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/

Susana Lopez discusses her journey into clean tech and the importance of infrastructure development in emerging markets. She shares her experiences in working with private equity funds and the challenges of aligning the goals of different investors. She also explains the concept of blended finance and how it can be used to finance infrastructure projects. The conversation highlights the need for sustainable and impactful infrastructure development considering social and environmental factors. Early engagement and mitigation of negative impacts are key in infrastructure projects. Sometimes projects are successful when developers are willing to address environmental and social issues and work closely with investors. However, there are challenges in funding first-of-a-kind projects and attracting infrastructure funds to emerging markets. Blended finance and green hedging instruments can help mitigate risks and attract more capital to these markets. The goal is to develop infrastructure at scale and pace to meet the needs of developing economies.

Takeaways

Infrastructure development is crucial for economic and social development in emerging markets.

Blended finance, which combines public, private, and philanthropic capital, can finance infrastructure projects.

Aligning the goals of different investors, such as impact-focused donors and return-focused private investors, can be challenging.

Sustainable infrastructure development requires considering both social and environmental factors.

Patient capital and long-term investment horizons are needed to support infrastructure projects. Early engagement and mitigation of negative impacts are crucial in infrastructure projects.

Successful projects require developers to address environmental and social issues and work closely with investors.

Funding first-of-a-kind projects and attracting infrastructure funds to emerging markets are challenges that must be addressed.

Blended finance and green hedging instruments can help mitigate risks and attract more capital to emerging markets.

The goal is to develop infrastructure at scale and pace to meet the needs of developing economies.

Contact Us

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

Email us: info@climatetech360.com

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

Aira is a one-stop shop for heat pumps, providing installation, maintenance, and financing solutions. They have a vertically integrated model and have their own installation and sales force. They also offer a comfort guarantee and focus on customer service. Heat pumps are more efficient, saving customers 40% on heating costs and reducing carbon emissions by 75%. Aira has acquired heat pump installation providers in each of their three initial markets: Germany, Italy, and the UK, and has plans to expand into other markets in Europe. Aira's heat pumps come with solid connectivity and control features, allowing for remote monitoring and diagnosis of issues. They also have an integrated app for customers to monitor their energy usage and savings. Aira's success can be attributed to its focus on commercialization and scaling, as well as its strong team and support from the Vargas umbrella. Aira has also recently secured a €200 million debt facility specifically for heat pump securitization, the first of its kind. They offer a monthly payment model for heat pumps, removing the upfront cost for customers. The company's affiliation with Vargas, a leading climate tech investor, provides credibility and access to expertise and contacts. Aira is focused on disrupting the heat pump industry by offering innovative and customer-friendly products.

Takeaways

Aira offers subsidies and financing solutions to make heat pumps more affordable for consumers.

They have a vertically integrated model and provide installation, maintenance, and financing solutions.

Aira has acquired heat pump installation providers in Germany, Italy, and the UK and plans to expand into other markets in Europe.

Their heat pumps come with solid connectivity and control features, allowing for remote monitoring and diagnosis of issues.

Aira has raised €145 million in a Series B funding round to make clean energy tech affordable and accessible.

They offer a monthly payment model for heat pumps, removing the upfront cost for customers.

Aira has secured a €200 million debt facility specifically for heat pump securitization, the first of its kind.

Their affiliation with Vargas provides credibility and access to expertise and contacts.

Aira aims to disrupt the heat pump industry by offering innovative and customer-friendly products.

Contact Us

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

Email us: info@climatetech360.com

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