The gap between venture capital and infrastructure financing largely stems from the inability to properly assess, measure, and then allocate project risks.
Data-driven insights can step in to make a meaningful difference.
Project risks are often assessed based on siloed datasets.
More modular technologies tend to benefit from faster learning rates.
Finding ways to increase modularity could significantly reduce risks and improve learning rates.
Assessing four key data points can inform risk assessment in climate tech projects.
Perhaps one of the most critical data points for investors is the historical cost overrun percentage.
The path to scaling FOAK projects is fraught with risk.
As we continue to gather and analyze data from climate tech projects worldwide, our ability to assess and mitigate risks will only improve.
This data-driven approach is key to bridging the gap between innovation and infrastructure investment in the climate tech sector.