How to Secure VC Funding for Climate Tech Founders: 10 Non-Negotiable Criteria
Insider Insights from a $100M Angel Investor (5 mins)
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How to Secure VC funding for Climate Tech Founders: 10 Non-negotiable Criteria
This is what I wish more Founders knew before they shot themself in the foot. 🥴
As you may know my background in tech over the last decade is in Product Design and Growth Hacking. In 2024, last year I completely pivoted my business, The Craft, because I wanted to be a part of the solution to climate change. This not only meant encouraging sustainable growth and tech, but also putting my personal money into the future I want to create.
In 2024, I invested in pre-seed and seed climate tech startups with a combined valuation of over $100 million alongside VCs like Lower Carbon Capital. I see a lot of tech founders struggle to get VCs to respond to their cold emails so I’m open sourcing my knowledge with you, whether you are looking to raise money or become an investor.
It's a tough market right now, BUT when a Founder is NOT getting a response and they send me the deck, I see the reason why. 🔎 It could be missing critical information or perhaps you simply don’t have a large enough TAM and are better suited to bootstrapping.
I'll talk specifically about my experience in the climate tech space, so keep in mind that goes beyond software into deep tech and biotech. However, you'll probably find a few of these can be broadly applicable.
10 Non-Negotiables for Getting VC Attention at the Seed Stage
1. Technical Expertise
At least one co-founder needs deep technical knowledge—VCs want to know why YOU are the right team to solve this problem. Both Founders can be technical but one focuses on businesses and one focuses on the tech.
2. Founder Relationship
How well do you work with your co-founder? Red flags if you haven’t built rapport with each other or strong communication. Expect to talk about your history together. Relationship chemistry matters.
3. TAM (Total Addressable Market)
Your addressable market must be large enough to support venture-scale returns. It needs the potential to grow into something transformative that could return the entire fund. What is the broadest potential market, the slice you can realistically reach, and the share you expect to capture?
4. Unique Technology
Clear differentiation and defensibility is crucial. For example, can your product store thermal energy at a higher temperature than anything else on the market? If your product is a replica of an existing one in the market, it’s not special.
5. IP Protection
Patents or other strategies to protect your innovation from competitors. If another company can reproduce your solution in a weekend, we have a problem. Keep in mind, one of the exit strategies is to be acquired by a larger tech company.
6. Perfect Timing
Articulate WHY NOW is the right moment for your solution. Has there been a recent policy change in your favor, is your speed to market unique, etc.? Too early is just as bad as too late in climate tech. The graveyard of startups is filled with right ideas, wrong time.
7. Go-to-Market Strategy
Show both your immediate market entry plan AND long-term vision for expansion beyond the niche. Climate tech especially requires thoughtful customer acquisition strategies. The biggest challenge initially is no one knows you exist.
8. Technology Readiness Level (TRL)
From basic concept to market-ready product, investors need to understand your risks and timeline to commercialization. Too early and it’s not a wise investment, too late and we’ve missed the timing for an out-sized return.
9. Traction & Early Validation
Even at pre-seed, I want to see something beyond a deck. What have you done to build and validate? Where’s the customer interest? Pilot projects or partnerships with established players give me confidence you're not stuck in theory mode. Some of my investments already had partnerships with big players like BMW or Loreal.
10. Capital Efficiency & Unit Economics
Climate tech isn't (just) software. At least that’s not where the big impact will be. I need to know you understand the capital intensity of your path. Show me you can reach meaningful milestones without burning cash like it's fossil fuel. 💨
TLDR
Remember, getting VC attention isn't about checking all these boxes perfectly—it's about showing you've thoughtfully considered each one AND have a plan! Investors know plans change. That’s to be expected as a startup. Listen to the data and pivot when necessary. The best founders I've backed were self-aware about their potential and their weaknesses.
Your Next Steps
I'd love to hear where you are in your journey:
Are you fundraising?
Are you a product designer looking to start angel investing?
Are you an early stage founder looking for PMF?
Share your experience in the comments below – I'll personally respond to questions and insights.
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