{"id":645644,"date":"2024-11-30T19:00:00","date_gmt":"2024-11-30T16:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/climate-vcs-are-cautiously-optimistic-about-a-second-trump-term-heres-why\/"},"modified":"2024-11-30T19:00:00","modified_gmt":"2024-11-30T16:00:00","slug":"climate-vcs-are-cautiously-optimistic-about-a-second-trump-term-heres-why","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/climate-vcs-are-cautiously-optimistic-about-a-second-trump-term-heres-why\/","title":{"rendered":"#Climate VCs are cautiously optimistic about a second Trump term\u00a0\u2014\u00a0here\u2019s\u00a0why"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a29507021bb0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a29507021bb0\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/climate-vcs-are-cautiously-optimistic-about-a-second-trump-term-heres-why\/#Not_all_clear_skies\" >Not all clear skies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/climate-vcs-are-cautiously-optimistic-about-a-second-trump-term-heres-why\/#Silver_linings\" >Silver linings<\/a><\/li><\/ul><\/nav><\/div>\n<div>\n<p id=\"speakable-summary\" class=\"wp-block-paragraph\">President-elect Donald Trump made no secret during his campaigning that he doesn\u2019t think the U.S. should take an aggressive stance on climate change. From leading chants of \u201cdrill, baby, drill\u201d to frequently criticizing everything from wind turbines to electric vehicles, he <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears poised to cast a shadow over the climate tech sector for the next four years.<\/p>\n<p class=\"wp-block-paragraph\">Or will he?<\/p>\n<p class=\"wp-block-paragraph\">Like many of Trump\u2019s positions, it\u2019s hard to pinpoint his exact stance on climate change and technologies that serve to mitigate or adapt to it. What\u2019s more, some of his proposed policies might stand to benefit climate tech broadly, even as they prop up oil and gas.<\/p>\n<p class=\"wp-block-paragraph\">\u201cIf you deregulate and you \u2018drill, baby, drill,\u2019 you can get more natural gas and oil. You can also get heat like geothermal. You can potentially get geologic hydrogen,\u201d Leonardo Banchik, investment director at Voyager Ventures, told TechCrunch.<\/p>\n<p class=\"wp-block-paragraph\">Banchik and other climate tech investors are cautiously optimistic that policy changes being considered by the second Trump administration won\u2019t be universally detrimental to climate tech.<\/p>\n<p class=\"wp-block-paragraph\">\u201cA lot of the climate tech wave started during the Trump administration,\u201d Banchik said. \u201cRegardless of which administration is in power, these technologies are going to continue coming down the cost curve.\u201d<\/p>\n<p class=\"wp-block-paragraph\">Sophie Bakalar, a partner at Collab Fund, agreed, and added she wouldn\u2019t be surprised if this second Trump administration also inspired more entrepreneurs to start building in the sector. \u201cClimate does not operate on a four-year cycle, these are very long-term trends and problems,\u201d she added.<\/p>\n<p class=\"wp-block-paragraph\">Much of investors\u2019 optimism stems from lessons learned from the clean tech cycle that went bust over a decade ago. Then, many companies grew too quickly, building massive factories and supply chains before demand had fully materialized. They also grew overly dependent on government subsidies, whether through grants, loan guarantees, or otherwise.<\/p>\n<p class=\"wp-block-paragraph\">\u201cWe are not investing in companies that are relying on federal subsidies or really bold ESG mandates from corporates. We are only investing in companies that provide a concrete value to their customer that is independent from climate,\u201d said Bakalar.<\/p>\n<p class=\"wp-block-paragraph\">Joshua Posamentier, managing partner at Congruent Ventures, echoed that sentiment. \u201cWe don\u2019t invest in anything that we think will require subsidies forever in order to have any unit economics.\u201d<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-not-all-clear-skies\"><span class=\"ez-toc-section\" id=\"Not_all_clear_skies\"><\/span>Not all clear skies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"wp-block-paragraph\">Still, some companies will be in for a rough ride. Anything that\u2019s reliant on tax credits for consumers will be vulnerable, several investors told TechCrunch. Some expect that wind power and related industries will take a hit, given Trump\u2019s vocal distaste for the renewable power source. One investor predicted the Environmental Protection Agency could see budget cuts too.<\/p>\n<p class=\"wp-block-paragraph\">Lack of federal support might push some companies that were close to the brink over the edge. \u201cIt\u2019s going to be a distillation, a thinning out of the herd,\u201d Posamentier said. \u201cI think they were probably already on death\u2019s door.