Axios Pro: Climate Deals

January 25, 2024

Axios Pro Exclusive Content

We're almost there!

🫙 Sip of the week: Katie cracked open a tallboy can of Liquid Death this morning so she could "murder her thirst."

1 big thing: 👀 Looking ahead, part two

This newsletter kicked off the New Year with some predictions and sectors to watch from climate tech investors. We didn't have enough space to publish them all, so here's Part II of that query, assembled by Alan and Katie.

Meera Clark, Redpoint Ventures: "We will transition into a new era where every company is an energy company: they'll increasingly turn to software and data infrastructure solutions to inform their own energy enablement, power procurement, and energy footprint optimization."

Matt Eggers, Prelude Ventures: "Driven by the promise of maturing technology and massive markets, large investors who pulled back from climate tech beginning in 2022 — sovereigns, private equity firms, hedge funds, mutual fund companies — start to return in 2024."

Shayle Kann, Energy Impact Partners: "The electricity supply and transmission bottleneck will come even more into focus as old generation assets retire, interconnection queues remain clogged, and a wave of new large load requests arrive on utility doorsteps."

John Tough, Energize Capital: "I expect (and we are already seeing) a wave of consolidation; industry leaders with strong capitalization will be rewarded in 2024."

Milo Werner, Engine Ventures: "2024 will be the year investors realize the metals and materials that built the modern world and powered the American economy to superpower status over the past 100 years will not power the next 100 years."

Rick Zullo, Equal Ventures: "2024 will be about the rotation away from investing in frontier solutions, back to what VCs do best: digital. We'll see tremendous consolidation of frontier/hardware solutions as private companies come to terms with public market comps and funding availability dries up, reverting VCs back to less capital-intensive digital solutions."

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