markets that align with their goals. #CarbonMarkets #ClimateAction #Fungibility #Interoperability #Sustainability #Innovation #GlobalImpact

30

INVESTING IN CLIMATE TECH IS SOOO SIMPLE: PART I After a spectacular closing session to #ClimateWeekSF at 9Zero, I thought I'd share a few morsels from our sustainable VC session (organized by Niki Gastinel & moderated by Ron Erd w/ fellow panelists Joshua Posamentier Nare Janvelyan, PhD & Shaun Chaudhuri). Top 3 DD questions I seek to answer: I         Would I work for this person? I've been a founder 5x (3 startups, 2 VC funds) & always seeking to grow. When I'm being pitched by a founder, I imagine what it would be like to work for them, because, while team is important, the CEO is everything. The CEOs I back have: ·     Command of the Market: They are intimate with & drive discourse on distro channels, market players/dynamics, the competitive landscape & where the ball is going. All about founder-market fit! ·     Evangelical Sales Ability: They’re always selling, intelligently, whether it’s for recruiting, fund-raising, distribution... ·     EQ IQ: I back intelligent founders but I want that paired with street savvy & deep understanding of what to prioritize & when, not just how to do it. I look for emotional intelligence & how they read the room & adjust comms. I look for CEOs that have done the hard work on their own personal growth & have the right lens to make big decisions. ·     Battle-tested: I look for founders that are resilient & risk-tolerant. They have been tested in some aspect of their lives: personal challenges (athletics, hardship, military) and/or professional challenges. II        Is there a Big Accessible Market (BAM)? ·     Big TAM: I invest in companies seeking unicorn performance (financial & impact). Matters less where the TAM is today but more importantly where it's going. ·     Clear and Present Sales Channel: I want to see a beefy sales channel(s) with a clear decision maker; tangible, massive pain for this painkiller solution (not a vitamin); and an accretive path for the customer. Know who your actual buyer is. Hint: It’s not the sustainability exec! ·     Weighted Average Pipeline: I want to see a well thought out, organized sales pipeline that is dynamically linked to your financial forecasts & produces a justifiable exciting ARR forecast. ·     Product Market Fit: Because we do seed, we only see the beginnings of traction & sometimes focusing too much on fit can lead to a false negative. This is the time for risk-taking & iteration so you can learn. It’s more about DDing the product as an extension of how the team thinks & executes. III      Is There Big Accessible Impact? ·     Paul Hawken: We have Paul & he is unabashed about rooting out pretenders when it comes to impact. If he doesn’t buy your impact, we won’t invest. It’s that simple. ·     Qualitative: Because we are software first & seed stage investors, we don’t do hard core quant on your impact. We do our best to gauge the potential decarbonization impact of your company at scale. You know it when you see it. What questions do you ask?

47

13 Comments

Had a great conversation with SustainCERT during Climate Week NY 2023. Excited to announce that we will be back in NYC in September to launch and workshop our "Brand & Retailer Sustainable Finance Playbook." The playbook will bring together brands, retailers, suppliers, banks, development banks, and philanthropies to defragment and align various ways to invest in decarbonization, creating demand for suppliers to take on critical factory efficiencies, upgrades & improvements. Join us in creating a more sustainable future for the fashion industry. Check out this interview from last year's Climate week NYC with SustainCERT #ClimateWeekNYC #SustainableFinance #FashionIndustry #Decarbonization

54

Over the years, we at GFR Fund have solidified our investment thesis, which is that we invest in "emerging digitally native communities." These communities can be built around games, social media, and any consumer applications. Now, founders have many easy-to-use tools to build user communities, such as Discord, X/twitter, Instagram, etc, and we believe the founders should start building communities even before they launch a product. The communities can help founders: - reach PMF faster - acquire users cheaper - retain and engage users longer - build better UX/UI, and - hire early employees Below, you can see how RTFKT and Omeda Studios built the community and then worked with them to create a product the users really wanted. We would love to talk to the founders who think the community is essential in building a product!

