The 7Gen Ventures Philosophy and Investing in Digital Climate Tech

In this episode, founder and host Jake Povey discusses the philosophy behind Seven Generation Ventures, their approach to investing, focusing on early stage digital climate tech startups. He explains the unique combination of venture investing and coaching to foster maximum development and growth of the companies they back. He sheds light on the guiding principle of 'seven generations' that guides their investment ideologies, drawing from the philosophy of the Iroquois nation, looking at the long-term impact on future generations and leaving a positive legacy . He also acknowledges the daunting challenge climate change presents but emphasises the significant investment and innovation opportunities that come with attempting to solve it.

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00:00 Introduction and Welcome
00:15 The Purpose of the Solo Episode
00:34 The Importance of Climate Tech
02:04 The Role of Venture Capital in Climate Tech
02:38 The Focus on Digital Climate Tech
03:16 The Story Behind 7 Generation Ventures
11:04 The Power of Coaching in Venture Capital
18:03 The Philosophy Behind 7 Generation Ventures
20:45 The Urgency of Investing in Climate Change Solutions
23:05 The Future of Climate Tech Investing
25:45 Conclusion and Farewell

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Transcript

Jake: 0:00

Hello. Welcome to

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The seed..

Jake: 0:02

Our intention with this podcast, as it has ever been and will continue to be is to eliminate the climate tech, investigate your space, sharing the stories. The founders, the investors, and the pioneers who are shaping this critical space at this critical juncture. And our work and fight against climate change and sustainability. We hope that by sharing the stories of the guests that we bring on the show that we provide some of the insights, solace reassurance, as well as community to those who are pushing the boundaries and working so hard to make the world a better place by building or investing in the engineering companies that are going to be able to make that change. So have you enjoyed the episode? And if you like, what you hear, please leave a review on whichever platform you're listening to this on. And if you've got any questions or feedback, please feel free to hit me up@jacobsevengen.vc. Thank you for joining us and enjoy the show. Hello, welcome to

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the seed.

