As we wrap up another webinar session of our Business Angels Talks, I can't help but feel excited by the things I learned during our latest episode. It's Ela here, your Community Manager at COREangels, and I'm taking you on a reflective journey through our recent webinar focused on the fascinating world of startup exits in climate tech investments.
In this session, we were fortunate to have Federico Giannetti, the Managing Partner of COREangels Climate, as our special guest. Federico, with his vast experience as a climate investor, guided us through the world of climate tech investments and successful exits in this sector.
The discussion began by revisiting the fundamental definition of climate tech. Federico reiterated how climate tech encompasses technologies explicitly designed to combat CO2 emissions and global warming. Understanding this fundamental definition is crucial as it forms the bedrock for making informed investment decisions in this space.

© Federico Giannetti
We basically reviewed what we learned in the first webinar:

We looked into the unique reality of climate tech compared to the traditional venture capital landscape. Federico highlighted the distinct path taken by climate tech startups, emphasizing the heavy focus on hardware innovation. This divergence from the conventional VC investment models help understand the varied exit strategies involving angel investors, VC funds, private equity, and infrastructure funds.

© Federico Giannetti

One of the most intriguing aspects Federico discussed was the resilience displayed by climate tech investments, even during economic downturns. Since investments in climate tech are not only driven by financial motives but also by a collective imperative to combat global warming.
The webinar was a treasure of information. Federico presented trends in climate tech investments, the sector's growth and its resistance to economic fluctuations and how the trends show promising signs for the future of climate tech investments.

The analysis of climate tech exits was particularly interesting. We examined various sectors, geographical influences, and types of exits, such as M&A, IPOs, and SPACs. Federico's detailed breakdown allowed us to understand the complex landscape of exits, their varying values and associated strategies.
Corporate engagement emerged as a significant catalyst in driving successful exits within the climate tech sphere. Federico emphasized the importance of startups aligning their goals with large corporates, a symbiotic relationship that often paved the way for lucrative exits.
Predicting future trends in climate tech became a riveting exercise. By analyzing past exit data and sectoral trends, Federico provided invaluable insights into potential future exit markets. This foresight empowers investors to make informed decisions based on current sector investments and their potential impact on future exits.

© Federico Giannetti

The discussion also touched upon multiples and valuations, showcasing higher multiples in EV/Revenue and EV/EBITDA for climate tech startups compared to other industries. This insight hinted at potential returns, painting an optimistic picture for investors eyeing the climate tech sector.
As the webinar drew to a close, I found myself captivated by Federico's comprehensive insights. His expertise and data-driven approach reaffirmed the immense potential and significance of climate tech investments. Federico's parting words emphasized that investing in climate tech is not just an opportunity for financial gains; it's a vital contribution towards a sustainable future.
Until our next engaging Business Angels Talks, let's continue to explore, learn, and invest in a future where climate tech leads the charge towards a greener, more sustainable world.

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This article has been written inspired by a presentation by Federico Giannetti, Managing Partner of COREangels Climate, during a 2023 Business Angels Talks Episode. Business Angels Talks is a monthly webinar series by COREangels International, that features discussions, presentations, and panels led by prominent investors, entrepreneurs, and industry experts. Covering angel investing, startup growth, and entrepreneurship, it offers valuable insights, growth strategies, and trends in a dynamic setting. Open to the public and COREangels Community members, it's a platform to learn, network, and engage in the startup investment ecosystem.