Deep Tech for Climate Adaptation Funding

Around three years ago, I read an article that genuinely shocked me. The argument was simple: As the planet warms, billions of people in hot countries will need cooling to survive. Air conditioning is one of the most greenhouse-gas-intensive technologies we have. The cooling demand of India alone, met with today's vapour-compression systems and refrigerant gases, could push warming past tipping points and make large parts of the world uninhabitable. A self-reinforcing loop. The hotter it gets, the more we cool. The more we cool, the hotter it gets. 🌡️ 🔄 I have not stopped thinking about that article since. Heating and cooling already account for around 15% of global CO2 emissions. Cooling alone exceeded 4 Gt of CO2e in 2022, and demand is expected to triple by 2050. 📈 Data centres in Europe already spend roughly 37% of their energy just on cooling. And the underlying technology, vapour compression, is essentially 200 years old. This is exactly why we at World Fund led Barocal's $10M Seed round. Built on more than 15 years of research at the University of Cambridge by Prof. Xavier Moya, the leading scientific mind in caloric materials, Barocal has cracked something the field has been pursuing for decades: a solid-state cooling and heating platform that rivals vapour-based incumbents on cost. No refrigerant gases. Significantly lower emissions. A real path to scale. The market is around $450bn today and projected to reach $577bn by 2033. The team is exceptional. The timing is right. 🎉 For Europe, this is more than a climate story. It is energy security. Less dependence on imported gases. More efficient cooling for the data centres our economy now runs on. A European deeptech champion taking a centuries-old industry into its next chapter. Proud to partner with Breakthrough Energy Discovery, IP Group plc and Cambridge Enterprise Ventures on this round. And huge thanks to Daria Saharova, Dr.-Ing. Mark Windeknecht and Robin Neff for the work that got us here. 👏 👇 Link to the TechCrunch story in the comments.

The Opportunity for Private Equity in Climate Adaptation 🌍 2024 was the hottest year on record, with temperatures rising 1.55°C above pre-industrial levels. Extreme weather events are creating systemic risks for economies and businesses. Damages from climate change are already surpassing the costs of mitigation. If warming reaches 3°C by 2100, corporate profits could decline by 5 to 25%. Global adaptation needs are projected at $0.5T to $1.3T annually by 2030, compared with current spending of around $76B. This gap represents a significant investment frontier. Governments will fund much of this effort, but private capital is essential to scale solutions. Public policy creates demand certainty while investors provide innovation and capacity. The Climate A&R Opportunity Map identifies seven themes: food, infrastructure, health, water, energy, biodiversity, and community resilience. Two market categories dominate: early-stage pure-play innovators and large diversified incumbents integrating A&R activities. Both provide different investment pathways. Six subsectors stand out for near-term action: climate intelligence, resilient building materials, flood defense, agricultural inputs, water efficiency, and emergency medical solutions. Attractive subsectors combine strong benefit-cost ratios, manageable financing models, and clear demand signals from both public and private actors. Markets are highly localized. Wildfire management is prominent in North America, drainage systems in Asia, and flood basins in Europe. This enables geographic expansion and roll-ups. Investment strategies include buyouts of mature companies, growth capital for scaling, and venture investment in high-potential innovators. Value creation can be achieved through portfolio alignment, geographic expansion, vertical integration, and pursuing solutions that deliver both resilience and decarbonization benefits. Climate adaptation and resilience offers a financial and societal opportunity. Early investors can capture emerging value pools, support resilience, and shape a defining market of the future. #sustainability #business #sustainable #esg

