$60 billion was invested into climate tech globally between 2013 and 2019, increasing year over year. Our friend Ryan Panchadsaram from Kleiner Perkins calls the era we’re in one of urgent optimism. Despite these large numbers and hopeful outlook, the scale of the challenge continues to outpace our investment. Additionally, PWC reports that 5% of startups captured two thirds of venture capital funding. We need more investment, more innovation, more diversity. And, we’re well positioned to execute on this together.
At Elemental, we evaluate 800+ climate tech startups and select 15-20 to join our portfolio each year. That is less than 3%. Many, many companies that don’t end up in our portfolio are high-quality deals. We have also seen the climate tech investment community grow from a group of eclectic outsiders about 12 years ago to the “in crowd” with VC investment in climate tech growing 5x faster than overall VC.
As we search for new ways to bring more funds into climate tech and open up avenues for new dealflow, we are excited to announce the launch of Elemental Connect! It’s a new AI-enabled engine for investments into startups tackling climate change, that connects our pipeline and investor community, and can serve as a soft landing for investors new to the climate tech sector.
How does it work?
We are now inviting any accredited investor within our network to join Elemental Connect, as well as our entire portfolio of startups and applicant finalists from the past three years (and we will continue to invite finalists from future application cycles). After a five-minute onboarding process, investors and startups will start receiving matches in their inboxes that they can accept or decline. Introductions will be made automatically upon confirmation of mutual interest.
Why is this important?
Last year, out of nearly 800 Elemental applicants, 59% had at least 1 person of traditionally excluded gender on their executive team, and 65% had at least 1 person of traditionally excluded race or ethnicity. The data shows that women and people of color — and especially women of color — receive significantly less venture funding than their counterparts. This is due to a lack of gender and ethnic diversity in venture capital, but also the difficulty finding the front door and getting one foot in. Elemental Connect helps to democratize the process, focusing on solutions that meet the expectations of investors without representational biases.
How do I join?
For accredited investors, enter some simple information here and we’ll be in touch. For startups, applications for Cohort 10 open on February 22. Apply to Elemental to become eligible for Elemental Connect.
Elemental Connect is powered by FounderNest.