Startup sustainability & growth do not have to be mutually exclusive, despite a perception that one cannot go hand in hand with the other. Investors recognize the importance of sustainable growth and the focus on sustainability. But what trends are emerging in detail?
Trend 1 – Sustainability startups and investments as crisis winners and bearers of hope?
Compared to areas such as eCommerce and Crypto, which are currently suffering from down-rounds and hesitant investments, Purpose-, Impact- and Sustainability-players present themselves as more resilient. We are in the middle of an energy transition, moving away from fossil fuels and towards decarbonization. The focus is on efficient energy management, digitalization of grids and alternative mobility offerings. Especially in Europe, this wave is accelerating – as confirmed by a recent snapshot on this topic at the NOAH conference in Zurich. Yet, this space is still highly fragmented and often characterized by long development cycles – but many investors (VCs as well as private equity and banks) are investing in sustainability and the future. The order of the day? Yes – especially in Europe, where the Europan Innovation Council (EIC) is also sending strong signals and setting the course (Gernot Schwendtner, author, is also expansion coach at the EIC Scaling Up Program for 100 high potential players in the Sustainability and DeepTech sector).