Global Grants for Indian Climate Startups- India’s climate solutions are rooted in local realities — but their impact goes far beyond. From watertech innovation in Karnataka, to bioplastics and recycling in Maharashtra, to sustainable fabrics in Gujarat. From agri-waste transformation in Punjab and Haryana, to offshore wind tech rising off Tamil Nadu’s coast, to climate-resilient innovations in Odisha and West Bengal, and air filtration breakthroughs in Uttar Pradesh — I’ve had the privilege of meeting the founders building them — makers, engineers, scientists, and storytellers who are quietly reshaping the future. Through Bharat Climate Startups, I’ve been traveling across India to learn from these ground-up solutions — and I’m constantly reminded that while the problems may be global, so are the solutions. If you're building something in this space, here are 5 international grants and programs that Indian startups can apply to 👇 🔹 1. GSMA Foundation Innovation Fund for Climate Resilience & Adaptation 💰 Up to £100,000 (~₹1 crore) in equity-free funding 📌 For digital climate solutions improving resilience in underserved communities 🌱 Open to startups in South Asia, Africa, and Indo-Pacific 🔹 2. The Earthshot Prize Prize 💰 £1 million (₹10+ crore) per winner 📌 For scalable solutions tackling nature loss, water, air quality, waste, or climate 🌱 Indian startups are eligible — and have been finalists! 🔹 3. Echoing Green Fellowship 💰 Seed funding + 2 years of support 📌 For early-stage climate and social entrepreneurs 🌱 Open to Indian founders with bold ideas and deep impact 🔹 4. ACT For Environment – by ACT Grants (India) 💰 ₹20–50 lakh in catalytic seed grants 📌 For climate innovations in green mobility, clean energy, agriculture, circularity, and carbon removal 🌱 One of the boldest Indian philanthropic funds backing frontier environmental solutions 🔹 5. Global Innovation Lab for Climate Finance (by CPI) The Global Innovation Lab for Climate Finance 💰 Seed + pilot support + investor connections 📌 For ideas that unlock private finance for climate solutions 🌱 Several India-based innovations have already been selected 🔹 6. Imagine H2O Accelerator Program 💰 Non-dilutive funding + mentorship + access to a global investor network 📌 For startups working on water conservation, wastewater treatment, and climate resilience 🌱 Open to startups worldwide, including India 📩 Know someone working on a globally relevant climate solution? Or building one yourself? Message me if you want help navigating these grant calls — or just want to swap notes. Here's to building a vibrant support ecosystem for climate innovators! 💚 The world is watching — and India’s innovators are ready. 🌏 #ClimateAction #ImpactFunding #BharatClimateStartups #ClimateFinance

Impact startups in MENA are growing fast but funding strategies must evolve just as quickly. One of the questions I’m asked most often by founders is: “Where do we start when it comes to raising funds for climate or sustainability-focused ventures in this region?” Here’s how I usually break it down in 4 key pathways I’ve worked with or closely observed, each requiring a clear narrative, regional awareness, and the right positioning: 1. Government-backed innovation platforms These are not just about incubation, they are increasingly designed to de-risk startups and connect them to capital. 🔹 Example: Hub71 (Abu Dhabi) offers access to corporates, sovereign investors, and a growing base of VC partners through its Incentive Program. It's a launchpad for startups aligned with national priorities. 2. Climate-aligned positioning Framing your solution around climate resilience or adaptation is no longer optional—it’s a strategic funding move. 🔹 Example: ALTÉRRA, the $30B climate investment fund launched by the UAE at COP28, is designed to mobilize capital into areas like clean energy, food security, and nature-based solutions. Startups that clearly align with these priorities stand a stronger chance of attracting institutional and private funding. 3. Corporate sustainability partnerships Corporates in MENA are increasingly partnering with startups to accelerate their ESG goals—often offering pilot funding, technical support, or access to infrastructure. 🔹 Example: PepsiCo Middle East has launched several open innovation challenges in the region, focusing on sustainable packaging, water reuse, and food system transformation. These partnerships are a valuable entry point for startups ready to co-create scalable solutions. 4. Strategic VC alignment Venture capital in MENA is increasingly aligning with long-term sustainability themes—especially in climate tech and resource efficiency. 🔹 Example: VentureSouq, a MENA-based VC, launched its Climate Tech Fund I to invest in technologies tackling the climate crisis—from energy and mobility to the circular economy. They’re actively backing companies that blend strong commercial potential with measurable impact. The takeaway? It’s not just about raising funds, it’s about raising strategically. That’s how you align with where capital is moving in the region. If you found this useful, share it with a founder or ecosystem builder working on climate and impact in MENA. Let’s make these conversations more visible ;-) #ClimateFinance #MENA #ImpactStartups #StrategicFunding #GreenTransition #BusinessWithPurpose

