Climate Tech 360

Short Break and NYCW

We are taking a short break ahead of New York Climate Week (NYCW) but stay tuned for some amazing guests in the coming months. If you are attending NYCW and want to connect in person, please message me on LinkedIn [https://www.linkedin.com/in/samiaq]or at info@climatetech360.com.

Gaining an Edge in Science Tech Due Diligence

In this episode, Dr. Staffan Qvist [https://t.ly/deepsense], talks about how to get an edge in science tech due diligence using his expert network, DeepSense [https://deepsense.network/reports/science-tech-dd/]. DeepSense is a network of scientists, engineers and industry specialists that provide tailored support for your science tech due diligence. The company helps investors evaluate startups' technical feasibility connecting them with experts in specific fields. The process involves reviewing the startup's materials, engaging experts to assess the technology, and conducting a call with the experts, investors, and startup founders. DeepSense aims to identify gaps or areas that need further clarification in the technology and provide valuable insights to investors. The level of engagement and duration of the process depends on the stage and size of the investment. DeepSense provides deep tech investors with an edge by offering a team of experts to dive deep into the technology being evaluated. This gives investors an extra weapon in their arsenal and allows them to make more informed investment decisions. DeepSense helps ensure that capital is directed to the right technologies, avoiding investments in the wrong things. DeepSense also supports startups in preparing for tech due diligence, helping them structure their data rooms, answer questions, and plug any gaps in their knowledge. Takeaways Deep Sense helps venture capital investors assess the science and technology risk of startups. They connect investors with experts in specific fields to evaluate the technical feasibility and potential of the technology. The process involves reviewing startup materials, engaging experts for assessment, and conducting a call with experts, investors, and founders. Deep Sense provides valuable insights and identifies areas that need further clarification or investigation. DeepSense provides deep tech investors with a team of experts to dive deep into the technology being evaluated, giving them an edge in making informed investment decisions. The integrated science tech due diligence framework released by DeepSense offers a comprehensive checklist for investors and startups to navigate the tech due diligence process. DeepSense supports startups in preparing for tech due diligence, helping them structure their data rooms, answer questions, and fill knowledge gaps. By working with DeepSense, investors can ensure that capital is directed to the right technologies, avoiding investments in the wrong things.     Links Link to book a free introductory call with DeepSense here [https://t.ly/deepsense].  Report on How to Prepare for Science Tech Due Diligence [https://deepsense.network/reports/science-tech-dd/] Join the waitlist for their Ripple at the Drop conference here [https://trippus.se/web/registration/Registration.aspx?view=registration&idcategory=AB0ILBC-we5JMsAU115_CdbV0SiCyh0XSwns-F-RtBydQfo3Z4yYbfJ_ZHbSkkb0a7WRAbqQOkSL&ln=eng].   Link to report  Contact Us Guest: https://www.linkedin.com/in/staffanq/ [https://www.linkedin.com/in/staffanq/] Email us: info@climatetech360.com [info@climatetech360.com] Host: https://www.linkedin.com/in/samiaq/ [https://www.linkedin.com/in/samiaq/]

Project finance for carbon removals

In this conversation, Martin Kessler [https://www.linkedin.com/in/martin-kessler-99518828/], Chief Business Officer at Flowcarbon [https://www.flowcarbon.com/], discusses the company's role in securing asset-level financing for carbon removal projects. He explains that Flowcarbon [https://www.flowcarbon.com/] is a vertically integrated carbon finance company focused on arranging project finance for carbon removal projects, assisting project developers with carbon credit issuance, and helping buyers procure carbon credits for their net zero goals. Martin emphasizes the interdisciplinary nature of the carbon markets and the importance of building a strong ecosystem of partners. He also provides insights into the project finance process and highlights the key factors Flowcarbon [https://www.flowcarbon.com/] considers when evaluating projects, such as feedstock availability, revenue streams, and commercial viability. The company aims to demonstrate the viability of carbon removal projects to the private market community. Private credit investors typically get involved in the financing process once the project is at a stage where it is financeable. Flowcarbon [https://www.flowcarbon.com/] helps developers develop financial models, create data rooms of financeable contracts, and secure necessary insurance. They also explore new market opportunities, such as environmental commodities markets and tax credits.   Takeaways Flowcarbon is a vertically integrated carbon finance company that focuses on project finance for carbon removals, carbon credit issuance, and carbon credit sales. The company works with project developers to arrange financing for carbon removal projects and helps them navigate the carbon credit issuance process. Flowcarbon also assists buyers in procuring carbon credits for their net zero goals, primarily targeting corporate clients. The carbon markets require an interdisciplinary approach, and Flow Carbon leverages its network and partnerships to provide comprehensive solutions. The project finance process can take anywhere from six to 18 months, depending on the project's readiness and complexity. Key factors considered when evaluating projects include revenue streams and commercial viability.  They work with developers to structure financeable contracts and secure asset-level financing. Private credit investors typically get involved in the financing process once the project is at a stage where it is financeable. Flowcarbon helps developers develop financial models, create data rooms of financeable contracts, and secure necessary insurance. They also explore new market opportunities, such as environmental commodities markets and tax credits.   Contact Us Guest: https://www.linkedin.com/in/martin-kessler-99518828/ [https://www.linkedin.com/in/martin-kessler-99518828/] Email us: info@climatetech360.com [info@climatetech360.com] Host: https://www.linkedin.com/in/samiaq/ [https://www.linkedin.com/in/samiaq/]

