The next Blue Earth Forum, takes place between 3-4 December where 40 climate tech startups and scaleups will pitch to over 200 investors with a collective raise target of over £150 million.

In the climate business sector Guy Hayler is known as a ‘super connector’. He has built a reputation helping to connect high growth sustainable businesses with impact investors looking for emerging and exciting businesses, ready to scale.

“Connecting investors with innovation is in my DNA. I come from an entrepreneurial family background so it's always felt natural to build a network of people who inspire me and do what I can to support.”

Here Guy Hayler outlines 5 key areas essential for investors to consider when investing in the climate technology sector.

Profit and passion

Whether innovators or investors, I always look for like-minded people, who want to protect the environment and have the entrepreneurial drive and passion.

I’m always looking for Founders that are not driven by short term gain but recognise the myriad of growth and return opportunities in the climate sector.

Beyond the vision and passion, I look for indications that startup teams have alliances with major corporations, research institutions, or NGOs, as these can accelerate adoption. And also that the startup team can demonstrate the agility to adapt to evolving technologies and market conditions.

From an investor perspective, Richard Walker, Executive Chairman of Iceland Foods is a great example – and a good friend of mine – in fact we go surfing together! His store chain has a healthy marketplace position with a £4 billion turnover.  But his drive doesn’t end there. He’s been called the ‘green’ grocer because of his personal and business commitment to a healthy environment and protecting nature.

Business people like Richard are super successful but they’re also driven by positive impact, born out of a love for the natural world. A mindset that combines positive impact, personal passion and profit is an exciting new breed of business leader and investor.

“I’m excited that I can help scale super profitable businesses - that will leave a positive legacy for our world.”

Don’t dwell on the status quo

Who’s to blame for global warming or climate change? It can be laid at many doors.  Government leaders and policy makers, the gas and oil industry – or in the case of fashion waste and carbon footprint, human habit and behaviour.

But I don’t blame or look backwards.  It’s not a useful approach that will accelerate the change we need. Alongside my co-founders and team at Blue Earth, we’re out there looking at 100s if not 1000s of startups every year fixing problems from the ground up. And that’s the future we want to support. It's inspiring.

“We're a team of optimists at Blue Earth. We’re surrounded by entrepreneurs creating new solutions and fixing planet health problems on a daily basis.”

Financial institutions, whether VCs, investment banks or pension funds, recognise the next Unicorns will come out of the climate space and that’s really exciting. The climate sector has a current turnover of £344.6 billion and is growing at 11% per year.

Things are definitely changing more positively and more governments are recognising they need to support opportunities. In fact, some of this legislative change is already happening.

This year, The European Council announced that it had approved the Net-Zero industry Act (NZIA), a new law introducing a framework of measures aimed at scaling up Europe’s manufacturing capacity for technologies key to achieving the EU’s climate goals. It has also introduced a framework for new sustainability requirements for all products sold across the EU as well as a new ban on the destruction of unsold textiles and footwear.

What’s more, according to London & Partners, London-based climate tech startups raised $3.5 billion this year, ranking second globally in terms of investment in the sector.

In the UK, the climate crisis might not be at the top of the UK government’s agenda but it’s climbing fast for investors. They can see the returns in existing businesses and now they know they can get the return too.

Inform and educate

Being labelled a  ‘super connector’ in climate business is a compelling description but I see my role as going way beyond simply networking connections.  Part of my role is about informing. Much of it is about understanding. There are knowledge gaps in the climate sector. Innovation is widespread but data is often hard to find and influential legislation can be somewhat hidden.

I think that’s why Blue Earth has grown in popularity for business leaders, investors, VCs and Founders. Our growth is reflected in a parallel change of attitude to planet positive innovation. Blind resistance is becoming a thing of the past.

So for me, it's about sharing timely insights with investors and innovators. Being alive to important and emerging trends. The climate sector is a global sector where changes are fast moving. No-one can ignore the opportunities in the impact space any more.

Know where to look & what to look for

Despite a growing appreciation about climate sector innovation and opportunity, investors want guidance on where to look, what to look for and why.

I recommend a few pointers. Assess whether the startup's solution addresses large-scale environmental challenges and consider the Total Addressable Market (TAM) for the product or service. A startup with scalable technology or a repeatable business model is more likely to succeed.

Also look for startups with proven technology or a clear roadmap from prototype to commercialization. In my view, there are a couple of industry categories that are getting plenty of attention right now.

Agritech and food system transformation

Farming practices are slowly changing and so is investment for protecting our natural world.  It’s clear that our current food system is broken.

Industrial farming is destroying  soil, wildlife, land quality and biodiversity. Not to mention food security. It's an urgent problem that needs resolving. A 2024 report from Oxford University and London School of Economics reported that if we continue business as usual, we will needlessly carry billions of avoidable costs, whereas transforming food systems could save 10 trillion US dollars per year.

There are some exciting players in this space from lab grown meats to technology that can track the quality of farmland and new green sustainable chilled food transport systems.

The time it takes

Naturally investors are impatient. They’re looking for the fastest returns. But innovation in the green sector takes longer so I urge investors to think differently.

Returns in the climate sector may take longer to realise but the opportunity could be bigger. Higher risk and higher reward. Perhaps this is the biggest challenge facing the climate space but entrepreneurs are already providing competitive results and financial returns are being realised.

Many climate startups require time to scale due to high R&D costs and regulatory hurdles. Be patient with returns.

According to Tony Seba and James Airbib, co-founders of Rethinkx – research specialist in transformative technology, “We are on the cusp of the fastest, deepest, most consequential transformation of human civilization in history.”

Whilst  funding is still a challenge for many planet positive business leaders, I am hoping that as impact investing is becoming more mature, the returns are more visible and so investor commitments become an easier choice.

Ones to watch?

Check out these fast growth startups already attracting significant investment. We’re proud to have supported their endeavours at Blue Earth Forum.

UrbanChain marketplace matches generators of renewable energy and consumers on a half hourly basis, including private companies, office buildings, industrial sites, local government organisations, hospitals and many more. In 2024, they recorded a three-year growth rate of 8,810% and are currently raising £60 million.

“Blue Earth Forum was a great opportunity to connect with a passionate community of investors. It was inspiring to engage with individuals who understand and support our mission at UrbanChain,” said Somayeh Taheri, Founder.

Klura offer innovative and groundbreaking antimicrobial technology. Using real science, the business has developed a breakthrough formula that harnesses the power of plant-based, organic ingredients to deliver exceptional results.

Compare Ethics is an AI-powered platform that has been built by dedicated experts on green claims compliance. It is the only sustainability compliance technology platform that guarantees assurance on green claims.

For more startup news, check out the other articles on the website, and subscribe to the magazine for free. Listen to The Cereal Entrepreneur podcast for more interviews with entrepreneurs and big-hitters in the startup ecosystem.