The Climate Capital Stack

A buyer’s guide to financing your climate venture (not just with venture)

Despite the climate tech market’s accelerating pace, scientifically-speaking, it’s still nowhere near enough. To avoid a climate catastrophe, we must invest an estimated $4T annually (just in infrastructure!) into the clean energy transition globally. This year, we invested $800b – and a mere $32b in venture capital.

Science tells us that we need to scale up total climate investment at least 5x annually. Venture capital investment into climate tech is doubling YoY, but the funding gap is not closing fast enough. To cross multiple technical valleys of death, particularly in hard tech, innovators need not only more capital, but more types of financing.

The goal of this resource is to accelerate your climate tech venture’s growth by more efficiently identifying and accessing capital. Despite our name, we believe looking outside of venture towards the full stack of climate tech financing options is critical to hitting individual and collective escape velocity.

In any industry, there are different kinds of capital for different kinds of businesses and the kind of capital you take will likely inform your business strategy – if not entirely direct how you run your business. Your cost of capital will ultimately determine your ability to scale, and in climate specifically, capital tends to have an outsize influence earlier in your journey through growth. The capital you bring on board should either be a) cheap and/or b) value add —most of your challenge will be figuring out whether a) or b) are true across stages, structures and multiple possible strategic paths.

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Πηγή: climatetechvc.substack.com