IFB research partner, Professor Robyn Owen of Middlesex University recently co-hosted the Leveraging Green Entrepreneurial Finance for Disruptive Innovation Symposium.
The event was a joint venture organised with the University of East London and NTNU - the Norwegian University of Science and Technology. It focused on developing green innovation finance – particularly disruptive breakthrough technologies - that can address climate, biodiversity, circular economy and market security in our rapidly destabilising world. The symposium brought together distinguished policymakers, practitioners and academics and resolved to make nature our customer and to strive to support policy makers and finance markets in unlocking the barriers to investing in our planetary futures.
Key themes emerged from the presenters:
Dan van der Schans, Senior Manager Economist at the British Business Bank, drawing on UK and global investment data, demonstrated structural failures in the UK market in meeting the needs of innovative green hardware company later stage investment rounds and unveiled new British Business Bank patient capital funding for cleantech through new private VC co-funding (with e.g. Partech Partners 300mE Impact Fund) and direct venture investments (e.g. £8m into Tokamak Energy).
Prof. Robyn Owen, Middlesex University, highlighted global and UK enormous funding deficits for meeting net zero climate and 30 by 30 biodiversity targets, stressing the need to focus on disruptive nature tech innovation to unlock understanding of the value of nature and leverage much needed investment into environmental reparation. She stated that the UK could be a global green tech leader, if clearer support and funding pathways to green tech funding are offered.
Dr Meike Siefkes, NTNU, provided qualitative insights from research into the institutional logics and requirements of Limited Partner investors into VC funds in Norway. This demonstrates that they can influence funds in their professional validation of environmental impacts and potential avoidance of greenwashing.
Dr Sean O’Reilly and Ziqi Liu of University College Dublin, find quantitative evidence supporting the impacts of accelerators and Government VC on green innovative ventures, particularly in securing innovation IP motes, but also point to the long horizons to achieving commercial profitability.
The afternoon session offered deep practitioner insights around both the demand and supply of finance for disruptive green innovations.
Dr Keith Arundale of Henley Business School, mentioned the developing focus of UK Private Capital (formerly British Venture Capital Association) on environmental, sustainability and governance (ESG) fund development and his work in developing a collaborative Thames Valley innovation cluster with local impact investor business angels
Marcela Flores, CEO of Tierrasphere, who have raised over £1m, outlined the long time-horizon and difficulties in attracting investment for breakthrough carbon capture and mineralisation technology that can reduce climate and improve soil quality and crop yields – addressing food and health security.
Jon McGlashen CEO of BubbleLife, is replacing plastic use in the hospitality industry by developing seaweed kelp packaging solutions for soap and toiletries. He mentioned the value of specialist tailored accelerator assistance: “The Middlesex University Nature Positive Accelerator really supported our needs, helping us to develop our green business case and present the environmental market value of our offer to impact investors. We now have substantial investment pledges, but it is still a long journey ahead to raise the funds to commercialise our products.”
Dougal Fleming, Middlesex University, IFB Knowledge Exchange Fellow, and Catherine Wilde of Keyston Ecology AI consultants presented their Beta version Habitat Calculator. They explained the multiple ways in which their interactive toolkit App can guide and train businesses to become more energy and resource efficient and address climate and biodiversity financial impacts. Paraphrasing US founding father Thomas Paine, Dougal stated: “We have it in our powers to rebuild the world. The development of tools that can financialise nature and the environment are the holy grail for the financial markets in risk assessing environmental disasters.”
Professor Javed Hussain of Birmingham City University led a panel of academic and practitioner exports in summarising the main themes of the day. Andy Bennet, a green technology development consultant (formerly with Innovate UK’s satellite technology cluster) highlighted the need for focused attention and support from Government into working with the private sector to develop long horizon disruptive technologies and meet industry green transition needs. Prof Yannis Pierrakis (UEL) warned against greenwashing, highlighting the importance of validating green innovations. Prof Ciaran Mac an Bhaird of Dublin City University voiced concerns that the green investment bubble is bursting, whilst Prof Roger Sorheim (NTNU), also recognised that European governments are retreating from green investment at a time when it is most needed.
To conclude, Professor Owen summarised the view of the symposium:
“Looking forward more positively, we can agree that there are the foundations for a renewed pragmatic public green growth strategy. This needs to operate much more holistically and coherently over time to bring together the vast financial resources of Europe and the UK to focus on key breakthrough green technologies that meet the environmental emergency and public resource security.”