Conrad Caplin

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

9

2 Comments

It’s so obvious what’s happening. Lines companies and regulators need to get out of the way (and react much faster than they are) to let the flow accelerate. https://lnkd.in/g9k-z-v7

26

14 Comments

📢 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

19

2 Comments

Check out my recent post on why President Trump is the forcing function for us to solve the “Missing Middle” and catch the industrial Tsunami of onshoring coming to the US!

84

9 Comments

Listened to Bloomberg’s Zero: The Climate Race recently—worth a listen for anyone in the climate tech space. Akshat Rathi interviews Eric Toone from Breakthrough Energy Ventures. Key topics: ⚡️ Carbon removal ⚡️ Grid modernization ⚡️ Nuclear fusion and fission ⚡️ Green hydrogen—the hype, promise vs reality Good insights on where innovation is heading in sustainability and energy. #ClimateTech #Sustainability #Energy #Innovation

9

2 Comments

With the rapid rise of AI and increased focus on electrification and EV adoption, the economics of the energy market have shifted dramatically — energy demand in the U.S. is skyrocketing. However, there's a very clear imbalance between the need for grid-scale energy storage solutions and the lack of available supply. Without a viable storage solution for the grid, the increase in energy demand will be met by gas-powered peaker plants and coal-burning plants — reversing all progress to date on reducing carbon emissions. Less than a year ago, Peak Energy was founded with the mission to revolutionize energy storage with the development of low-cost, large scale sodium-ion battery technology. Today, the company has announced its $55M Series A to commercialize and scale its grid storage technology. Peak Energy's momentum over the last year not only reflects strong market demand, but also is indicative of the team behind the mission: Liam O'Connor, who led operations and supply chain at some of the world's largest technology companies like Tesla and Apple; Landon Mossburg, who built and scaled large battery manufacturing at Northvolt and Tesla; and Cameron Dales, who helped build from scratch leading-edge battery company ENOVIX Corporation. From the deep expertise the company's leadership brings to the table, to the all-star team they've assembled, and the innovative technology they are developing, the Eclipse team believes Peak Energy brings the ample firepower to secure the future of renewable energy. https://bit.ly/3Y8LniO Congratulations!

159

7 Comments

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.

10

Honored to represent Simple Thread at the American Council on Renewable Energy (ACORE) Finance Forum in NYC. I really enjoyed the discussion with Gina McCarthy former climate advisor to the White House. My takeaways from her comments: - IRA was a game-changer because it allowed the “de-risking” of renewables and took away the “big P Politics of renewables” - Don’t worry about political futures at this point … because it makes too much sense “money is money” - Nuclear and hydrogen will be part of the future but unclear how much. Worries about siting of nuclear specifically - On permitting: “we have to get real about tradeoffs … we cannot let perfection be the enemy of the good.” - The success of the IRA is evident; over $350B already deployed - Constraints from supply side incentives like interconnection queue backlogs, supply chain constraints, and permitting require continued attention to resolve. #acorefinanceforum #renewableenergy #cleanenergy #policy #solar #wind #storage #transmission #finance

16

1 Comment

'Drill, baby, drill' isn't just for oil and gas - it could unlock geothermal energy and geologic hydrogen too. That's the fascinating paradox of climate tech I discussed in a recent TechCrunch feature examining how VCs are viewing the sector's future. The reality is that policy impacts are rarely straightforward - deregulation of drilling and permitting, such as for overhauls in transmission and distribution, could actually accelerate clean energy solutions. Furthermore, the sector has shown remarkable resilience through multiple administrations and market cycles. The core message I shared with Tim De Chant and Rebecca Szkutak rings true: technological advancement and declining cost curves will keep driving solutions forward, regardless of the political situation. The energy landscape continually presents new opportunities at every turn. Worth a read for anyone interested in the exciting future of climatetech investing. https://lnkd.in/gjNdm4DW #ClimateInnovation #VentureCapital #Geothermal #GeologicHydrogen

