Solving the #1 challenge of climate tech startups

After working with numerous climate tech founders, I've noticed a common pattern: Struggling to communicate their value proposition.

Some of the most frequent mistakes?

1-Focus on the technology and assume that technical progress equates to customer value.

We all know that the best technology doesn't always win. It's crucial to articulate the "so what" factor and make sure customers and investors understand the benefits and value of taking action.

How to do it well: Lead with design and benefits.

Source: Pangaia

Pangaia is a material science company that creates sustainable fashion and lifestyle products. If you follow them on social, you will see a fashion-forward brand, with great design, and a deep understanding of their audience’s needs.

In this example, the lead story is about the future of warmth, with beautifully designed parkas for cold winters - a clear, concrete benefit.

The supporting story is the bio-based, down-fill material, made of sustainably grown and hand-picked wildflowers called FLWRDWN™. They don’t ask consumers to compromise. It’s beautiful, performant, and more sustainable than traditional materials.

2-Unclear Point of View.

Most climate tech founders are disrupting their categories but shy away from making their unique perspectives clear.

How to do it? Make a bold statement and challenge the status quo.

Mill’s point of view couldn’t be more clear: Food is not trash.

Source: Mill

They recently launched a membership service that includes a kitchen bin that dries, shrinks, and deodorizes food scraps. Mill also provides prepaid boxes to return the food grounds to be used as sustainable chicken feed, creating a circular economy.

Starting with a clear perspective, they can shape the conversation around waste.

3- Ignore buyers' emotions.

It's vital to understand not only the rational but also the emotional aspects of decision-making - even for B2B buyers. Pleasure, hope, and social acceptance are among the positive emotions that startups can leverage.

How to do it? Acknowledge the human behind the buyer.

Source: iMicrobes

iMicrobes is a biotech company based in California. They have developed a biomanufacturing process that turns greenhouse gases like methane into high-quality, net-zero chemicals.

They do a great job at pairing scientific information and techno economics, with a larger perspective and more emotional points.

Here, iMicrobes recognizes that senior decision-makers from chemical companies are also parents, who care about the impact they can have on their kids’ future.

4-Weak proof points.

Claims like "cost-effective" or "net-zero" need strong proof points, techno-economics, and testimonials to back them up.

How to do it? Make data approachable.

In April 2023, Tesla published its "Master Plan Part 3 - Sustainable Energy for All of Earth", a detailed and data-driven report on the state of the energy economy and how we can create a path to sustainability.

The report suggests six steps to electrify the economy and eliminate fossil fuel usage. It includes models of the US grid interconnections, shows a comparison of current, scalable energy generation and energy storage technologies required to meet the global electricity demand, and includes financial projections.

By sharing their assumptions and detailed data analysis, they build trust and credibility.

Conclusion

While climate remediation and adaptation remain complex, we are seeing a growing number of startups focusing on making their solutions more approachable and relatable - with more impactful communication.

By answering the “what’s in it for me” question, they better connect with consumers, investors, and employees.

Header image credit: Taisiia Shestopal.