The document discusses opportunities in decarbonizing the electricity sector through investment in climate technology companies. Specifically, it notes three tailwinds driving this transition: 1) the rise of renewable energy sources like solar which are projected to make up 69% of Australia's electricity by 2030, 2) decentralization of the electricity grid through distributed energy resources like rooftop solar and batteries, and 3) increased demand for carbon offsets which could grow 15-100x by 2050. The document profiles several startups working in these areas and outlines how venture capital can help scale solutions to lower the cost of clean technologies.

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w w w . a u r a . c o
TECHNOLOGY
O V E R V I E W
CLIMATE

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Avoiding a Climate Disaster
Introduction
2
The world needs to reach net zero Co2 emissions by 2050 to prevent a climate disaster. To avoid the worst of these consequences, serious
innovation and change is needed in the biggest polluting industries.
Global Percentage Contribution to Co2 Emissions
Agriculture: 19%
Transportation: 16%
Manufacturing: 31%
Electricity: 27%
Buildings: 7%
Breakthrough Energy Statistics

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A Trillion Dollar Opportunity
Introduction
3
https://www.iea.org/reports/net-zero-by-2050 & https://www.blackrock.com/uk/professionals/solutions/portfolio-design/turning-climate-risk-into-opportunity
To reach net zero emissions by 2050, annual clean energy investment worldwide will need to more than triple by 2030, to around $4 trillion.
It’s been called a ‘historic investment opportunity’ by the largest investors in the world.
Key Clean T
echnology Ramp Up by 2030 for Net Zero T
arget
Capacity Additions (GW) Electric Car Sales (Millions)

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Is There a Role for Venture Capital?
Introduction
4
Historically, venture capital has had a poor track record of investing in climate technology that was not software. Can VCs invest in non-
software climate businesses to produce meaningful environmental impact and see returns on their investments?
https://energy.mit.edu/wp-content/uploads/2016/07/MITEI-WP-2016-06.pdf - The Wrong Model for Clean Energy Innovation
Returns by Category for VCs within Cleantech industry
2006-2011

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Traditional VCs Have Limitations
Introduction
VCs have investment mandates. These limitations will impact the types of businesses that they can support and where different modes of
funding are needed to fill the gap in investment.
Short investment horizons
Avoiding capital
intensive business
Meeting return
expectations
VCs are typically looking for exits in 3-7
years for a given investment.
VC works by funding progressively more
capital as milestones
are achieved. However, capital intensive
businesses need a large investment before
they can even achieve these milestones.
The VC model requires its winners to be
able to return 10x the initial investment.
Limitations of Venture Capital

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These Limitations Affect Investments Made
Introduction
6
Climate technology, disregarding software, often requires "patient capital" because of the necessity for R&D, production and creating
economies of scale. Many VCs will not invest in key technologies required to reach net-zero.
Chemical/Material
Infrastructure Projects Hardware/Machinery
Capital intensive physical
infrastructure e.g., Wind Farms
Businesses with long R&D cycles before
they go to market e.g., Carbon-Free Glass
Businesses with high operating
costs e.g., Solar Panels
Businesses VCs typically avoid

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VCs will Continue to Scale Certain Businesses
Introduction
Business Type Opportunities Description Examples Companies Like
Vertical Software
Electric Cars
Renewable Energy
Carbon Offsets
ESG Reporting
Operating system software for emerging
industries
• ESG management
platform for funds
• Grid management
software for distributors
• Inspection software for
solar panels
Marketplaces
Carbon Offsets
Renewable Energy
Two-sided marketplace for emerging
markets
• Carbon offset
marketplace
• Sustainable e-commerce
marketplace
Managed Services
Renewable Energy
ESG Reporting
Managed marketplace with a
service/product component
• Solar panel marketplace
with installation
• Carbon offset
marketplace with ESG
calculator software
Climate APIs
ESG Reporting
Carbon Offsets
Electric Cars
API companies that connect to climate
data sources to create value for customers
• Carbon offset APIs
• ESG APIs
• Insurance APIs
Traditional VCs will continue to fund high margin defensible businesses in the climate space. This will include vertical software plays (e.g.
software for new electric vehicle manufacturers) and new marketplaces (carbon offsets).