47

"There's plenty of capital available in multiple flavors for Climate Tech Companies..." 🌍💸 Did you know that in 2023, 50 VC deals for climate tech companies exceeded $150 million, with nine of those surpassing $500 million? Venture capitalists are increasingly turning their focus toward startups to tackle the climate crisis, marking a significant shift in investment priorities. Despite the challenging environment for venture capital in 2023, with overall investment in climate tech falling by 14.5% to $41.1 billion, the commitment to climate solutions remains robust. Key trends and insights are shaping the evolving landscape of climate tech investment. Are you an early-stage Climate Tech founder looking to fundraise? Curious about the main drivers for the industry? ⬇ Dive into my latest Forbes article to learn more. Special thanks to Hannah Sieber & Arun Gupta for sharing your invaluable insights! https://lnkd.in/gNhe8jew #ClimateTech #VentureCapital #Forbes Artyc Skyven Technologies

26

2 Comments

Earlier this week Texture, led by CEO & co-founder Sanjiv Sanghavi, announced its $7.5m seed round of fundraising with participation from Abstract Ventures, Day One Ventures, Equal Ventures, Lerer Hippeau, and a handful of angels. Dorothy Chang and I feel fortunate to count ourselves among the “handful of angels.” We didn’t invest just because Sanjiv is a close friend - though knowing him for over a decade has given us a lot of insight into his mind and how he operates. We invested for a lot of the typical reasons a VC would: Solving big problems with big potential returns - Venture investments only make sense if they have the chance to make massive returns. Texture is building the data infrastructure for energy networks - becoming a common data collection and sharing platform for every player in the energy grid, no matter the type of energy. There is already a huge gaping problem and a huge market here. Building for an inevitable future - On a macro level, as a society, we are moving more and more toward complex, interconnected energy sources as we optimize for the right balance of efficiency, sustainability and costs. Unique insight and founder-market fit - At a first glance, Texture seems like a big departure from what we originally knew Sanjiv from, as a Co-Founder of ClassPass. But since then, he has also played roles as the Chief Product officer at Arcadia, a successful energy data company (Arcadia’s CEO is also an investor in Texture) as well as an investor at Day One Ventures, investing in the energy/climate tech sector.  More details in this week's post: https://lnkd.in/eGBzXHwC

44

4 Comments

Is SF Climate Week banter a good barometer of the macro climate tech investment mood? Key nuggets to ponder: 💰💰💰 Climate solutions (like most science/engineering and hardware based deep tech) are capital intensive. They require an "all of the above", creative financing approach to obtain the capital needed to scale (from CVCs, government, public-private partnerships, green banks, debt financing...). 🤖 AI - Everything, Everywhere (all at once). As in most sectors, AI is white hot. It can be a key component of climate solutions, but also a demand accelerant ⏩ More AI = ↗ compute and power demand ⚡= ↗ need for energy storage and grid enhancing solutions 🔋. 🏛 🤵 Political Angst. Real worry that a new administration will cut or impede climate tech catalyzing funding (e.g., DOE funding from IRA). #climatetech #climateweek

4

2 Comments

Massachusetts in 2024 is home to the most climate tech startups per capita in the country. They thrive at institutions like MIT and Greentown Labs, turning big ideas into tangible solutions. But we struggle to keep them here. States from coast to coast are wooing away entrepreneurs and employers. These places facilitate demonstration programs, connect companies to trained workers, and provide access to real estate for manufacturing. The Mass Leads Act rebalances these incentives, directing capital investments and tax benefits that keep these innovators in Boston for the long term and encourages others to join them. #climatetech #climateVC #venturecapital

