The Seed: (#4) The 7 simple questions about 2023 to help you become a better leader in 2024

Insights and leadership lessons from the world of early-stage ClimateTech by 7 Generation Ventures

The World: The latest insights on today’s hot topics

?? #1: Climate tech investment continues but slows.

?? #2: From fundraising to hiring challenges, what keeps startups awake at night as we head into 2024?

?? #3: For the second year in a row, global banks made more money from green investments than they earned from financing oil, gas and coal activities.

The Wisdom: Today’s topics

? #1: Ask these 7 simple questions about 2023 to become a better leader in 2024.

?? #2: How to Build Strong Cofounder Relationships

?? #3: The Seed Podcast #3 Opportunities in the Circular Economy.

?? #4: Don’t miss - How to hook Impact Investors.

?? #5: Our Big read: Regeneration: Ending the Climate Crisis in One Generation?– Paul Hawken.

Struggling to talk about the impact you make? Download our latest guide! ??

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The World: The latest insights on today’s hot topics

#1:Climate tech investment continues, but slows - down 30% from 2022.

Compared to 2023, 2022 experienced a significant, 30%, decline in climate tech investments compared to 2022. This marks the first annual decline in both investment and deal count since 2020.

However, the overall venture market declined 39%, proving ClimateTech’s resilience as a sector that clearly retaining support amongst investors than the broader VC market. As we struggle to mitigate or adapt to climate change this is some reassurance.

Despite the overall decline, there was a notable peak in Q3, reaching $12.5 billion. This increase in Q3 was attributed to mega rounds, including those for companies like H2 Green Steel and Ascend Elements. Q3 continued to hold its position as the quarter with the highest funding.

We’re eagerly awaiting the end-of-year data and we’ll be hosting a live webinar later this month diving into the data in detail and highlighting what it means for Founders and Investors.

Key Takeaway for Founders: The entire venture marker remains subdued, however take heart in knowing that ClimateTech is faring better than the average.

Key Takeaway for Investors: The market remains subdued, but start ups still need funding against the backdrop of a strongly investor favoured market. Traction and runway remain important focus points.

Read the full article here.

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#2: From fundraising to hiring challenges, what keeps startups awake at night as we head into 2024?

What were the Top 5 issues from a recent Start Up - Investor forum that were keeping your fellow Founders up:

1. Challenging Funding Environment: Many startups, especially pre-revenue companies, are finding it increasingly difficult to secure funding. This issue is exacerbated by the current economic climate where venture groups and angel investors are showing a tendency to avoid high-risk projects.
2. Regulatory Hurdles: Startups are facing significant challenges in navigating the regulatory landscape, particularly in the development of new biologicals and alternative proteins. The regulatory path is described as onerous, antiquated, and time-consuming, creating a barrier to innovation and progress.
3. Political Uncertainty: The political and consumer climate, particularly concerning the adoption of new technologies, novel solutions, and additional costs to the price of living, poses a challenge. This environment creates misinformation and division, hampering the progress of startups trying to make structural changes to our economic systems.
4. Slow Progress and Execution in Technology Deployment: Startups are struggling with the slow pace of deploying their technologies. The challenge lies in not just developing technology but effectively executing and scaling production.
5. Need for Patient Capital: There is a scarcity of patient capital willing to invest in long-term transitions to climate-friendly solutions in food and agriculture. Startups are calling for more long-term investments similar to those that have historically supported major technological revolutions.

These challenges highlight the multifaceted difficulties facing sustainability startups as they navigate a complex and rapidly evolving industry landscape.

Key Takeaway for Founders: You’re not alone - every founder is facing challenges and finding it difficult right now to navigate the scepticism and inertia of adoption.

Key Takeaway for Investors: Staying power is powerful - changing sentiments take time and it’s the start ups who stay around to see their innovations adopted who will come out on top.

Read the full article here.

#3: For the second year in a row, global banks made more money from green investments than they earned from financing oil, gas and coal activities.

