🌱 Tom Herman 🌿

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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Carbon Pulse INTERVIEW: Carbon insurance startups ready to expedite CORSIA credit supply. https://lnkd.in/dScEpHRn Carbon insurance is primed to help ease the supply bottleneck of carbon credits eligible for CORSIA. DelAgua partnered with Oka, The Carbon Insurance Company™, on a world-first insurance solution, Corresponding Adjustment Protect™, to protect against the risk of an authorized credit losing its Article 6 authorization due to the Corresponding Adjustment not being made by the host country. This insurance provides confidence to buyers by de-risking concerns around delivery of Corresponding Adjustments. "The policy allowed us to underwrite the risk. Buyers are already taking an interest in DelAgua’s credits, given the risk protection via Oka’s insurance. We have already used the Oka policy on our biggest sale to date, for Rwanda credits, where an LoA signed in Oct. 2023.” Euan McDougall, DelAgua COO.

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Last week, I had the pleasure of moderating a discussion on navigating FOAK in climate tech at the Greentown Labs Summit in Boston (which had >600 people!!). Here’s a quick rundown of what was shared by Katherine St. James of Spring Lane Capital, Paris Smalls, PhD of Eden GeoPower, and Hannah Friedman of Planeteer Capital: 🌱 What is the definition of FOAK? We discussed how the term can be controversial - it's almost too general because it doesn't identify what kind of "First" FOAK refers to - first team project? First geography? First of a technology in a sector? First time for the integration of a system? It's also too specific because it has the word "first" in it, which can be anathema to later stage / project finance investors. 💰 Partnerships for Funding FOAK Projects We discussed how important it is to build a blended capital stack & use off-balance sheet capital for a project so you're not using the most expensive equity dollars to fund an infrastructure project with low-ish IRR. We also talked through being creative about using corporate partners to provide in-kind services or ink some agreement (at least an LOI) to attract this funding. 🏛 Role of Government We talked about how government capital is seen by investors & how it can be catalytic for FOAK. Government capital can provide validation that a startup has passed a rigorous diligence process by a third party - and incentives like grants or credits can help improve returns for the first project- but it's important to be doing this in conjunction with getting customer validation and to be able to present line of sight to competitive economics without concessionary capital. 👥 Advice for FOAK startups The panelists offered some very specific pieces of advice for startups going through FOAK: how to get creative with things like revenue sharing agreements or convertible notes, getting smart with project development early on (like with DeveloperU), being careful about using FOAK too liberally with certain investor groups, getting the right commercialization / FOAK talent in and around you early Huge thanks to the panelists and the team at Greentown Labs (Jill Kirkpatrick, Julia Travaglini, Aisling Carlson, etc you rocked it!!) for hosting this discussion on bridging the FOAK gap. Also immensely enjoyed the rest of the agenda. Check out the full recap & videos here: https://lnkd.in/d9ApYe9Y #ClimateTech #FOAK #ClimateFinance #ProjectDevelopment #GreenTech #CleanEnergy

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Leading carbon registry Isometric has announced its partnership with San Francisco-based climate tech startup Pachama on digital monitoring, reporting and verification (dMRV) for reforestation credits. https://bit.ly/3ZTynwH

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🙌 Huge congrats to portfolio company Emidat for closing their $4M seed round, led by General Catalyst, with participation of BOOOM💥 , Auxxo Female Catalyst Fund, Übermorgen Ventures, and incredible angels. With NP-Hard Ventures we're proud to double down! 🌍 Construction and real estate amount for around 40% of global greenhouse gas emissions. Emidat has built a software platform for automating the generation of validated Environmental Product Declaration (EPD) certificates for this sector. Basically, they help the construction industry understand their environmental impact and support them in reducing it. 👩‍🚒 The speed of execution of this team is incredible. Lisa Oberaigner & Florian Fesch started Emidat a bit over a year ago, and already have 25 customers who have used or are using its platform for some 350 construction plans. Their database of materials contains information on over 150,000 construction products, spanning 13 product categories so far. But it’s just getting started. Thanks for having us on your journey! NP-Hard Ventures // Paul Veugen, Micha Hernandez van Leuffen // Melissa van den Brink - Romero More on TechCrunch: https://lnkd.in/ezctG2GU

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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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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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In just one year, investment in carbon management has skyrocketed from under $500 million to $3 billion — a leap that signals a new era for climate technology. According to Heatmap News' recent coverage, data from Rhodium Group and Massachusetts Institute of Technology's Clean Investment Monitor highlight how policy tools like the 45Q tax credit contributed to this rapid growth. Jack Andreasen who leads BE's carbon management work, emphasizes that while progress is promising, we must continue to invest and remove barriers to fully realize the potential of carbon dioxide removal technologies. Read more: https://nt-z.ro/3MQzoiG

