4WARD: The local-to-global community for climate DOERs moving the world forward!’s Post

🌟 Overcoming Bias in Venture Capital 🌟 🚀 Diversity Drives Success: Research indicates VCs tend to invest in similar backgrounds, meaning if you’re from the same socioeconomic background, ethnicity, and gender, you’ll get capital! 🌍 Proven Impact: Best Nights VC with its diverse team, shows this approach works. "Our varied perspectives attract diverse founders," notes Bianca Ambrosini 💼 Strategic Partnerships: Partnering with organisations like Founderland which supports female founders of color, helps VCs enhance diversity. This advice comes from industry leaders like Stephanie von Behr of Founderland 🌱 Rethink Strategies: Engaging underrepresented founders through genuine efforts unlocks innovation. Experts like Alhaji Allie Bangura from ADAN Impact GmbH emphasize the importance of tapping into these unique insights and solutions. ❤️We wish the team all the very best- Bianca Ambrosini Lorrain de Silva Robert Kusche Shannon Storch Andrea Rosen Sven Mussler

Fundraising during a downturn: 3 hidden benefits for impact founders .... exclusively on #HorasisInsights - contributed by Kevin Siskar, Founder and CEO, Finta, USA 🔴 2023 has been a bumpy ride for the global economy. Soaring inflation rates, geopolitical turbulence and cautious spending activity caused a downturn not seen for decades. 🔴 Unsurprisingly, these market conditions have had a direct influence on investor activity. Global capital intake for investors dropped by $200 billion between 2021 and 2022. But it seems that impact investment activity is proving to be more resilient. 🔴 Growing consumer demand for sustainable products and services coupled with the ability to drive system change through innovation means that impact startups and organizations have the chance to secure funding and support despite the economic downturn. ..... read further to learn about the three reasons why the current climate provides favorable conditions for founders of impact ventures: https://lnkd.in/dzmtAmMM #Horasis #impactinvesting #inspiringthefuture https://lnkd.in/dzmtAmMM

I just dove into a compelling report by Business Recorder highlighting the shifting tides in venture capital and private equity with a focus on climate tech investments. Check it out [ https://lnkd.in/eKgQjuir ] The report underscores a significant development: investments and grants in climate tech startups have seen a decline of around 40% over the past year. A notable drop indeed, but as the report emphasizes, this plunge is not as dramatic as the broader venture capital industry's global decline. Here's what caught my attention: 1. Climate Tech's Resilience: Despite economic and political turbulence, climate tech is displaying remarkable resilience. Investors are recognizing the importance of prioritizing areas that urgently need innovative solutions, particularly in heavy industries. This indicates that climate tech is securing a growing share of a somewhat restrained market. 2. Global Climate Tech Demand: The report serves as a reminder that the need for climate technology is on a constant rise. As we navigate a changing world, technology-driven solutions to combat climate change are more crucial than ever. 3. Venture Capital vs. Climate Tech: Venture capital and private equity investments, overall, have experienced a 50.2% decline, which mirrors the challenging market conditions. Nevertheless, what's particularly interesting is that climate tech investments constitute about 10% of the total investment. This suggests that even in a turbulent market, investors are showing their commitment to sustainability. While the decline in climate tech investment is significant, it's crucial to view it in the context of a broader transformation within the investment landscape. As global challenges mount, venture capitalists and private equity investors are strategically aligning their resources with areas that can make the most significant impact. This pivot towards climate tech showcases the adaptability and forward-thinking nature of the VC and PE industries. It's clear that even in the face of adversity, investors are focusing on innovations that promise a sustainable future. As a professional in the VC and PE space, this report underscores the importance of staying informed about these shifts. It's not just about trends; it's about understanding how investments can drive positive change, especially in these crucial times. #VentureCapital #PrivateEquity #ClimateTech #Sustainability #Investments #GlobalMarkets #BusinessTrends

