Business Innovation Success Factors

Forget unicorns; what #ClimateTech founders really dream of is becoming BANKABLE. It may sound boring, but for climate startups, the ability to raise non-dilutive debt is a sign of technological maturity, allowing them to scale and transition from venture to infrastructure investment. Think solar PV or lithium-ion batteries. Oh, and by the way, that's when you also become a unicorn... The journey to technological maturity (TRL 9) can take years. But if you're already at TRL 6, here's what you can do today to pave the way to bankability: 1. Hire experts - Bank-glish is not a language most founders speak, yet if you want money from banks, you need to know what they are looking for. Expand your team early on with people who have these skills (e.g. people with a project finance background). 2. Add a potential customer to your cap table - now is the time to get a strategic involved. This will signal confidence to the banks, as corporates have a better balance sheet than you, and with equity upside benefits, they are more likely to enter into off-take agreements. 3. Secure off-take agreements- yes, stating the obvious. But remember, non-binding LOIs are not the same as take-or-pay agreements. The latter actually secure future revenues and can be pledged. More on that in a future post. 4. Start small - before you ask the bank for €50M, how about taking €500k? You'll be more likely to get it and you'll improve your credit rating and show that you can be trusted. 5. Get to know the local bank manager - don't go straight to "Deutsche Bank", start with the local "Sparkasse". Local and state-owned banks have more KPIs than just financial returns, such as job creation. If you're doing something positive for the community, you're likely to get a (small) loan, even if your technology isn't 100% proven. Remember, it’s a long journey and it’s never too early to start. @Founders - I’m curious to hear your stories. How did you secure loans early-on? #venturecapital #funding #nondilutivecapital

I’ve learned that the most effective partnerships aren’t grounded in contracts, they’re built on mutual empathy and strategic alignment. Too often, alliances fail because they’re managed like vendor relationships, not true collaborations. But genuine partnerships require something more: a shared willingness to take smart risks for one another’s success, the humility to recognize when your partner brings greater expertise, and the discipline to stay aligned through complexity. When done well, partnership becomes a source of transformation. You unlock solutions neither side could build alone and create durable, differentiated value in the process. I had the opportunity to discuss these ideas with Stephanie Mehta for her Modern CEO column in Fast Company. In today’s interconnected world, your ability to build and scale the right partnerships isn’t just a soft skill—it’s a strategic capability and a competitive imperative. More here: https://lnkd.in/g9YJ2f5T

Energy-Efficiency-as-a-Service may be the climate company a CFO would actually pay for. That is a key takeaway from our India Industrial Energy Transition Opportunity report, co-authored by TDK Ventures & Theia Ventures. Energy efficiency is not the most glamorous part of energy transition, but it has something every industrial customer understands: margin. In India, customers do not adopt energy-efficiency solutions because they are green; they do so because energy is margin, as the “greenest kilowatt hour is the one that is not used”. The report outlines India’s energy-efficiency landscape and key opportunities: 🔹Industrial applications account for 48%+ of India’s energy consumption 🔹India’s energy-efficiency market may reach ~$23B by 2030 🔹HVAC alone is projected to reach $22.7B by 2030 🔹Insulation may reach $3.8B by 2033, with advanced materials like aerogels offering 2–3x efficiency 🔹Waste heat recovery may reach $4.8B by 2030 🔹Yet only $156M was raised across 16 energy-efficiency deals from Jan 2024 to Jun 2025 🔹India has 700+ energy-efficiency startups, but only 135 have received VC or PE funding Commercially proven deployments, not just technology, ultimately create markets. Energy efficiency is challenging to sell because many companies can promise savings, but fewer can demonstrate them with real-world results. Winning companies need three moats: Attribution MOAT: Can you prove savings with verifiable evidence? Distribution MOAT: Can you reach India’s fragmented industrial base through the right channels & trust networks? Performance-Locked Economics: Can you price outcomes, not just equipment? This is what makes Energy-Efficiency-as-a-Service compelling: it enables customers to benefit from lower operating costs without upfront capex, which is vital for MSMEs and mid-sized businesses, where financing constraints often hinder adoption. One key insight is that projects usually need payback periods of less than 36 months to maintain customer interest. The venture opportunity is in: -Energy-efficient equipment retrofits (EC motors, high-efficiency compressors, HVAC upgrades) -Insulation & building envelope improvements -Full-stack Energy-as-a-Service platforms India is a powerful proving ground because it forces companies to solve for trust, financing, distribution, proof, heat, high energy costs, & capex sensitivity. A startup that can prove savings in India can prove them almost anywhere. Global VCs and CVCs: India not only needs capital to serve India, but also global investors, strategic customers, manufacturing partners, and international GTM support to help proven Indian innovations travel. The best climate companies will not ask customers to choose between economics and sustainability. They may make the economic decision the sustainable one. Read the full report here: https://shorturl.at/bWSNi Thank you to Ravi Jain, Vasan Churchill, Shraya Sapru, and our partners at Theia Ventures for their work on this report.

