Shradha Pujar on LinkedIn: #suscrunch2024 (2024)

Certain startups that are into building hardware in the climate sector and are in the capital intensive phase ( the ones transitioning from successful small scale prototypes to large scale commercial production) are fraught with challenges like high costs, technology risks, market adoption issues, regulatory issues. The primary task for them is to navigate the “valley of death” by optimising technology for mass production, secure funding, comply with regulations and most important of all is to gain market acceptance. In addition to all of these, they will have to 1. Look beyond traditional venture ( basically diversify funding sources). 2. Secure government funding and grants. 3. Form strategic partnerships with established companies to leverage their existing resources and expertise. >> https://lnkd.in/g8SAr4UW

16

1 Comment

Reasons for the surge in global impact investing- Today, many investors aiming for positive social and environmental change, prefer impact investing over traditional forms of philanthropy because- 1. There’s uptick in investors that are using the Sustainable Development Goals as a framework for measuring success. Besides, the Bloomberg’s new tool that leverages data from the UN environmental program finance initiative helps investors gauge the positive and negative impacts of a company’s operations on the SDGs. 2. AI and LLMs are only going to enhance the systems providing breakthrough innovations in the field of impact investing. 3. The Gen Z are already leaders in climate activism. Millennials and Gen-Zers refuse to give up on the premise that profitability and positive impact are not mutually exclusive. https://lnkd.in/eGFefiRj#impactinvesting

16

2 Comments

How project financing works- Consider a hypothetical start up which is developing electric vehicles ( EVs). In order to target urban commuters they create a specific project which is into developing an advanced electric scooter with an innovative feature like solar charging panels with extended battery life. To fund this specific project, they decide to use project finance. They set up a new entity ( let’s call it Solarscoot ventures) inside their existing startup. Now they approach a mix of investors, including a venture capital firm focusing on sustainable transportation, a bank with green investment initiatives and perhaps a government fund supporting eco friendly transportation methods. The investors agree to provide funding with the condition that their financial exposure is limited to the entity ‘s ( Solarscoot ventures) assets and revenues. The funding arrangement is based upon achieving certain goals like running pilot tests, completing prototype, reaching production milestones. Here the revenue sharing is set up in a way where investors will receive a portion that’s only associated with this specific entity. Such project specific finance allows startups to innovate without risking the entire company. It allows them to create a dedicated entity and secure investments focused on specific milestones and outcomes. This could be one of the many ways to fund and support projects in climate. More on understanding if venture capital or project financing is a key in impact investing here- https://lnkd.in/g2Cb9BCb#projectfinance #impactinvesting

16

This was the state of global startup funding for the year 2023. It was the lowest for venture funding since 2018.Venture markets corrected in 2023. Without any rise in exits, the year 2024 may continue being tough for raising capital. Something to note here - despite this, large fundings went to AI, battery and clean-tech companies.While investments in clean tech and battery is a good sign, at a broader level, emerging markets will require better and cheaper climate finance. Amid a global debt crisis and high interest rates and low growth projections which limits countries ability to borrow and hence meeting the world’s climate financing needs will be tough. The problem with climate finance is that the investments in initiatives/ projects that are focusing on protecting nature do not necessarily boost short term economic growth, but they build long term resilience. Source - Crunchbase#investing #resilence

9

1 Comment

This morning, over a casual coffee conversation with a friend, we delved into the intriguing parallels between the business world and biological evolution. I thought it was worth sharing our discussion.A business model is sometimes compared to cell DNA- it hardly changes when the organisation is well established. However, the crux of our talk was about the delicate balance that businesses must strike between their core identity and the need for evolution to survive and thrive. This evolution is similar to biological adaptation, where some traits are retained, some are discarded and new ones are developed in response to environmental changes. Just as in nature, not all businesses succeed in the evolutionary processes, those that do are the ones that find the right balance preserving their core ‘DNA’ and adapting to the new. If we look at the 1st Industrial Revolution- Businesses transitioned from handcrafted modes of production to mechanised and factory based systems. And this was a shift in the ‘DNA’ of many such companies. In today’s time- Businesses are adapting by integrating sustainable practices into their core operations. This shift is not just about public image, it’s becoming integral to a company's identity – a clear evolution in the 'DNA' where environmental responsibility is as important as profitability.#evolution #business #dna

18