139

3 Comments

🚜➡️💾 From Crops to Code: The Impact of Farmland Sales to Data Centers on U.S. Food Security The rapid expansion of data centers is transforming vast tracts of U.S. farmland into digital infrastructure hubs. While this shift supports our growing digital economy, it raises critical concerns about the future of our nation’s food supply. Key Insights: • Accelerated Farmland Conversion: Between 2001 and 2016, the U.S. lost 11 million acres of farmland to development, a trend that’s intensifying with the rise of data centers. • Soaring Land Prices: • In Northern Virginia, data center land prices have skyrocketed to $2M-$4M per acre, making it increasingly challenging for farmers to compete. • In Sarpy County, Nebraska, Google paid almost 10 times the regional average for farmland to build a data center. • In Van Meter, Iowa, Microsoft acquired 377 acres of farmland for nearly $40 million, averaging over $106,000 per acre. • In Storey County, Nevada, Tract purchased 2,200 acres at the Tahoe Reno Industrial Center, aiming to develop a data center park. • In Buckeye, Arizona, Tract acquired a 2,100-acre site for $136 million, planning a data center complex valued at $20 billion over the next 15 years. • Water Resource Strain: Data centers consume significant water for cooling, competing directly with agricultural needs, especially in water-scarce regions. Implications: • Food Security Risks: The reduction of arable land threatens domestic food production, increasing reliance on imports and exposing the nation to global market volatilities. • Environmental Concerns: Transitioning farmland to industrial use disrupts ecosystems and poses challenges to soil restoration, impacting long-term agricultural viability. It’s imperative to strike a balance between technological advancement and agricultural preservation. Policymakers, industry leaders, and communities must collaborate to develop strategies that safeguard our food security while accommodating digital growth. ✨ Ventura Insights from the Ventura Partners Wealth Hub ✨ Empowering progress. Shaping tomorrow’s opportunities. Where vision meets dedication to redefine success. #DataCenters #Farmland #FoodSecurity #SustainableDevelopment #AgricultureVsTechnology #Money #Markets #Development #Linkedin

2

There’s a whole world of small farms and small businesses being powered by offgrid renewable energy. Understanding the business models that make it possible is critical for this bold new world. At the #GlobalSouthSouthSummit, innovators from across Africa and Asia will learn from each other to advance a sustainable world free of poverty.

15

As outlined in this article, private equity is pivotal in driving the growth of renewable energy technologies. With increasing investments in clean energy solutions, private equity firms are seizing opportunities to scale innovative technologies that align with global sustainability goals. This trend signifies a powerful convergence of capital and green innovation for both industries, fueling a transition toward a more sustainable energy future. #PINCommunityAdvocate #NetZero #ESG #Sustainability #RenewableEnergy

2

🚀 Calling all adopters of #proptech and #construction tech: real estate developers, builders, and owner-operators, and more! 🌟 Big News! I’m thrilled to announce our partnership with Wells Fargo Innovation Incubator (IN2), co-administered by the U.S. Department of Energy’s National Renewable Energy Laboratory, to accelerate cleantech adoption. This is a first-of-its-kind initiative bringing public and private industry together to drive the digitization and decarbonization of the built environment with a focus on the adoption of startup technologies by end customers. I couldn’t be more excited to collaborate closely with IN² and NREL’s incredible teams to build the industry’s first Adoption Playbook, and the impact this program will have to catalyze more sustainable innovation implementation to our built world. Led by Program Manager Sarah Derdowski, NREL's team is backed by world-class research and a history of running successful incubators. 💡 If you're a forward-thinking organization that is seeking to innovate your real estate footprint, apply today. Adopters can receive up to $250,000 in grant funding to pilot cutting-edge technologies, while startups have the chance to scale and engage with major corporations. This groundbreaking program offers incredible opportunities for both adopters and startups to drive sustainability and innovation—and we're kicking it off this month! 🌍 With our team at Overlay Build, we will design the curriculum in partnership with IN² for corporate adopters through their Adoption Playbook. The playbook will prioritize pain points, identify innovation areas, and form peer groups for implementation strategies. Overlay will also develop due diligence criteria, help to determine the top startups for potential pilots, and form internal innovation working committees that will drive change. Additionally, Overlay will build a change management strategy to ensure practical evaluation and implementation of pilot projects, helping companies with significant real estate ownership reduce construction inefficiencies, costs, and carbon footprints. 🔍This initiative addresses the "missing middle" in technology adoption of built environment solutions—let's bridge that gap together. For more information or to discuss how you can get involved, feel free to reach out to me directly. 👉 Join us in shaping the future of the built environment! Adopters, apply here today: https://lnkd.in/eCRHCXfm #Sustainability #Cleantech #Innovation #BuiltEnvironment #IN2 #OverlayCapital #DigitalTransformation #Decarbonization #ESG #NetZero

71

11 Comments

These VC firms just reloaded. Maybe worth approaching them if you’re actively fundraising… 🔴 London based Energy Revolution Ventures closed an $18M fund to invest in deep tech, such as energy storage, carbon capture, and, hydrogen technologies. 🔴 New York based Benchstrength closed its first $62M fund to support early stage technology companies. 🔴 Portola Valley based G2 Ventures Partners is raising its third $750M fund to focus on climate and sustainability startups. 🔴 Tel Aviv based Vgames raised its third $142M fund to invest in gaming teams across the world. 🔴 Bengaluru based Athera Venture Partners is raising its fourth $106M fund to back tech startups in consumer Internet, enterprise software, AI, and other emerging technologies.