🌍 Climate Adaptation Tech: Europe’s Hidden Investment Gem 💧🔥🌾 When we talk about climate tech, most of the spotlight goes to mitigation—clean energy, carbon removal, EVs. But there's a parallel revolution brewing in climate adaptation—and Europe is at the forefront. I’ve spent my career across both and see a better time than ever to focus on emerging adaptation technologies so have been researching this a lot lately. From early flood detection in the Netherlands, to AI-driven drought forecasting in Spain, to wildfire risk management in Southern France, a wave of startups is rising to meet the realities of a changing climate. This isn't speculative. It’s pragmatic—and it’s being backed by policy, capital, and necessity including the rising costs underinvestment. 🇪🇺 The EU is allocating billions through initiatives like the European Climate Adaptation Mission. 🌱 Insurance, agriculture, water management, and urban planning are all demanding adaptive solutions. Allianz has repeatedly warned how escalating climate risks could destabilize financial system from mortgages to supply chain finance. 💼 And the investor landscape is still relatively uncrowded—meaning early-stage access with upside. Exciting to watch some fast growing companies targeting this space like Climate X, Hydrosat, Muon Space, Pano AI and more. Adaptation tech is often viewed as niche but the reality is it’s pervasive and one of the most investable frontiers of resilience. #ClimateTech #Adaptation #Resilience #EUInnovation #SustainableInvesting #VC #ImpactInvesting #EuropeanStartups

France just dropped €54B to say what Silicon Valley won’t: We need slower, smarter, long-term capital. "Traditional 10-year cycles and SaaS-style traction don’t match the timelines of climate hardware or deep tech." —Raphaele Leyendecker Fabbri, Techstars Sustainability Paris ⏳ These aren’t apps — they’re atomic. We’re talking microreactors, carbon-negative cement, and circular battery ecosystems. France’s bold €54B bet through #France2030 isn’t just about funding — it’s a roadmap. It shows us what the future of climate investing must look like: 👉 Patient capital 👉 Corporate partners at the ground floor 👉 Investors with a vision beyond their fund cycle, committed beyond political winds of the moment And guess what? It’s working. Some French climate companies I'm watching: ✅ Back Market – Europe’s first refurbished electronics unicorn (at peak, valued at $5.7Bn), reducing e-waste at scale "you should have a right to repair your phones!" (Led by Thibaud Hug de Larauze as CEO, Dawn Baker as CTO) ✅ Innovafeed – 🐛 Led by founders Clément Ray and Aude Guo; the team is scaling insect protein to decarbonize agri-food systems. ✅ Fairbrics – CO₂ into textiles? With €22M raised in 2023 and chemists like Fatou Coundoune, led by co-fouder & CTO Tawfiq Nasr Allah these folks are reimagining fashion’s footprint. ✅ Verkor – €2B for low-carbon EV batteries, backed by Renault Group & Schneider Electric. In September 2023, Verkor secured over €2 billion in financing to construct its first gigafactory in Dunkirk, France. The gigafactory is expected to be operational by 2025, creating around 1,200 direct and 3,000 indirect jobs. ✅ newcleo – Next-gen nuclear from a French base, going beyond traditional cleantech. Led by Elisabeth Rizzotti, a physicist who after a brief stint at CERN built a 30+ year track record in the world of finance. ⚡ Let’s fund the future, not just fast exits. 👇 Know a woman-led climate startup we should keep our eyes on? Drop it in the chat! Link in comments for my full conversation with Raphaele Leyendecker Fabbri filmed in the office of Techstars Sustainability Paris for Billion Dollar Moves Podcast Beyond The Billion® 🔥 #venturecapital #startups #climate

