Hydrogen aviation pioneer Universal Hydrogen collapsed last week, having burnt through almost $150 million💥 from the likes of
- Australian Peter Barrett’s fund Playground Global
- @Andrew Forrest’s Fortescue,
- Airbus Ventures,
- Toyota Motor Corporation, and
- GE.
There is pain in the Climate Tech Startup Space as least 100 Australian climate tech start-ups face a capital crunch - with a danger of being shut down within the year - says Yolanda Redrup of AFR
Is this not normal? - where only 1 in 10 startups normally survive ?
Mick Liubinskas from Climate salad says there are over 600 startups in this space - so 1/6 failing isn’t that bad… or is it?
### 🌉 Addressing market failure
Government usually steps in to address market failure of key innovations - and often gives incentives to corporates and organisations to address this market failure and help solve the wicked problem (which happens to be climate action)
In the Climate Tech space - “the National Reconstruction Fund Corporation” can bridge the gap, but will it move quickly enough, and will it take enough risk to support this new industry? 🌍
### 💵 there is money and interest in this Sector
The capital requirements for any deep tech start-ups with a manufacturing component are also more extensive than software companies, often prioritized by VCs. 🏭
Cut Through Venture shows that climate and clean tech was the second most popular category in local deals in the second quarter, 📈 raising $344 million of investment across ten deals, placing it behind fintech, but ahead of biotech and artificial intelligence. 💡
### 🏆 VC's on the hunt for dry powder
There are eight climate tech venture funds currently in the market trying to raise, including climate advisory group
- Pollination
- Jekara Group and
- Tenacious Ventures.
Join our Global Climate Action Forum
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