I've met with 100+ climate tech startups, what did I learn?

I am Diane, Frenchy in San Francisco and M&A investment banker now pursuing a higher purpose: fighting climate change. Since 2020, I’m shifting my career towards Venture Capital climate tech and I’ve met with 100+ climate tech startups in early stage (pre-seed, seed, Series A) and from all around the world (mostly US, with Europe, Latam and Asia).

I’ve had the chance to talk to fantastic founders, share tremendous ideas and be inspired by their grit to “unf**k the planet”. Here are my 3 findings on these startups: 1. The sectors where they play, 2. The technologies that they use, 3. The investors that they seek

1. Climate tech startups can be categorized into 4 main sectors with clear missions (I highlighted below some of the startups I’ve met so far on 1:1 zoom calls) 

• Food & Agriculture: to feed the world with affordable, healthy and sustainable food (note: current Food & Agriculture = ~25% of global greenhouse gas emissions [1])

- Food Agri B2B: AgButler, Agrology, Alga Bio (stealth mode), Allied Microbiota, Cybernated Farm Systems, Farm From a Box, Gelatex, HiveTracks, IDGeo, Novo Nutrients, Serket, True Algae

- Food Production B2C: Just Vertical, Miravel, Rootically, Tiny Human Food

- Food / Water Processing: AgShift, Glanris, Ocean Oasis, Uravu Labs

- Food Transport & Delivery: AtoANI, barePack, Great Wrap, Planet Protector Packaging, Wildkale

- Food Waste: ADX, Biocotech Americas, Compost Crew, Vermigo

•  Energy Transition (Cleantech): to supply the world with clean, efficient and renewable energy (note: current Electricity production = ~25% of global greenhouse gas emissions [1])

- Energy Production: CalWave, Electro-Active Technologies, Origen Hydrogen

- Energy Storage: Antora Energy, Pronoia Energy

- Energy Access: Nithio, WireWatt

- Smart Grid: Packetized Energy, Shifted Energy

- Usage Efficiency: BeeBryte, Retrolux

•  Mobility & Urbanization: to make cities become smart, resilient and self-sustained (note: current Transportation & Buildings = ~20% of global greenhouse gas emissions [1])

- Electrification: Aeromechs, Autoenterprise EV

- Shared Mobility: Drover AI

- Autonomous Transportation: Amelia Aero

- Connected Infrastructure: The Sustainable Group

- Smart Building: Deco Lighting, Hempitecture, Stackhouse

•  Sustainable Systems: to enable zero-carbon, circular and sustainable economy (note: current Industries = ~20% of global greenhouse gas emissions [1])

- Carbon Capture: ArtVeoli, Blue Planet Systems, Ocean-Based Climate Solutions, RedCarbon (stealth mode)

- Climate Reporting: ClimateView, Endangered Wildlife

- Manufacturing: Bloom Biorenewables, Carbix, Impossible Materials, New Iridium, unspun

- Processing: 2S Water, AmorSui, InovaYa, Wearwell

- Recycling: Bower, Cambium Carbon, Greener

2. Climate tech startups mostly use deeptech to disrupt industries (with a glossary below) 

Deeptech is a technology based on scientific innovation with a profound enabling power, strong differentiation and potential to catalyze change. Deeptech companies present:

- High technical risk: substantial scientific or engineering challenges requiring lengthy R&D and large / patient capital investment for a successful commercialization

- Low market risk: due to the potential value and impact of their solution to society[2]

 Deeptech can impact diverse sectors and applications, and spans across many technological fields including [3]:

• Advanced Materials: design, engineering and discovery of new materials, particularly solids (e.g. Carbix)
• Artificial Intelligence / Machine Learning: intelligence demonstrated by machines, with cognitive functions such as learning and problem solving (e.g. The Sustainable Group)
• Biotechnology: area of biology involving the use of living systems and organisms to develop or make new products (e.g. Bloom Renewables)
• Blockchain: digital database using records or blocks containing information that can be simultaneously used and shared within a large decentralized network and that is difficult or impossible to edit (e.g. Quantstamp)
• Electronics: technology and applications that deal with the emission / flow / control of electrons, widely used in information processing, telecommunication, and signal processing (e.g. Drover AI)
• Robotics: design, construction, operation, and use of robots that can help and assist humans (e.g. unspun)
• Quantum Computing: high-performing computer technology with the potential to process exponentially more data than classical computers, based on the principles of quantum theory at the atomic level (e.g. Atom Computing)

3. Climate tech startups seek a diverse range of Venture Capital investors (I highlighted below some of the VCs I’ve been introduced to so far)

• Institutional VCs: investment funds with capital from Limited Partners (hedge funds, pension funds, insurance companies, high-net-worth individuals, etc.) that have between $25 million and $1 billion to invest in high-growth companies and drive high financial return

- Early-stage VCs (pre-seed, seed, Series A): At One Ventures, Better Ventures, Burnt Island Ventures, Congruent Ventures, Creative Ventures, DBL Partners, Ecosystem Integrity Fund, Fifty Years, Finistere Ventures, Joyance Partners, Obvious Ventures, Patamar Capital, ReGen Ventures, SJF Ventures

- Growth capital VCs (Series B, C... until IPO): Global Brain, Greenhouse Capital Partners, The Westly Group

•  “Family office” VCs: investment arms of high-net-worth individuals or families, offering patient capital towards a special purpose

- Creadev, Footprint Coalition, High Tide Foundation, Lowercarbon Capital, Prelude Ventures, Radicle Impact

• Corporate VCs: independent arm of a company, investing in external startups and providing them with in-depth industry knowledge and access to potential customers, to eventually gain a specific strategic and competitive advantage

- TDK Ventures

My key takeaways from this climate journey are:

- There is so much to be done yet to fight climate change. All sectors are concerned, which makes it a universal challenge for every government, company and consumer

- There is a lot being done already. The momentum is ON, with so many founders and investors currently using their skills to make a serious dent in climate change

- There is no way we can ignore the problem of climate change anymore, so let’s (wo)man up, get our s**t together, and move forward with real solutions. Being optimistic is the new realistic! [4]

I meet with 10 climate tech startups per week and I am joining On Deck Climate Tech Fellowship this summer to meet with even more VCs and startups in the space – pretty exciting! Every conversation gets me closer to landing my dream job in VC climate tech. I’m always looking to connect with passionate climate tech individuals on the VC or startup side, let’s talk at diane.cozian@gmail.com!

Till the next time,

Diane