Scaling sUStainability in the USA

Findings of a week full of inspiration and lessons learned how to scale in the US: ScaleNL

We have had sessions in New York City with other founders who successfully scaled to the US, venture capitalists, plus a series of meetings with American experts in the fields of marketing, PR, fiscal, law, climate tech. A rich mix of entrepreneurs, professionals and academics. E.g we were warmly welcomed by Cornell (Bloomberg’s) Innovation Center and in Boston Area. The final days we were guest of the Netherlands Innovation Network in Boston with a series of events at Cambridge Innovation Center. Just finished a topnotch event Venture Café with pitches of our startups in front of around 300 people.

So time to reflect on my mission (on a personal note):

How to frame Dutch sustainability potential in the US?

Let me do it in US typical sandwiched/hamburger feedback approach (that means start with something positive as a soft introduction, then hammer your negative in and end with something positive again to smooth things up):

ON TOP OF THE HAMBURGER SOMETHING CHEESY POSITIVE

You have to be positive considering the interest all startups got from all parties. The majority of them have a SDG, sustainable angle ranging from health, empowering locals, climatech, energy efficiency and waste prevention. There were specifically VC’s with an impact focus interested, investors from state/city who worry about major topics like a healthy living environment or accelerator programs focusing on a just energy transition. Did you know that the NY state has a specific program pushing and funding innovation and focusing on a just energy transition. Thus the budget is coming from taxing on energy bills? NYSERDA is way bolder than I have seen in the Netherlands.

The Inflation Reduction Act is one of the most obvious positives of US administration: A down payment on deficit reduction to fight inflation (talking about how to frame sustainability in the US!), invest in domestic energy production and manufacturing, and reduce carbon emissions by roughly 40 percent by 2030. USD 369 bn available for Energy Security and Climate Change and another 69 bn for Affordable Care Act Extension. For getting the tax benefits establishing a business in the US with local production is needed then one of the 1000 lawyers we spoke pointed that out.

Also local laws are supporting energy efficiency of the built environment. local law 97 for instance we got from the pitch of Alexander from IBIS Power: Sustainable crown on your roof top combing efficiently solar and wind flow. You could literally see the potential during the NYC and Boston meetings in the views we had on the roof tops. Other topics like offshore windmills, carbon capture took interest. Especially, if you could frame this on the polluters in their decarbonization paths. Makes them not having to change too much. Wishful thinking of them??Once sustainability has a clear business case and we can all go ahead doing what we are good at: Why not!

Talent argument also resonates. Especially new talent is looking for purpose in a company.

And it’s not only about climate. Accessibility to good health is a no brainer topic for the US with the expensive health costs/ insurance for all people in employment.

IN THE MIDDLE: THE FAT JUICY MEATY HAMBURGER (FOR ME NEGATIVE)

I have to be Dutch straight forward on this. Sustainability in the US? Hmmm. At the end it’s all about ‘Money, money, money’.

The cliché is true, it’s US culture, hardly uncomfortable with this at all. Most discussions were about valuation, series A, B, C even when you talk to experienced entrepreneurs ‘his purpose, vision’ did not trigger curiosity. It was about how he got funding… Even with SVB dynamics this week we still seemed to be in the money machine modus.

Some quotes that illustrate this sentiment.

‘Ok, you have a sustainable alternative saving some costs, who cares.’

‘Co2 reduction? Talk about energy cost reduction.’

‘Prevention of deaths? Everybody dies.’

Discussions about sustainability triggered a quote pointed at me:

‘You might have a hard time getting work in the US as sustainability advisor??’

Of course this all depends on who you talk to, which pollical side, which nation etc. Brings me to:

___________________________

THE BOTTOM OF THE BURGER (THAT SHOULD BE THE BASE):

The way universities in the US see climate tech, sustainability challenges as core is hopeful. Whether you talk to Cornell, Cambridge, MIT. Also the entrepreneurial academic setting is promising – letting multi-skilled teams try it out, giving room to start without dominantly controlling (the IP/shares). Boston Area is aiming for Climatetech as the next big topic. We met a successful serial entrepreneur who moved from the UK to Boston just for this reason: ‘The next 10 to 20 years it will all happen in Boston’. Go big or go home mentality with billions available for sustainability challenge topics that is what we need right?

The crowd of 300+ at CIC ?Venture Café was a mix of VC’s, entrepreneurs, students and academics. They were blown away by the Dutch startup pitches! Boston seems the place to be for this. It feels like the right timing even with the SVB collapse and its contagious effects in mind. Being bootstrapped, efficient with capital is now a positive! No better time to scale and invest in sustainability challenges and our Dutch down to earth entrepreneurs.

The available US talent pool from lay-offs (we might have to wait 6 months garden leaves and sabbaticals we were advised) is a potential pool (with a low water level) for climate challenges. I remember from the last decade that lot’s of tech talent threw themselves on fintech. Don’t know why other than it had capital raising potential, but was it interesting an fulfilling? It worked for some but now I see a better opportunity for you all in these times: Use this wave in your careers to put all the available tech talent on climate and broader sustainability challenges. What about climate fintech? Take some inspiration from the startups of ScaleNL;) They are pathing the way. Tech can save the world. There is business potential. Let’s make the money machine working for all of us now. People, society and planet. Making business out of sUSainability. Focus on that.

The 10 eastcoast chosen onces;)

Read more about ScaleNL: a public-private?organization, initiated by the Dutch government (Ministry of Economic Affairs and Climate Policies/ Ministry of Foreign Affairs). a.o. Dutch consulates and their Startup Liaisons to help Dutch tech startups scale with focused?solutions making the?planet healther, safer, more accessible and sustainable. It consists of a rich community, academy, events, programs and accelerator.?

As an innovation and sustainability advisor I am involved in this year's accelerator to NYC and Boston of which we have the climax this week with numerous meetings and events in NYC and Boston. The program is more and more focusing on ESG/ Sustainability/ Climatetech?as we see its potential to create the biggest impact in the US and a good matching risk appetite.