Spivs
Actual LinkedIn post from a “Greentech VC”.
“Stegra (formerly H2 Green Steel) is in cash trouble after raising $ 6.5 billion… But this isn’t another “climate tech failure”. It’s a unit economics and manufacturing reality check, similar to Nortvolt.
Yes it is, your fund’s in trouble mate. No one cares. All VC funded failures are due to the product not being good enough or too expensive. Some failures have other interesting features but they all end up here.
Europe (and the world) still needs green steel.
No it doesn’t. We just have to use less and offset what we do use.
Customers still want it.
Only if it’s much better and cheaper. The construction industry has zero sentiment because it’s too competitive, low margins. They are also extremely risk adverse with up to 100 year warranties.
The physics still work. What’s broken is the scaling math: unit economics that weren’t superior from the get-go, likely compounded by scale-up mistakes fueled by too much capital, too fast.
You mean the concept was flawed before it was invested in. Like most green tech investments.
I’ve been saying it for a while: capital isn’t a moat, manufacturing discipline is.
What? Stop saying nonsense.
If your learning curve, uptime, yields, and CapEx per ton don’t converge quickly enough, your costs stay above the product you’re trying to displace.
By converge she means converge to the over optimistic bullshit you told your dumbarse investors.
And when that happens, the spreadsheet always wins, no matter how mission-driven the story.
The only true word she spoke. Written by GPT of course. She just forgot to edit it out.
I’m very optimistic. We can build this when we stop counting on “green premiums” and stay grounded in industrial reality.
No you can’t.
Climate Tech doesn’t fail because it’s Climate Tech. It fails when the unit economics do, and when we mistake abundant capital for a moat.
More gibberish. It fails because it’s more expensive and shitter, every time. Plus it’s full of spivs, attracted by the opportunity of free anything.
The companies that build the best climate solutions, on performance and cost, and master manufacturing, will outlast the hype and win the market.”
Yeah, no.
offshore westerly 