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https://lnkd.in/eGnqfMwF Rosy Soil Raises $3.6M in Seed Funding Rosy Soil, a NYC-based sustainable soil company created to offset the negative environmental impact of producing traditional peat-based potting mixes, raised $3.6M in Seed funding. Backers included Draper Associates, Superorganism, Climate Capital, and Boost VC. Rosy Soil is also backed by Seth Goldman, co-founder of Honest Tea, Brandin Cohen, founder of LiquidIV and Ben Chesler, co-founder of Imperfect Foods. The company intends to use the funds to accelerate its product development efforts, expand its retail presence, and grow its team. Founded by Chad Massura, Rosy Soil is a sustainable soil company dedicated to improving the gardening industry via performing soils. Empowered by biochar, the soils promote plant health, reduce environmental impact and are perfect for a variety of plants including houseplants, cacti, succulents, and seedlings. It is available online, at Target, and at select retailers nationwide.

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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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Partnering with startups can help companies to "solve a product problem, create a new avenue for revenue, accelerate R&D, or accelerate time to market for a specific product," according to Otilia Barbuta, principal at HP Tech Ventures, the venture capital arm of HP. She was talking at a breakout session at Circularity 2024. "There are solutions in the market created by startups and in this circularity realm, I think it's more important than ever to partner with [them]." #climatetech #startups #climateVC

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Climate tech’s share of the investment market is undeniable! 🌱 According to Cut Through Venture’s latest report: 👉Climate tech is leading the charge with 23 funding deals this quarter —the highest volume of deals recorded. 👉In 2024, climate tech has consistently ranked in the top 5 for investment volume, surpassing health, biotech, and fintech. 👉Climate tech startups alone raised $79M in capital in Q3, placing the sector 3rd on the leaderboard for total capital raised. In this transitional period of energy development, It’s encouraging to see Climate Tech continuing to thrive—proof that growth and environmental sustainability can go hand-in-hand.🌎 But why does green capital matter? As our CEO, Mark Croudace, puts it: “We’re at a pivotal moment in energy development, where having the right financial backing is crucial for driving sustainable innovation in Australia. For MGA Thermal, this couldn’t come at a better time—we’re preparing to expand, focusing on turning the challenges we face today into opportunities for tomorrow.”💪 💬How can Australia not only attract more investment but also become a global hub for climate tech in the coming years? We’d love to hear your thoughts. #ClimateTech #GreenCapital #LDES #CleanSteam #EnergyStorage

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ICYMI: What’s new in climate tech? 🌍💡 In the latest episode of the Smart Society Show, in our 'What's News' segment. our co-hosts Rt Hon Chris Skidmore and Brynne Kennedy highlight some of the most important updates from New York Climate Week and beyond. Here are the key takeaways: 🌍 Private sector involvement in climate action: Chris shares insights from his roundtable discussions with leaders from Microsoft, Unilever, and Google on how businesses can support countries in meeting their national climate targets. 🏭 UK’s coal plant closure: The UK made history by closing its last coal-fired power plant, a major milestone in its journey toward a net-zero grid. 💼 Venture capital in climate tech: Our co-hosts touch on the hot topic of whether venture capital should back technologies that require government support or focus on market-ready innovations. ⚛️ Nuclear energy & AI: With growing global interest in nuclear energy, particularly for powering AI and large-scale tech, we explore how nuclear is becoming a critical part of the energy conversation. 🎧 Catch the full episode, including an engaging discussion with Franklin Servan-Schreiber of Transmutex and Anton Kotov of ABB, for more insights on nuclear energy and climate tech. 🔗 Link in comments #ICYMI #ClimateTech #VentureCapital #SmartSocietyShow #Innovation #Sustainability #Decarbonization #Podcast

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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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"(The) transition to net zero emissions... estimated cost.... Roughly $275 trillion investment in physical assets from 2021 to 2050, or approximately $9.2 trillion annually - cites a new report by King’s College, London. "In 2023, governments earned $74 billion through Emissions Trading Systems (ETS). Then, there are voluntary carbon markets that trade carbon credits, creating economic opportunities and pushing governments and corporations to invest in low carbon infrastructure and technologies" The challenge is huge, but so is the opportunity (over $1.2Tn / yr for banks). A once-in-lifetime chance to invest in sectors with gigantic positive externalities, which dwarf any negative outcomes they can create. https://lnkd.in/eumcQGwM

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Where Climate meets Deep Tech The HackSummit is heading to Newlab, New York this December 13-14th. And to make the most of the New York ecosystem, this edition will have two key overarching thematics; Climate Deep Tech and Climate Finance. We’ll focus on the solutions that have a direct impact on reducing gigaton scale emissions Through new and novel approaches to manufacturing food, materials and chemicals, creating more energy efficient cities, capturing and reducing emissions at their source. And everything in-between. This isn’t about hardware against software, it’s how and where both can be applied to create the most amount of tangible impact. Ready to join the debate on what's new and next in Climate DeepTech? Head this way 👉 https://lnkd.in/eyyzbYVM

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