5

To all #climatetech #founders and #funders in NYC and beyond, please join us on June 5th for an evening of #breakthrough #decarbonization #innovation at the ReGen Accelerator #DemoDay! 🎉 Get ready to be inspired by our cohort of #earlystage startups: ​ ▶ aich2 is engineering a novel #hydrogen ecosystem, built around Solid Hydrogen carriers. ​​ ▶ carbogenics produces sustainable #carbon adsorbents from difficult-to-recycle organic waste, including coffee cups and wastewater screenings ​​ ▶ TeamStack.ai is driving better performance by harnessing #AI, data, & the collective intelligence of teams. ​ ▶ Tesleon LLC uses compelling characters and #storytelling to instill compassion for communities and our planet in the next generation. ​ ▶ Tolam Earth is a trusted #marketplace for high-quality, high-impact carbon offsets. Don't miss out! Secure your spot below. Big thank you to Brown Rudnick LLP for hosting this event, our partners at ClimateHaven for their hard work and dedication during the entire program, and to our incredible network of #mentors and #facilitators, each of whom have dedicated time to working with these incredible founders this spring, including Jason Ambrose, Marina Rakhlin, Lauren Zujkowski, Stuart DeCew, Matt Puccini Andy Rooks, Nina Raab, and Bill Stephney. And of course Shai Tamary, Lars Korby and Sarah Cleveland, without whom we would not be able run such a #program. #innovation #sustainability #climateaction #accelerator

45

1 Comment

That feeling when you watch the macro forces that undergird your Industrial Transformation & Supply Chain Technology investment thesis at ⁦‪REFASHIOND Ventures: The Industrial Transformation Fund unfolding every single day: Escalating Geopolitical Tensions; The Climate Crisis & Severe Weather; Consumer Behavior & Demographics. At most venture capital firms, Industrial Transformation & Supply Chain Technology is a tiny, emerging “area of interest” . . . At REFASHIOND Ventures, it’s our entire world. Join us. #IndustrialTransformation #SupplyChain #Innovation #Technology #Startups #VentureCapital

5

Health x Climate: I have spent a lot of time thinking about the intersection of climate and health, so I appreciated the City Futures: HealthTech and ClimateTech Intersections panel discussion during NY Tech Week, with Ben Furnas, Sara Holoubek, and Joel Cesare as panelists. They highlighted the work happening in NYC; even though subway use helps our GHG emissions, there is still opportunity to prepare the city and electrify our buildings for the changes to come. Some key takeaways 🔄 Health + Climate: The effects of climate change impact our health and our health decisions impact climate change. We often think about climate and health in silos but they are very connected.  🔥 Heat waves: Hotter temperatures are the biggest risk to health from climate change, so we must prepare now. I learned about NYC's AC giveaway to support vulnerable communities.  🤓 New ideas: There is much opportunity to engage in mental cross training and leverage learnings from analogous spaces and industries at this intersection. What do you think about the intersection of health and climate? A big thanks to Climate Health Innovation & Learning Lab, Women in Healthtech and Fenwick for hosting this event and showcasing how government, innovators, and investors can work together to address these challenges. Thanks Oriana Fuentes and Chethan Sarabu, MD, FAMIA, FAAP for your thoughtful curation too! #climate #healthtech #innovation #NYtechweek

49

3 Comments

What do you do when a radical new technology puts your main product right in the crosshairs of disruption? Listen to David Okuniev — co-founder of Typeform | Ask awesomely — discuss the challenges of innovation within existing structures. David shared a game-changing insight: Radical innovation is really, really difficult to do inside your own product. He emphasized the need to break free from the constraints of familiarity and embrace change from outside the box. Henrik Werdelin and I have both seen our fair share of this in our respective careers. What struck us most was how David leveraged structure to overcome the innovator’s dilemma. By creating a culture of experimentation and providing space for bold ideas, he propelled Typeform beyond incremental improvements. What other hacks have you seen or employed to help your organization overcome the innovator’s dilemma? Share your stories below! 👇 And if you want to dive deeper into our conversation, click the link in the comments to catch the full podcast episode!

