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After the @joinClubhouse conversation hosted by @sierralnp + @NatBullard + @csvenza and passing the 1k follower mark, I am caving and posting my first 
Be gentle
(1) The Great Climate Convergence: why Climate Tech isn't Cleantech 1.0 https://twitter.com/sierralnp/status/1358855972555345920
(2) "Is this time different?" Everybody wants a simple explanation. Bad news: there is no simple explanation.
As is true for major societal changes, the precedent conditions must exist.
Enter: The Great Climate Confluence
As is true for major societal changes, the precedent conditions must exist.
Enter: The Great Climate Confluence
(3) Emotion > Intellect. Climate change is a collective action problem; it will only be addressed by a societal and economic response. In the last 4 years 
+
+
+ more have made climate change "real" to the markets despite a broad academic consensus forming in the late 1980's.
++ + more have made climate change "real" to the markets despite a broad academic consensus forming in the late 1980's.
(4) Emotion -> Markets -> Suspension of Disbelief -> Valuation 
-> Exits -> Climate Returns -> Investment into new Climate companies.
The market is divesting from fossils, and investing in renewables.
@NatBullard https://www.bloomberg.com/news/articles/2020-10-20/markets-are-divesting-you-from-fossil-fuels-nathaniel-bullard
-> Exits -> Climate Returns -> Investment into new Climate companies. The market is divesting from fossils, and investing in renewables.
@NatBullard https://www.bloomberg.com/news/articles/2020-10-20/markets-are-divesting-you-from-fossil-fuels-nathaniel-bullard
(5) Renewables are cheaper than fossils. Much ink has been spilled on this topic, but solar + wind keep getting cheaper & better. The marginal electron is renewable because of fundamental economics. New infra = renewable infra. This is recent. It matters. https://www.bloomberg.com/news/articles/2020-10-19/wind-solar-are-cheapest-power-source-in-most-places-bnef-says
(6) Entrepreneurs and VC's in 2021 >> 2008. Open learning, @Twitter, @Medium, @SubstackInc, the popularization (and demonization) of tech have taken tribal knowledge of starting and funding companies and democratized company formation.
Less $$ + bigger exits = success
Less $$ + bigger exits = success
(7) The physical is now digital. Everything is internet connected and networked. Ubiquitous & cheap compute + cameras + sensing + AI/ML/MV allow tech to interact and manipulate the physical.
Tech now impacts the physical =ventureable opportunities in climate.
Tech now impacts the physical =
ventureable opportunities in climate.
(8) The interest rate environment is a tailwind. Low rates have subsidized infrastructure and Hardware/Infra as a Service models and financing of high upfront capex with low opex.
Perfect for paying for fuel upfront (renewables) or automation (AI/Robotics).
Perfect for paying for fuel upfront (renewables) or automation (AI/Robotics).
(9) The capital stack has matured. Pre-seed; Seed; Post-Seed; Series A-B; Growth; Infrastructure. Passing the baton of capital to the next stage has become a known art: companies and investors can accurately gauge the reception of their story after achieving milestones.
(10) Because of (9) venture opportunities that will impact climate exist and will produce returns. Tread carefully: use the venture model only when it makes sense. Significant milestone achievement with minimal invested capital early in life is critical. https://medium.com/@congruentabe/hello-silicon-valley-some-thoughts-on-how-we-all-win-in-our-climate-fight-3e8692f2f8c1
(11) Venture is a necessary but not sufficient tool in our climate fight. We must know when to use venture, and when other forms of capital and/or policy support is critical.
This knowledge is more disseminated than in the Cleantech 1.0 cycle.
This knowledge is more disseminated than in the Cleantech 1.0 cycle.
(12) The Great Climate Confluence:
Emotions + Markets
Returns
Renewables cheaper than fossils
Democratization of tech and venture
Tech touching the physical
Low interest rates
Specialization of capital sources
Emotions + Markets
Returns
Renewables cheaper than fossils
Democratization of tech and venture
Tech touching the physical
Low interest rates
Specialization of capital sources
(13) We need more.
More capital. More new participants. More policy support. More talent.
Venture backed companies will not save us, but we can help.
More capital. More new participants. More policy support. More talent.
Venture backed companies will not save us, but we can help.
(14) A by the wonderful climate entrant @jjacobs22 unpacking the discussion:
https://twitter.com/jjacobs22/status/1352620326367059972
@DanielHullah @shaylekann @jshieber @andrewbeebe @JohnJTough @posamentier @reubenmunger @Joshmedia @Rick_Zullo @annbordetsky @sierralnp
Tear me down!
Cc @congruentvc
by the wonderful climate entrant @jjacobs22 unpacking the discussion: https://twitter.com/jjacobs22/status/1352620326367059972
@DanielHullah @shaylekann @jshieber @andrewbeebe @JohnJTough @posamentier @reubenmunger @Joshmedia @Rick_Zullo @annbordetsky @sierralnp
Tear me down!
Cc @congruentvc
