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In this special episode of CC Pod, Michael explores Climate Angels with Vijay Rajendran, an experienced Climate Capital Syndicate Investor and Advisor.
Vijay is not a typical interviewee for this show. From being an entrepreneur in commerce and fintech to advising both startups and big companies on product and strategy, his experiences have crafted his perspective on climate investing. He isn't a portfolio founder, but rather a colleague at Climate Capital who is helping to launch Climate Angels - an educational program for potential angel investors interested in the climate tech space.
Climate Angels is designed to answer questions about angel investing, particularly in the climate field, which differs significantly from other tech verticals. It will guide participants through the process of developing a robust investment thesis, sourcing potential startups, evaluating them, syndicating, and eventually providing advice or guidance to portfolio companies.
From our CC Insights article announcing the launch of Climate Angels:
Angel investing, by the numbers.
Angels play an important role in the larger venture ecosystem, providing capital to bridge early startups from company formation to their first “real” fundraise.
On average, angel groups invested a total of $5.3 million per group in 2022, an increase of 15% from 2020. The total amount invested in 2021 represents the highest total since the Angel Capital Association began tracking this data.1
Angels continued to focus on investing in pre-seed & seed-stage deals in 2021, reducing investments in later rounds. Angels invested more than 50% of their dollars in Series Seed, which accounted for nearly 60% of deals, up from 50% in the prior two years.
Startups that have angel backing are at least 14 percent more likely to survive for 18 months or more after funding than firms that do not. 2
Vijay shares valuable insights into the differences between early and later stage investment, explaining how the journey from idea to seed stage presents unique opportunities and challenges. He emphasized the importance of understanding and evaluating the market potential and the quality of the startup team, crucial factors that every angel investor must consider.
The conversation also delved into the shift in perception of climate investing. Traditionally viewed as impact-first and return-second, the narrative is changing. Vijay laid out a compelling case for climate as an investable category, suggesting that the focus should be on the myriad opportunities in the sector, from energy transition to food systems.
The Climate Angels program is open to individuals who have dabbled in angel investing and are intrigued by the opportunities in the climate world. It also welcomes those who haven't invested before but are passionate about climate change and want to contribute to the sector in a meaningful way.
The Climate Angels program is a unique opportunity to explore climate investing, learn from experts in the field, and contribute to the fight for societal decarbonization. For those interested in learning more about the program, visit the website.
Disclaimer: Under no circumstances should any information or content on this page be considered an offer to sell or solicitation of interest to purchase any securities, including any securities advised by Climate Capital or any of its affiliates or representatives. Further, no content or information herein is or is intended, nor should it be construed as, an offer to provide any investment advisory service, financial advice, legal, tax, accounting, investment, or other advice from Climate Capital or any of its affiliates (collectively "Climate Capital”). Under no circumstances should anything herein be construed as fund marketing materials by prospective investors considering investing in any Climate Capital investment fund. Content contained herein does not constitute an offer to sell — or a solicitation of an offer to buy — any securities and may not be used or relied upon in evaluating the merits of any investment. Information regarding companies highlighted herein has been provided by third parties, and Climate Capital makes no representations or warranties as to its accuracy, as to the viability of any company listed herein, or the results of any investment in a listed company.
