How Startups Can Make a Real Impact on Climate Change
The Key to Success in the Climate Tech Industry
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For startups to make a significant impact on climate change, they need to focus on hardware innovations, particularly in energy and raw materials sectors. A recent report by Congruent Ventures and Silicon Valley Bank surveyed over 50 experts, identifying 50 North American companies excelling in manufacturing, materials, energy, agriculture, and mobility.
Most successful startups in climate tech are hardware-focused, addressing the tangible aspects of reducing emissions rather than relying solely on software. The study shows that manufacturing and energy startups dominate the landscape, while agriculture is underrepresented, despite contributing heavily to carbon emissions. Startups in this field tend to mature more slowly due to the time required to develop, refine, and prove their technologies.
Although hardware startups face high costs and extended timelines, their potential market share is massive. Climate tech is already valued at $1 trillion, and experts predict it will double every decade. While risky for investors, those who back successful startups in this field stand to gain significantly as these companies tackle one of the world’s most urgent challenges.
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