Amin Toufani

A SAFE and convertible note had a baby and Wilson Sonsini Goodrich & Rosati was the midwife- out popped the D-SAFE! 👶🏽🎉 A new #climatetech funding instrument was announced by Elemental Excelerator last week. One of the company’s main goals is to support smaller, up and coming companies during the awkward “Scale Gap” phase between #VC funding and natural growth. It’s called the #DSAFE (Development Simple Agreement for Future Equity) and it aims to aid the process by giving companies a small amount of cash to overcome initial risks and expenses during the developmental stages of a product launch or company. How does it work? D-SAFE has a redemption clause meaning companies can choose to have their payments offered as a loan or convert to equity at the investor’s discretion. Funders and companies will have clear communication and expectations about where the money is going and how it will be applied to either the company or the projects at hand. Financiers and companies will work together with more #transparency, and that’s a great boon for #startups and VC alike. As of this month, Elemental has already invested using D-SAFE in eight different companies, including Dimensional Energy and Origen — both companies investing in innovative and out-of-the-box solutions to environmental issues! Seems like a win-win on the surface. What do you all think about the D-SAFE? Alfredo Coppola Momoka Ueda Tim Wagner Stephen D. Torres Olya Irzak Natsuho Toyama Noriya Tarutani Shin Ogawa

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Fantastic event (and ecosystem) that Patrick Meier, PhD and his team at the Climate Robotics Network are creating. Highly recommend you check out the Climate Robotics Summit, done in partnership with EPFL, SOSV, Cybernetix Ventures, ETH Zürich, and Worcester Polytechnic Institute. I just had the pleasure of moderating a panel just now on investing in climate robotics, alongside Urvi Nagrani, Malini Samtani, Sashi Jayatileke and Fady Saad. Here are some of the key insights: 1) Applications for robotics to climate challenges (adaptation AND mitigation) are enormous: support to farmers as conditions for humans become too hot to farm for long hours, drones that help capture data on forests and wildlife, supporting with installation of maintenance in large solar fields, wind turbines, circular economy applications - e.g. de-manufacturing - to just name a few. 2) Investing in robotics is simply different - it doesn't fit the standard SAAS VC strategies, often having a lot of engineering input and require non-dilutive funding upfront - e.g. similar barriers to investing in hardware writ large. Thus, it sits in a bit of its own asset class, so investors and entrepreneurs alike need to understand how these solutions behave, esp. in the early-stages of building/testing. That said, there is a growing pool of funds that have been specializing in this area. 3) So how do we move robotics solutions up the TRL ladder faster? It can take a LONG time for any robotics solution to be truly market ready. Even when there is theoretical product-market fit doesn't mean that it's ready in investors' eyes. Lots of testing as well as setting proper expectations with customers is critical, and part of this long process. Non-dilutive funding is rare to find in most countries, but in the US in particular there is a growing pool of grant funding that can help. 4) Development finance institutions and donors have a critical role here, especially in vulnerable countries/communities: Robotics could have bit impact in supporting climate solutions in vulnerable communities, but we need to ensure that there is an enabling environment for these solutions, which means that the policy, academic, and traditional finance space (e.g. local commercial banks)

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Was in a TechCabal article written by Hannatu-Favour Asheolge about a novel ClimateTech project, where I shared about the challenges in funding ClimateTech. Here’s an excerpt: “ClimateTech startups need more capital — about four to five times more than FinTechs, for example — which is more than most early-stage VCs provide. Private equity firms also tend to stay away, as they generally prefer to invest in cash flow-positive businesses.” Pretty interesting piece, give it a read here!

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Over the years, we at GFR Fund have solidified our investment thesis, which is that we invest in "emerging digitally native communities." These communities can be built around games, social media, and any consumer applications. Now, founders have many easy-to-use tools to build user communities, such as Discord, X/twitter, Instagram, etc, and we believe the founders should start building communities even before they launch a product. The communities can help founders: - reach PMF faster - acquire users cheaper - retain and engage users longer - build better UX/UI, and - hire early employees Below, you can see how RTFKT and Omeda Studios built the community and then worked with them to create a product the users really wanted. We would love to talk to the founders who think the community is essential in building a product!