Jake: 1:02

My name is Jake when wild. Povey and I'll be your host here today. And I am the managing hunter and founder of seven generation bunches. And today is my first solo episode. And season one and for a number of the episodes we've already recorded for season two. We have a load of the Changemakers, the investors there. The researchers, journalists pioneers. In the climate tech space, but today I'm doing a solo episode to explain. And give you some insights into the new fund that we're launching at seven generation ventures to share what we're all about and why we believe that what we do matters. Now this episode is going to be a bit more personal than the others, and they're certainly not going to be quite as much storytelling from the participants. So I hope you'll stay with me as I share my own story. But I'm really excited about this episode to share with you all the work that we're doing and all the impact that we hope we'll be doing. In the years to come. As ever, if you want to reach out about anything that we talk about on the show, please hit me up on whichever social media platform you're on LinkedIn, Twitter. Instagram, et cetera. Hit me an email@jakeatsevengen.vc. I equally please go onto the website and find out more. And all the contact details on that. So for this episode, I already wanted this, this take a couple of steps back. Before we dive into some really meaty and pre pioneering stuff for the rest of season. So. But also wanted to use this episode is a bit of a bit of a foundation. But just, and just to recap, You know, what is the problem that we're trying to solve and that, which this podcast really seeks to understand and explore. The challenge of climate change, but bigger than that, as the name suggests the broader sustainability crises that we're facing. As a society. As an economy. And within that, we obviously focus on the world of venture capital. And so why is venture such a powerful tool? Specifically why is early stage venture? The sort of stage that seven generation ventures invest in. At the kind of see post just post revenue, state. Why is that so meaningful to us? And why do we believe it holds so much promise? Both in terms of the financial returns for investors. But also because of our scope to build, enjoy change, and also to build amazing enjoying companies. And then further to that. Why does seven gen VC as we'll get onto in a bit specifically focus on digital climate tech? Rather than a lot of the more asset, heavy capital intensive investments. I've for example. Nuclear fusion or electric vehicles that is so often talked about when we talk about the challenges in sustainability than we're facing. So we're going to unpack a lot of that in this episode. I just want to thank you in advance. For staying with me and I hope that you enjoy. And get engaged with some of the concepts. And some of the journeys, which we're going to share with you today. Sorry. What is the why behind seven. Generation ventures. And we'll go into the name and a little bit more detailed than just a minute, but first of all, why do you venture at all? Now I'm fortunate enough to have just sold my startup. I founded goji in 2015 and we sold that early this year. Goji was a financial services starts of a FinTech. And we sold that to a large European infrastructure provider in the fund space. That was an amazing experience. There were some tremendous highs and some tremendous lows. It was also heartbreaking at times, but ultimately we've been successful and the team that continues as part of Euro Claire to this day, and I wished them all the very best and the tremendous work that they're doing in the private asset space. But my big lesson from all of this is that venture temple one is fun. We build amazing teams in the venture space. Those teams often are constituted from some of the brightest minds, some of the most courageous individuals. So the most ambitious leaders. And that's not because venture is a better business model or about a stage about a type of company. It's a bit. Simply it's riskier. And often we find the people who are willing to take those risks by stepping into a venture. Stage company. They have curiosity to the may have an excitement. They haven't determination. And I'm not saying venture has a monopoly on that. Of course those individuals exist elsewhere. What I'm saying is all of those individuals are that curiosity and that excitement venture gets an amazing proportion of them because of that risk taking risk seeking element that's involved in it. And so now as a venture capital firm, seven generation ventures, once again, That party. We want to continue. With all the highs, but as well, we want to be there with founders for some of the lows, because we've been there ourselves. But we know that it's through those highs and lows, that that is where the innovation happens. So if we think about the climate change crisis, the broader sustainability crises that we're trying to tackle. Which we'll go into an number in fact, every other episode on there. So I'm not going to label too heavily today. We know that we need to innovate. We know we need to change almost as if we're on a war-like footing and many people argue we should be. And we know that venture is where change happens. Greatest is where it happens fast. This. And in fact, if you look at more than the stats, we often quoted our investment materials. Have you looked at. Patterns filing as a measure of innovation, we can see that actually startups typically innovate three times as quickly. Develop three times as many patents as existing incumbent companies. So we can't, we know if we're going to tackle climate change, we need to innovate. And we know that innovation happens in the venture space. And so in this process of going through the highs and lows of innovating, we know that is where we can build enduring companies. We don't believe that all companies are bad and we need new ones. What we're saying is that as everything naturally grows, dies and is born. Birthing forward new and join companies that can make the better place is an exciting place operating. There are some great large incumbent companies out there, but we know that the fun, the excitement. The real self-understanding self-awareness and personal growth. Can often happen in magical ways in the venture space. It's because partly because it's a place where we can look at all problems in new ways. And we know that venture gives ourselves the scope to do that because often with some of the amazing talent. That we get from incumbent companies. Experts leaders who want new challenges come into this venture space to go and form and join companies that can make it well. But I think for me personally, one of the reasons why early stage venture is most exciting. It was most important. When we look at the challenges of climate change and sustainability that we're facing. We know that. Eventual in its earliest space is most malleable form. We know that when large companies with all their governance, with all the embedded cultures, the processes. They can move much more in terms of force, but they move much slower and then much more rigid. And so we know that early stage ventures are the ones that are in their most malleable for. It's partly because they're the highest risk. There are fewer customers. The revenue is uncertain. But they accelerate faster and therefore they can deliver the greatest potential for change and therefore the greatest potential for impact. And when we think about the climate crisis, where we're facing today, we need to accelerate that change about. But the other reason why climate change from a venture point of view is so exciting. Like so many of these terminologies and venture. Is because climate change, isn't an industry in and of itself in the same way that maybe dev ops is or e-commerce et cetera. But actually in a similar way to those two