In recent years, we’ve heard over and over that there isn’t enough funding for cleantech—“cleantech is dead.” Looking around Greentown Labs, I don’t see the death of cleantech. What I see is vibrancy and excitement, true innovation and progress. If anything, the number of clean technology startups that are reaching out to us is growing. Entrepreneurs want to solve some of the world’s biggest challenges. Greentown Labs helps them to do just that.
Venture capital and angel investors are selectively interested in this space, as recent funding announcements from our member companies Grove Labs, Crowd Comfort, and NBD Nano have shown. However, they cannot be relied on as a consistent source of funding. Based on recent discussions I’ve had with industry-leading corporations in energy, advanced materials, and building technology, strategics are also ready to take a leading role in cleantech investment.
Strategics need connections with startups to move their businesses forward and we believe there is an important role for strategics to play in the funding and demonstration of early-stage cleantech development. At Greentown Labs, we are working on solving this challenge because we are able to see both sides of the issue. In speaking to over 20 strategic partners, we identified that corporations have dedicated efforts to search for opportunities with startups but struggle internally to truly incorporate the technology into the core business. Our startups are eager to work with corporate partners, but need guidance on how to properly navigate the larger organization and present their value proposition in a manner that appeals to venturing groups and business unit managers.
On a similar note, we’ve learned from some of our members that there is a gap between contract manufacturers and early-stage startups. Startups often find their first manufacturing partner through a Google search, or through a friend who knows a guy who knows a guy. This doesn’t always lead to an outcome that is best for either party. So, we are working to fill this gap through an initiative that will bring contract manufacturers here to our member companies. Through training and networking opportunities, we aim to find a common language that can be shared between manufacturers and early-stage startups to communicate capabilities and needs, inform design for manufacturing, and to help startups become better customers.