The decarbonization of The planet will be the next major disruption of the 21st century, according to Sean O’Sullivan and Carmichael Roberts of Breakthrough Energy Ventures, managing partner of SOSV.
A disruption of this magnitude will bring about changes that will affect every industry and every corner of everyday life and, as a result, a complex web of challenges and resistances. It will also provide an unprecedented opportunity for entrepreneurs – and the investors who support them – who can turn their climate technology ideas into commercialized products and services, be it plant-based foods, carbon capture, etc. electric vehicles or battery recycling.
“The difficult thing here is we have to change everything,” O’Sullivan said on the TechCrunch Disrupt 2021 virtual stage. “Climate technology isn’t just something that needs to be changed. We have 100 zones, 1000 different zones to reinvent and industries to rebuild. “
This opportunity has helped climate technology to become one of the hottest sectors for investing. But that doesn’t mean that success is guaranteed. Unlike other industries, climate technology affects almost every industry, including transportation, energy, agriculture, consumer goods, food and beverage, and packaging.
For investors, the initial challenge is to verify startups, along with their technology and business plan, to determine if they are really climate tech or just a facade.
“It’s just a big, broad category that encompasses anything and everything that could reduce global carbon,” noted Robert.
Are people ready for climate technology?
Forces in established industries can threaten progress even after climate technology startups have successfully raised funds and started to expand. As O’Sullivan noted, people are inherently resistant to change.
However, both investors saw more openness.
“If you listen to people today, they’re trying to figure out how to transition, blend in, add. I see a lot more of “How to embrace the transition?” “And even further:” How are we not afraid of him?