Two times founder, three times operator, now VC and NED - backing AI and Climate Tech founders at Octopus Ventures
#DeepThoughts Once a week the #deeptechbio team at Octopus Ventures share a topic which we have been thinking about. We want to create conversation, meet founders and experts, and share our excitement! 🤓 OV is a generalist fund of specialist teams. Internally we’re split into six different groups - or ‘Pods’: Deep Tech, Biotech, Consumer, B2B, Health and Fintech. You might notice that Climate Tech is missing from that list. We’ve experimented with a Climate Tech Pod in the past, but it became clear that Climate was a motive force more than a domain specialism and that Climate Tech entrepreneurs could run businesses that straddle any number of our Pods. So instead we've embraced a Pods and Tribes model (thanks Spotify) forming a team of Climate Tech investors that sit across our Pods, making sure we always have the right mix of people sourcing and reviewing Climate opportunities. I'm sharing this structure because it highlights how challenging it can be to categorise a Climate Tech startup. The consensus online is that a Climate Tech startup is one whose trading activity supports either the mitigation of, or adaption to, climate change. The breadth of potential activity within this definition makes it very hard to evaluate a given company’s Climate Tech credentials however. In response I’ve been developed a mental model for Climate tech classification that I thought I’d share today. First Order These companies have a direct effect on atmospheric warming. They might do this through Point-Source Capture, like Seabound; through the replacement of fossil fuels with green alternatives, like DRIFT Energy Ltd or copenhagen atomics; they could focus on the capture and sequestration of atmospheric CO2, like Brilliant Planet; or they might offer low emission alternatives, as Arda Biomaterials does with leather and SCiFi Foods does with beef. Second Order These startups engage in commercial activities that have an indirect effect on atmospheric warming. Remote monitoring services, such as AIRMO's methane monitoring solution, or Solaris Suborbital Inc.'s wildfire monitoring service, are good examples of this type of Climate Tech. Third Order These companies vital to accelerate our transition towards net zero emissions. Companies like Metris Energy, who are accelerating the deployment of solar energy by commercial landlords; Kita, whose insurance offering accelerates the maturation of the carbon markets; and Origami who offer Battery Energy Storage System owners a way to optimise the yield on their assets. NB. Whilst it’s true that there is an increasing bias towards Bits over Atoms as you move outwards from a direct interface with our Atmospheric composition, I don’t believe classification it’s as simple as an Atom vs. Bits distinction. How do you think about the divisions within Climate Tech space? Are there any exciting Climate tech startups we should be looking at? Let us know in the comments below.
Shreeya Shukla
9mo
Well said Mat Munro Pi Green Innovations Pvt. Ltd. Is a first order company that captures scope 1 emissions from point source from hard to abate sector (gas to solid), so we eliminate compression, transportation and storage issues in CDR/CCUS space.
I get asked this question so often! This is such a good way to explain our stance, thanks for being a cli-MATE 🤣
Two times founder, three times operator, now VC and NED - backing AI and Climate Tech founders at Octopus Ventures
9moDon't forget to follow the rest of the team to keep up to date with what we're thinking about: Owen Metters, Amy Nommeots-Nomm, Simon King, Maiuran Chandrakumaran, CFA, Flavia Levi, Jonathan Durnford-Smith, Oliver Sims, Hugo Villanueva, Ph.D.