Former Lyft CSO and Freestyle Capital co-founder team up to back climate tech startups
Raj Kapoor, Lyft’s former chief strategy officer and president of business, believes that expecting consumers (or the government) to change their ways is not an effective method for preserving the earth. Instead, he and Josh Felser, co-founder of Freestyle Capital and a serial entrepreneur, believe that the future of climate technology will begin in the workplace.
“What we’re witnessing is that the company’s conduct is completely shifting,” said Kapoor. “By the end of 2021, all Fortune 500 companies will have publicly stated sustainability targets, and 65 percent of global GDP will have committed to achieving net zero carbon emissions by 2050.” Amazon, for example, is aiming to be carbon-neutral by 2040, and has just re-invested in its $2 billion climate fund to support a fast-charging technology startup for electric vehicles.
To take advantage of the increased awareness, Kapoor and Felser have spent the last year developing Climactic, an early-stage venture capital business that seeks to invest specifically in startups that are working to improve the climate from an enterprise standpoint. To date, the investors have put their money into 11 enterprises, writing cheques ranging from $50,000 to $100,000. They declined to comment on fundraising plans, but Climactic has yet to file any paperwork.
Climactic’s main thesis is to assist businesses in achieving their net-zero emissions goals, followed by a desire to invest in new consumer products that do not sacrifice value in the name of being better for the environment. They’re searching for startups that help businesses because they become a “captive base of consumers who have all publicly raised their hands and requested for help with the innovative technologies they require to reach their publicly declared goals,” according to Felser.
According to Kapoor, clean tech 1.0 was primarily about scientific innovation headed by academics and academia, but clean tech 2.0 is about entrepreneurs developing vehicles or software that are ready to go to market sooner. Climactic is keeping busy as a result of the move, investing in everything from equipment to measure and analyse carbon emissions, software to improve supply chain efficiency, and mobility technologies for both transportation and commodities.
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