Michael Novikov

Data from the International Energy Agency (IEA) illustrates the current "readiness" of #ClimateTechs + their potential impact on carbon reduction. As shown, many techs are at an early stage of being able to have a material impact. Concerningly, some tech funds recently returned capital back to investors recently + closed their funds - citing inability to fund capital intensive techs, found in areas like ClimateTech. This in part may be contributing to the $2 trillion shortfall in ClimateTech, that Deloitte estimates. What this may mean for the future? - The migration of LPs to global, super VC funds within ClimateTech, given the large capital pools needed to fund tech development - Greater specialization from smaller funds, energizing more niche elements of the ClimateTech market - but also altering their / LP's risk profile - A greater role to be played by debt financing in funding growth entities at an earlier stage - impacting cashflow dynamics Will be an interesting space to watch moving forward. We at The Proptech Connection are constantly working with all parts of the Proptech ecosystem. From the leading LPs, funds, techs and adopters in market, providing an independent view. Reach out to us today to find out how we can help. #InvestorTrends #Strategy #Global Ivo van Breukelen Stuart Daun Kiki C. Ethan Ward

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Excited to announce our investment in Alta Resource Technologies alongside Leonardo Banchik (Voyager Ventures) with participation from Orion Resource Partners, Overture Ventures, and WovenEarth Ventures. Rare earths are critical in products from magnets to ceramics and it's important for the US to develop its own supply chain. While the US has some of the best rare earth resources, separating them has historically proven expensive and environmentally unfriendly. Alta through it's computationally designed and optimized proteins allows the US to bring back rare earth production with a cleaner, lower capex, and lower opex solution - and that's just the beginning. Congrats to Nathan Ratledge and the entire Alta team. Read more here: https://lnkd.in/gbGnAJn3

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Swiss company Climeworks are a global leading player for direct air capture (DAC) CO2 removal. They are a unicorn company (startup with >€1Bn valuation) having raised $650M equity investment in a single round in Q2-22. Their new 'Mammoth' plant near Reykjavik will process 36KT CO2/yr. Only 4 DAC plants process >1KT anywhere on the planet today. Massive fans suck in & condense CO2. This is dissolved in huge water tanks & pumped underground to dissolve minerals into solid locked-up deposits. Local geothermal heat drives this energy-hungry process. One strength is speed, with >95% of CO2 mineralised in <2 years. It currently costs $1000/T of CO2 captured, which comes from selling carbon-offsets of clients. Demand is high, with 1/3 of Mammoths total lifetime capacity already sold. The order list includes Microsoft, JP Morgan Chase, Shopify & Lego. Climeworks aim to quickly reach $300-400/T & will establish a 1MT plant. The US site in question will break ground in 2026. It's proponents argue it is a key part of the toolkit towards climate neutrality & reversing past damage. However, much remains to be done. Work so far is a drop in the ocean vs the c40 billion tons of CO2 released globally each year. Some critics also say it's far easier & more efficient to pinpoint the highest CO2 concentrations by removing CO2 directly at smokestacks. Alexander Novitskiy, Stefano Vittor, Paul Webber, Andrea Mangel Raventos, Francesca Boscolo Bibi, PNO Consultants Ltd (UK)

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Excellent blog post on the realities of Climate & VC. While these are "tough times for the transition," there are also many opportunities. Significant capital will continue to flow, with Corporate VCs playing a larger role in financing this transition. Through this process, they will strengthen their LP positions in funds tackling climate challenges. I receive weekly calls from large Holding & Corporate VCs seeking introductions to Climate / Energy / Infra VC Funds. When I ask about their target sub-verticals within Climate / Energy, they often mention that they default to focusing on specific regions due to limited resources and coverage. In other words, rather than evaluating whether a DACH VC is better positioned for solar or grid-tech compared to a Nordic or US VC, they simply pursue whichever regions they can access—a haphazard approach at best. I always advise LPs to evaluate VCs within their operating market context. Since sourcing is crucial in venture capital, Holding Cos. and Family Offices should carefully assess a VC's location, regulatory context, and market environment before investing and building a portfolio of Funds. I've heard "I wish I had discovered this VC / region sooner" far too many times... * At ComposeVC's Built World Fund, we do not invest in Climatetech or Energytech directly, only as it relates to our Built World thesis.