industries, I've just mentioned it does impact every other industry. We know that climate change impacts everything from the way we live, the food that we eat, the way that we move, the way that we dispose of our rubbish, the way that we think about and price, the financial services. That we consume and that we need. Climate change and therefore climate tech. Tech. The venture arm, the venture Bryant about that sequence make throughout a better place by challenging climate change. Touches every single part of our lives and touches every single industry on the planet. And so when we think about. How we need to change the solve climate. The climate crisis. We know that there are so many opportunities, but also there was so much interest. There was so much to explore in all of these different industries and we're not going to get there by solving. Any specific problem in any specific industry? Yeah, it has to be a system wide approach. And so we hope, and we believe that whilst startups do not represent an entire system. In that most malleable form at this most malleable stage and earliest stage. We believe that is the greatest point for change within these systems. So here we are at seven generation ventures. We invest in digital climate tech businesses. That are either at revenue or that have a clear pathway to revenue and that specialize in B2B. And we S we focused on B2B, not because we think that is the most successful business model, but because we believe that corporates are where we have a real power to change. And because we believe in a concept called the time value of carbon, which I'll go on to explain about in just a minute. But in essence, we believe the greatest change can be driven by those with the greatest resources and while startups do not have those resources. If we can sell, we can influence we can support. And if we can drive change amongst those who do I, the large incumbents, the large enterprise. B to B providers. Then we have, we have an ability to make an outsize impact on the climate change crisis that we are seeking to address. The biggest part though, of some generation ventures and what we do. And we will be doing a very specific podcast episode on this and you'll be able to find out more on our website. Is the work that we do with founders. Now since leaving goji, I have been coaching a number of founders. Both in terms of the strategy and the fundraising. But also on some of the personal growth and self-awareness, I'm by no means saying I am your guru. I'm far from it. I still have enough, certainly encountered my fair share of troubles, mistakes, challenges that I absolutely failed. Overcome. But as an expander myself and as a qualified coach and having seen the power that coaching. Can have in companies. I believe that having an investor. That works in partnership within that organization. Within that investment firm with coaching, I think is tremendously powerful. I don't want to go into too much more detail here because we will be doing more on it. But I have just spoken about how startups at this stage are in their most malleable for. The founders are equally within a stage of great flux. Either as first time founders who are going down this pathway for the first time or a second time founders who might be learning that their old tricks and tools might not work in a new environment and your organization with new team members and the new industry. Solving a new customer problem. We believe that startups and founders are in the most malleable stage when we invest, we believe that is the stage of which we can make the greatest potential accelerations when patents and financial returns. And so if we can help them in every way we can, we believe we'll be doing the startups that we invest in and the investors. Who invest through us. Great service. Now we know that we, when we coach we're not looking to coach because people are missing something. We don't provide a verdict. We don't provide the assessment as to whether someone is a good leader or well-based for successful or not. If we. Where that will be the crystal. Crystal ball that all investors are looking for. But what we do know when we join an analogy with the sports world. Is that the greatest players to reach even greater Heights need the greatest coaches. We do not see championship winning teams firing their coaches. Because they say they're good enough and they don't need that help quite the opposite. If you want to continue to operate. The best you could possibly be. You want someone holding up a mirror to your performance. You want someone in their shadow boxing with you, challenging the assumptions, challenging the way you're showing up as a leader. Challenging. And reflecting back to you, the decisions that you're making. And it's also about more than just the individual, but it's how do we build resilient? High empathy, founder teams. That in this specific crucible of leadership. Fast startup phase is not only one of the most rewarding types of work we can do, but also I believe as an investor, one of the most highest impact areas that we can add value. As we see climate change as the largest, most problematic crisis that we face. The one that we need to challenge, and we see startups as one of the highest potential and most innovative vessels to affect that change. Then working really closely with founders has to be the way that as an investor, we can drive in as much impact as much support as much. Finally whine a much additionality house possible. And so we deeply believe in the founder development. Pathways that we are rolling out. And we will be. We would be fascinated and we would love to discuss those more with you and seek your feedback. The reason that we also believe so passionately coaching. In this climate safe space. Is because when we think around the purpose and the why. Behind high-performing teams. They're often incredibly clear compared to those that might not have quite as much clarity around what they're doing and why it is so important. Thank clarity helps to drive not only cohesion within management teams, but also to drive corporate performance. And when it comes to the climate tech space. We know that most founders, why is incredibly powerful. It's incredibly emotive. As an exercise, we can just look at one of the exercises from business declares, the nonprofit organization for SMEs and corporates that are looking to tackle sustainability. And one of the exercises they employers, they ask leaders to write a letter to their children. Explaining what they did when they found out about their ability to make an impact as the climate crisis. That isn't a tremendously powerful exercise and really speaks to why. As leaders, I believe we need to tackle those challenges that are the most daunting. We can't shy away from the big ones and just focus on the small ones. And so climate change and the broader sustainability crisis. I believe the most daunting challenges that we face. And so when we invest in climate change, climate tech, startups, and we work with the founders in those. I believe that we find amazing resonance and coherence. Between the Y and that person purpose at a really deep, personal level. And what they do as an organization. That. Okay. Here it's between that personal purpose and that corporate purpose is an incredible lightning rod to drive personal development, personal growth, and ultimately to build a new using enjoying companies that can make a positive impact in the world. Coaching is a tremendously powerful tool when done. Right. And one done with someone who seeks the insight that coaching can provide them in any industry. But in this industry, Where the challenge is arguably the most daunting. I believe that the passion and the purpose that lies behind so many climate tech and sustainability. Startups. Has a real potential to a log. Great human development and transformation. So that is us in a