? $56B for climate infrastructure; this might surprise you (Entrepreneurs for Impact Newsletter #183)

Welcome to my newsletter from Entrepreneurs for Impact (EFI).

I share lessons learned from working with 300 climate tech CEOs and investors—plus 25 years of meditation practice—to help people fight climate change profitably and maybe even lead a happier life.

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Four topics:

1. ?? VC investment is good. Infrastructure investment is better.
2. ??? DaaS — “Development as a Service” for low-carbon projects.
3. ?? How to market your product — The 4 Ps.
4. ?? Mr. Beast — Crohn's disease helped him become a billionaire.

1.

?? VC investment is good. Infrastructure investment is better.

Many startups require VC investment to succeed.

Deep tech can’t survive with cash from couch cushions or a Ramen noodle diet. (Neither can your cardiovascular system.)

But if your seed-stage company can’t scale 50x, then pitching VC investors is like wearing white socks with Birkenstocks—possible, but a profoundly unsettling mismatch. (My teenagers don’t approve of my worldviews.)

And despite their importance, VC dollars only get us so close to the $6-9 trillion of investments needed per year to tackle climate change. *

Research by Sightline below tells a different story than the one that dominates the startup ecosystem.

Of the $86B in dry powder for climate-focused investors to deploy:

1. 8% = VC
2. 27% = Growth equity
3. 65% = Infrastructure ($56B)

Finally, this $86B should give us some comfort despite the difficulty of raising capital right now.

(But also like a penguin offering you its tiny wing to hold—thoughtful, but not effective.)

Here’s why:

Although policy uncertainty abounds, this money was raised mainly to invest in low-carbon companies and projects with substantial financial upside.

The limited partners (e.g., pension funds) who allocated this capital to fund managers expect it to be deployed in a [4]-year period.

The clock is ticking.

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* See research from the Grantham Research Institute at the London School of Economics and from McKinsey.

?? So what?

We need more ambidextrous operators and financiers — those who are effective in the land of VC and infrastructure, not just one.

In the coming decades, these folks will be as popular as the only friend in your group text with that sweet family beach house.

This leads me to my next post below…

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2.

??? DaaS — “Development as a Service” for low-carbon projects.

Julian Ryba-White, CEO at Mark1, was my guest on a recent Entrepreneurs for Impact (EFI) podcast.

Mark1 is a public benefit corporation from Deep Science Ventures and the Rocky Mountain Institute. They offer early-stage project development support and catalytic development capital for low-carbon companies.

Julian was previously a Principal at Nokomis Energy, Senior Director of TenK Solar, and Manager at SolarCity.

Here are four takeaways.

1. Bridging the commercialization gap: Julian explains companies' unique challenges when transitioning from technology development to project deployment.
2. Adoption Readiness Levels: Mark1 introduces the “Adoption Readiness Levels” concept from the DOE to measure project viability.
3. Catalytic capital: Julian details their funding approach, targeting deployment of $300,000 to $500,000 for early development costs to de-risk development with a return model tied to project milestones to align incentives.
4. Career advice for emerging professionals: Julian emphasizes the importance of patience, family time, and human connection in balancing personal and professional growth.

?? So what?

Listen to the episode and share your thoughts on my LinkedIn post.

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3.

?? How to market your product — The 4 Ps of Marketing.

Let me share a tool we teach our MBA students at Duke University.

(But I can’t share tickets to a basketball game at Cameron Indoor Stadium. Mostly because I don’t have any.)

And to overdeliver for you, I’ll describe an additional three Ps that have been added since the four Ps were born in 1960.

1. Product — How urgent is the pain you’re solving for customers? (That is, it’s better to be a “Tylenol” than a “vitamin.”) How is it differentiated from competitors?
2. Price?— Is it based on a top-down or bottom-up approach? One-time purchase or subscription? Premium or budget?
3. Place — Where do customers find and buy your product? In person? Your website? Others’ websites?
4. Promotion — Should you rely on PR agencies, social media, or digital advertising?
5. People?— Who’s on the team, and are they appropriately trained — internal sales and customer service folks, external influencers, or channel partners?
6. Process — How fast and accurate is your product delivery?
7. Physical evidence — Do you have a legit web presence, branding, packaging, and store design?

?? So what?

We’re all slacking on 1-2 of these. Which are you overlooking?

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4.

?? Mr. Beast — Crohn's disease helped him become a billionaire.

Let me explain…

If you don’t have kids, you might be extra confused. (Or well rested, with a bigger savings account.)

He’s the most popular YouTuber in the world, with over 360 million subscribers. And he’s from North Carolina, so you know he’s top shelf.

But when he was 15, Jimmy Donaldson (Shhhhh, that’s his real name) wanted to be a professional baseball player or a YouTuber.

Then, he was diagnosed with Crohn's disease, a chronic inflammatory disease of the digestive tract.

Despite being around 200 pounds and lifting weights daily, he lost 50 pounds.

And he decided that a baseball career was out. (He admits that skill may have also played a role.)

However, his family didn’t have many resources and had filed for bankruptcy in the last recession.

So his mom was insistent that he go to college or move out.

After publishing videos online since the age of 11 (with almost no views), things finally started to click at age 19.

Now, he’s reportedly a billionaire at age 26.

?? So what?

At any given moment, it’s hard to know what factors will lead us to our best future.

(Even when they seem pretty rough, like Crohn's disease.)

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?? How else can I help you?

• Climate CEO peer group: Capped at 100 people, representing $40B of value or assets under management. Don’t be so “lonely at the top.” No one understands CEOs like other CEOs. Find your tribe here. Join the waiting list today.
• Executive coaching with me: I serve as a private thought partner to a few CEOs, investors, or post-exit founders at a time. We cover business and personal opportunities for growth.
• Apply at our website: www.entrepreneursforimpact.com

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High fives and such,

Chris