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But VCs Can Do More
Introduction
8
VCs need to fund real world deep tech projects that can reduce the green premium. The environmental benefit of these projects is clear
but there is also a strong case that it can increase investment alpha.
Deep Tech Investment Paradox – BCG
Deep Tech Can Have Competitive Returns if Model Changes

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These Investments Will Reduce the Green Premium
Introduction
9
For mass adoption of clean technologies, VCs need to fund technological innovations that reduce the additional cost of choosing these
clean technologies over their greater emitting counterparts.
Breakthrough Energy Data
Green Premium for Low-GHG Meat Green Premium for 100% Clean Energy
Startups and VCs

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Segments Number of Companies on Crunchbase Companies Raised $100M+
Solar Financing
Grid Management Software
Smart Meter AI
Solar/Wind Drone Inspection
Hardware for renewables
Energy APIs
Carbon Offset Marketplaces
108
30
39
29
Too Broad
17
113
Electric Vehicles
Electric Charging Stations
LIDAR/RADAR
Lithium Battery
474
107
590
84
Bioplastics
Co2 Capture
Circular Economy
62
17
369
Novel Materials Too Broad
Alternate Meats
Robotics
AI Crop Analytics
Vertical Farming
52
123
145
105
Innovation is Already Lowering Green Premiums
Introduction
10
Agriculture: 16%
Transportation: 20%
Manufacturing: 26%
Electricity: 33%
Buildings: 5%
Co2 Emissions for Australia by Sector – Breakthrough Ventures Data. Data From CrunchBase – List is not exhaustive, just selected companies that have raised $100M+

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Aussie Market Map
Overview
11
Non-exhaustive

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The Global Climate Tech Financing Landscape
Overview
12
There is now a much deeper ecosystem for founders raising capital for climate tech companies.
CVC
Specialist Climate VC
Global Accelerators
Climate Friendly VCs

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The Australian Climate Tech Financing Landscape
Overview
13
Climate tech in Australia is also experiencing a surge in available capital from local investors.
Climate Friendly Accelerators
Specialist Climate VCs
Climate Friendly VCs
Specialist Climate Accelerators

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w w w . a u r a . c o
E L E C T R I C I T Y
D E E P D I V E

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Decarbonising the Energy System
Deep Dive
We are excited about opportunities that arise from the once in a generation shift of our energy system, as well as others
Agriculture: 16%
Transportation: 20%
Manufacturing: 26%
Electricity: 33%
Buildings: 5%
Agriculture: 11%
Transportation: 29%
Manufacturing: 24%
Electricity: 28%
Buildings: 8%
Our energy system is one of the largest
sources of emissions for the Western World
Breakthrough Energy Statistics

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Seismic Tailwinds at Play
Tailwinds
Government legislation, investor capital and consumer sentiments are forcing the global energy market to shift.
As household solar systems increase, consumers will
be able to produce and supply their own energy to
their communities.
Demand for carbon credits could increase by
a factor of 15 or more by 2030 and by a
factor of up to 100 by 2050.
Currently, renewables make up just 24%
of electricity in Australia. By 2030, it is estimated
they will make up 69%.
Decentralised energy grid
Increased renewable use
Carbon offset market

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Rise of Renewables
Tailwind One
17
The global renewable energy market is forecasted to grow to $2 trillion by 2030
https://www.industry.gov.au/sites/default/files/October%202021/document/australias_emissions_projections_2021_0.pdf
Current Australian Electricity Mix (2019 - 2020) 2030 Projected Electricity Mix
Renewables: 69%
Renewables: 32.5%
Gas: 7.7%
Coal: 59.1%

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Rise of Renewables – SunDrive
Opportunities
18
SunDrive shows the power of small teams. They have built component parts that can redefine what’s possible in an industry.
Solution
• Using copper as a core ingredient to make
their solar panels making it 100x cheaper. It’s
also more efficient.
Problem
• Solar panel efficiency averages just 15% –
28%
Traction
• SunDrive set global efficiency record at
26.07%
Investors
• Has raised over $8M in recent Series A led by
Blackbird including a $3M grant from ARENA
PV Magazine Australia

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Rise of Renewables – Raptor Maps
Opportunities
19
Physical infrastructure businesses often need start-ups to make them more productive. Meet Raptor Maps.
Solution
• Software that allows customers to
manage PV assets, provides insights and
standardise findings.
Problem
• The solar industry has a global install base
of over 580 GW 3 that generates over $100
billion in clean power annually.
Traction
• Estimated that they can double
penetration of solar relative to current
trajectory.
Investors
• Secured $22 million in Series B from
MacKinnon, Bennett & Co
https://raptormaps.com/ - Company is based out of US

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Rise of Renewables – uPowr
Opportunities
20
Solution
• Allows users to get a quote on solar system
installations using their data-driven insights,
apply for financing and manage the installation
Problem
• Consumers don’t know how much solar panels
cost and the installation is time-consuming
Traction
• Over 1,000 customers in 12
months
Investors
• Joined AWS Clean Energy Accelerator
in 2022
UPowr is accelerating the adoption of rooftop solar in Australia
https://upowr.co/

