At an event organized by The Vertical and Climate-KIC, international entrepreneurs and fundraising experts discussed strategies for securing ClimateTech investment in the U.S. Here are some of their insights.
“The greatest place on earth to build”
For international startups seeking funding, the U.S. stands out as the top destination thanks to its status as the world’s largest market for climate initiatives that range from transportation to sustainable agriculture.
According to Anya Freeman, CEO and founder of Kind Designs, it’s “literally the greatest place on earth to build something.”
Anya, whose company 3D-prints living seawalls, emphasized that startups are uniquely equipped to scale impactful solutions. However, she noted that much of the world’s climate funding is earmarked for governments and nonprofits.
“There has to be a reevaluation of where that money goes,” she said. “Startups can build massive teams and scale to every city, creating enormous returns on investment.”
Chris Van de Voorde, founder of JUUNOO, which has developed reusable interior walls to cut CO2 emissions, believes that the U.S. market is far more receptive to new ideas and has a more effective investor ecosystem compared to Europe.
“My advice to anyone from Europe: don’t waste your time there. The VC landscape doesn’t exist in the same way. Showcase your value here in the U.S., and you’ll move forward,” he said.
Van de Voorde’s opinion highlights a common theme — international founders find the U.S. market more welcoming and accessible, though not without its own challenges and complexities.
How to make ClimateTech profitable?
Pooja Khosla, CEO of Intelligent, points out that finding a way to make sustainability profitable is one of today’s biggest challenges. A lot of climate innovation needs hardware, according to Gradiant‘s VP, Abijit Aji.
“Many investors think hardware can’t deliver strong returns, but that’s often due to the wrong benchmarks being applied,” Aji said, adding that it’s important to align investor expectations with the timelines and value propositions of climate-related hardware companies.
In other words, for startups to succeed in securing capital, they must understand the specific expectations of investors. Timur Davis, investment director at Munich Re Ventures, noted that hardware-based startups often require more capital due to their longer timelines to market compared to software-only ventures.
“VCs typically operate on a 10-year fund cycle,” Davis explained, “and if a company can’t show traction within that time frame, it’s hard to justify further investment.”
While this point was echoed by Chris Van de Voorde, he sees this as a strength. “The time pressure from VCs forces us to scale quickly and maximize our impact,” he said.
Chris stressed that the mission-driven nature of ClimateTech should appeal to investors who are motivated both by financial returns and the larger goal of reducing CO2 emissions and saving the planet.
Overcoming the “Valley of Death”
Building relationships and networks
For ClimateTech startups, networks are key to accessing capital. “The best access is through trust and relationships with your investors,” Pooja Khosla said.
Building these relationships, especially for international entrepreneurs, often requires navigating additional challenges, such as immigration. Khosla shared her own experience, recounting how her visa status initially caused concerns among early-stage investors.
However, through perseverance and the right partnerships, she was able to overcome these barriers and secure funding. “Access to the right network is essential,” she said, adding that having a co-founder who was a Nobel Laureate also opened doors for their startup.
Government support: A growing opportunity
As private capital for ClimateTech remains cautious, governments in the U.S. and Europe are stepping in as sources of funding. “The Department of Energy, for example, is pouring billions into innovative ClimateTech solutions,” Davis said.
He pointed to the growing role of government programs in financing large-scale projects, a sentiment echoed by other panelists. However, Van de Voorde critiqued the inefficiency of some European grant systems, where as much as 20% of funds are lost to administrative work.
Morielle Lotan, founder at MILE Advisory and the panel’s moderator, pointed out that there’s growing competition among major governments to take the lead in climate initiatives.
This competitive dynamic creates opportunities for startups willing to align themselves with the right initiatives.
Choosing the right accelerator
Selecting the right accelerator program can also be critical for success.
“Not all accelerators are created equal,” cautioned Davis.
He recommended programs like Activate and Creative Destruction Lab, which provide startups with money and lab space without taking equity.
Van de Voorde praised the EU-funded Climate-KIC accelerator, noting that it was instrumental in helping JUUNOO understand how to navigate the real-world VC landscape.
As ClimateTech continues to mature, access to capital continues to be the major barrier. International startups that can both foster innovation and strong relationships with investors will find opportunities and succeed.
Panelists agreed that while the journey is fraught with challenges and obstacles, the rewards — both financial and environmental — are significant.
DISCLAIMER: The event ‘International Climate Innovators Meet U.S. Capital‘ was made possible through a partnership and funding from Climate-KIC.