Climate change is reshaping business performance today ❗ Rio Tinto lost ~USD 800 million in revenue not from destroyed assets, but because cyclones stopped iron ore production and shipping. ❗ After Hurricane Harvey, US businesses suffered 20× more losses from lost revenue than from physical damage. ❗ Floods in Thailand disrupted electronics and auto supply chains so badly that the government warned buyers may “look elsewhere” due to reliability concerns. 👉 The pattern is clear, that real climate cost for businesses is business interruption, not repair bills. 🍃 This is where the opportunity emerges. In a world of frequent disruption, reliability becomes a competitive advantage. ✅ Companies that can keep operating, through diversified supply chains, resilient infrastructure, and better data, will win contracts, retain customers, and stabilise earnings while others fall behind. ✅ Climate resilience is following a familiar path: from cost → to necessity → to strategic edge. ➡️ The most important shift for leaders now is to move from managing climate risk to building operational advantage. #ClimateChange #BusinessStrategy #Resilience #SupplyChains #RiskManagement #SustainableFinance

🔥 What does corporate success look like in the midst of a climate crisis? At #TechArena2025, I tackled this question by highlighting a major shift: companies today face unprecedented pressure from customers, investors, employees, and regulators. Success is no longer just about financial performance—it’s about adapting to a rapidly evolving landscape. For senior executives navigating this shift, here’s what matters most: ✅ Acknowledge the Stakeholder Shift – Success isn’t just about shareholders anymore. Customers, employees, and civil society are shaping corporate strategy like never before. ✅ Develop Multi-Stakeholder Capabilities – Investor relations are well-established, but how many companies have the same structured approach for sustainability, employee engagement, and societal impact? ✅ Close the Talent Gap – Many industries lack the expertise to integrate sustainability effectively. For instance, insurers may need climate science knowledge to price in the risks —but do they attract this type of talent? ✅ Build Absorptive Capacity for Change – Identifying new sustainability technologies isn’t enough. Companies need the internal capability to integrate and leverage them. ✅ Adapt or Fall Behind – The business landscape is shifting fast. Success now means using sustainability and stakeholder engagement as strategic advantages—not just compliance checkboxes. This shift isn’t easy, but it’s essential. Companies that recognize and act on it won’t just navigate disruption—they’ll turn it into opportunity. 🎥 Watch my response in the video. What’s your take on this evolving definition of success? #Sustainability #CorporateStrategy #StakeholderCapitalism #TechArena2025

