GCV Symposium 2021: Panel – A second run for cleantech

Caroline Gorski, group director at R Data Labs, the data accelerator of engine and car producer RollsRoyce, moderated a session featuring Gediz Karaca, CEO of solar power company Odqa, and David Pinder, executive chair of hot water tanks technology developer Mixergy.

The panellists shared their insights on the new cleantech wave and the lessons learnt from the disappointing first cleantech boom that ended in 2011.

“In the first cleantech wave investors lost half of the capital deployed, primarily because their approach was based on their experience in technology investing, which usually implies a shorter investment period and a faster exit route, while energy startups often require a much longer investment horizon,” said Karaca.

“During this second wave, we have seen the launch of several evergreen funds, which are able to deploy capital over a longer timeframe to support the development of their portfolio companies. Furthermore, we have recently seen an increasing number of corporations involved in the cleantech sector, primarily energy firms that are familiar with the industry and its requirements and are able to boost and support cleantech startups.”

Pinder said: “This is a pivotal moment for the development of the cleantech industry. During the first cleantech wave, there was still a lack of engagement both from the public and the private sector. Things have considerably changed now, with a growing number of corporate and venture capital investors that have approached the sector, while governments – through regulations, international agreements and sometimes subsidies – have been stimulating its growth.”

R Data Labs’ Gorski added: “Available capital, investors’ support and increased flexibility need to be coupled with a clear agenda and strong, decisive efforts from governments and regulators. This is the only way to make sure that this fabulous opportunity to invest in the cleantech space and fuel its expansion will not be wasted.”