Market disruption by climate tech startups

Why do energy terms sound like scary German monsters? 😱 First, it was Energiewende—the dramatic “energy transition.” Now, it’s Dunkelflaute—dark doldrums when, for a few consecutive days, the wind dies, the sun hides, and energy grids struggle to cope with demand. In 2024, #Dunkelflaute hit Germany hard: wholesale electricity prices soared to €1,000/MWh, coal plants sprang back to life, and energy imports became a lifeline. For #climatetech startups, this daunting term presents a significant business opportunity. Every founder should consider whether their solution could help tackle this challenge and change the narrative to capture this opportunity. Here are a few opportunity fields for startups: 1. Long-Duration Energy Storage (LDES): This is naturally the obvious one, and many companies are already working on solutions (e.g., hydrogen, flow batteries, and thermal storage). What's interesting here is that a solution like Reverion (biogas to electricity and back to hydrogen/methane) can fit this challenge, even though it wasn't on the company's radar when it was founded or part of our investment thesis. 2. Grid Flexibility Solutions: Balancing supply and demand is critical during Dunkelflaute periods. Startups can develop AI-powered demand response systems or virtual power plants that aggregate distributed energy resources, especially cross-border solutions as the topic becomes highly political. 3. Predictive Analytics for Weather and Energy Markets: Dunkelflaute events can be forecasted with greater precision. Startups offering real-time grid analytics and weather forecasting tools can help utilities and industries plan ahead. 4. Hybrid Renewable Systems: If you can't solve the macro, offer a solution to the end user. Pairing wind, solar, and other sources with storage creates local resilience for commercial and residential customers. Solving Dunkelflaute isn't just about energy and geopolitical stability; it's about unlocking a significant business opportunity for climate tech startups. Let's break the doldrums together! What’s your take on tackling Dunkelflaute? Share your thoughts! #venturecapital #energytransition #renewables  

I tell every climate tech founder I meet: if you want to raise millions, your solution needs to be better, faster, or cheaper than whatever came before it. Full stop. Now, more than ever, climate tech companies cannot rely on regulatory support or favorable policy environments as their competitive advantage. Your innovation needs to compete purely on its intrinsic merits — delivering superior economics, unmatched efficiency, and undeniable value for your customer. The hard truth is climate impact alone will never compensate for subpar performance. To fully grasp this reality, we must reconsider what we mean by “climate” innovation. The term itself is often misleading, implying a singular sector. In truth, climate innovation represents a full-scale industrial revolution, one that touches every industry — agriculture, transportation, construction, manufacturing, consumer goods, energy production, and beyond. The most successful climate founders adopt a mandate to reduce emissions AND rebuild entire value chains to be radically more efficient at scale. That’s the unlock. I've found Collaborative Fund's "Villain Test" to be a helpful framework to illustrate this sentiment. The test poses a critical question: Would a hypothetical ‘villain’ investor, driven purely by financial returns and self-interest, invest in your company? A dual focus, 1) irresistible, scalable economics paired with 2) purpose-driven impact, is the driving force behind climate tech superstars like Antora Energy, Twelve, and Nitricity, to name a few. This is the blueprint. If you want to lead in climate, build products that dominate on performance and deliver planetary benefits as an essential byproduct. Of course, the path from idea to reality is much easier said than done. This isn't meant to discourage but rather offer a principled approach for thinking about how to identify problems and build climate companies that endure. Start with the problem. Design for performance. Make impact inevitable. P.S. Also sharing this as an excuse to post a favorite photo from my time in Stanford Climate Ventures, where our dream team worked on extreme heat solutions that outperformed the status quo in cost and effectiveness across a variety of applications <3 #Better #Faster #Cheaper #Climate #ClimateTech #ClimateInnovation #IndustrialRevolution #VillainTest #Startups #Founders

Africa and other emerging markets present significant opportunities for climate tech solutions, particularly in off-grid energy, sustainable agriculture, and water management. For decades, discussions about climate change have centered on challenges, but today, the focus is shifting toward solutions. In Africa, where over 600 million people lack access to electricity, off-grid energy innovations such as solar mini-grids and battery storage solutions are transforming rural communities. Companies are already deploying affordable, pay-as-you-go solar home systems, allowing families and businesses to generate power without relying on expensive and unreliable national grids. ➜ Sustainable agriculture is another key frontier for climate tech. With over 70% of Africans relying on agriculture for their livelihoods, the need for climate-resilient farming techniques has never been greater. Technologies like precision agriculture, drought-resistant seeds, and AI-driven weather forecasting are helping farmers adapt to changing climatic conditions while improving productivity. By digitizing supply chains and providing real-time market access through mobile platforms, smallholder farmers can reduce post-harvest losses and increase their profits. ➜ Water management is equally critical for climate resilience. Many African regions experience severe droughts and water scarcity, making efficient water use a necessity. Climate tech startups are developing smart irrigation systems, atmospheric water harvesting, and wastewater recycling solutions that maximize water efficiency. AI-powered sensors and data analytics are also being used to monitor groundwater levels and predict shortages before they become crises. The beauty of climate tech in emerging markets is that these solutions are not just mitigating climate change but also creating economic opportunities. The climate tech industry is projected to be worth over $1.5 trillion by 2030, and Africa is uniquely positioned to be at the center of this transformation. Governments, investors, and entrepreneurs must work together to scale these innovations and make them accessible to the communities that need them the most. ➜ The time to invest in climate tech for Africa and emerging markets is now. As global capital shifts toward green investments, Africa has the opportunity to leapfrog traditional, carbon-intensive models and embrace sustainable solutions. The question is no longer whether these technologies will take off, but how quickly they can scale to benefit millions. Let’s build a future where climate resilience and economic growth go hand in hand. The opportunities are limitless—who is ready to invest in Africa’s green revolution?

🌍 Exciting insights from the 2024 Climate Tech Report by our Innovation Economy team at JPMorganChase 🌱 Climate technology is pivotal in transitioning to a low-carbon economy, with innovations in renewable energy, electric fleets, and energy management leading the charge. The report highlights key sectors like battery and grid tech, clean mobility, food and agriculture, and decarbonization. Key takeaways: - U.S. venture investment in climate tech could hit $26B by 2024. - Battery production and grid tech are seeing significant funding, reflecting the push for EVs and modern energy infrastructures. - Clean mobility is crucial for sustainable transport, with a focus on EV charging and fleet electrification. - Food and agriculture tech is enhancing efficiency with precision agriculture and alternative proteins. - Government policies, technological advancements, and increasing utility costs are driving the adoption of these innovations. It's an exciting time for founders and investors committed to a sustainable future! 🌿 #ClimateTech #Sustainability #Innovation #VentureCapital #CleanEnergy https://lnkd.in/gXBm-zwm