The power of corporate action in climate

In this conversation, Patrick Flynn discusses the importance of making the business case for sustainability and leveraging the power of companies to drive change. He emphasizes the need for systemic interventions and highlights the role of leading companies in influencing policy and market signaling. Additionally, Patrick addresses the challenge of bridging the gap between the CSO and CFO and suggests that mandatory disclosure of greenhouse gas emissions is bringing these teams closer together. Patrick also talks about his work at Topo Finance, where he focuses on addressing the emissions associated with cash in the hands of banks. He explains how companies can use their influence to demand more sustainable financial products and services. The conversation concludes with a discussion on sustainability superpowers and the importance of translating the language of sustainability to different parts of the business.   Takeaways Align sustainability goals with the motivations and decision-making processes of the business Leverage the company's superpowers to drive impactful change Bridge the gap between the CSO and CFO by emphasizing the importance of sustainability in financial reporting Collaborate with other companies and startups to build bridges across the 'valley of death' and accelerate the adoption of sustainable technologies Making the business case for sustainability is crucial for driving change within companies. Systemic interventions, such as influencing policy and market signaling, can have a significant impact on climate action. Companies can address emissions associated with cash in the hands of banks by demanding more sustainable financial products and services. Each individual and company has unique strengths that can be leveraged for climate action. Translating the language of sustainability to different parts of the business is essential for gaining buy-in and creating change. Contact Us Guest: https://www.linkedin.com/in/patrick-flynn-a054405/ [https://www.linkedin.com/in/patrick-flynn-a054405/] Email us: info@climatetech360.com [info@climatetech360.com] Host: https://www.linkedin.com/in/samiaq/ [https://www.linkedin.com/in/samiaq/]

Raising money from Corporate Venture Capital (CVCs)

The conversation with Jeppe Høier covers various topics related to corporate venture capital (CVC). Jeppe discusses the structure of CVCs, the different types of investments they make, the challenges and benefits of working with CVCs, and the differences between European and US CVCs. The discussion also touches on the lengthy process of engaging with CVCs and provides tips for startups to navigate this process. Overall, the conversation aims to provide insights and understanding of CVCs for startups and investors. In this conversation, Jeppe Høier and Samia discuss the role of corporate venture capital (CVC) in the climate tech industry. They explore how CVCs differ from traditional venture capital firms and the advantages they offer to startups. They also discuss the challenges startups face when seeking investment from CVCs and provide advice on how to navigate the landscape. Additionally, they touch on the changing landscape of CVCs and the importance of building relationships with corporates.   Takeaways Corporate venture capital (CVC) is an important player in the startup ecosystem, with corporates having a significant role to play in the energy transition and climate tech. The structure of CVCs can vary, with different decision-making processes and strategic goals. Some CVCs invest for return purposes, while others invest with the goal of potential acquisition. Engaging with CVCs can be a lengthy process due to the bureaucratic nature of large corporations. Startups need to understand the decision structure and process of the CVC they are working with. Information flow and communication between startups and CVCs can be challenging, but it is crucial for successful collaboration. Startups should consider limiting access to information rights and keeping ownership below 5% to protect their interests. European CVCs are still developing and may not have the same level of maturity and experience as their US counterparts. However, the European startup ecosystem is growing, and more success stories are emerging. Startups should seek value creation from CVCs beyond just financial investment, such as access to assets, brands, customers, data, and expertise. When looking for investment from a CVC, startups should understand the specific value they are seeking and target CVCs that align with their industry and goals. CVCs can provide startups with revenue opportunities, cost savings, and access to their network and resources. Startups should conduct due diligence on CVCs and seek references from other portfolio companies to understand the value they can bring. The CVC landscape is constantly evolving, and there is a need for more deep tech investors in the climate tech space. Corporates can also play a role as limited partners (LPs) in venture funds, but it may take longer to raise capital from them. Building relationships and understanding the decision-making structure within corporates is essential for successful collaboration with CVCs.   Links Corporate venturing newsletter [https://www.linkedin.com/newsletters/corporate-venturing-7018240111452540929/] Research: The Lifecycle of Corporate Venture Capital [https://wwws.law.northwestern.edu/research-faculty/clbe/events/innovation/documents/songma_cvclifecycle.pdf]   Contact Us Guest: https://www.linkedin.com/in/jeppehoier/ [https://www.linkedin.com/in/jeppehoier/] Email us: info@climatetech360.com [info@climatetech360.com] Host: https://www.linkedin.com/in/samiaqader/ [https://www.linkedin.com/in/samiaqader/]