Is your Climate tech start-up investment worthy?

With investment surpassing even fintech and all other sectors, Europe's climate tech sector is booming. The first quarter of 2024 saw climate tech companies raising as much as €3.7bn. This comes as no surprise to us at Hyperion Executive Search though as we are right at the forefront of the sector, working with many innovative start-ups and their investors, helping them to hire exceptional talent at the senior leadership, CxO and Board level. In fact, our CEO David Hunt is currently rubbing shoulders with many climate tech founders and VC's in sunny Bilbao at this years Energy Tech Summit hosted by our friends at Contrarian Ventures.

Despite this continued growth in investment, for the last few months at least, it's clear that VCs are hungry for much more. There's almost an extra layer of due diligence in where they are looking to inject their capital and it seems many VC's want to see more than just a flicker of innovation. They want ground-breaking ideas and breakthrough solutions that will revolutionize and break down the barriers to sustainability. 

This article from Sifted caught my eye at highlighting the key areas climate tech investors are eager to see. Here's my summary below:

Investors are calling for a radical shift in data centers - a complete detox from their energy-guzzling status quo. They're looking for solutions that reduce energy demand and carbon emissions whilst revolutionising cooling systems altogether. 

As we know, the future of clean energy depends on critical metals, but sourcing them sustainably, especially in resource-limited regions, is a major challenge. Investors are waiting for the next big idea to bridge this critical gap.

Renewable energy solutions are in high demand. This was evident during my trip to the Everything Electric show a couple of weeks ago in London. Consumers were hungry for the latest green solutions to reduce their energy bills but affordability remains a cold slap in the face for many of them. Investors are keen to see financial models that make things like heat pumps, solar panels, battery storage and EV charging solutions accessible to everyone, not just the privileged few. If you know of any do let me know as I'm in the market for a battery and some solar myself!

There's then then need to progress from simply reporting on climate impact to executing and taking action. Investors are looking for start-ups that can bridge the gap between carbon accounting and real-world industrial change, the kind of entrepreneurs who can turn sustainability reports into tangible results.

We also see first hand the strain the grid is facing under the weight of an electrified future and the frustrations of many operators who are unable to connect their renewable assets to the grid as quickly as they would like to. Investors are calling for solutions to this gridlock, whether it's smarter data management, innovative capacity sharing solutions or ways to make grid connections happen faster - investors want to hear from you. 

Really interesting insights from the VC community and all in all, good news that investments are still pouring into our sector. Do you have the groundbreaking solution that will catch the eye of VCs and become the next big thing in sustainability?

At Hyperion Executive Search, we are plugged into the VC Community, supporting numerous Climate tech investors to help scale up their portfolio companies. If you need support building or shaking up the executive teams of your future unicorns, get in touch with myself and my colleagues at Hyperion to learn more about our experience and how we can support your investments.