44

1 Comment

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

10

1 Comment

Who doesn't love a good top 50 list?! Very excited to launch Congruent Ventures and SVB's inaugural 50 by 2050, focused on identifying the companies with the highest potential to drive carbon reduction over the next 25 years. I'm 100% certain that we've missed some amazing companies. I'm also 100% certain the companies on the list are awesome. Sadly, by our own methodology many or our incredible companies at Congruent didn't make the list (but suppose that is as it should be). Check out the report below. Live / interactive list here: https://lnkd.in/dYgCfEv8 Tim De Chant TechCrunch coverage here: https://lnkd.in/dkUJm_Sn The Congruent/SVB team collaboration was awesome Dan Baldi Eliza Cushman Marianne Wu Joshua Posamentier!

132

10 Comments

✅ “Climate does not operate on a four-year cycle, these are very long-term trends and problems” ⚡️ Example: subsidies and tax credits in general will see budget cuts, but any company that generates power (geothermal, and nuclear #energy for instance) stand to gain, in order to support the AI wave. #climatetech https://lnkd.in/en58mbHm

22

"Simply put, there is too much capital seeking too few opportunities, particularly at the seed stage. Multi-stage firms have eliminated pricing discipline at seed stage and the proliferation of seed firms has made the task of investing at this stage as competitive as it’s ever been, leading me to believe that indexed seed investing in today’s environment will produce poor returns. What does this mean for today’s environment? It’s never been more important to break away from median performance. While there is risk in breaking away from the pack, the risk (at least performance wise) of staying part of the herd is simply far worse. Median returns for the recent vintages are simply terrible. One could argue that funds are still in their j-curve phases, but I suspect this doesn’t explain the divergence we’re seeing between GOOD performers and GREAT performers. More than ever before, it’s clear to me that playing the same game as everyone else will not work, so fund managers should question whether they are really capable of being in the top 5% of whatever strategy they are employing. From a LP perspective, allocators should likely ask the same of their managers and consider whether allocating to indexed mega funds or indexing across too broad of a portfolio of managers is tenable in achieving their return targets." https://lnkd.in/g8GqHY-P

5

Sometimes I just become despondent with how people think about CO2. Although I welcome the good intentions of "leveling the playing field" for CO2 removal, IMO this VERY lucrative newly introduce Bennet & Murkowski bill would suck all the oxygen out of the room for many/most nature-based solutions which are the one class of options that have real affordably scalable potential. Unwittingly, my first reaction to this proposal is it will make the silly things so lucrative that the real things can never happen. Although it has several "issues" upon my first read, first and foremost is the 1000+ year "permanence" - a well-intended and seemingly obvious but misguided goal IMO. Those that follow me have heard it before, but at some point we must get it of our mind that the goal should be to lock up mean, evil carbon away forever in a deep dark vault like gold in Fort Knox, and replace it with the goal of accumulating more and more carbon as it is put to work in enabling all life on Earth. Let me state it clearly again - permanence of a molecule is actually the wrong goal. Not that it works this way (even in the inhaling and exhaling of life), but if all CO2 left its storage every night and returned each morning, it would be no different than if it stayed inside all night. Actually staying put doesn't matter. What matters right now is that we shift the total balance from the atmosphere to the lithosphere and biosphere - the latter meaning all life. I wish I could keep my attention on just helping real carbon removal happen instead of thinking about how I might game such a system, but here we are... I sometimes feel like Don Quixote, but I sleep well knowing that with physics and thermodynamics on my side, my cause is just. But IMO, we may all end up dead if we don't learn to understand this. My bigger near-term worry now is that it may just get harder for real solutions to compete with lucrative incentives for (many, but not all) fantasies. And some of these fantasies will even make the underlying problem worse (e.g. perverse incentives to remove biomass that could actually help life capture even more carbon). Ugh. h/t: David Lawrence for bringing my attention to this new bill.

40

9 Comments