BRAVE Southeast Asia Tech Podcast: Overreaction, Dislocation & Confusion, 2023 vs. 2024 Investment Landscape and $9B Annual Capital Intake & Realistic Exit Expectations with Shiyan Koh and Dmitry Levit - E386 Dmitry Levit, General Partner of Cento Ventures, Shiyan K., Managing Partner of Hustle Fund, and Jeremy Au 区汉辉 talked about three main themes: 1. 2023 vs. 2024 Investment Landscape: Dmitry, Shiyan and Jeremy discussed the Cento Southeast Asia Tech 2023H1 report and noted the discrepancy between the economic doom perception in the media and the reality of Southeast Asia’s funding numbers. Dmitry pointed out a "reset" in investment activity, with stable "core early funding stack" (Seed to Series A/B) maintaining momentum while later-stage growth deals significantly decreased. This bifurcation reflects a broader trend of cautious optimism among early-stage investors and a recalibration of expectations among late-stage financiers. They also underscored the importance of understanding these two parallel ecosystems for founders and investors alike, suggesting that strategies need to be adjusted depending on the stage of investment. 2. $9B Annual Capital Intake & Realistic Exit Expectations: Dmitry Levit observed that the long-term average capital intake for the region averages around $9 billion. He highlighted that prudent exit expectations in Southeast Asia should consider $100 million exits as very good, with exceptional cases potentially exceeding $250 million, and added further details on the growth rate. He emphasized the importance of disciplined fund strategies across IPO, trade sales, and secondaries. 3. Overreaction, Dislocation & Confusion: They discussed the fog of war in the region’s tech ecosystem driven by global economic pressures, media hype and doom cycles, and changing investment flows. Missed opportunities, strategy-market misalignments, and pressure on value-creation teams are currently being sorted out. They discussed how founders and investors need to urgently align their growth and exit strategies with the region’s market's realities. They also talked about the time lag of news absorption across the Vietnam ecosystem and how the search for the next "Indonesia" story is on pause. Dmitry, Shiyan and Jeremy also talked about the role of perception vs. reality in shaping investment strategies, the challenges for the multi-country expansion narrative, and the "small-cap private equity without leverage" VC theme in play. Watch, listen or read the full insight in English at https://lnkd.in/gReFPs2Q Saksikan, dengarkan atau baca wawasan lengkapnya dalam Bahasa Indonesia di https://lnkd.in/gZtSYbTb #SoutheastAsia #VC #VentureCapital #technews #Startups #Entrepreneurship #InvestmentStrategies #ExitStrategies #BRAVEpodcast

Interesting article from EU-Startups on the green flags and red flags that some European VCs look out for when investing in climate tech. The link between impact and revenue/profit is an intriguing one - in the best solutions, one will always reinforce the other! #startups #climatetech #venturecapital

Just as there's more than one way to cook an egg, there's no single approach to cleantech funding. 🍳 Here are three new investment groups that are fuelling innovation in different ways: 1️⃣ Silence This early-stage climate tech VC fund, with its $35M capital, takes a fresh approach. Acting like an angel investor, Silence focuses on small, impactful investments across various climate startups, from virtual power plants to energy management systems. It's not about leading rounds or taking board seats; instead, it provides neutral, unbiased support, much like an angel investor but with more significant funding capabilities. 2️⃣ World Fund Closing a substantial €300M first fund, World Fund is all about decarbonisation technologies, with a strong emphasis on hardware. This fund is making strategic investments across Europe, including in quantum computing and sustainable food production, underscoring the importance of substantial follow-on investments to bridge the later-stage gap. 3️⃣ Frontline Ventures With $200M across two funds, Frontline Ventures is carving a niche by targeting B2B startups that straddle the Atlantic. Their strategy is to support UK and European ventures in their early stages and focus on U.S. scale-ups during growth phases, understanding that success often lies in bridging the geographic divide. For startups looking for financial help in the cleantech space, these funds highlight the diversity of support available. Whether it's angel-style backing, a focus on hardware, or bridging continents, there's a range of approaches to help bring innovative ideas to life. As ever, three questions to ask before submitting for any funding: Are you technology-ready? Are you business-ready? Are you market-ready? Do you have an investment strategy? 🤔 Drop us a line to discuss....and give us a follow 🔔 #CleanTech #RenewableEnergy #StartupFunding

The struggle to secure late-stage funding is a killer for many climate tech ventures but perhaps the issue isn't just a lack of available capital. My experience as a cleantech headhunter resonates greatly with a recent article from Sifted which suggests focusing on strong business models and product-market fit is key. Read below for more insights on what climate tech founders should be doing more of in order to attract investors. #investment #cleantech #climatetech #growth #startups #fundraising