4

2 Comments

Summary: Co-founder of Collaborative Fund, Craig Shapiro speaks about their unique investment strategy in sectors like climate, health, and food and their impressive fundraising success in a tough market. Key takeaways: Collaborative Fund invests in non-traditional sectors like climate, health, and food, rather than the popular SaaS business model. The firm's sixth flagship fund raised $125 million in just over 90 days, despite the current challenging fundraising environment. The firm focuses on seed stage companies and emphasizes on addressing changing consumer spending habits and climate sustainability in their portfolio. Counter arguments: Some may argue that Collaborative Fund's focus on non-traditional sectors may not yield as high returns compared to popular sectors like SaaS. The difficult fundraising environment and lower interest from LPs could potentially affect the firm's future investments and success. #venturecapital #vc #venture #startups #fundraising

6

Climate change often focuses on reducing carbon emissions, but what about methane? Unlike carbon, which is a waste captured for disposal, methane holds untapped potential as energy that can be repurposed. Startup Windfall Bio’s solution intrigued me: Methane-eating microbes that convert emissions into fertilizer. They supply them to industries like agriculture, oil and gas, and landfills, where companies have the option to either use the fertilizer themselves or sell it for additional revenue. This not only offers a low-cost alternative to traditional carbon capture methods but also creates a near-term revenue stream for companies. While carbon reduction has long been the focus, methane's shorter lifespan (10-12 years) and potential for repurposing make it a promising avenue for immediate impact. Founder: Josh Silverman “It was a long road getting here, lots of years of zero traction.. Now that the traction is there and there aren’t very many people working in this area, there aren’t that many competitors. We are the best of the very few options. As I’ve said, ‘in my land of the blind, the one-eyed man is king.’” #Climate #Innovation #Methane

16

5 Comments

This is a good and important read on #FOAK projects and the ClimateTech Valley of Death, with good insight from some very sharp investors. One often overlooks aspect of this challenge is WHO will build these early commercial projects that are smaller and don't often appeal to top tier EPCs. Developing and building these projects will be a critical, often binary factor in the outcomes. https://lnkd.in/gbedmkmt

10

1 Comment

Big things on the horizon, we are motivated and blessed to be at the dawn of a new age for the internet. Read more about our journey below or listen to the podcast: https://lnkd.in/eJeNhvVa

13

1 Comment

June 8th is World Oceans Day, a concept started in 1992 to encourage and inspire collective action to support healthy oceans and a stable climate. As with Earth Day, there’s something slightly ironic about honoring something so incredibly vast – 71% of our planet – via a single commemorative day.   Too often, we focus on singular, isolated acts like cracking down on illegal fishing or sinking seaweed to sequester carbon in order to protect the ocean.   But at Third Nature Investments, we see a greater opportunity to support ocean-based activities that are sustainable and regenerative, in order to transform the ocean from a victim of our deleterious behavior to a source of new beginnings, and to truly usher in a modern and thriving 21st century economy that drives business and planetary success.   This month in a new blog series, we’ll be spotlighting three of our portfolio companies – Atlantic Sea Farms, Sway, and Keel Labs -- that are at the heart of the ocean economy (specifically the seaweed economy), building innovative businesses that are in true partnership with our mighty blue ocean.   Check out our intro to the series now and stay tuned in the coming weeks for subsequent blogs. https://lnkd.in/eD8HaWDA #WorldOceansDay #seaweedeconomy #earthsystemsinvesting #climatechange

49

2 Comments

Corporate investments in climate-tech have consistently increased since 2005, even when other sources of investment declined. The startups they invest in are more likely to achieve a successful exit. Public grants are not significantly associated with exits on their own but are likely to act as catalysts for high-risk startups. Publicly funded startups exit at a higher rate with the addition of corporate investment (155% increase) compared with other private investment (78% increase). #climatetech #corporateVC #venturecapital

6

Prime Coalition has long taken a different tack to climate finance compared to its for-profit brethren. It makes the usual venture-style investments in startups through Azolla Ventures and also helps philanthropists direct their money to climate-related projects that it deems high impact. Trellis Climate follows the latter model with a focus on middle stages, where capital has grown scarce. #climatetech #climateVC #climatefinance

14