The iconic garage startup story is almost synonymous with Silicon Valley. Caleb Boyd and Kevin Bush epitomized this tradition by founding Molten Industries in the garage of a Stanford professor’s on-campus home, where Kevin was a tenant.
This makeshift lab provided them with the essential space and power they needed to tackle methane decomposition, aiming to separate hydrogen from carbon without emitting CO2.
Boyd recounted to TechCrunch how they utilized an electric vehicle charger to power a methane pyrolysis reactor, heating it to approximately 1,000 degrees Celsius to crack methane. The professor’s support was invaluable, offering both technical advice and practical assistance.
The “Valley of Death” in Climate Tech
While a garage can be a great place to start, advancing from basic research to a viable company presents significant challenges, often referred to as the “valley of death.”
Traditionally, founders had to navigate this chasm alone, but early intervention from investors is becoming more common.
During their early days, Boyd and Bush were visited by Ashley Grosh, VP at Breakthrough Energy, an organization founded by Bill Gates.
Grosh represented Breakthrough Energy Discovery, a division focusing on early-stage climate tech startups, providing support that includes grants up to $500,000 and access to digital resources and networking opportunities.
Breakthrough Energy’s Approach
Since its inception, Breakthrough Energy Fellows has backed 42 companies across diverse climate tech sectors, collectively raising $250 million.
Grosh explained that while government funding and programs like ARPA-E exist, they aren’t designed to pick and support potential market leaders.
Venture capital has been hesitant to invest in nascent companies due to the risks observed during the cleantech boom 15 years ago.
However, early-stage investors can gain a significant advantage by identifying promising founders early.
Identifying Proto-Companies
Johanna Wolfson, co-founder and general partner at Azolla Ventures, describes their targets as “proto-companies” — ventures that are not yet fully formed but show potential.
Azolla Ventures aims to discover undervalued opportunities, emphasizing the urgency as climate targets are missed, increasing the stakes for innovation.
Funding Basic Research
Breakthrough Energy’s application process has highlighted the need for further upstream research funding.
Grosh and her team have started organizing workshops to identify and seed promising research projects, while Azolla Ventures employs a tech scout fellow to discover exciting projects directly from graduate students at institutions like Georgia Tech.
Collaborative Fund’s Partnership with Harvard’s Wyss Institute
Even at prominent universities, innovative research can be overlooked. Collaborative Fund has partnered with Harvard’s Wyss Institute, investing $15 million to establish a lab for sustainable materials research.
This initiative aims to refine projects and scientists to a stage where they can attract investment, offering founders crucial support during the critical transition from lab research to startup viability.
From Lab to Business Reality
Collaborative Fund provides essential resources and first dibs on promising projects, aiding founders like Mattia Saccoccio of NitroVolt, which develops sustainable ammonia for fertilizers.
Breakthrough Energy facilitates connections among fellows, fostering a supportive community and providing business expertise through its business fellows program.
For Boyd and Molten Industries, Breakthrough Energy’s support has been crucial in evolving their business strategy, including pivoting towards producing graphite for lithium-ion batteries.
The collaborative and supportive approach of Breakthrough Energy Fellows has been instrumental in helping startups like Boyd’s transition from concept to reality.
Conclusion
Navigating the transition from innovative idea to viable business remains challenging for climate tech startups.
However, as investors and organizations like Breakthrough Energy step in to provide early-stage support and resources, the success rates of these startups are improving, bridging the gap between groundbreaking research and market-ready solutions.