Podcast #2004.01

Invetment Criteria & Market Size for Pollution & Climate Tech

With Tejinder Miglani

About Tejinder Miglani: Tejinder is an Angel Investor, and advisor at multiple companies. He was the co-founding CTO at India bulls, and most recently co-founded Incedo, a data analytics and tech service focussed firm.

About Sumeet Singh: Sumeet is CEO at GoMassive. He has over 15+ years of experience in finance and fundraising. Prior to Massive he was co-founder and CFO at diro labs.

Sumeet: So, you know when it comes to investing in these sectors, there are certain very big elephants that stop othe angel investors or other early-stage investors and I think one of the biggest ones is capital efficiency. So any thoughts around that?

Tejinder: So Sumeet, I think the very first thing that I would like to certainly clarify is that the way, at least I approach, investing in this area is frankly no different from investing in any other area. Ultimately while investing, what we are looking for is a great team which has the ability to execute a solid idea. It need not be an absolutely unique idea, but execution sometimes is the biggest differentiator. It has to be a problem that’s waiting to be solved and it also has to be a business area with a huge scope for growth. And as long as these parameters are met, it doesn’t matter whether it is eCommerce or it is climate investing, climate tech investing. Firstly for me, since the passion is here, I have chosen this area, but my criteria of investing, I have no intention to dilute and I firmly believe that there are teams out there ready to be backed and to create great value in circular economy and climate tech businesses.

Sumeet: So, so basically, venture returns will be a possibility in this sector. You know…

Tejinder: Absolutely, not only possibility, I feel they will be there.

Sumeet: They will be there because the market is just going to be huge. There is no doubt of the market size for these technologies.

Tejinder: I’ll, I’ll take one minute to just give my view of how large the market could be. So if you look at our industrial complexes today, they work on a linear model, which is you take out a natural resource, you consume and you throw. Now, look at the global economy, which is about 80 to 90 trillion dollars. I can safely say that 10 to 20 trillion dollars out of that is, is the natural resources that we take out and we consume and we throw. Now imagine if we had an industry, which could take the 10 trillion dollars and convert it and bring it back into the economy, that circularization would do a huge amount of value addition and could actually be the be the engine for the next growth of the global economy without trashing the planet. So far, the entire growth from 10 trillion to 90 trillion has been at the cost of trashing the planet. But I feel that the next 90 to 180 trillion could involve the clean-up of the planet and do value addition and lead to economic growth. So that’s why this is a huge business area.

Sumeet: And I want to circle back for everyone you know where we started, you know, what is the first thing that we look at. It is this the parameters of investing don’t change.

Tejinder: Absolutely, and none of this needs to happen by doing charity… Frankly speaking..…investing cannot be about charity. Any of these businesses that I am looking to invest in have to meet those parameters. The entrepreneurs have to be passionate, they have to have skin in the game. The businesses have to be great businesses to go after and there has to be something unique there. Whether it is the ability to execute or a unique IP or technology. So those parameters do not change at all. Need not change at all.

Sumeet: And you know, we’ve been looking at these companies, I think there are one or two, you know, we’ve been in dialogue with, especially around waste and how they are going. Instead of resources going into the landfill, how the purpose or the problem statement of those companies is to prevent waste going into landfills. And hopefully we can do a few more, uh, investments on those lines.