In this conversation, Martin Kessler, Chief Business Officer at Flowcarbon, discusses the company's role in securing asset-level financing for carbon removal projects. He explains that Flowcarbon is a vertically integrated carbon finance company focused on arranging project finance for carbon removal projects, assisting project developers with carbon credit issuance, and helping buyers procure carbon credits for their net zero goals. Martin emphasizes the interdisciplinary nature of the carbon markets and the importance of building a strong ecosystem of partners. He also provides insights into the project finance process and highlights the key factors Flowcarbon considers when evaluating projects, such as feedstock availability, revenue streams, and commercial viability. The company aims to demonstrate the viability of carbon removal projects to the private market community. Private credit investors typically get involved in the financing process once the project is at a stage where it is financeable. Flowcarbon helps developers develop financial models, create data rooms of financeable contracts, and secure necessary insurance. They also explore new market opportunities, such as environmental commodities markets and tax credits.

Takeaways

Flowcarbon is a vertically integrated carbon finance company that focuses on project finance for carbon removals, carbon credit issuance, and carbon credit sales.

The company works with project developers to arrange financing for carbon removal projects and helps them navigate the carbon credit issuance process.

Flowcarbon also assists buyers in procuring carbon credits for their net zero goals, primarily targeting corporate clients.

The carbon markets require an interdisciplinary approach, and Flow Carbon leverages its network and partnerships to provide comprehensive solutions.

The project finance process can take anywhere from six to 18 months, depending on the project's readiness and complexity.

Key factors considered when evaluating projects include revenue streams and commercial viability.

They work with developers to structure financeable contracts and secure asset-level financing.

Private credit investors typically get involved in the financing process once the project is at a stage where it is financeable.

Flowcarbon helps developers develop financial models, create data rooms of financeable contracts, and secure necessary insurance.

They also explore new market opportunities, such as environmental commodities markets and tax credits.

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Guest: https://www.linkedin.com/in/martin-kessler-99518828/

Email us: info@climatetech360.com

Host: https://www.linkedin.com/in/samiaq/

In this conversation, Patrick Flynn discusses the importance of making the business case for sustainability and leveraging the power of companies to drive change. He emphasizes the need for systemic interventions and highlights the role of leading companies in influencing policy and market signaling. Additionally, Patrick addresses the challenge of bridging the gap between the CSO and CFO and suggests that mandatory disclosure of greenhouse gas emissions is bringing these teams closer together. Patrick also talks about his work at Topo Finance, where he focuses on addressing the emissions associated with cash in the hands of banks. He explains how companies can use their influence to demand more sustainable financial products and services. The conversation concludes with a discussion on sustainability superpowers and the importance of translating the language of sustainability to different parts of the business.

Takeaways

Align sustainability goals with the motivations and decision-making processes of the business

Leverage the company's superpowers to drive impactful change

Bridge the gap between the CSO and CFO by emphasizing the importance of sustainability in financial reporting

Collaborate with other companies and startups to build bridges across the 'valley of death' and accelerate the adoption of sustainable technologies Making the business case for sustainability is crucial for driving change within companies.

Systemic interventions, such as influencing policy and market signaling, can have a significant impact on climate action.

Companies can address emissions associated with cash in the hands of banks by demanding more sustainable financial products and services.

Each individual and company has unique strengths that can be leveraged for climate action.

Translating the language of sustainability to different parts of the business is essential for gaining buy-in and creating change.

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Guest: https://www.linkedin.com/in/patrick-flynn-a054405/

Email us: info@climatetech360.com

Host: https://www.linkedin.com/in/samiaq/

The conversation with Jeppe Høier covers various topics related to corporate venture capital (CVC). Jeppe discusses the structure of CVCs, the different types of investments they make, the challenges and benefits of working with CVCs, and the differences between European and US CVCs. The discussion also touches on the lengthy process of engaging with CVCs and provides tips for startups to navigate this process. Overall, the conversation aims to provide insights and understanding of CVCs for startups and investors. In this conversation, Jeppe Høier and Samia discuss the role of corporate venture capital (CVC) in the climate tech industry. They explore how CVCs differ from traditional venture capital firms and the advantages they offer to startups. They also discuss the challenges startups face when seeking investment from CVCs and provide advice on how to navigate the landscape. Additionally, they touch on the changing landscape of CVCs and the importance of building relationships with corporates.

Takeaways

Corporate venture capital (CVC) is an important player in the startup ecosystem, with corporates having a significant role to play in the energy transition and climate tech.

The structure of CVCs can vary, with different decision-making processes and strategic goals. Some CVCs invest for return purposes, while others invest with the goal of potential acquisition.

Engaging with CVCs can be a lengthy process due to the bureaucratic nature of large corporations. Startups need to understand the decision structure and process of the CVC they are working with.

Information flow and communication between startups and CVCs can be challenging, but it is crucial for successful collaboration. Startups should consider limiting access to information rights and keeping ownership below 5% to protect their interests.

European CVCs are still developing and may not have the same level of maturity and experience as their US counterparts. However, the European startup ecosystem is growing, and more success stories are emerging. Startups should seek value creation from CVCs beyond just financial investment, such as access to assets, brands, customers, data, and expertise.

When looking for investment from a CVC, startups should understand the specific value they are seeking and target CVCs that align with their industry and goals.

CVCs can provide startups with revenue opportunities, cost savings, and access to their network and resources.

Startups should conduct due diligence on CVCs and seek references from other portfolio companies to understand the value they can bring.

The CVC landscape is constantly evolving, and there is a need for more deep tech investors in the climate tech space.

Corporates can also play a role as limited partners (LPs) in venture funds, but it may take longer to raise capital from them.

Building relationships and understanding the decision-making structure within corporates is essential for successful collaboration with CVCs.

Links

Corporate venturing newsletter

Research: The Lifecycle of Corporate Venture Capital

Contact Us

Guest: https://www.linkedin.com/in/jeppehoier/

Email us: info@climatetech360.com

Host: https://www.linkedin.com/in/samiaqader/