William Banholzer, the CTO of Dow Chemical, discussed the need for greentech startups to take a realistic approach to funding and growth at the EmTech conference. Unlike strictly IT startups like Facebook, these startups face special challenges:
- Money: A great investment of money, market access, and industry knowledge is required for these startups to succeed.
- Time. Fully functioning energy businesses take years to build, which is less appealing to venture capital firms.
- Scale: Transitioning from prototypes to working models to mass market is more difficult with physical products.
As a result, more startups are partnering with corporations who have both the capital and the long-term timeframe to support more experimental technologies. For more of Banholzer’s insights into the evolving venture industry, check out the article.