nutshell. That's still B to B climate tech, early stage investors that twin and partner investing with coaching of the founders that we invested in them all go into that. I'm a bit more detail. But the other thing that's really important to us. Is the philosophy behind the name? We are called seven generation ventures. And the seven generation philosophy. Is a philosophy developed by the Iroquois nation, which is an indigenous American nation and the north Eastern United States. And there's actually. Often cited as being a key pillar of the American constitution. And it speaks about how the actions and the decisions that we take today. We'll have an impact. In the generations to come. Specifically as the name might suggest they. As the name might suggest we should make decisions and consider how what we're doing today is going to lead and support the prosperity for seven generations to come. We believe that when we take that philosophy, And we apply it to our investment philosophy. That we can become incredibly powerful investors. We do that by seeking to understand how the investments that we make can lead to prosperity and positive change for the next seven generations and the investees that we make, the companies, the portfolio companies that we invest in. Our own company, but also the communities that we and our portfolio companies operate in as well as the Wiener planet. And so the challenge to us, a challenge to me, It was the family partner. Is to bake fast seven generation concepts into everything that we do and try and propagate it. And inspire others. Certainly those that we invest in. And certainly those investors who invest through us. To sign up to and support that same multi-generational. Impact and legacy. I believe when we incorporate that. We will become, and we will make tremendously and powerful investments. And this also supports our impact thesis. It supports our theory of change around what we do. We invest to help bill enjoying companies that are going to make the world a better place. We're not simply investing for the short term. As venture investors, the typical startup takes seven years to go from inception through to wake set. And we use exit simply as the tunnel horizon, then investors operate under. But clearly the change that those companies were affects, we hope will last for up to seven generations. Or even longer. So then the question is why now? Why invest at this stage in this sector at this time. The reality with climate change is that we should have been investing this space 70 years ago. When the science first started to come out. That climate change was anthropogenic. The humanity and our economy was starting to change the planetary composition. And therefore was started to lead to impact and change a negative consequences for how planetary systems are operating. We often talk about the pursuit of net zero for 2050. The reality is that we are not on track. Hello. And even when we get to net zero, We're going to have to then draw down climate from the atmosphere to help us get back to what we might consider. Be. I see. Operating environment for the planet and the planetary systems within which upon which we so closely rely. But as we'll discuss elsewhere. Sustainability, which we believe in is about much more than just climate change. It's much more than just about the carbon dioxide and methane molecules in the atmosphere. We have a number of sustainability crisis. Whether it's from land use, whether it's from waste and pollution. Whether it's from our water usage. Biodiversity loss. As well as climate change. There are a huge number of sustainability crises that we're facing. And we are not on track with any of them. And all of them are going to take potentially seven generations for us to solve. So even though this is a new. If not now when. As I mentioned earlier, this, I believe to be one of the most daunting challenges that we are facing. And therefore when we ask ourselves. As successfully exited founders, what can we do next? It has to be 29 change. On those challenges that we believe in the most. And so now is the moment to invest in climate change to hope. That we can make a better future for our children. Better than the one that we might be facing in the years to come. But that is not to say, this is all doing glue. There is tremendous innovation opportunity and assignments be had along the way of solving this problem. And I've certainly seen a lot of that hype and excitement over the last few years, both in terms of the venture space, but also in the climate tech space. And the initial throes of the COVID pandemic. There was a lot of talk around the bill back banner concepts. There was a lot of push for those businesses and politicians all jumping on board with that. Unfortunately, the hype of that initial political and civic, enthusiasm housing quite translated through to actionable legislation. However, we've definitely made progress. Well, we're probably now seeing as a, that next stage of the hype cycle. Where people are saying. Sure. Sustainability and climate change is important, but it's not about every single solution. What are the really sustainable solutions. One of the ones that are really going to make an impact, one of the ones that we really need to get by. And the same can clearly be set around the venture space. When we look at some of the lofty valuations in 2020 and 2021. There were clearly some very lofty. Investment valuations there, which we're going to be impossible to sustain. We've seen that compression down during 2022 and 2023. And so I believe now we're in a place where we were able to make sensible investment decisions and to sensible sustainability. Innovations and ventures that are going to lead to building enduring. And the impactful climate change companies, sustainability companies that we making the world a better place. Whilst also providing promising returns to investors. As we build great companies. Along the way. So we're excited about. The opportunity that's in front of us, we're daunted by the challenge, but we're also committed to making a difference and we committed. So using coaching. As a way to support founders as they navigate these pathways. And as they seek to develop, not only themselves, but also the companies that are building the communities that are operating with. Within. Economies that unfortunately have had such a negative impacts on the planet. We all depend on. Now we do another episodes looking at why digital samples of gay men to the specifics of the investment landscape. What we think founders really need to do to work on when they're pitching to climate change investors and how common change investors angels, family offices can think about investing in this space. But for now that is mine. True. That is the end of my first solo podcast episode. I hope you've enjoyed that. I hope it's been eliminating. And if you'd like to know anything more about our approach. How we coach founders and the type of companies we work with. Please. Hello. That's a seven gen.vc. To find out more. As ever any feedback will be. Deeply appreciated. And I'll look forward to seeing you on the next episode. And this. Podcast. Bye-bye. Thank you for listening to

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The seed.

Jake: 26:50

If you'd like to find out any more information about a show with the participants or anything that we've spoken about today. Please look into the show notes on what ever platform you're watching the song or go to our website@sevengen.vc forward slash podcast to find out more. If you enjoyed this episode, then please share it with anyone who might find value in what we've talked about. And please give us a review on whichever platform you're listening to this on so that more people can discover our work and join in the conversation. I look forward to joining this journey with you on another episode very soon.