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Funding Your Climate Startup

Navigate the capital landscape

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The Climate Capital Boom

2024 saw record climate tech investment: $70B globally, up from $45B in 2020.

But funding follows predictable patterns. Understanding stage-appropriate expectations is critical.

🌍 Climate-Specific Capital Sources

💰 Climate-Focused VCs

Breakthrough Energy Ventures, Lowercarbon Capital, Congruent Ventures, Prime Coalition, and 200+ others.

Best for: Seed to Series B. Understand tech risk, patient capital, sector expertise.

🏢 Corporate Venture Arms

Microsoft Climate Innovation Fund ($1B), Amazon Climate Pledge Fund ($2B), Google Ventures, Shell Ventures.

Best for: Series A+. Strategic partnerships, pilot customers, but slower decisions.

🏦 Infrastructure Funds

Generate Capital, Brookfield Renewable, Macquarie Green Investment Group. $50M-500M project finance.

Best for: Late-stage hardware/infrastructure. Need proven tech + offtake agreements.

🎓 Government Grants

SBIR/STTR ($4B/year US), ARPA-E ($500M/year), EU Innovation Fund (€40B), state-level programs.

Best for: Early R&D. Non-dilutive but slow (6-18 months). Technical validation credibility.

🎯 Interactive: Funding Timeline Simulator

Explore typical funding rounds for different company types. Select stage and sector to see deal terms, KPIs, and milestones.

Select Funding Stage

Select Company Type

🌱

Pre-Seed Round

software company

Typical Raise
250K-500K
Equity Given
5-10%
Valuation
3-8M
Timeline
3-6mo
Monthly Burn Rate: 40K/mo
💡 Founder Advice: Raise enough for 12-18 months. Show you can build the product and find first customers.

🎯 Key Milestones

  • ✓Prototype working
  • ✓Team formation
  • ✓Market research
  • ✓First pilots

📊 Expected KPIs

  • →Product-market fit signals
  • →3-5 design partners
  • →MVP functionality

💰 Typical Funding Sources

AngelsPre-seed fundsGrants (SBIR/STTR)Accelerators

📝 Fundraising Playbook

1.
Raise when strong, not desperate. Best valuations come when you don't need money.
2.
Lead investor first. Get one term sheet, others follow. Don't take 20 meetings simultaneously.
3.
18-month runway minimum. Fundraising takes 3-6 months. Start when you have 12 months left.
4.
Warm intros only. Cold emails have <2% success rate. Ask portfolio founders for intros.
5.
Story > slides. VCs see 1,000 decks/year. Memorable narrative beats beautiful design.

🚩 Red Flags VCs Watch For

❌
Solo founder in tough market. Climate is capital-intensive. Need complementary co-founders.
❌
No domain expertise. If building carbon removal, need climate science or industrial chem background.
❌
Tech looking for problem. "We have this cool material, what should we build?" = no.
❌
Unrealistic timelines. "We'll scale DAC to 1Mt CO2 in 2 years" → instant pass.
❌
Regulatory handwaving. "Policy will change" is not a business plan. Need path without subsidies.
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