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A SAFE and convertible note had a baby and Wilson Sonsini Goodrich & Rosati was the midwife- out popped the D-SAFE! 👶🏽🎉 A new #climatetech funding instrument was announced by Elemental Excelerator last week. One of the company’s main goals is to support smaller, up and coming companies during the awkward “Scale Gap” phase between #VC funding and natural growth. It’s called the #DSAFE (Development Simple Agreement for Future Equity) and it aims to aid the process by giving companies a small amount of cash to overcome initial risks and expenses during the developmental stages of a product launch or company. How does it work? D-SAFE has a redemption clause meaning companies can choose to have their payments offered as a loan or convert to equity at the investor’s discretion. Funders and companies will have clear communication and expectations about where the money is going and how it will be applied to either the company or the projects at hand. Financiers and companies will work together with more #transparency, and that’s a great boon for #startups and VC alike. As of this month, Elemental has already invested using D-SAFE in eight different companies, including Dimensional Energy and Origen — both companies investing in innovative and out-of-the-box solutions to environmental issues! Seems like a win-win on the surface. What do you all think about the D-SAFE? Alfredo Coppola Momoka Ueda Tim Wagner Stephen D. Torres Olya Irzak Natsuho Toyama Noriya Tarutani Shin Ogawa

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From an outsider's perspective, it looks like direct air capture (DAC) companies are battling a two-front war. Last week, VC-backed startup CarbonCapture announced that it was scrapping plans to build its first commercial-scale DAC project in Wyoming, one of the world's largest facilities, expected to remove 5M metric tons of CO2 annually by 2030. To put that in context, there are only ~50 DAC facilities operating in the US, Canada, and Europe today, capturing about 0.1M metric tons of carbon annually. One the one hand, DAC and many other carbon-abating/sequestering technologies rely on clean electricity to power their operations. However, they face increasing competition from emerging, energy-intensive industries like AI and crypto for that resource. These industries, backed by some of the largest enterprises in the world like Microsoft and Alphabet, reflect a buying base that utilities are likely incentivized to service first. CarbonCapture's CEO directly mentioned competition for clean power as a core reason for pausing its Wyoming development. On the other hand, the product that comes out of DAC - carbon credits - has faced criticism as a form of greenwashing because it does not incentivize companies to address carbon emissions in their own operations. It's clear that technologies like DAC are needed as we look to achieve our target emissions, but there will inevitably be challenges in its rollout. I would love to learn more about what's going on at the heart of the industry if you're an operator or investor in the space!

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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

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Check out this week's top stories in the SpaceTech ecosystem below 👇

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I find it hard to believe that with millions of EVs entering the market and the proliferation of AI compute that PGE is actually going to have excess capacity in 2040 without any additional generation from 3rd parties. I am also curious if there are enough transmission lines and if PGE views that as someone else’s problem. Maybe they are planning on AI and ACTUAL figuring it all out! https://lnkd.in/gybsMmaw

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Space tech-focused investment firm Seraphim Space Space launched its second VC fund, SSV II, to back early-stage startups in the global space tech market. The fund aims to build a portfolio of 30 startups, investing in seed and Series A stages. The latest fund's target size is larger than its predecessor's, which closed at £70M ($90M) in 2017. The fund's investment themes include AI applications for space data, in-orbit computing, space-enabled communications, and microgravity for science. Eutelsat is one of the limited partners that contributed to the latest fund. Seraphim Space aims to stand out with its track record, having returned three times the original investment from its first fund. The first fund's returns were driven by five exits, including Siemens' acquisition of UltraSOC and four IPOs of Arqit, AST SpaceMobile, Nightingale, and Spire Global. The British firm listed its growth fund Seraphim Space Investment Trust (SSIT) on the London Stock Exchange in July 2021, getting about £250M (~$300M) in gross proceeds. The fund's market cap touched an all-time low of £130M ($162M) in July 2023. The market for space tech is expected to grow significantly, with the World Economic Forum and McKinsey estimating it could be worth $1.8R by 2035.

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Your last weekly space news round-up of 2024 🚀 Featuring stories: 💰 ICEYE closed a $65M extension to the existing growth funding round for a total of $158M raised in 2024 - the funding round extension included participation from funds managed by Solidium Oy, BlackRock, Seraphim, Plio Limited, and Christo Georgiev. 🌡️ SatVu, a global leader in climate technology, has secured £20 million in strategic funding, to expand high-resolution thermal imaging. 🛰️ SpaceX’s satellite internet service Starlink is projected to reach $11.8 billion in revenue next year, driven by strong consumer demand and growing U.S. military contracts. 📈 Space Markets: The Year in Review from Payload 👉 Of the 15 largest space startup funding deals this year, five came from US startups, five were Chinese companies, four were European firms, and one was from an Australian business. 🌌 Commercial space station developer Vast has signed a deal with SpaceX for two private astronaut missions to the International Space Station, pending NASA approval. https://lnkd.in/evUcpr92

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🚀 I've been closely following the rapid growth of the space economy, and it's truly fascinating. 🌌 Private-sector funding has exceeded $10 billion, with predictions of the market reaching $1 trillion by 2040! The innovations in satellite connectivity, AI, and machine learning are game-changers. The potential to solve global challenges, from climate change to enhancing everyday services, is immense. Lower barriers to entry, like small satellites and cloud computing, are making space more accessible than ever. While high-profile space startups grab headlines with grand visions of interplanetary colonization and space tourism, many companies are focusing on essential missions like environmental management and sustainability. At Enventure, we're ready to help navigate these challenges and opportunities. Let's reach for the stars together! 🌠 https://lnkd.in/gVp8SvqU #SpaceEconomy #Innovation #Sustainability #Tech #AI #MachineLearning #Connectivity #FutureOfSpace #EnventureA

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Excited for DCVC portfolio co Alta Resource Technologies to emerge from stealth! The design space of biology is many orders of magnitude larger than inorganic chemistry, and Alta uses it to massively reduce the cost of extracting rare earth metals. https://lnkd.in/g_q5UwRF

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Check out my recent post on why President Trump is the forcing function for us to solve the “Missing Middle” and catch the industrial Tsunami of onshoring coming to the US!

