Hallo November,
All eyes on ClimateTech this week as world leaders are gathering in Glasgow to discuss what needs to happen to get to net zero. One thing is certain: Europe’s tech scene will play a pivotal role in the change that needs to happen.
We’re also looking forward to having our founder Brent Hoberman (lastminute.com, made.com, Founders Forum) over in Berlin later this month. He’ll visit us at the AI Campus for a Fireside Chat on the 23rd of November at 5pm. Please RSVP here if you’d like to attend.
See you soon,
The FI Berlin Team
And now... the news
Our take on what's going on and what it means for you.
🇩🇪 What happens in Germany...
Berlin’s new (save the) World Fund – A new Berlin-based venture fund focusing on climate change just came out of stealth (in time for COP26), looking to raise $350m until 2023, making it the biggest European climate fund to date. Their thesis is simple: if your solution helps to get to a decarbonised world, it will likely generate massive financial returns in the long term. Portfolio companies will have to show they can reduce emissions by at least 100 megatons of CO2 equivalent every year.
So what? Getting to net zero requires to completely reinvent how we move around, how we eat and how we build things: In other words, we have to reinvent everything. This creates a massive business opportunity for new ventures in almost every industry. Black Rock’s Larry Fink is convinced that the next 1,000 unicorns will be involved in climate technology. In many cases, they will directly compete with incumbents who haven’t been aggressive enough about investing in new solutions. Incumbents need to stay on top of early stage activity and keep an eye on solutions that get traction - and then place their own bets. Looking at investment theses of climate tech funds will help pick the winners.
🇪🇺 What happens in Europe...
Europe is going Meta – Facebook…excuse me, Meta is going all-in on Europe, planning to create 10,000 jobs in the region to help build the next computing platform: the Metaverse. What is the Metaverse? Meta is describing it as a set of interconnected virtual experiences using virtual and augmented reality (btw, a fun game is to try and explain that to your grandparents). The goal is to build applications that are closer to real-life experiences and enable more social interactions in the matrix.
So what? Meta’s investment into the EU is a vote of confidence for the ecosystem: not only do they believe they can find the right talent with good ideas in the region, they also believe that Europe is going to lead the way on regulating this brave new world (e.g. the use of data). The Metaverse is going to be a thing in Europe and whether you’re a brand, a creator, a public figure or a tech company, it’s time to think about what your role in a more virtual world will be - and how you can participate. Oh, and side note: if you’re looking to hire engineers in the EU, maybe start looking now! And you better have a great employee value proposition.
🌎 What happens around the world...
Wild $T1mes at Tesla – Tesla hit a trillion-dollar market valuation, far bigger than the entire German car industry combined. The reason for the latest share jump was an order from Hertz, ordering 100,000 EVs and will potentially order more in the future (although apparently nothing is signed yet). With the opening of Giga Berlin, German carmakers feel Tesla breathing down their neck as they increasingly compete for customers (wholesale and retail) and talent. In September, VW managed to sell only 58 more Golfs than Tesla sold model 3s.
So what? Look, we could have an endless debate around whether or not Tesla is overvalued, but the fact is that Tesla has gotten some things right: thinking about the customer journey more holistically, covering everything from sales to maintenance, charging and insurance. They also generate revenue from selling battery technology and carbon credits to other manufacturers, turning cost centres into profitable business lines. Lots of great lessons for manufacturing heavy businesses here.
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ClimateTech Inaugural Summit 2021 Insights Report
This week, world leaders gathered in Glasgow for COP26, with the goal to set ambitious targets to fight the climate crisis. Earlier in the year, Founders Forum and Informa PLC hosted a summit focusing on ClimateTech. Check out the Insights Report below.
ClimateTech Inaugural Summit 2021 Insights Report : Available Now!
This year, for the first time ever, Founders Forum hosted ClimateTech.
A joint venture between Founders Forum and Informa PLC, ClimateTech marks the launch of a new sustainability-focused global community, bringing together the most forward-looking climate founders, investors, government and thought leaders to discuss the most pressing challenges and innovative solutions.
At this, the inaugural summit, the community delved into three key changes that will unlock the next generation of Climate Tech:
Restoring our climate - Making the entrepreneurial bets that will drive Sustainable Growth
Changing behaviours - Driving demand for climate conscious products and services
Structuring for change - Fuelling the next-generation of Climate Moonshots
To discover the key takeaways and see how they impact you, download the full insights pack today.
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