\u201d<\/p>\n<p class=\"wp-block-paragraph\">Startups that survive might benefit from some clarity when dealing with potential customers, said Shaun Abrahamson, managing partner at Third Sphere. \u201cThe really hard thing, at least in the last four years, was the gap between what [companies] say in public, or what they feel they have to say, and then what happens when you ultimately run into the CFO. You\u2019ll get purer signal.\u201d<\/p>\n<p class=\"wp-block-paragraph\">A less climate-friendly administration could also hurt climate VCs themselves. Bakalar said that while we will likely see climate startups change their messaging and branding, to avoid being associated with the sector if it does fall out of favor, venture firms can\u2019t really do that and climate-focused VCs could see less LP interest over the next four years.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-silver-linings\"><span class=\"ez-toc-section\" id=\"Silver_linings\"><\/span>Silver linings<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"wp-block-paragraph\">But there are plenty of sectors that could get a boost. Anything involving drilling, as Banchik mentioned earlier, including geothermal and geologic hydrogen, will likely ride the coattails of policies that are favorable to oil and gas extraction. Grid-related startups are likely to benefit from proposed permitting overhauls, both Posamentier and Banchik said.<\/p>\n<p class=\"wp-block-paragraph\">Companies that generate power stand to gain, too. Surging AI investments have pushed companies to expand their infrastructure rapidly. The breakneck pace has strained electric utilities and independent power producers to the point that just under half of all new AI datacenters could be underpowered by 2027.<\/p>\n<p class=\"wp-block-paragraph\">Nuclear startups building small modular reactors (SMR) and geothermal companies will likely be among the beneficiaries, Banchik said. SMR startups Kairos and X-Energy are already riding the AI wave, having signed deals with Google and Amazon, respectively. Geothermal startups are playing the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a>, too, with Fervo Energy partnering with Google and Sage Geosystems working with Meta to power their datacenters.<\/p>\n<p class=\"wp-block-paragraph\">Both technologies have a potential ally in Chris Wright, who Trump has tapped to be his energy secretary. Wright is on the board at Oklo, an SMR startup, and his company, Liberty Energy, has invested in Fervo.<\/p>\n<p class=\"wp-block-paragraph\">\u201cHe\u2019s oil and gas all day long, but he\u2019s a smart guy,\u201d said Posamentier, who has spent time with Wright in the field. There, Wright explained to Posamentier that he was electrifying his company\u2019s fracking equipment because it was the better <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>. \u201cThis is a guy that\u2019s being pilloried for being anti-climate. He\u2019s not anti- or pro-climate. He\u2019s just like, \u2018Do the economic thing.\u2019\u201d<\/p>\n<p class=\"wp-block-paragraph\">Investors, and their portfolio companies, will have to wait and see what predictions actually play out in a new administration and which ones don\u2019t come to fruition.<\/p>\n<p class=\"wp-block-paragraph\">\u201cThe only constant is change and instability in the next four years,\u201d Posamentier said.<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMN63nwsw68G3Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/category\/technology\/\" target=\"_blank\" >Technology<\/a><\/span> category.<\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/techcrunch.com\/2024\/11\/30\/climate-vcs-are-cautiously-optimistic-about-a-second-trump-term-heres-why\/\" target=\"_blank\" >Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>President-elect Donald Trump made no secret during his campaigning that he doesn\u2019t think the U.S. should take an aggressive stance on climate change. From leading chants of \u201cdrill, baby, drill\u201d to frequently criticizing everything from wind turbines to electric vehicles, he appears poised to cast a shadow over the climate tech sector for the next&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-645644","post","type-post","status-publish","format-standard","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/645644","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=645644"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/645644\/revisions"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=645644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=645644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=645644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}