In 2023, major global banks earned more from green investments than fossil fuels for the second consecutive year, generating around $3 billion in fees from environmentally friendly deals. European banks, led by BNP Paribas, excelled in green finance, while Wall Street dominated fossil finance. Regulatory support in Europe contrasted with obstacles in the US, where some states hindered green investments to protect fossil fuel interests.

Despite positive trends, the finance industry falls short of Paris Agreement goals, with four times more capital needed for green projects by 2030. Concerns about greenwashing persist due to discrepancies in how banks define sustainability, lacking a standardised methodology.

Major banks set 2030 sustainable finance targets, but challenges in uniform definitions and regulatory guidance remain. The positive trend in green investments signals a potential shift in capital allocation towards climate-friendly ventures, aiming for reduced funding for fossil fuel investments.

Read the full article here.

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The Wisdom: Leadership Lessons from 7 Generation Ventures

Ask these 7 simple questions about 2023 to become a better leader in 2024.

To answer how we can be a great leader in the year ahead requires us to ask great questions about how we have led in the last year.

As Voltaire said, “judge a man by his questions, not his answers”

And it’s the same with leadership - so what are the questions we ought to ask ourselves about how we led ourselves and others over the last year.

Well, here are 7 to help you break it down:

1. Where am I struggling the most?
2. What do I want to let go of as I step forward into a new year?
3. What areas of my life do I want to improve the most?
4. What's more important to me now than it was a year ago?
5. Whose lives did I positively impact over this past year?
6. What are the things that are most life-giving for me in life right now?
7. What's working really well in my life right now?

How to Build Strong Cofounder Relationships

Brian Chesky, the CEO of Airbnb, emphasises the importance of maintaining co-founder relationships. A key rule among Airbnb cofounders is that preserving the relationship is more important than winning an argument. This mindset is crucial for handling the numerous debates that arise in a startup.

Chesky compares nurturing these relationships to regular exercise, stressing the need for consistent effort. He and his co-founders committed to weekly meetings since 2009 to maintain their bond. Constant contact, connection, and respect are vital for a successful partnership, along with humility, gratitude, and a team-oriented mindset where individual victories are less important than collective success.

Watch Chesky example the concept here .

The Seed Podcast: #3 Opportunities in the Circular Economy

In this episode, environmentalist and investor, Julia, opens up about her investing journey in the field of climate tech and sustainability.

As the founder of 'We Have The Power', an organisation that invests in solutions and startups tackling single-use waste, Julia discusses her mission and the challenge of catalysing practical action towards a sustainable circular economy.

The episode dives into the accomplishments, potential, and challenges faced by various circular economy startups that Julia supports, including Dizzy, Revolution Zero, and Clean Bus. Julia also highlights her vision for focusing on reuse over recycling, advocates for changes in consumer habits, corporate behaviour and government legislation, and shares her unique insights on striking a balance between investment appeal and socio-environmental impact.

Click here to listen to subscribe to our podcast and listen to previous episodes.

Founder Resource: How this one vulnerable act holds the key to leadership greatness

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Our big read: Regeneration: Ending the Climate Crisis in One Generationn - Paul Hawken.

"Regeneration" by Paul Hawken presents a groundbreaking perspective and practical strategy for addressing climate change. A distinguished environmentalist and the mind behind Drawdown, Hawken shifts the discourse by emphasizing the immediate importance of addressing current human needs as the key to resolving the climate crisis, challenging the conventional focus on future threats.

In "Regeneration," Hawken not only reframes the narrative but also reengages people in the dialogue, showcasing a comprehensive array of actionable solutions spanning land, oceans, food, and industries. The proposed measures, rooted in science, encompass a diverse range from solar power, electric vehicles, and tree planting to bioregions, azolla fern, and forest farms. These solutions offer a tangible and precise course of action to collectively reverse the planet's overheating and degradation.

"Regeneration" serves as a compelling call to action, urging individuals, communities, and national governments to mobilize for a better future on Earth. Whether you're focused on personal efforts, community initiatives, or national policies, this book inspires and guides toward a sustainable path forward.

Purchase Here

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Jake Wombwell-Povey, Founder @ 7 Generation Ventures

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