🚀 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝗶𝘀𝗻’𝘁 𝗷𝘂𝘀𝘁 𝗮𝗯𝗼𝘂𝘁 𝗵𝗮𝘃𝗶𝗻𝗴 𝗴𝗿𝗲𝗮𝘁 𝗶𝗱𝗲𝗮𝘀; 𝗶𝘁’𝘀 𝗮𝗯𝗼𝘂𝘁 𝗰𝗿𝗮𝗳𝘁𝗶𝗻𝗴 𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻𝘀 𝘁𝗵𝗮𝘁 𝘁𝗿𝘂𝗹𝘆 𝗿𝗲𝘀𝗼𝗻𝗮𝘁𝗲 𝘄𝗶𝘁𝗵 𝗽𝗲𝗼𝗽𝗹𝗲 𝗮𝗻𝗱 𝘀𝘁𝗮𝗻𝗱 𝘁𝗵𝗲 𝘁𝗲𝘀𝘁 𝗼𝗳 𝘁𝗶𝗺𝗲! At the heart of successful innovation are three key characteristics of human-centered design, as defined by the renowned design firm IDEO. Let’s dive into these essential pillars: 🌟 𝗗𝗲𝘀𝗶𝗿𝗮𝗯𝗶𝗹𝗶𝘁𝘆: 𝗗𝗼𝗲𝘀 𝗶𝘁 𝗺𝗲𝗲𝘁 𝗿𝗲𝗮𝗹 𝗻𝗲𝗲𝗱𝘀? The first step in innovation is understanding what people genuinely want or need. It’s crucial to ask: Do consumers actually desire this innovation? By engaging with your target audience and gathering insights, you can ensure that your solution connects deeply with their needs and aspirations. Remember, a product that resonates emotionally is more likely to succeed! 🌟 𝗙𝗲𝗮𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝘆: 𝗖𝗮𝗻 𝘄𝗲 𝗺𝗮𝗸𝗲 𝗶𝘁 𝗵𝗮𝗽𝗽𝗲𝗻? Once you’ve established desirability, it’s time to assess the technical and functional aspects of your innovation. This means evaluating whether you can realistically produce it. Are the necessary materials available? Do you have the technology and skills required? Additionally, consider the legal landscape—will regulations allow your innovation to flourish? A feasible solution is one that can be brought to life without significant roadblocks. 🌟 𝗩𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆: 𝗜𝘀 𝗶𝘁 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲? Finally, think about the long-term economic sustainability of your innovation. Can you continue to produce or deliver this solution over time? It’s essential to determine whether you can offer this product profitably while capturing some of the value it creates. A viable innovation not only meets immediate needs but also contributes to the overall health of your business in the long run. 𝗕𝘆 𝗳𝗼𝗰𝘂𝘀𝗶𝗻𝗴 𝗼𝗻 𝘁𝗵𝗲𝘀𝗲 𝘁𝗵𝗿𝗲𝗲 𝗽𝗶𝗹𝗹𝗮𝗿𝘀—𝗱𝗲𝘀𝗶𝗿𝗮𝗯𝗶𝗹𝗶𝘁𝘆, 𝗳𝗲𝗮𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝘆, 𝗮𝗻𝗱 𝘃𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆—𝘄𝗲 𝗰𝗮𝗻 𝗰𝗿𝗲𝗮𝘁𝗲 𝗶𝗺𝗽𝗮𝗰𝘁𝗳𝘂𝗹 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻𝘀 𝘁𝗵𝗮𝘁 𝗻𝗼𝘁 𝗼𝗻𝗹𝘆 𝗲𝘅𝗰𝗶𝘁𝗲 𝗯𝘂𝘁 𝗮𝗹𝘀𝗼 𝗲𝗻𝗱𝘂𝗿𝗲 𝗶𝗻 𝗮𝗻 𝗲𝘃𝗲𝗿-𝗰𝗵𝗮𝗻𝗴𝗶𝗻𝗴 𝗺𝗮𝗿𝗸𝗲𝘁. Let’s design with purpose, ensuring that our innovations are not just fleeting trends but lasting solutions that improve lives! So, what innovative ideas are you working on that embody these principles? Share your thoughts below! 🎉 These insights, along with many others, were part of the enlightening 'Design Thinking and Innovation' course I completed through Harvard Business School Online last summer. #Innovation #HumanCenteredDesign #IDEO #DesignThinking #ProductDevelopment #BusinessStrategy #neverstoplearning

A common partnership snafu is that companies want partnership success, but don’t provide the resources to get there. I heard of a case where a whole marketing team quit, the partnerships team was given no marketing support, and they didn't yet have an integration with product -- and yet, the CEO expected the partnership strategy to deliver instant revenue. Wild. But not uncommon. Partnerships can't thrive in a vacuum. They need cross-functional support—marketing, product integration, sales enablement—all aligned to succeed. Before you set revenue targets for your partnerships, ask yourself: Do we have the resources to support them? If the answer is no, you have to help your leadership teams to reconsider their expectations. To help create the cross-functional support needed for partnerships to thrive, here are four strategies: 1. Involve Cross-Functional Leaders from the Very Beginning Bring key leaders from marketing, sales, and product into the partnership planning phase. Early involvement gives them a sense of ownership and ensures they understand how partnerships align with their own goals. Strategy: Schedule a kick-off meeting with stakeholders from each relevant department. Create a shared roadmap that outlines how partnerships will impact each team and their specific contributions. 2. Tie Partnership Success to Department KPIs To gain buy-in, tie partnership goals directly to the KPIs of each department. Aligning partnership outcomes with what each team is measured on ensures they have skin in the game. Strategy: During planning sessions, ask each department head how partnerships can contribute to their targets. Build specific KPIs for each function into the overall partnership strategy. 3. Create a Resource Exchange Agreement Formalize the support needed from each department with a resource exchange agreement. This sets clear expectations on what each function will contribute—whether it's a dedicated product team member for integrations or marketing resources for co-branded campaigns. It turns vague promises into commitments. Strategy: Draft a simple document that outlines the roles, responsibilities, and deliverables each team will provide, then get sign-off from department heads and the executive team. 4. Demonstrate Early Wins for Buy-In Quick wins go a long way toward securing ongoing resources. Identify a small pilot project with an internal team that shows immediate impact. Whether it's a small co-marketing campaign or a limited integration, these early successes build momentum and demonstrate the value of supporting partnerships. Strategy: Select one or two partners to run a pilot with, focused on delivering measurable outcomes like leads generated or product adoption. Use this success story to demonstrate value to other departments and secure further commitment. Partnership success requires cross-functional alignment. Because partnerships don’t happen in a silo.