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Decentralisation of the Energy Grid
Tailwind Two
21
With the rise of distributed energy resources such as electric cars and solar panels, our energy grid is becoming increasingly decentralised.
The uptake in renewables has disrupted utility management of the grid because solar systems send power onto a grid not built for it.
A decentralised grid is
consumer-centric

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Decentralisation of the Energy Grid
Tailwind Two
22
Distributors
Retailers
Producers
Households and
Businesses
Home solar systems
Send bills for energy use
Send energy on demand
Send excess energy
Purchase energy whole and sell to
individuals
Produce energy from solar farms,
hydro power and coal plants
Maintain the power lines and grid to
deliver electricity
Solar panels that can generate and store
electricity

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Decentralisation of Energy Grid – Span.io
Opportunities
Start-ups are changing the way we interact with the energy grid with the click of a button.
Solution
• Smart electric panels that can be controlled
from a phone to access battery backup power
and participate in wholesale markets.
Problem
• Current electric panels are not suited towards
managing renewable production and storage
Investors
• Has raised over $133.8 million from Fifth Wall
Climate Tech and Wellington Management.
https://www.span.io/ - Based out of United States

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Decentralisation of Energy Grid – Gridsight
Opportunities
Solution
• Software to enrich network data, provide
visibility and unlock existing network hosting
capacity by deriving insights from smart meter
data using AI
Problem
• Traditional grids are not built for the
bidirectional flow of household power system
Market
• The total smart-meter penetration
of the network is estimated to be
25% and increasing
Investors
• Has raised over $1M in recent Series Seed,
with participation from US Fund Climate Capital
Software start-ups are connecting with enterprise clients to make changes to how we receive electricity.
https://www.gridsight.ai/, https://www.smart-energy.com/industry-sectors/smart-meters/australia-to-review-how-smart-meters-can-deliver-more-customer-benefits/

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Offsetting Fossil Fuels
Tailwind Three
25
Demand for carbon credits could increase by a factor of 15 or more by 2030 and by a factor of up to 100 by 2050.
McKinsey – A blueprint for scaling voluntary carbon markets
Voluntary Demand Scenarios for Carbon Credits, gigatons per year

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Offsetting Fossil Fuels
Tailwind Three
26
Net Zero Goals Internal emissions accounting Purchase carbon removals Carbon supply
Carbon removal
Carbon credit marketplaces
Carbon credit regulators
Direct carbon credit purchase
Consultants
Software
Individuals and
consumers are
increasingly
committing to net
zero goals, or else
need to reach
regulatory
requirements
enforced by
Governments
The carbon credit and offset market is made up of different stakeholders working in different sectors.
Consultants can measure carbon output
and reducing output
Alternatively, there are software
solutions for measuring and identifying
where to reduce emissions
Customers can directly purchase carbon
credits from consultants or providers
Credits can alternatively be purchased and
traded at marketplaces
Regulators must verify and rate the
quality assurance of carbon creditors
Climate Tech VC – Giving Credit where it is due
These companies are responsible for
reducing emissions or protecting nature
capital that are then sold on as credits

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Offsetting Fossil Fuels – Trace
Opportunities
27
Solution
• Online marketplace for individuals and
consumers to buy carbon credits and share with
people they know
Problem
• Buying carbon offsets is seen as a complicated
and unverified process
Investors
• Raised $1.9 million from The Fund, Epoch
Capital and Existential Capital in seed-funding
Buying carbon offsets is confusing – there is a lot of snake oil but Trace aims to simplify the process
https://www.our-trace.com/

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Offsetting Fossil Fuels – Cecil
Opportunities
28
Solution
• Collaboration and software platform
integrating satellite imagery to verify carbon
offset capital
Problem
• Carbon creditors need to be able to manage
and regulate their natural capital assets
Market
• Demand for carbon credits could increase
by a factor of 15 or more by 2030 and by a
factor of up to 100 by 2050.
Investors
• Has raised $1.6M in pre-seed funding led by
Tenacious Ventures
Cecil
https://www.cecil.earth/, https://www.mckinsey.com/business-functions/sustainability/our-insights/a-blueprint-for-scaling-voluntary-carbon-markets-to-meet-the-climate-
challenge#:~:text=The%20Taskforce%20on%20Scaling%20Voluntary,up%20to%20100%20by%202050.
Carbon offsets open up a new world of revenue streams for land owners, Cecil will help them capitalise on it

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