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Is something changing in climate tech in Africa? 👇 ⚡ Historically, over the past 5+ years, Energy (mainly solar energy) has always been the main sub-sector within climate tech startups funding in Africa. Think companies like Sun King, Bboxx, d.light. These typically represented 60%-75% of all the climate tech funding any given year. However, since the beginning of the year, this ratio has dropped to around 40% on the back of other climate tech sub-sectors growing: 🌾 Agriculture: large deals this year included Apollo Agriculture, Complete Farmer, Tomato Jos 🛵 Mobility: with deals this year like Roam, BasiGo or Dodai 📲 Fintech: a good example here is the recent PULA deal Definitely an encouraging trend we are closing following at Catalyst Fund with already 19 deals (...and I hear a 20th one could be announced very shortly 😉) in Africa across no less than 9 different sub-sectors within Climate Tech! ...and we want to back even more startups in this critical sector, so don't hesitate to drop me an email with your pitch deck: maxime@thecatalystfund.com 📧

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What do you think about having an AI judge review startups along with human judges in the inaugural ClimaTech Great Global Innovation Challenge? We have posted information on how we are doing this, including the AI prompt, and you can share feedback through the form on this page: https://lnkd.in/ezVnvGiG While AI will play a role, our human judges will make the final decisions, ensuring a balanced and fair evaluation process. We're committed to learning from this experience and sharing our insights. Please reach out to me if you are interested in helping with the competition in any way. Research has demonstrated that "Data-driven initiatives have been shown to help VC firms reduce gender bias and make better, fairer investment decisions" (https://lnkd.in/ecfqqgj3). Additionally, "Machine learning models have already been proven to outperform human investors in deal screening" (https://lnkd.in/exicBiTR), helping to identify high-potential startups more effectively. By incorporating AI into our evaluation process, we aim to support an objective selection of startups. As a reminder, applications are due on May 26th. Daniela G., MIT Climate and Energy Prize, #Innovation #AI #Startups #ClimateTech #GlobalChallenge #TechForGood #Sustainability #Climatechlive #MITCEP #MIT #AIJudge #Pitch

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🤖 Have you ever heard of an #AIJudge at a pitch competition? We're excited to announce that the inaugural ClimaTech Great Global Innovation Challenge will feature an AI judge alongside our incredible panel of human judges. Learn more about our approach and provide your feedback here: https://lnkd.in/ezVnvGiG While AI will assist 🤖, our human judges will make the final calls, ensuring a fair ⚖️ and balanced evaluation. We're interested to learn from this and share our insights 💡. Research shows that data-driven methods help reduce gender bias and make fairer investment decisions 📊 (https://lnkd.in/ecfqqgj3), and machine learning models can outperform human investors in deal screening 🤖 (https://lnkd.in/exicBiTR). By leveraging AI 🤖, we aim to objectively identify high-potential startups. Reminder: Applications are due May 26th. 📅