I’ve advised 100s of founders in my career. The secret to a successful co-founding relationship: Over the last 15 years, I’ve seen many co-founders struggle and succeed. I’ve also been a co-founder myself. During that time, I’ve identified 5 key elements to set up a strong co-founding relationship. I call it The Co-Founders’ Blueprint. This framework covers the 5 critical components for a thriving co-founding partnership: → Deep Understanding: Know your co-founders inside out → Skill Assessment: Ensure complementary and relevant skills → Conflict Management: Have a plan for handling disagreements → Ownership Agreements: Fair and adaptable ownership splits → Formalized Rules: Clear, written agreements for operations ... And what happens when each is missing. No deep understanding = "Misalignment" Poor skill assessment = "Incompetence" Lack of conflict management = "Chaos" Unfair ownership = "Resentment" No formal rules = "Confusion" Remember, these elements can be developed and refined. Here’s how to do it: 1/ Deep Understanding: Get to know your co-founders' motivations and observe them in different situations. 2/ Skill Assessment: Dig deeper into their skills to ensure they are truly applicable to your startup needs. 3/ Conflict Management: Communicate effectively and have seen them handle tough situations before. 4/ Ownership Agreements: Reflect each person’s commitment level and be ready to adjust as needed. 5/ Formalized Rules: Outline clear guidelines for operations and decision-making. The best co-founders build strong, adaptable partnerships. Start using this blueprint today. And create the co-founding relationship you deserve. Your startup will thank you!

Great partnerships don’t echo you. They elevate you. Same strengths. Same blind spots. Same limitations. Smart collaborators do the opposite. In 1958, Peggy Lee needed an arranger for "Jump for Joy." She didn't pick another vocalist. She picked Nelson Riddle. Lee brought raw versatility - switching between jazz and ballads like changing clothes. Riddle brought structural genius - orchestral arrangements that made her voice soar. The result? An album so powerful it's been remastered and reissued for 65+ years. Here's what this teaches us about strategic partnerships: 1. Find Your Musical Opposite • Lee's spontaneity needed Riddle's precision • Your creative chaos might need operational structure • Your technical depth might need storytelling flair 2. Versatility Wins Markets • Lee mastered up-tempo songs AND intimate standards • Range made her irreplaceable across different contexts • Multi-skilled professionals command premium rates 3. Quality Outlasts Everything • Mediocre work gets forgotten in months • Exceptional work gets reissued for decades • Invest in partnerships that create lasting value The strongest partnerships aren't about finding your twin. They're about finding your complement. ♻️ Share this with someone ready to stop hiring their mirror image 🔔 Follow Kabir Sehgal for frameworks that turn partnerships into advantages

🔴 Can you be a sustainable #brand and still grow the business? Recent data from the World Economic Forum's Alliance of CEO Climate Leaders shows that the answer is "YES" as businesses can achieve significant decarbonization while continuing to grow. The Alliance's group of companies, representing a massive $4 trillion in revenue and employing 12 million people across 12 industries, made remarkable progress between 2019 and 2022, including: 🔻 10% absolute emissions reduction 🔻 12% decrease in emissions intensity 🔺 18% revenue growth, exceeding the global average of 15% These results show that #sustainability is not just an ethical imperative to combat climate change but a powerful driver of business performance, proving that sustainable brands are poised for both environmental impact and financial growth. ✔ Bold #leadership is required to guide the transitions toward net-zero emissions by inspiring others to take action ✔ Effective #targeting is essential to focus on all the key metrics, especially Scope 3 emissions, which account for over 85% of the members’ total footprint ✔ #Collaboration within the alliance is crucial, as members can gain significant benefits in terms of emission reductions and economic growth ✔ A #global approach is needed as companies across diverse economies must work together on viable initiatives that yield tangible results 🌍 IKEA, one of the most active companies in the Alliance of Climate Change within the World Economic Forum, is advancing its sustainability strategy, "People & Planet Positive," to transform the entire value chain. Precisely last week, #IKEA launched a collaborative online platform that shares over 40 scalable climate solutions, bridging the gap between awareness and implementation for private, public, and NGO sectors. 📖 For further insights on this topic, I recommend Paul Polman's book, “Net Positive” (Harvard Business Review) where he predicts the trends we now see reflected in the #WEF report years ago, and his insights remain invaluable today. It’s one of my favorite reads! 👉 https://bit.ly/3TOhZLB