Kim Zou and Sophie Purdom, co-founders of CTVC, discuss their journey in climate tech, the origins of CTVC, and the evolution of their market intelligence company. They delve into the current state of funding in climate tech, the role of project finance and infrastructure financing, and the challenges faced by climate tech companies in securing growth funding. They also highlight the importance of data-driven insights and the involvement of major banks in financing climate projects.
CTVC evolved from a newsletter to a market intelligence platform tracking climate tech deals and investors.
Different stages of the climate tech capital stack require specific types of funding and involve corporates as potential acquirers.
Philanthropy and public funding play a crucial role in supporting early-stage climate tech projects and unlocking private capital.
Deep dives
Building CTVC and the Market Intelligence Platform
Kim and Sophie discuss the evolution of CTVC from a newsletter to a market intelligence platform. Through conversations with CTVC readers, they realized the need for insights on which areas of the climate transition to invest in and when. They have been tracking all deals, companies, and investors in the climate tech space for the past four years. They are now expanding beyond venture funding and tracking the commercialization of technologies and projects. They highlight the importance of government funding and philanthropic capital at the early stage of the capital stack.
Mapping the Capital Stack
The podcast discusses the different stages of the capital stack in the climate tech industry. They outline the stages as lab, pilot, demonstration, first commercial, and nth commercial. They note that at each stage, different types of funding are required, from angel and catalytic capital to venture rounds and project finance. They also highlight the role of corporates in funding and strategic development, as well as their potential as acquirers of climate tech companies.
Role of Philanthropy and Public Funding
The podcast emphasizes the importance of philanthropy and public funding in supporting early-stage climate tech projects. It mentions organizations like Prime Coalition and Breakthrough Catalyst that provide first loss and catalytic capital to high-risk ventures. It also highlights the Department of Energy and its various programs for funding clean energy demonstrations and commercial projects. The discussion recognizes the significant impact government funding can have in unlocking private capital for climate tech innovations.
The Climate Tech Capital Stack: A Broader Perspective on Funding Climate Transition
The podcast explores the evolution of the climate tech capital stack beyond venture capital. It highlights the emergence of other players such as emerging infrastructure investors who are willing to take on hybrid approaches, growth infrastructure investors funding smaller projects, and the increasing involvement of banks in climate financing. The role of insurance as a risk mitigation tool in project finance and the significance of asset owners like sovereign wealth funds and pension funds are also discussed. The episode emphasizes the need for a diverse and comprehensive capital stack to support the development and deployment of climate technologies.
The Future of Funding Climate Transition: Building Projects, Minimizing Risk
The episode discusses the expected trends in funding climate transition in the near term and beyond. It anticipates an increase in the number of projects being built as early-stage venture investments translate into tangible developments. The podcast emphasizes the importance of getting projects financed with public capital, unlocking private investment, and gaining the trust of project finance and infrastructure investors, as well as banks. The episode acknowledges the cyclical nature of the climate tech ecosystem and the need for resilience, highlighting the potential challenges of companies shutting down and funds cycling out. It concludes with an emphasis on the long-term commitment of CTVC to support the climate transition.
We kicked off New York Climate Week with a live podcast recording with Kim Zou and Sophie Purdom, co-founders of CTVC. CTVC’s data-driven insights have been featured in channels including NYTimes, Bloomberg, Reuters, Financial Times, and TechCrunch.
Kim serves as the CEO of CTVC. She was previously a climate tech investor at Energy Impact Partners. Prior to joining EIP, Kim was part of JPMorgan's Tech M&A investment banking team and graduated from Johns Hopkins University.
In addition to her work with CTVC, Sophie Purdom invests in and supports early-stage climate tech founders and their companies via her venture capital fund Planeteer Capital. Prior, Sophie launched an ESG fund at a major endowment, learned to make pretty slides at Bain & Co., published a book on sustainable investing, and helped found an agricultural technology company that makes carbon-negative ammonia fertilizer.
Special shout-out to everyone who came out to the live recording, and to our hosts at P&T Knitwear for lending their beautiful space in the Lower East Side. Enjoy the show!
In this episode, we cover:
[2:33] How Kim and Sophie met and the early days of CTVC
[6:37] Kim's background
[10:14] The pair's early venture experience
[13:22] Sophie's background
[17:05] The origins of Planeteer Capital
[20:18] CTVC's evolution into a market intelligence company
[25:42] CTVC's Climate Tech Capital Stack: https://www.ctvc.co/the-sophisticating-climate-capital-stack/
[28:51] Early stage dry powder
[31:36] Project finance and infrastructure financing
[36:56] Public funding and philanthropy
[40:06] Trends in philanthropic catalytic capital
[43:45] Corporate strategics
[46:34] The role of banks
[50:08] Insurance
[51:18] Sophie and Kim's predictions for the market in the near term
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Episode recorded on September 18, 2023 (Published on September 25, 2023)
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