Dear all,
Last week’s heatwave in Europe was a brutal reminder of the “climate emergency” we are facing. In this context, the private markets are embodying the crucial role they can play to mitigate the dramatic impacts of climate change through putting billions into Climate Tech.
This is all the more interesting amidst the continued decline (or collapse?) in Tech valuations that we have observed over H1 2022. Indeed it seems that those modern private investors, those that embrace the new Technology * ESG paradigm that is profoundly transforming the private markets and creating an unprecedented wave of new investment opportunities, understand that things are different now. Historically green startups have seen funding collapse in previous market downturns. But things should be different now with a broader understanding of the specific growth and profitability drivers of these companies whose playbook is very different than other innovative companies.
Also, and perhaps more generally here, investors are starting to play offense and see the current valuation landscape as an opportunity to cherry-pick the right companies, i.e. those that have the right unit economics and that show an impact on our economy and beyond. So let’s be optimistic for the second part of the year and I wish you all a great and sunny summer break. See you in September!