Christopher Steinau, Partner at Lightrock LLP, joined Giovanni Amodeo for an insightful fireside chat on the evolving landscape of climate investing. The discussion covered a range of topics, from Steinau’s background to the future of climate tech. Here are the key takeaways:

Background and Role at Lightrock: Christopher Steinau shared his journey from Germany to London, highlighting his transition from a tech entrepreneur to a venture capitalist. He detailed his experience at Norson, where he invested in several unicorns with a sustainability focus, and his current role at Lightrock, a global impact investor managing $5.5 billion in assets.

Evolution of Climate Investing – Steinau outlined the three phases of climate tech:

Clean Tech 1.0 (2005-2012): Driven by early government incentives and rising oil prices, this phase saw a boom in wind, solar, and biofuels, ending with a market correction.
Clean Tech 2.0 (2013-2023): Marked by mature technologies and regulatory support like the Paris Agreement, this phase focused on scaling existing solutions.
Current Phase (2023 onwards): Characterized by high interest rates and geopolitical energy security, this phase emphasizes execution and scalable technologies.

Challenges and Opportunities: Steinau discussed the importance of avoiding reliance on subsidies and the need for companies to compete on price and value. He emphasized the role of proven technologies and the influx of talent in driving the current phase of climate tech.

Lightrock’s Investment Strategy: Lightrock focuses on growth-stage climate tech companies with proven scalability. Steinau highlighted their unique position in Europe, leveraging a strong network and deep expertise in climate investing. He also mentioned their €860 million vehicle predominantly focused on Europe.

Future Trends and Regions: Steinau expressed optimism about sectors like transportation and mobility, citing investments like Distribution. He also highlighted the importance of regional ecosystems in Europe and the need for specialized expertise as the market matures.

Aspirations for Lightrock: Steinau concluded with Lightrock’s aspiration to scale impact investing without compromising on returns, aiming to substantiate their proof points and unlock more funds for impactful companies.

Key timestamps:

00:09 Introduction to the Fireside Chats
02:00 Understanding Lightrock’s Mission and Impact
03:46 Shifting Perspectives on Climate Investing
04:17 The Evolution of Climate Tech
07:12 Current Trends and Challenges in Climate Tech
08:59 Assessing Expertise in the Climate Sector
10:31 Navigating Uncertainty in Investments
12:28 Defining Lightrock’s Unique Investment Approach
15:34 Sourcing Opportunities in Climate Investing
19:17 Future of Technology Knowledge in Climate Investing
21:08 Future Bets in Transportation
23:22 Aspirations for Impact Investing