I couldn't breathe
Diwali of 2021, en route to Delhi from my ancestral village in Punjab
This had been an annual ritual for 22 years. Same railway station, same cab ride at 5 AM. But this time I was coughing uncontrollably.
The problem of stubble burning and climate change was not new to me. In high school, I led plantation drives across Delhi/NCR. We had planted 1K+ saplings in 5 years when CO2 was still at 365 ppm.
A decade hence, the problem had only worsened. CO2 crossed 400 ppm. Forest fires became commonplace. Rivers were drying up. Microplastics proliferated.
The world was on fire.
Why were we not solving this problem? Why were VCs not investing to combat climate change?
In 2006-11, VCs in the US lost billions of dollars in "CleanTech" investing. The housing sub-prime crash happened, demand sank, energy prices plateaued and climate innovation was no longer viable. VCs cut their losses. CleanTech investing became anathema. The Kyoto Protocol had failed.
COP, 2015 - the Paris Agreement breathed fresh life into the sector. The concept of common but differentiated responsibility took centre stage. The cost of renewable energy levelized. Wind/Solar offered nations more than cheaper energy. It offered energy independence.
With trailblazers like Ather Energy, Euler Motors, Atomberg Technologies etc. providing cost-effective alternatives, consumers now had options. They were no longer just the environmentally conscious choice, but the economically best options. The Climate economy took flight.
Growing awareness and rising consumer pressure made solving climate change imperative. Regulators pressured businesses to monitor their carbon "costs". For the first time, a "price" for carbon was established. The price of polluting our environment became explicit. Combating it became a priority. The 2006-11 "CleanTech" hypothesis became history.
Over the last 3 years, we at Venture Highway have extensively spent time understanding the ClimateTech sector and are delighted to share our learnings with you.
While our ClimateTech thesis will evolve as the markets mature, the hope underpinning these investments will remain the same.
That 35-year-old Akul will breathe the same fresh air punctuated with the fragrance of flowers and trees that 15-year-old Akul did.
In case you are building in ClimateTech, please feel free to reach out to us at reachus@venturehighway.vc or DM me :)
Venture Highway
Neeraj | Priya | Rahul | Aakanksha | Aviral | Parth | Abishek | Siddhi | Nidhi | Nipun | Ajoy | Tanseer | Bhavik | Himalay