🎙️ Rewiring risk and return in climate tech

Hey friends,

What if climate startups could leverage the trillions of dollars worth of infrastructure that exists in energy incumbents - and use that to drive energy innovation?

That’s the question that led Kevin Krausert to launch Avatar Innovations. Avatar is a Calgary-based energy transition venture studio that works inside the energy industry to identify and fund new climate innovations.

I wanted to talk to Kevin because he has a unique, hands-on perspective when it comes to industry’s role in the energy transition - from working on rigs in northern Alberta to leading one of Canada’s largest drilling companies, and now at Avatar.

In our latest podcast episode, we talk about how the venture studio model could be the answer to the shortfalls of traditional venture capital, what people get wrong about innovating in safety-critical environments, and why now is the time for Canada to put forward new models for scaling and driving down the cost curves of climate solutions.

Some of my top moments:

• [6:02] How Avatar’s venture studio model differs from traditional VC and why it may be better suited to capital-intensive energy tech

• [10:58] The evolution of energy innovation - from wildcatters to corporates to today’s startups - and why the old venture model is breaking down

• [17:32] The role of corporates, governments, and founders in building smarter risk–return structures to accelerate climate solutions (not just throwing public money at the problem)

• [21:12] Why Canada is positioned as a “middle power” in climate tech

• [34:24] Tactics for founders and startups to break through the noise selling to corporates

Takeaway: There’s room for new models for scaling technology and driving down cost curves beyond the Silicon Valley playbook. Models like venture studios, deep industry partnerships, and new risk-return structures can make Canada a leader in climate innovation - and get corporates off the sidelines.

Listen now: Spotify | Apple Podcasts

Justin

Mentioned in this episode

• Find Kevin Krausert on LinkedIn

• Avatar Innovations

• Energy Transition Centre

• NorthX Climate Tech

• World Eaters: How Venture Capital is Cannibalizing the Global Economy by Catherine Bracy

• Abundance by Ezra Klein

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