Having spent most of my career at startups and now working on upstream carbon projects, I've found the parallels in investor thinking between the two fascinating. Just as venture capitalists seek out startups with the potential for success in five years based on a pitch deck,  investors in upstream carbon projects seek out projects that will produce high-quality credits in the next five years based on a draft Project Design Document (PDD). Here's how I see some of the intersection of these two worlds: High Risk, High Reward: Both startup investments and upstream carbon projects come with inherent risks due to their stage of development. While a vision likely exists for both, its success hasn't been proven yet. Startups need to demonstrate market traction and scalability, while carbon projects need to fulfil their ex-ante credit predictions and undergo verification. However, with risk comes the potential for significant upside, whether through a successful exit event for startups or securing a pipeline of credits at advantageous prices for carbon projects. Long-Term Vision: Successful venture capital investments require patience and a long-term vision as startups navigate various growth stages. Similarly, upstream carbon projects demand sustained commitment and investment over time, often spanning upwards of 40 years, with forward contracts typically lasting at least 5 years. Both endeavours require investors willing to prioritize long-term impact over immediate returns. Ecosystem Support: Securing investment for startups isn't just about the money; it's about accessing the right ecosystem of mentors, advisors, and strategic partners. Similarly, for carbon projects, early-stage investors can act as proponents, providing expertise and filling gaps in project development. Investing in carbon projects at an early stage may seem daunting, but by recognising the similarities between upstream carbon projects and other industries, we can leverage lessons learned to inform strategies in this domain. 💡🌍 #carbonprojects #carbonmarkets #carboncredits #upstream #sustainability

The best outcomes in climate tech happen when companies can align their development milestones with their capital strategy. ClimateTech ventures aren't all capital-intensive, there are strategies and resources not available 5-7 years ago. Highlights from Nov. 10 ClimateTech Investor Panel - Capitalization and Financing (The briefing/recording is here:https://lnkd.in/gTZPzZh7) Karen Sheffield, MBA: (Managing Partner of Pachamama Ventures) Early-stage startups going to build a proof of concept (POC) need to get initial funding from friends and families, angels (several angel groups focusing on climate tech or impact investing), and government grants – there are so many now for climate tech companies, including IRA and more. Talk to grant writers to help you. Getting grants is hard, but getting funding from VCs before POC is even harder. Non-dilutive funding sources such as grants from governments are crucial for early-stage companies. and now more foundations and family offices want to invest in climate startups. Catalytic capital funds emphasize more on impact instead of maximizing financial returns solely. After you have revenue, there are revenue-based financing mechanisms that can help. (and more) Paul Burgon: (GP of Exit Ventures ) The best outcomes in climate tech happen when companies can align their development milestones with their capital strategy. A big difference between the cleantech 1.0 era and now is that the capital stack for climate tech has been developed rapidly and much more mature in the past 5-7 years. There are billions of hardware or cleantech funds, we see CVCs exploding, we see customer-financing models (customers as investors to build win-win outcomes, be creative, and build partnerships with customers), DOE’s loan office can support commercialization stage projects, and there are growth funds and infrastructure funds looking to back hard tech, etc. These didn’t exist 5-7 years ago, all are narrowing funding gaps substantially for first commercial operations. Especially CVCs can become your potential acquirers, so, look at companies in the ecosystem, and build partnerships. (and more) #climatetech #climatefinance #climateinvesting #venturecapital #angelinvesting #impactinvesting #cleantech #energytransition #decarbonization

Fresh column at Financial Times by John Thornhill on the times of change we are going through. They bring back the core values of Silicon Valley- passion and adaptability. At the same time, cycles of change may sway, but they ultimately find their equilibrium. Until the next shift.)) Anyway, here are some interesting outlines from the column: / Venture capitalism is evolving: Techno-optimism remains, but VCs are rethinking their strategies. / The era of easy money is over, and tighter regulations are in place. / It's time for innovation, especially in climate tech and industrial hardware. / VCs seek new paths to success amid changing interest rates and market conditions. / The VC landscape is transforming, presenting fresh opportunities for the industry. / Collaborations are on the rise (General Catalyst and La Famiglia).