businesses. Additionally, it is more challenging for climate tech startups and scaleups to raise a Series A investment because they often do not fit into the classic venture business model: their deep tech nature makes them higher risk with longer time to market; and their impact tech nature places a lower focus on profit and higher focus on environmental impact. On top of this, climate tech startups and scaleups face unique challenges which are symptomatic of the ecosystem. Supply chain constraints are becoming increasingly challenging post-covid. Bringing innovative climate tech solutions to market often requires access to specialist materials. These vary from seaweed and algae to hydrogen and microprocessors. Removing access to one of these components can halt production completely. This dramatically hampers development of the product and growth of the business. To ensure future growth, an open dialogue is needed between climate tech startups and scaleups, investors, government, and corporations - ensuring all parties are aligned on the mechanisms to achieve scaling success, will ultimately enable collective action to curb the climate crisis.
Climate Tech Report Template Page 58 Page 60