VC Sunday School: startup investing in a down market + Emily Kirsch of Powerhouse Ventures | E1373

Jan 30, 2022

This week’s guest is Emily Kirsch, Managing Partner at Powerhouse Ventures, a firm dedicated to climate tech solutions. The discussion delves into how a down market creates unique opportunities for venture capitalists and the necessity for startups to maintain a runway of 18 months. Emily highlights the impact of regulations on climate investing and how financial tools revolutionized the solar market. They also explore the collaborative landscape among climate tech investors and the challenges faced by founders in this evolving sector.

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ADVICE

Startup Focus in Down Market

Focus on building a great product and team, even in a down market.
These factors are less susceptible to market fluctuations than customer acquisition.

INSIGHT

VC Funding in Down Markets

Venture capitalists raise funds from experienced investors who understand market cycles.
Fortunes are made during down markets, so funding for established firms doesn't significantly decrease.

ADVICE

Due Diligence in Down Markets

In a down market, investors become more cautious and seek more traction from companies.
Diligence becomes more thorough as founders are more willing to comply.

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Jason says, "fortunes are made in the down market and collected in the up market." In today's VC Sunday School Jason and Molly discuss how a down market impacts early-stage investors (01:45). You will learn:

1. Risks to VC fundraising when valuations are down

2. If your investing process should vary depending on market conditions

3. How a down market impacts future returns

4. Why founders should have 18 months of runway

5. How founders can turn a down market into an advantage

Then, Molly chats with Emily Kirsch, Managing Partner of Powerhouse Ventures for a This Week in Climate Startups segment (25:53). Emily is a climate investor and they discuss:

1. Why Powerhouse is focused on software

2. Climate change's potential impact on GDP

3. How financial tools enabled the solar revolution

4. Regulations impacting climate investing

5. How different climate tech investors work together

6. The imbalance between climate tech founders and companies

(00:00) Molly and Jason intro the show
(01:45) VC Sunday School: how a down market impacts the early-stage
(05:45) Risks to VC fundraising when valuations are down
(09:37) Should investors standards change depending on market conditions?
(12:24) Bubble. Get one month free of a no-code plan at https://bubble.io/twist
(13:53) How a down market impacts future returns
(18:55) Why founders should have 18 months of runway
(21:21) How founders can turn a down market into an advantage
(23:46) Jason and Molly intro Emily Kirsch
(24:34) Coda - The all-in-one doc for teams, get a $1,000 credit at https://coda.io/twist
(25:53) Emily Kirsch Managing Partner of Powerhouse Ventures
(29:11) Why Powerhouse is focused on software
(34:31) Fellow - Sign up and get $1000 in credits at https://fellow.app/twist
(36:16) Climate change's potential impact on GDP
(37:50) How financial tools enabled the solar revolution
(39:58) Regulations impacting climate investing
(44:17) How different climate tech investors work together
(55:24) The imbalance between climate tech founders and companies

Check out Powerhouse: https://www.powerhouse.fund/ventures

FOLLOW Emily: https://twitter.com/emilykirsch
FOLLOW Jason: https://linktr.ee/calacanis
FOLLOW Molly: https://twitter.com/mollywood