Clean energy investor Ramez Naam highlights the outsized climate impact of industrial steel production relative to more widely scrutinized sectors like aviation.
Insight
Naam: Deep tech startups no longer need commercial scale to exit
“It's no longer the case that we have to wait all the way until we have a product commercially on sale or at scale for this to produce an exit.”
Insight
Naam: App-based software businesses have weaker moats than hard tech
“We used to believe that, or companies like, again, I'll say Uber or WeWork, we thought, oh, they have natural network effects, they're gonna have a gigantic moat but it turns out switching costs for consumers are actually pretty low, and maybe lower, And some …”
Assertion Supported
Naam: Uber, Lyft, and WeWork burned more capital than cleantech
“If you look at, you know, some real darlings of The tech VC world, companies like Uber, or Lyft, or WeWork, you see companies that have burned through an enormous amount of capital, far more than most cleantech companies ever have or ever will.”
Opinion
Naam: SPACs generated more upside for deep tech than other investments
“I think it's a fair case to be made that SPACs have generated more upside for deep tech in climate tech and in other sectors than they have for any other Type of investment”
Disclosure
Ramez Naam: Portfolio company ESS went public before achieving commercial scale
“ESS, you know, my portfolio just went public two weeks ago now when we're recording this, and they've got a commercial product, but they haven't certainly hit commercial scale at this point.”
Assertion Not checkable as stated
Naam: Addressing climate change requires $100 trillion in infrastructure turnover
“Or the early stages, honestly, of a hundred trillion dollar clean energy revolution, essentially. We're going to turn over, that sounds like it's just a made-up number, but when you actually look at the infrastructure turnover we need to address climate change…”