An interview with Ben Lindsay from early-stage VC "Investible"

Interview with Ben Lindsay from Investible

Hi Climate Community

Today I have the privilege to talk with Ben Lindsay from the Asia Pacific-based early-stage VC Investible . Since its inception, the Investible team has partnered with the founders of more than 130 companies in Australia, Southeast Asia and around the world.

Investible partner at pre-seed, seed and beyond with a relentless focus on supporting founders to shorten the timeframe between its initial investment and the next funding round or milestone.

Fritz:

Hi Ben! Welcome to the Climate Venturing Newsletter. ?We fundamentally believe that both intelligent, patient capital together with smart corporate venturing can help accelerate the world's climate investments and lead the climate agenda.

We hope to tap into your incredible experience and knowledge of early-stage climate tech and the solutions humanity should bet on to get us back on track.

Ben:

Thank you for having me Fritz. I’ve grown to love how engaged you are on LinkedIn and the large amount of knowledge you share!

Fritz:

So, over in New Zealand, we are busy cleaning up the mess of Cyclone Gabrielle. As a nation, we are thinking of ways we can accelerate adaptation and mitigation to climate change but also support the next generation of climate founders.

I understand that the Investible Climate Tech Fund is an early-stage venture capital fund investing in founders who are creating high-growth technology enabled companies with a positive climate impact.

Tell us a bit more about the Climate Tech Fund - which technologies, start-ups, or solutions are you most excited about? Where are you placing your bets?

Ben:

Climate change is the biggest challenge of our time. It represents one of the most significant opportunities for entrepreneurs, engineers and whoever wants to roll up their sleeves.

The challenge of climate change transcends any specific sector. The Investible Climate Tech Fund invests in a diverse range of companies across six key sectors identified by the UN Environment Programme as the most critical in supporting the transition to a low-carbon, more resilient future: energy, buildings and cities, food and agriculture, transport, industry, and land and forest use.

We’ve already invested in a diverse group of businesses, from four different countries. The first 11 companies in our portfolio include agtech, lithium processing, aquaculture, biodiversity and a couple of groundbreaking transport companies tackling sea and air, respectively.

However, while I fall in love with anything new, I have a knack for liking unsexy, regularly unloved and often overlooked startups despite playing critical roles in their respective industries. I’ve seen some phenomenal ideas that focus on decarbonising and reducing the impact of the fashion supply chain – waterless dyeing technology, cotton recycling and more.

Fritz:

How do you see the role of corporate venture capital funds (CVCs) in accelerating the climate investments we need? Do you co-invest with CVCs?

Ben:

Any founder should consider what their investor brings outside of the capital. For Investible, we have a portfolio management team, a Club of highly engaged investors and advisors, and our affiliation with Greenhouse, a blossoming global climate action community.

In the case of CVCs, the founder should ask, what else comes with the capital? CVCs can be brilliant door openers, resource providers and much more. They may provide the competitive edge you need.

Investible is always happy to co-invest with a CVC; however, simply, it has to make sense for the startup.

Fritz:

What does it take for a VC firm to become the top choice for climate tech entrepreneurs?

Ben:

This is quite topical thanks to the release of The State of Australian Startup Funding by Cut Through Venture and Folklore Ventures. From the founder's perspective, the top value is that the investor should have an alignment of vision and purpose. Secondly, access to relevant networks, and thirdly, the ability to follow on in future rounds.

The climate alignment needs to be there – we often have founders with a non-climate-focused lead investor who desperately want us to participate so they have a climate tech investor. In addition, our networks and our allocation of up to 50% of our funds for follow-on investments show our further support.

There’s been a ton of work behind the scenes, and for the past three years, getting our Climate Tech Fund up and running. We’re also a signatory to the Net Zero Asset Managers Initiative, and are working on ways to help our entire portfolio — not just the climate tech fund — track and reduce their emissions.

Fritz:

Greenhouse, an Investible initiative, aims to connect founders to the climate tech ecosystem. Tell us more about Greenhouse’s mission and which global ecosystems or hubs are you most excited about.

Ben:

Greenhouse is a climate action ecosystem for climate tech researchers, entrepreneurs, governments, corporates, not-for-profits, community organisations, and society to connect, collaborate, and co-innovate for climate action. It’s a global community with a Tech Hub opening in Sydney this year.

The ecosystem draws upon Investible’s roots in running programs for startups, matching visionaries with corporations and creating the space for the type of collaboration needed to combat climate change. It’s going to be fun to be in the middle of the broader tech ecosystem rallying around climate tech when the Hub launches.

The project is led by Investible co-founder Creel Price, but is a separate organisation from our core investment business. That said, there are countless synergies our teams have already found.

Fritz:

A new report has concluded that 24 of the world’s richest companies are hiding climate inaction behind a veil of greenwashing. Do you think that the climate targets are too ambitious, or does short-term thinking creep in, like chasing quarterly earnings?

Ben:

I haven’t seen that report yet (please send it!), but it is no surprise. The reality is the difficulty of the targets is dependent on the industry. Heavy industry, bulk transport and others will all struggle a little more; however, there are brilliant founders committed to developing businesses that insert directly in place of current solutions.

I can’t really talk about the mindset. Still, we know the consumer demand is there, and the expectations from business partners are shifting (or has shifted). Greenwashing leads to a negative impact on brands, so focusing on the short-term is going to have dire consequences for them.

Fritz:

Can you tell us more about your professional journey and how you ended up getting to write large cheques to help companies solve climate change?

Ben:

I came from biomedical and mechanical engineering. I invented a medical device for treating medial tibial stress syndrome, a common injury in runners. I took it through a clinical trial and partnered with distributors here in Australia. That company is still running (pun intended) with me as a minimally-operational director.

After managing an accelerator, INCUBATE, at the University of Sydney, for a couple of years, I looked to venture capital to seek out my own challenge. Climate tech is a no-brainer for me because I love hardware and software. I am climate conscious with most of my decisions and want to leave my thumbprints on something that improves the world.

Fritz:

So, what does a day in your life look like?

Ben:

I wake up early and always exercise, whether a run or a gym session. I get into the office around 7:30-8am, where I warm up with some easy tasks before kicking off the day.

Day-to-day is challenging as venture capital is so uncertain and changes so rapidly. But, I work across deal origination, lead due diligence, and take investment opportunities to our investment committee every two weeks. I also work alongside the investment directors on the legal and transaction.

Fritz:

Lastly, what books are you reading or podcasts do you follow at the moment that inspires you and fuels your interest in climate tech?

Ben:

My two favourite climate podcasts are Catalyst with Shayle Kann and My Climate Journey. I highly recommend the usual suspects for books, including Bill Gates’ How to Avoid a Climate Disaster. However, the book that inspired me the most is Boyd, a biography of John Boyd, who may be the most remarkable unknown person in American military history. He did so much in one life and stood up for his beliefs at all costs, and while there is a sad end to his life, it is a reminder of how much one can achieve.

Fritz:

Well, it was awesome talking to you Ben! Thanks for taking the time. We look forward to seeing your investments flourish.

To the readers, feel free to leave your comments. If you are a founder with a brilliant climate tech start-up or idea, reach out to Ben at Investible .

Till next time,

Cheers, Fritz