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Climate investors and founders need to take what they can get amid the slowdown in venture investment, Lisa Coca tells Axios.

What they're saying: "A down round is better than no round," the Toyota Ventures partner tells Axios. "Let the markets speak on valuation and live to fight another day."

State of play: Toyota Ventures last year raised $150 million each for a climate and deep tech fund, investing across a range of green sectors from electric aircraft to fusion energy.

This interview was lightly edited for length.

What's been the big news in climate-tech investment?

"The continued drop-off in investment, a decline largely representative of much-needed correction. There was a lot of capital, a lot of hype in the heady days of 2021-2022, when people were doing stupid stuff with valuations.

Some of the decline was investors taking a pause in the run-up to the election. I don't think it was a big part — I don't think there's going to be a rebound next year."

"The next market correction in 2025 is going to be to valuations. We've seen downward pressure this year, but it's going to accelerate.

You're going to see doors shutter. For a lot of these companies, it's not about the technology, it's about the financing environment and higher hurdle that investors are placing for founders."

"About 16% of our investments have been in adaptation: ways to mitigate weather patterns, extreme events, resource constraints. It's not the area that's garnered the headlines.

Fire-tech prevention, bio-based materials for textiles or hygiene, alternative ways to grow food to reduce demands on land and freshwater — folks are starting to spend more time taking a look at those."

One tip for climate-focused founders or funders?

"Investors can have a tendency, if they're in a company, to get anchored to the last round's valuation. In this market that's a mistake."

💼 First job: "Stacking shelves and working as a cashier at Rite Aid in Harrisburg, Pa."

👑 Proudest investment: "I joined as partner in September 2021, two months after it launched Fund I, so building the climate fund and portfolio."

🤦 Facepalm moment: "Lack of oversight on board governance and control; when we didn't keep our fingers on the pulse of what was going on."

💡 In three-ish words, one change you'd make to climate-focused investment: "More emphasis on local power generation."

Lisa Coca: This climate moment is about survival

"Live to fight another day," the Toyota Ventures partner says.

Photo illustration of Lisa Coca collaged with a pattern of the Toyota Ventures logo.

Photo illustration: Axios Visuals. Photo: Courtesy of Toyota Ventures

Climate investors and founders need to take what they can get amid <a class="gtmContentClick" data-vars-link-text="the" data-vars-click-url="https://www.axios.com/pro/climate-deals/2024/12/12/jp-morgan-climate-tech-investment-saf-carbon" data-vars-content-id="8d48a768-ad74-4f01-95d3-200fba0cf1dd" data-vars-headline="Lisa Coca: This climate moment is about survival" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/climate-deals/2024/12/12/jp-morgan-climate-tech-investment-saf-carbon" target="_self">the</a> <a class="gtmContentClick" data-vars-link-text="slowdown" data-vars-click-url="https://www.axios.com/pro/climate-deals/2024/12/03/climate-tech-exits-ipos-mergers-2024-data" data-vars-content-id="8d48a768-ad74-4f01-95d3-200fba0cf1dd" data-vars-headline="Lisa Coca: This climate moment is about survival" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/climate-deals/2024/12/03/climate-tech-exits-ipos-mergers-2024-data" target="_self">slowdown</a> in venture investment, Lisa Coca tells Axios.What they&#x27;re saying: &quot;A down round is better than no round,&quot; the Toyota Ventures partner tells Axios. &quot;Let the markets speak on valuation and live to fight another day.&quot;

Lisa Coca: This climate moment is about survival

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