#ClimateAdaptation is moving from side project to balance-sheet priority. McKinsey estimates climate-resilience technologies could represent $600B–$1T in addressable markets by 2030, across building hardening, grid resilience, water systems, wildfire and flood mitigation, supply-chain protection, and risk transfer. We’re already seeing the demand signal that feeds those markets:  premium hikes and FAIR-plan growth push owners toward risk transfer and upgrades; outage spikes drive backup power and grid/storage spend; and code-plus retrofits (impact-rated roofs, debris-resistant openings, WUI) funnel capital into building hardening—the very categories McKinsey sizes. Climate isn’t one more risk... it’s a risk multiplier. First Street’s 11th National Risk Assessment: Portfolio Pressures documents how “idiosyncratic” events are giving way to same-year, multi-hazard hits across regions, lifting portfolio tail losses. To reflect that reality, we incorporate cross-peril and cross-property correlations when producing portfolio loss curves—showing that ≤1% AEP outcomes can be materially higher than single-peril views, which is exactly where capital planning is most exposed. How exposure becomes financial stress. After a hazard, the credit channel runs through a few tight mechanisms: non-renewals and lender-placed insurance raise escrow and DTI; deductibles and sublimits shift more loss to borrowers; unrepaired damage and appraisal haircuts erode equity and push LTV higher; and refi frictions (overlays, comp scarcity, proof of coverage) slow prepayments. These effects are most acute for LMI households with thin buffers, accelerating roll rates and raising LGD. Because they cluster geographically, localized shocks become correlated loss periods at the portfolio level. Why this points to adaptation and resilience. If climate amplifies losses, targeted resilience is a return-on-avoided-loss strategy: flood management that reduces depth and downtime; wildfire mitigation that lowers damage severity and insurance frictions; water and grid upgrades that cut business interruption; building hardening that preserves collateral value and speeds appraisals. The financial translation is straightforward—lower expected loss and tighter tails, better cash-flow durability, improved cure rates, and more stable LTV/DSCR. Connecting market opportunity to portfolio need. The adaptation categories McKinsey highlights line up with where portfolios experience the largest stress multipliers. The job now is to direct capital to site-specific measures with measurable payoff—prioritizing assets and geographies where resilience most improves cash flows, collateral values, and loss distributions while reducing the chance that local shocks scale into portfolio-level credit stress. The aim is simple: quantify climate-to-credit pathways, target interventions with measurable payoff, and finance resilience at scale, so portfolios get stronger while communities face fewer disruptions.

500+ deals analyzed. Five sectors getting funded. Climate tech isn't PR theater anymore, it's an infrastructure play. I just reviewed Q3 2025's angel and VC climate deals. Smart money is flowing into must-have systems, not nice-to-have stories: 𝗖𝗮𝗿𝗯𝗼𝗻 𝗿𝗲𝗺𝗼𝘃𝗮𝗹: Direct air capture, mineralization, industrial scrubbers. Real hardware solving real emissions. 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗺𝗮𝘁𝗲𝗿𝗶𝗮𝗹𝘀: Bio-based plastics, low-carbon concrete, lab-grown everything. The stuff we actually build with. 𝗔𝗱𝗮𝗽𝘁𝗮𝘁𝗶𝗼𝗻 𝗶𝗻𝗳𝗿𝗮: Seawalls, flood defenses, wildfire systems, resilient ag. Because the climate already changed. 𝗦𝘁𝗼𝗿𝗮𝗴𝗲 + 𝗴𝗿𝗶𝗱: Batteries, thermal storage, AI grid optimization. Making renewable power actually work. 𝗖𝗶𝗿𝗰𝘂𝗹𝗮𝗿 𝗺𝗼𝗱𝗲𝗹𝘀: Waste-to-value, advanced recycling, product-as-a-service. Economics that make sense. The pattern is clear: climate tech is becoming the infrastructure layer, not the virtue signal. VCs aren't funding feel-good stories. They're funding the picks and shovels of the energy transition. If you're a founder, which sector surprises you most, and which one are you quietly building in? Come for the posts, stay for the comments.

