Veronique Hördemann’s Post

I was a bit late to this because of travel, but the Q1 market report from Net Zero Insights has some fascinating takeaways. The pace of deal making has slowed, as has been widely observed in the market. But there are unmistakable signs of maturation. There is now meaningful amounts of non-dilutive financing being deployed to climate tech, pushing overall financing back to the peak, even though equity participation is lower. Also, Europe is kicking ass - outliers in Swedish champions H2 Green Steel and Northvolt of course, but it goes beyond that. You have to go down to number 7 in the top cities to get to one in the US. On the equity funding, managers we've been speaking to have been indicating things are picking up on the deal side. A lot of companies that had extended their runway via unpriced rounds in late '22 / early '23 are now coming back to market properly. Also, as noted by Sightline Climate (CTVC) recently, there is plenty of dry powder out there. The public announcement for rounds normally lags by a couple of months, so will be interesting to see if this comes through in the data next quarter. Finally, it's cool to see our underlying portfolio company Koloma (via Evok Innovations) being given a shout-out for their big Series B announced earlier this year. We are PUMPED about that company.

Q1 Climate Tech Funding Update (from Net Zero Insights): - Uptick in funding to put Q1 on par with the biggest quarters in late 21 / early 22 - This is due to an increase in large rounds, despite falling overall deal count - Financing from rounds over $1bn in Q1 24 exceeded funding from these giga rounds in any previous FULL year - There was a much larger participation from debt in this financing https://lnkd.in/eVR7Anky

What does 2024 hold for #climatetech? For this month's Gist, we asked Anna Lising, Leonardo Banchik, Kate Gordon, Vaughn Blake and Sarah Nielsen about what we could expect for tech, funding, and policy. https://lnkd.in/gReqDr2D Here’s my prediction: 2024 will be big for resilience. In an election year, when climate action will become even more politicized, resilience tech should avoid the political crosshairs. The reality of extreme weather and wildfires will prompt utilities (no CEO wants a repeat of Hawaii), big real estate, and other vulnerable sectors to invest in their self-interest. Would love to hear your predictions/reactions for the year ahead in the comments below. #climatetech #climatepredictions #climatetechvc #climatepolicy #climateresilience #venturecapital

The Inflation Reduction Act is anticipated to channel over $500B into climate technologies over the next decade, aiming to reduce carbon emissions. Companies that adeptly navigate this market quickly and build climate tech solutions stand to benefit significantly.  Montauk Climate, a climate tech-focused incubator, aims to foster category-defining companies in the climate space, spanning energy transition, infrastructure, and sustainability.  Founded by the CEO and Cofounder of Casper, the company is supported by a leading team of climate experts and investors that have built a combined 30 years of expertise in this nascent space.  Montauk Climate collaborates with experienced founders, providing them with the main premise for the business, resources to navigate regulatory challenges, capital, and a strategic playbook to seize market opportunities.  Although Montauk has not disclosed the names of the companies currently under incubation, the initial batch is focused on the intersection of climate tech and energy use in data centers, electrification, weather data aggregation, and insurance.

No doubt that climate software has great potential - but are companies willing to purchase yet another piece of software? I have been part of a promising company for a while, and as much praise we got, from customers and investors, for the software we built, it did not sell to the extent we had hoped. Part of the reasons are internal, part of the reason is that companies were not ready. Are they today? #climatetech #esg #decarbonization #climaterisk

What will 2024 look like in energy & climate? "2024 will be the year of energy flexibility, as this will be one key building block for our future energy system." According to our Partner Oliver and our Senior VP Philipp, the increasing distribution of decentralised green energy assets like rooftop solar, EVs, batteries and smart meters is leading to a massive opportunity for flexibility solutions to democratise access to energy markets for consumers, SMEs and small utilities. Sifted's article featuring climate tech startup founders and investors also sheds light on how AI can contribute to climate action, and in what way government policies and investor money will influence the solving of climate-related issues. Cc Freya Pratty, Rachel Delacour, Danijel Višević, Romain Diaz, Andreas Thorsheim, Dimple Patel, Patric H., Catriona Hyland #climatetech #energytransition #2024trends

Climate software will play an instrumental role in allowing businesses and governments to adapt and thrive in a new economy formed by two core climate risks: transition and physical. While physical solutions, like electric vehicles, solar panels, more performant batteries, and carbon-sequestering materials will be vital in tackling the energy challenges ahead of us, software can harness the full potential of these physical assets, accelerating our transition to a new, more resilient economy that is inextricably linked with climate change. In this new series, we take founders behind the scenes in a deep dive into Insight's perspective on specific investment sectors. We'll focus first on #climatetech: 🌎 The industry 💸 The investment landscape 📈 The opportunities 💡 The innovators 🧠 The considerations 💫 The resources https://lnkd.in/ezhaQyAQ Featuring some of the key innovators in our portfolio from Sylvera, Project Canary, Prisma Photonics, OneTrust, CoreLogic, and Diligent

[From Insight Partners] Within this wider market context, there are four particularly important opportunities where we see immense potential for early to late-stage investments: 👉 Grid decarbonization and optimization 👉 CO₂ reduction and offsetting infrastructure 👉 Extreme weather management (B2B & B2G) 👉 Climate risk and ESG data These highlights align with our planning of panel topics in December! The next panel (Dec. 1st) is on "Major challenges of energy transition infrastructure in the US" covering grid optimization, DER, VPP, V2X, emerging new clean energy innovations such as #Hydrogen, #nuclear, new solar and wind, and storages, the pathways to commercial liftoff will be discussed. Sign up here: https://lnkd.in/eicFCMQt #climatetech #impactinvesting #gridmodernization #gridofthefuture #virtualpowerplants #energystorage

Climate change is one of the most pressing issues of our time. Climate software will play an instrumental role in allowing businesses and governments to adapt and thrive in a new economy.   In this new series, we take you behind the scenes in a deep dive into Insight Partners's perspective on specific investment sectors. We'll focus first on #climatetech:   🌎 The industry 💸 The investment landscape 📈 The opportunities 💡 The innovators 🧠 The considerations 💫 The resources   https://lnkd.in/ezhaQyAQ   Featuring some of the key innovators in our portfolio from Sylvera, Project Canary, Prisma Photonics, OneTrust, CoreLogic, and Diligent.

Exciting Times Ahead in Climate Tech! Climate tech is now the biggest sector in European tech investing, covering a 30% of total European tech investment. Globally, climate tech represents more than 10% of venture capital and private equity investment, a significant increase from less than 1% in 2013. With over 25,000 unique climate tech ventures worldwide, the momentum is undeniable, fueled by a shift towards sustainability and renewable energy solutions. However, we are confronted with significant challenges that demand our attention and ingenuity. For instance, despite the urgent need to monitor global emissions, our current capabilities are limited. The data scarcity in the industry underscores the pressing need for enhanced data infrastructure and methodologies. Furthermore, while significant capital flows into climate tech, only 8% of energy transition investments reach emerging markets. Investment barriers, innovation potential, and unmet demand in these regions remain pivotal determinants in harnessing the full potential of green finance and climate tech solutions. Additionally, supporting startups and SMEs in the climate tech space presents another challenge, requiring tailored support and resources to scale their impact and drive meaningful change. Despite these challenges, the opportunities in the climate tech industry are vast and promising. With the right investments, innovations, and partnerships, we have the potential to unlock new pathways to a greener, more sustainable future for generations to come. #ClimateTech #Sustainability #GreenFinance #Innovation #ClimateAction