#180 Tough Tech, Scaling DeepTech, MIT's Ecosystem, Political Durability of IRA, & More w/ Michael Kearney (Engine Ventures)
May 21, 2024
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Michael Kearney discusses the political durability of the IRA and tough tech startups. He emphasizes scaling deep tech innovations and commercializing technology. The podcast explores the changing nature of competition in clean energy markets and the economic impact of low-cost energy on industries.
Political durability of the IRA is defended by Michael Kearney, stressing its significance in the podcast discussion.
Building for deeptech founders is compared to folding a fitted sheet - hard and challenging, requiring dedicated support.
The shift in market dynamics from clean energy demand to supply constraints alters negotiations and provides leverage to innovators.
Deep dives
Impact of Energy Abundance on Geopolitics and Economics
The podcast highlights how the availability of low-cost energy could reshape the world geographically and economically. It emphasizes that as energy becomes more affordable, it may redefine economic viability, impacting industries like manufacturing and mining in diverse geographic locations.
Absence of MVP in Tough Tech Startups
In discussing tough tech startups, the podcast dismisses the concept of Minimum Viable Products (MVPs), especially in areas like clean energy. It emphasizes that buyers, especially in critical sectors like utilities, demand assured reliability from day one, making the traditional MVP approach unsuitable for the sector.
Changing Dynamics of Market Competitiveness
The podcast sheds light on the shift in market dynamics, moving from a clean energy demand-constrained world to one that is now supply-constrained. It elucidates how this shift impacts negotiations, giving innovators in various sectors leverage due to the sudden surge in demand for cleaner energy solutions.
Influence of Economic Viability on Talent Recruitment
The conversation brings attention to the importance of economic attractiveness in engaging top talent from established industries into startups. It points out that a shift in economic viability draws highly skilled professionals to innovative ventures, creating a fluid labor market and fostering a favorable startup ecosystem.
Reframing Clean Tech Evolution: From Market Demand to Scaling Opportunities
The podcast underscores the need to reframe the evolution of clean tech, urging a shift from comparing Clean Tech 1.0 to Clean Tech 2.0. It stresses that the current landscape, defined by market maturity and viability, focuses on operational execution and scaling strategies rather than proving market demand.
AI-Driven Energy Demand Generation
An intriguing insight elucidated in the episode is the correlation between AI advancements and increased energy demands. As AI technologies expand, their appetite for power escalates, creating an indirect demand for energy solutions to cater to AI-driven needs, thereby fostering innovation and growth opportunities for energy entrepreneurs.
Michael Kearney started off this podcast defending the political durability of the IRA…and he had us convinced. If that doesn’t have you hooked, I don’t know what will!
Building for deeptech founders is HARD…like folding a fitted sheet hard.
And that’s why we need someone like Mike to do it. Mike himself did his undergrad and Ph.D. at MIT, so he’s knows the MIT innovation ecosystem like the back of his hand (The Engine is an MIT spin-out). In between, he spent his time drawing power from the Sun…well not literally…he worked on grid-scale renewable energy at Ambri in corporate development.
Now, he’s focused solely on supporting “Tough Tech” founders (side note, that’s definitely a favorite term of this podcast now).
Mike clearly loves doing really easy things…right? --- 🌎 Want the full PodLetter? Go to our substack to see the written content that supplements the audio interview. ---
----- Topics: **02:29 Introduction **03:50 Political Durability of the IRA **07:46 Supporting Tough Tech Startups **16:06 Scaling from Early-Stage Innovation to Large-Scale Deployment **26:30 Building in the Field **28:35 The Investment Model of Engine Ventures **30:41 Commercializing Technology **36:46 The Changing Nature of Competition in Clean Energy **45:20 Room for Innovation **51:36 Takeaways
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