San Francisco just dropped another signal flare in the climate tech skyline. Class 3 Technologies, the spin-out from Arup that's redefining how we measure #climaterisk in the #builtworld, has officially stepped out of stealth and into the spotlight with a $3.5M seed round led by Powerhouse Ventures, joined by Sustainable Future Ventures and Tailwind Futures. It's not just another funding headline, it's the story of engineers who refused to keep modeling tomorrow's risks with yesterday's math. Founded in 2023, Class 3 Technologies was built by people who've lived on the frontlines of #structuraluncertainty. CEO Ibbi Almufti, a licensed structural engineer and former head of Arup's Risk & Resilience practice, didn't just theorize about climate risk, he engineered around it. What started as deep R&D inside Arup's global network became Iris, a modeling engine that treats buildings like living systems, not static spreadsheets. It quantifies how #storms, #floods, and #heatwaves hit each component, and it translates those hits into the language execs actually understand: financial losses, downtime, and safety metrics. The Iris platform is what happens when #precisionengineering meets predictive intelligence. Instead of broad-stroke "climate dashboards," Iris drills down to the bolts and beams, delivering engineering-grade accuracy that #CFOs, #developers, and #insurers can actually bet on. The team didn't just want to make #climatedata look good, they wanted to make it useful. Real #resilience means knowing how much risk you carry before the world tests it for you. The investors backing this round know the stakes. Powerhouse Ventures saw the potential for a scalable, engineering-first SaaS in a trillion-dollar adaptation market. Sustainable Future Ventures and Tailwind Futures recognized that resilience isn't a side project, it's infrastructure's next operating system. With support from Arup Ventures and industry leaders like Ilana Judah -., this isn't a startup guessing its way into climate tech. It's a team bringing enterprise-grade modeling to a world that desperately needs clarity before the next storm. Class 3 Technologies is now scaling Iris globally, building out #hazard modules for wildfire, flood, and #seismicrisk, expanding data integration, and hiring #engineering, #datascience, and enterprise #sales talent to match their ambition. They're not chasing hype cycles, they're building the frameworks that will keep cities standing and businesses solvent when climate volatility isn't a headline but a baseline. The next generation of risk modeling won't come from insurance averages. It'll come from Class 3 accuracy. #Startups #StartupFunding #EarlyStage #VentureCapital #SeedRound #ClimateTech #Sustainability #Safety #Data #DataDriven #SaaS #Infrastructure #Technology #Innovation #TechEcosystem #StartupEcosystem #Hiring #TechHiring If software engineering peace of mind is what you crave, Vention is your zen.

Building Climate Resilience: The Overlooked VC Opportunity While climate tech funding dominates headlines, adaptation and resilience technologies remain dramatically underinvested - creating outsized opportunities for forward-thinking investors. The numbers tell the story: 💧 Only 5-10% of climate tech VC dollars target adaptation/resilience vs. 90%+ for mitigation technologies 🙈 $1.2T in climate-related asset risk faces Fortune 500 companies by 2030 📢 Physical climate damages will cost 3.3-28% of corporate real asset value annually by 2050s (S&P Global) At Pachamama Ventures, we see this gap as competitive advantage. Our portfolio companies like Gentian (biodiversity monitoring) and Mars Materials (carbon sequestration into everyday products) aren't just reducing emissions - they're helping enterprises adapt to climate realities already hitting their operations. Fortune 500 procurement teams are waking up to this. Supply chain disruptions, physical asset risks, and regulatory pressures are driving demand for resilience solutions that protect existing infrastructure while reducing environmental impact. The opportunity: breakthrough technologies that deliver both mitigation AND adaptation value capture multiple corporate buying triggers simultaneously. These companies often face less VC competition and can secure enterprise customers faster than pure-play mitigation technologies. Our theory of change: climate tech scales fastest when it solves today's operational problems while building tomorrow's sustainable infrastructure. The companies building resilience into our systems today will be the climate winners of the next decade. What adaptation/resilience technologies are you seeing gain corporate traction? #ClimateResilience #VentureCapital #ClimateTech #Adaptation