Kim Zou, CEO of Sightline Climate, evaluates the carbon accounting and ESG reporting startup ecosystem.
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“Carbon accounting isn't necessarily a market that needs 200 or 300 players. And also I think a lot of them end up being a bit more consulting advisory based than traditional enterprise SaaS like generalist investors understood.”
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More from Kim Zou
Insight
Zou: Climate tech success is graduating to project finance, not mega-rounds
“Specific to climate tech, it might not make sense to define success as an absolute dollar in venture investment, because at the end of the day, when we think about all this hardware and, you know, hard tech that needs to develop into projects, you want these c…”
Kim ZouJan 11, 2024▶ 8:212023 climate tech venture investment trends
AssertionSupported
Kim Zou: Oxy's $1B Carbon Engineering buyout is the first DAC unicorn
“On the acquisition side, I think the one that Climatech investors and founders couldn't stop talking about this year was Oxy's acquisition of carbon engineering at a billion dollars, so the first unicorn we've ever seen in DAC and probably carbon removal.”
Kim ZouJan 11, 2024▶ 26:122023 climate tech venture investment trends
AssertionPartly supported
Zou: Transportation gets 30% of climate VC despite causing 15% of emissions
“We've tracked transportation accounting for 15% of total emissions. As per the IPCC 2019 report, but receiving 30% of venture and growth investment since 2020. Whereas on the other hand, you know, energy deals, or energy investment made up 22% of overall fundi…”
Kim ZouJan 11, 2024▶ 31:432023 climate tech venture investment trends
AssertionSupported
Zou: Climate tech deal count fell only 3% in 2023
“Deal activity was only down three percent, so you could call that even a tapering relative to twenty-twenty-two rather than a significant decline, so Deals are still getting done. Early stage seed series A still getting done, but that absolute dollar amount th…”
Kim ZouJan 11, 2024▶ 6:432023 climate tech venture investment trends
AssertionSupported
Zou: Series A climate investment dropped 41% in 2023
“Series A investment was down 41% compared to twenty-twenty-two. That's the first time we've seen series A investment drop since we started tracking the space, you know, four years ago.”
Kim ZouJan 11, 2024▶ 10:332023 climate tech venture investment trends
AssertionSupported
Zou: Food and land use climate investment fell 55% in 2023
“This time around, in 23, appetite for food and land use evaporated. There is a distaste for food and land use, in other words, and we saw that That sector was down 55% in investment to three billion this year.”
Kim ZouJan 11, 2024▶ 15:312023 climate tech venture investment trends
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