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Toyota Ventures’s Jim Adler says climate tech startups need to secure future buyers
Technology tamfitronics Jim Adler, founder and general partner at Toyota Ventures, is concerned that climate technology gains could fall into the “valley of death” if companies fail to drum up enough demand to survive.And he’s not wrong to be worried.Climate tech investments in the first half of 2024 dipped for the second consecutive year, both in terms of overall funds invested and deal count as investors shy away from funding what can be capital-intensive, high-risk businesses without a clear path to market.Speaking at a Climate Week NYC event Tuesday, Adler said one way for climate tech to secure that demand is through forward offtake agreements. This is when a customer promises to buy an agreed-upon amount of a product at a specified price by a specified date.“I like that a lot because that encourages investors...