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I have a unique list of places to visit, ranging from natural landscapes to tech centers and research facilities. One place at the top of my list was the Sirius synchrotron light source in Campinas, Brazil, the second brightest in the world. I recommend you read this recent piece (https://lnkd.in/dcfucTcr) about Sirius, on how AI turbocharges the particle accelerator and green hydrogen in the capital of science. Reading the piece about Campinas, a city 100 km from São Paulo, reminded me of its remarkable tech-oriented and science-dense economy. Home to one of Brazil's top universities and numerous deep-tech companies with global ambitions, Campinas offers a unique blend of globally-minded tech entrepreneurship and world-class science. Big science projects like Sirius are essential for advancing knowledge and driving innovation. At the GFCC | The Global Federation of Competitiveness Councils, we highlighted this in the "Leveraging Extreme Innovation" report (https://bit.ly/3Wes9a5), analyzing 17 transformational tech projects worldwide, including Sirius. These projects push the boundaries of science, technology, and business, leading to market innovations. Sirius is part of the Brazilian Center for Research in Energy and Materials (CNPEM), a major science infrastructure with global relevance. Notably, CNPEM operates as a private non-profit, showcasing the importance of institutional innovation. Innovation in institutions is crucial for emerging nations, especially in Latin America. Hugo Resende, a favorite author of mine on LinkedIn, shares valuable insights on innovation. We agree on three key points (right, Hugo?) innovation is poorly understood in Brazil, it's primarily about business and the economy, not just science and technology, and Brazil needs to improve its business environment and modernize its institutions to foster innovation. Even operating under the Brazilian business environment and institutional constraints, CNPEM’s innovative model provides a template for what is possible to do in the country regarding science and technology, and even innovation. But real change will only happen when Brazil trains and empowers a globally-minded generation of Brazilians at scale. Universidade Estadual de Campinas (Unicamp), a key player in training talent, has produced companies like the Nasdaq-listed CI&T showcasing successful examples of research-industry partnerships. Interestingly, CNPEM harbors ILUM (https://ilum.cnpem.br/), a highly innovative, project-based higher education program. Federal universities in Brazil need reinvention, and ILUM's innovative setup could serve as an inspiration. It reminds me of what my friend João Jornada achieved during his tenure at Inmetro, combining cutting-edge research with education, creating the opportunity for students to work with cutting-edge science tools, in globally relevant projects. Any thoughts BR colleagues? If you are not Brazilian: to these points resonate with your reality? Comments?

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AI may just be the hail mary that our planet (and #climatetech) needs, despite its relentless demand for compute (and energy). I shared this with Yuliya Chernova in her recent The Wall Street Journal article about the ebbs and flows of investing in climate tech. The decarbonization of everything is a bigger opportunity than the digitization of everything, yet we have to be smart about what is fundable by traditional venture vs new players with longer time frames and LPs with different goals. At Climactic, we are traditional VCs focused on decarbonizing corporations with a software-first model, but our DD and financial expectations are quite similar to what Raj Kapoor and I experienced at our prior venture firms, Mayfield and Freestyle. We are mindful about preparing and funding for longer time frames between rounds for climate tech companies given the newness of the sector and slower adoption rates. In the end we are primarily funding efficiency: energy, supply chain, manufacturing so that we use fewer resources to make the products we use in our every day lives. Everybody wins! For those shut out by the WSJ paywall, my quotes are here: "Josh Felser, co-founder and managing partner at climate-focused venture firm Climactic, said he is spending more time on software startups that apply artificial intelligence to climate, such as in energy management, complex climate and weather forecasting, and supply-chain utilization. “That sector is both highly impactful and has the potential to achieve fundable metrics [in] 18 to 24 months,” Felser said. That timeline would allow companies to raise Series A rounds, he said. “We have said no to deals that we think will struggle to prove enough to merit a Series A,” Felser said." https://lnkd.in/dsypcfuW

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This is a good and important read on #FOAK projects and the ClimateTech Valley of Death, with good insight from some very sharp investors. One often overlooks aspect of this challenge is WHO will build these early commercial projects that are smaller and don't often appeal to top tier EPCs. Developing and building these projects will be a critical, often binary factor in the outcomes. https://lnkd.in/gbedmkmt

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NM Entrepreneurs—Thinking of joining an accelerator? Here's good insight from The Wharton School: "Accelerators that include more training activities, like pitching competitions, advice specific to certain industries, and structured learning sessions, tend to improve startup business success rates after they finish the accelerator. A few in-state accelerators exist for all types of businesses (not just high-growth tech). Choose wisely, AND make sure you are willing to do the work. #NMstartups #NMInno https://lnkd.in/gMMSYVRW

