About episode
Earthshot Ventures isn’t just any climate tech venture firm. Having grown out of the Elemental Excelerator, one of the biggest and best-reputed accelerators in the industry, Earthshot is deeply rooted in the early-stage ecosystem. And it turns out there’s something else that sets them apart.
Managing Partner Mike Jackson has a knack for coaching founders on what he thinks of as the art and science of fundraising. We’re joined today by Mike and Earthshot Partner Ramsay Siegal to hear about their firm, approach, portfolio, and outlook on the market. We dive deep into Mike’s insights to helping founders raise money. We talked about non-dilutive project financing and hard-to-abate sectors, the opportunities AI is bringing to climate tech, several of their portfolio companies, and much more. If you’re interested in early-stage climate investing, or startups, there’s lots to learn in this one. Hope you enjoy. Here we go.
In today’s episode, we cover:
- [02:47] Mike’s background & experience
- [04:52] Ramsey’s background & expertise
- [07:51] The relationship between Earthshot VC & Elemental Excelerator
- [09:39] Earthshot’s investment thesis, what they’re interested in & what sets them apart
- [12:22] Earthshot’s network
- [14:13] Mike’s approach to fundraising & coaching the portfolio
- [17:54] Fundraising tips and tricks for founders
- [22:17] Earthshot’s success stories
- [24:38] How is AI showing up
- [30:41] Investing in hard-to-abate sectors and Canon Energy
- [33:06] Canon Energy’s business model and non-dilutive funding
- [38:15] Earthshot’s commitment, DEI & tips for achieving a diverse portfolio
- [42:38] Outlook & opportunities for climate tech investing
Earthshot’s investment thesis, what they’re interested in & what sets them apart
Earthshot VC is an early-stage venture fund, specializing in seed through Series A investments, with a preference for leading at the seed stage and following at Series A. Mike explains that they strongly believe in the significant economic opportunities presented by the climate transition across various industries such as energy, mobility, industrial food, and agriculture. Their approach involves seeking out the most innovative teams and supporting them in leveraging proven playbooks from other industries, particularly those that intersect with climate, such as B2B SaaS models, marketplace models, datasets, service models, and computer vision technologies. They draw analogies from successful strategies in sectors like biotech and general energy to identify potential opportunities in areas like battery material innovation. This approach is guided by an understanding of where value and profits accumulate within these sectors, leading them to invest in companies like Metric Chem, KoBold Metals, and Lilac Solutions, which they believe are following effective playbooks from the energy space. Overall, their investment philosophy is centered on identifying and supporting diverse teams tackling the most compelling problems within the climate tech landscape.
Earthshot’s network
Ramsay describes Earthshot Ventures as a network-focused fund, emphasizing their commitment to empowering portfolio founders through their extensive network. What sets them apart is the long-term cultivation of relationships over the past decade or more with founders, investors, potential customers, project financiers, and government officials, creating an environment conducive to startup success. With investments in over 200 companies and deep connections with their founders, Earthshot benefits from referrals for future investments and fosters peer-to-peer interactions among portfolio companies. Additionally, Elemental, from which Earthshot originated, has a history of convening the climate tech community, exemplified by their annual event in San Francisco, facilitating meaningful connections and support for companies throughout their commercialization journey.
Fundraising tips and tricks for founders
Mike underscores the intricacies of fundraising, likening it to a fusion of art and science, and delves into practical strategies for founders. He stresses the significance of CEOs seeking assistance during the fundraising journey, acknowledging the challenge of managing a company while simultaneously orchestrating a successful funding round. Delegating tasks such as deck refinement and financial modeling to capable team members, whether business school interns or junior finance personnel, can alleviate the burden on CEOs and ensure that their time is optimally allocated towards investor interactions and due diligence. Mike also sheds light on the importance of empathizing with investors and crafting pitch decks and data rooms that resonate with their decision-making process. By aligning the structure and content of these materials with the sections of an investment memo typically scrutinized by investors—such as market size, customer demographics, and competitive analysis—founders can facilitate a smoother exchange of information and exert greater control over the narrative of their startup’s story. Ultimately, these insights empower founders to navigate the fundraising process with confidence and efficiency, enhancing their chances of securing vital investment and propelling their ventures forward.
Resources Mentioned
Connect with Mike Jackson & Ramsay Siegal
Connect with Jason Rissman
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