As EnergyLab’s new pre-accelerator program, Climate Tech Charge, celebrates its first anniversary, it’s time to reflect on the incredible progress and achievements of the first group of founders who have completed the program. Launched in August 2023, Climate Tech Charge is designed to support established climate tech entrepreneurs in building traction and enhancing their investment readiness. Over the past year, the program has supported 35 startups working on various technologies and projects, including solar, green hydrogen, electric vehicles (EV) & mobility, battery technology and more.
State of Climate Tech
The State of Australian Startup Funding report reveals that in 2023, climate tech experienced the most significant increase in deal volume, outpacing sectors like enterprise software and fintech. More and more investors are turning their attention to climate, which resulted in a remarkable $268 million in investments through 41 transactions in 2023. According to Rod Bristow from Investible, “this promising trend must persist if Australia wants to realise its potential as a global powerhouse in sustainable energy”. EnergyLab aims to achieve just that: to support climate tech startups in becoming both investment and scale ready, enabling them to roll out their technologies and contribute to global efforts in reducing carbon emissions.
To celebrate the first year of Climate Tech Charge we have gathered insights from a selection of the cohort startups. These startups are representative of the diverse range of founders we are proud to support in the Charge program.
Celebrating Cohort Wins & Achievements
This year our Climate Tech Charge entrepreneurs have collectively notched up impressive achievements and substantial growth. Take Chris Lyndon's from Certscape, who recounts the significant increase in traction they’ve achieved. He states that, “Before we joined EnergyLab, we didn’t have any customers, we didn’t have any grant projects. Now we are close deals with customers and we’ve secured this massive Australia - UK grant project. It’s definitely been with the help of the Charge program connecting us to EnergyLab’s mentor network that we’ve been able to achieve this.”
Chris Lyndon highlighted the importance of mentorship for early stage startups, saying that “The real best boon was the mentor network...we found we got lots of honest and helpful answers from the mentors.” Campbell McKay underscores this, as he highlights how mentorship helped refine his focus on a critical license agreement he’s currently securing for Leverage eFuel, a sustainable aviation fuel service, stating, "The conversation with the mentor was excellent because he simplified the process into the 3 key things that we need to focus on with the license agreement."
Product validation and in-depth customer discovery has been another significant driving force in the remarkable progress made by our founders. One shining example of this is Equoia’s journey as shared by Jessica Gower and Puven Pather. Moving from the initial pilot phase focused on gathering customer feedback to the development of an enhanced version 2 of the product, Equoia has now begun to generate revenue. Another great example is Akasha Rose’s journey with Drivyx. One of our more recent additions to the cohort, Drivyx has been going through an evolution from its initial concept to the brink of launching a comprehensive two-sided marketplace enriched with functionalities to democratise access to ESG data and investments. This progress underscores the necessity of a customer centered approach to product development and the importance of responsiveness to customer feedback.
Navigating Entrepreneurial Challenges in Climate Tech
Launching a start-up in the climate tech landscape comes with plenty of challenges, from the technical to the strategic, putting founders’ determination and creativity to the test. The entrepreneurs within the Charge program have openly shared the challenges they face, highlighting the complexities of navigating the climate tech landscape.
Jessica & Puven also spoke about a common concern among startups; the daunting task of raising capital. They said that, “Raising capital is definitely a challenge, and that will be our focus after the launch of version 2. We’ll look to raise funds to accelerate our growth”. Numerous climate tech startups, particularly those focused on developing capital-intensive hardware solutions, find that securing funding is essential to reaching a minimum viable product (MVP) or prototype stage. Achieving this milestone is crucial for driving growth, performing further market analysis, and gaining substantial leverage during investment negotiations.
Akasha Rose touched upon the difficulty of sifting through diverse and sometimes conflicting advice within the ecosystem, which reflects a broader challenge with decision-making in a startup environment where the stakes are high and the right path is not always clear. She emphasises the importance of resilience and persistence for women in a sector that often presents additional hurdles. "You are a founder because you have a vision. Even given all the feedback and naysayers, you need to stand your ground with your vision and continue to grow it while also taking onboard the relevant pieces of advice," she reflects.
Chris Lyndon highlighted another crucial aspect; the necessity of team expansion to achieve scale. Chris shared that, “One of the main challenges is finding the right person to join the team. The team currently has a wealth of experience in the emissions intensity certification landscape in Australia, software engineering, finance and sales but adding someone else to the team that also knows all about renewable fuels, gases, materials and their certifications, and how to communicate that with senior execs is a challenge. If we’re to grow massively in the next 6 months that’s the sort of addition to the team we need”. It can be difficult to find the right talent, but expanding the team is a crucial step in scaling up operations and meeting project requirements.
The Charge program participants have also grappled with the difficult balancing act of time management. Campbell McKay said that, “As a founder you’re getting pulled in all sorts of different directions, day by day, hour by hour. It’s incredibly important to separate the distractions from real strategic and commercial levers.” Prioritising actions that propel the venture forward, amidst a sea of potential distractions, is an ongoing challenge that demands discipline and strategic thinking.
These shared experiences underscore the many different challenges faced by climate tech entrepreneurs. Yet, they also highlight the resilience, adaptability, and strategic acumen that characterise successful founders in this dynamic and critically important sector.
Advice for Future Climate Tech Entrepreneurs
The journey of entrepreneurship, especially within climate tech, is both exciting and challenging. Our group of founders has gained a lot of experience in the Charge program over the past year, and they've shared some valuable insights for anyone starting out on this journey. "You can’t do it all alone...it has to be a team sport," advises Chris Lyndon, highlighting the critical role of assembling a passionate and skilled team early in your start-up's journey. This is not just about expanding operational capacity, but also about enriching the start-up with diverse perspectives and expertise.
Campbell McKay stresses the importance of strategic focus and time management, urging future entrepreneurs to be "really strict with yourself in terms of: is this the best use of my time today?" Staying focused on the actions that really make a difference is key to handling the countless tasks and challenges that come with running a startup.
Akasha Rose shares a powerful message of perseverance and authenticity, reminding us that "Just keep knocking on doors until you find the yes, and don't take no for an answer." Her journey underscores the importance of resilience and staying true to one's vision amidst a landscape that can often seem disheartening due to systemic biases.
Lastly, Jessica Gower emphasises an important and often overlooked message; the need for self-care and the sustainability of one's passion and health. "Don’t forget to take care of yourself," she cautions, recognising that the passion and energy entrepreneurs possess is a finite resource that must be replenished at times.
Together, these valuable insights can help steer future climate tech entrepreneurs in the right direction, emphasising the importance of early-stage team building, focus, resilience and self-care while striving to create impactful solutions aiming to decarbonise the planet.
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