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On May 2, 2024 REFASHIOND Ventures: The Industrial Transformation Fund convened people from around the world for Supply Chain & Industrial Transformation: The Next Generation (Silicon Valley 2024) at the JP Morgan Chase Palo Alto Technology Center in Palo Alto, CA. In this showcase Constanza Gomez demonstrates how Sortile enables the sorting of post-consumer waste textiles and apparel using near infrared spectroscopy. Sortile is a startup in our portfolio at REFASHIOND Ventures: The Industrial Transformation Fund. Our Thesis: REFASHIOND Ventures: The Industrial Transformation Fund invests in early stage startups refashioning legacy industries through Data & AI, Advanced Materials, Advanced Manufacturing, & Next Generation Supply Chains; Defensible through economic moats. More in the video below. #SCITSV2024 #SCITSV2024Showcase

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Hey all 👋, I finally got around to editing the PMF workshop (yes, please hype me up for just doing my job). Thanks again to #founders Mina A. Leonel Lacayo and Monica Vespe Lincoln for sharing their startups and building in public! Grab the video or sign up to be notified of the next workshop at the link in the comments. —— Want to a stress test your #startups Product-Market Fit? Get the free PMF workbook at the link in my profile and make sure your #marketing and #branding are minimum viable for your stage of growth.

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Prime Coalition has long taken a different tack to climate finance compared to its for-profit brethren. It makes the usual venture-style investments in startups through Azolla Ventures and also helps philanthropists direct their money to climate-related projects that it deems high impact. Trellis Climate follows the latter model with a focus on middle stages, where capital has grown scarce. #climatetech #climateVC #climatefinance

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Thanks for the interview Connie Loizos. More to come about investments yet to be announced and the founders who are working every day to build in these spaces. Excited to have shared the gamut across where we invest from Earth to TimberEye to Monaire. We're investing out of $440m under management across 3 funds and are thankful every day that we started this focused fund to partner with entrepreneurs who are ready to turn the last bastion of old world industries into tech sectors. The physical world is driven by huge industries that need to change...and not simply by completing work incrementally better or by fitting into existing buying cycles and budgets. Many of our companies are totally reinventing how products are made or services are delivered and their customers win. We want to see more of this in every sector including industrial, transportation, energy, defense, space, manufacturing to name a few. https://lnkd.in/e-TqpvFh

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Massachusetts in 2024 is home to the most climate tech startups per capita in the country. They thrive at institutions like MIT and Greentown Labs, turning big ideas into tangible solutions. But we struggle to keep them here. States from coast to coast are wooing away entrepreneurs and employers. These places facilitate demonstration programs, connect companies to trained workers, and provide access to real estate for manufacturing. The Mass Leads Act rebalances these incentives, directing capital investments and tax benefits that keep these innovators in Boston for the long term and encourages others to join them. #climatetech #climateVC #venturecapital

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“You can have a great product, but a compelling story puts the company in motion” - Ben Horowitz Understanding your company’s narrative is crucial when looking for investment. 🚀🚀🚀 Particularly in DeepTech where a good narrative makes complex ideas easy to grasp and compelling to hear. It involves more than throwing together some facts and figures; it’s about finding a message that resonates with your audience on a deeper level. It should never be a one-off effort. It should always be a continuous process of refinement through iteration, collaboration, and honest feedback. 🔁 What problem are you trying to solve? Have you asked your customers? Have you solicited honest feedback? In the end, it's about answering the all-important question… Why should they care? 🤘 #narrative #venturebuilder #deeptech Cambridge Future Tech

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📚 Holiday weekend reading: “Plurality.” This philosophical approach applies open technologies to foster diverse collaboration and coordination and solve our societal challenges. Technology can and will bring diverse viewpoints together with the transparent debates needed to come to coordinated solutions. These open technologies today encompass the powerful capabilities in our innovation systems today: open source #AI models, permissionless #blockchain, community #web3tokens, interoperable #metaverses, among the many public goods enabled by emerging technologies. Our social relationships provide the universal values and effective direction for such innovations to impact our world towards positive sum growth. “Plurality” is the central subject of a new book by Microsoft’s internal economist Glen Weyl and Taiwan’s former Minister of Digital Affairs Audrey Tang. That book collects ideas in a donation supported ebook.

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