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Incredibly excited to announce Equal Ventures investment into Texture Texture provides the critical data and API infrastructure for one of the most significant digital transformations the world will undertake, turning the grid into the internet The growth of distributed energy resources (DERs) represents a tremendous shift in how the gird operates, moving from an industrial assembly line of power to one where consumers and producers interact with each other in real time. The growth of DERs is outpacing that of users on the internet in the early days. Unlike humans, DERs are getting smarter, cheaper and are not bound to population constraints. This is THE internet moment for energy Were quickly moving to a future where billions of energy devices will be coordinating in real-time. Unlike in other industries, energy companies lack centralized data and API infrastructure for collecting, managing and acting upon this flood of information. Texture (according to TechCrunch) is building the “go to platform for the energy transition” Helmed by Sanjiv Sanghavi, Nicholas Alan Brown and Victor Quinn, the Texture team has achieved dizzying progress over the last year, building the widest network of device integrations available and computing capability that was previously unattainable. By unifying customers under a single network, texture is enabling and amplifying the a new digital future for DERs. Congrats to the team on the latest milestone of raising a dramatically oversubscribed $7.5m seed round from Equal Ventures Lerer Hippeau Abstract Ventures Day One Ventures and climate pioneers like Kiran Bhatraju Michael Ruehlman Christopher Kemper

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📢 Some big news this week that marks another pivotal step in the evolution of carbon markets… The Biden administration, led by Treasury Secretary Janet Yellen, will be unveiling the first broad US government guidelines on the use of carbon credits as part of decarbonization strategies. It’s a much needed step that will promote high-integrity carbon markets, and boost corporate confidence in using carbon credits. The Bloomberg article's sources suggest the upcoming framework will align with the government’s stance that: “voluntary carbon markets have a role in reaching net zero, as long as they promote high-integrity emissions reductions and channel meaningful amounts of capital into nature-based projects today as well as carbon-removal technologies in the future.” And that is the key. There is no silver bullet for the climate crisis. Whatever the critics may say about carbon credits, more transparency, clarity and official endorsement on their use will serve to unlock billions of much needed corporate dollars for carbon projects. Couple this news with recent initiatives by major tech companies like the Symbiosis Coalition of Google, Meta, Microsoft and Salesforce and we’re starting to stride in the right direction. Read more and sign up for the live stream: https://lnkd.in/ddDRA8yd #carbonmarkets #carboncredits #naturalcapital #climateaction #breakingnews

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🚀 Here are some of the early-stage VC investments I've seen over the past week fueling innovation in sectors like AI, medtech, and sustainability across 🇪🇺 Europe 🇪🇺. Beyond Aero: The French aerospace startup raised $20 million to develop hydrogen-powered electric jets. The funding round was co-led by Giant Ventures and French sovereign fund Bpifrance, with participation from Initialized Capital, Female Founders Fund, and 7percent Ventures Ventures. Hertility, Co-founded by Dr Helen O'Neill, Hertility Health has raised $15.7 million to date, including angel investor actress Emma Watson, and is currently seeking an additional $20 million to advance its mission of improving women's reproductive health through at-home testing and data-driven diagnostics. Wobby: An Antwerp-based AI-powered information platform, #Wobby secured €1.1 million in seed funding. This investment from, Shaping Impact Group, Si3 fund, V Ventures Llc and imec.istart, will support its expansion into new European markets and its initial entry into the U.S. market. Foodsi: Warsaw-based Foodsi raised €1.2 million to combat food waste in restaurants and stores. The funding round was led by CofounderZone, with participation from several angel investors. Aignostics: Based in Berlin, #Aignostics secured €31.4 million in a Series B funding round to enhance precision medicine through AI. The round was led by Wellington Partners and Evotec, with participation from existing investors Boehringer Ingelheim Venture Fund and HTGF | High-Tech Gründerfonds. GlassFlow: A Berlin-based startup, GlassFlow secured €4.43 million to enable Python developers to build event-driven data pipelines. The seed funding round was led by Earlybird Venture Capital, with participation from 42CAP and several angel investors. Modash Tallinn-based Modash, a creator partnerships platform, secured $12 million in a Series A funding round. The investment aims to accelerate the company's growth and expand its market reach. Scalpel, A London-based medtech startup, Scalpel AI raised £3.8 million in a funding round led by Mercia Ventures. The company specialises in developing AI-driven solutions for surgical procedures.

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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

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