David Helgason, partner at Transition, discusses Transition's efforts in accelerating the climate transition through investments in climate tech. They focus on software and hardware, including batteries, synthetic biology, and industrial tech. They explore the challenges of investing in climate tech within the capitalist system and discuss their investment criteria. They envision a future post-transition and the impact on human life, emphasizing the importance of abundance and enjoyment in working towards a sustainable future.
Transition is a venture firm that partners with SEED and Series A founders to accelerate the climate transition and build an abundant and resilient society.
Capitalism plays a crucial role in driving the climate transition, and climate tech solutions have the potential to outcompete outdated industrial processes.
Deep dives
Transition: Partnering to Make the Climate Transition a Reality
Transition is a venture firm founded by David Helgison that focuses on making the climate transition a reality. The firm partners with SEED and Series A founders, aiming to build an abundant and resilient society within the constraints of our finite planet. Transition consists of four partners, supported by a network of venture partners with expertise in various fields, including finance, engineering, and regulatory affairs. They invest in climate tech companies at the seed and Series A stages, with a focus on hardware and software solutions. Transition aims to have a high impact by investing in companies that can significantly impact one or more of the planetary boundaries defined by the Stockholm Resilience Center. They prioritize companies that have de-risked the science and are ready to scale. The goal is to bring about a transition to a sustainable industrial system by replacing outdated processes with cleaner and more efficient solutions.
The Intersection of Climate and Venture Capital
David Helgison, founder of Transition, discusses his journey into the climate space and the role of venture capital in driving the transition. Coming from a background in the gaming industry, David was influenced by his interest in green gaming and expanded into climate change mitigation and adaptation. He recognized the importance of capitalism as the primary driver of change and believes that solutions in climate tech can outcompete the outdated processes of the old industrial system. Transition focuses on companies that align financial success with positive impact, aiming for top-venture returns. They assess risks at different stages of company development and look for companies with realistic paths to scale without excessive capital intensity. David also emphasizes the importance of collaboration and partnership, encouraging incumbents to evolve and work together towards a sustainable future.
The Path to a Transitioned Future
The transition to a sustainable industrial system will happen incrementally, with various processes and technologies gradually being replaced. While the vision is to achieve abundance and clean energy at low cost, the realization of this vision will depend on the speed of technological advancements and market transformations. David acknowledges the need for collaboration and believes that winning the hearts and minds of billions of people is crucial for a successful transition. He expresses optimism in the potential of climate tech to create abundance and drive the necessary changes. However, he also recognizes the challenges of taking drastic measures and achieving a paradigm shift in industries and human behaviors. Ultimately, the transition will involve diverse approaches and continuous improvements as the world evolves.
Venturing into Climate Tech
David Helgison offers advice for individuals looking to make a meaningful impact in the climate tech space. He emphasizes the excitement and fun of working on climate solutions while acknowledging the complexity and potential difficulties ahead. He believes that the current era presents a significant opportunity for building world-changing companies and solving pressing climate challenges. David encourages those interested in climate tech to follow their passion, engage with experts and innovators in the field, and pursue opportunities to tackle the problems and advance the transition to a sustainable future.
This episode is part of our new Capital Series hosted by Jason Jacobs. This series explores a diverse range of capital sources and the individuals who drive them. From family offices and institutional LPs to private equity, government funding, and more, we take a deep dive into the world of capital and its critical role in driving innovation and progress.
David Helgason is a partner at Transition. Transition is a venture firm that partners with Seed and Series A founders to accelerate the climate transition. They've come together as founders, investors, operators, engineers, and scientists from across the world with a single mission: building an abundant and resilient society that can thrive within our finite planet.
Prior to starting Transition, David was Co-founder of Unity Technologies, and served as the CEO until 2014. He's still on their board of directors. With his background in the gaming industry, David took interest in green gaming, before stretching that interest into mitigating and adapting to climate change and the transition to a low-carbon economy. We have a great discussion in this episode about David's journey, the work that he's doing at Transition, how he got started in climate, what types of companies and projects are most interesting to him and his team, and how he sees transition evolving and playing out for all of us.
In this episode, we cover:
[02:43]: Introduction to Transition
[05:07]: David's background in the video game industry
[07:01]: His journey into climate tech investments, starting with angel investments
[10:47]: His decision to focus on climate, and the choice of venture for climate impact
[14:07]: Challenges faced by generalist venture firms when investing in climate tech
[17:03]: Transition's approach to impact measurement using the Planetary Boundaries framework
[19:08]: Risk assessment and capital intensity in Transition's investment process
[23:10]: Exploration of the future of climate tech and the potential for every company to be a climate company
[26:54]: The role of incumbents and collaboration in the energy transition
[28:50]: The challenges and opportunities of working with oil majors
[31:59]: The role of individuals in the transition
[33:15]: Advice for those interested in working on climate tech problems.
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Episode recorded on Sep 28, 2023 (aired on Oct 11, 2023)
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