Here’s why climate tech can avoid repeating the failures of clean tech

- Advertisement -


About a decade ago, the cleantech boom collapsed. Industry darlings were dropping like flies. Solindra, the most famous, malfunction after receiving a $500 million loan from the US government. German Q-Cells went bankruptwas also bought South Korean Hanwha. A123 Systems, a battery manufacturer, was snapped up on the cheap from Wanxiang, a Chinese auto parts company. This is only an incomplete list.

- Advertisement -

There are many reasons why so many companies fail. Some had the right technology at the wrong time. Many relied on venture capital, which typically seeks to turn a profit in a time frame that is relentlessly short for deep tech companies. Others were hit by foreign competitors. Still others succumbed to the general market forces that swept the world during the Great Recession. Whatever the cause, the crash spooked venture capitalists, who had avoided the sector for years despite the potential for huge long-term profits.

- Advertisement -

But in the past few years, venture capital has made a comeback, investing tens of billions of dollars in companies that hope to solve environmental problems. What changed? First, the title: “Clean tech is obsolete.” Climate technology is in vogue.

The cynics may ridicule these changes as marketing gibberish designed to get rid of the sins of the past. They are not entirely wrong. After the latest boom-bust cycle, the cleantech label has faded. Founders, for all their talk of failing quickly and learning from failure, usually don’t like to be associated with this kind of failure, even by semantic associations.

- Advertisement -

Climate tech has an additional metric that can be applied to any startup vertically – reducing carbon emissions.

However, if you dig a little deeper, it becomes clear that climate technology is more than just pure technology 2.0. It is both a natural progression and a bottom-up rethinking of building and investing in green start-ups. Climate tech is how founders and investors can work together to bring promising technologies and ideas to market in a way that generates significant returns while also addressing climate change in a meaningful way.

For those who are deeply versed in climate technology, this will not come as a surprise. But with the recent downturn in the funding world, it’s time to sort through the similarities and differences to see if they suggest something different this time around.


Credit: techcrunch.com /

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox