So You Want to Work in Clean Tech Venture Capital?

Ask a Climate Change, Management and Finance (CCMF) student at Imperial what industry they hope to enter, and chances are “clean tech venture capital” will be high on the list. In fact, I doubt the Business School is short of aspiring VCs in general – and for good reason. The sector is especially appealing to those who believe in the private sector’s capacity to foster the much-needed innovation to fight climate change.

Himanshu Sharma, Head of Investments at Theia Ventures - an India-based venture capital firm backing early-stage clean tech investments - is one of those believers. In our recent conversation, he told me about Theia’s vision and offered advice for students hoping to succeed in the industry.

Working in emerging markets can be an especially impactful way to contribute to climate action in the communities that need it most. However, running a successful fund requires an investment environment that is conducive to risk-taking, collaboration, and eventual growth. “The convergence of policy, demand, and an entrepreneurship mindset puts India in a very good position,” Sharma explains.

India stands out as an emerging economy with a policy landscape which is increasingly conducive to decarbonisation initiatives. A notable example is its push to build out a holistic clean mobility ecosystem – the government recently announced new policies to expand EV subsidies from consumer vehicles to trucks and buses, whilst also boosting investment in domestic battery manufacturing and charging infrastructure. 

The sheer size of the market – India is set to be the third-largest economy in the world by 2030 – is another selling point. This is crucial when finding potential markets for more niche technologies. 

Finally, India’s home-grown entrepreneurial drive makes its businesses especially resilient. In a market where customers seek a green discount as opposed to a green premium, highly efficient local entrepreneurs have shown that clean tech solutions can be scaled without a high price tag attached.

 “India has always been a tough country to do business in, but if you succeed there, your business economics is so good that you can sell anywhere in the world.”

Of course, Sharma still sees challenges that businesses need to overcome in order to achieve scale in the Indian market. New technologies often lack the supporting infrastructure required to reach the masses. For example, the build-out of bioreactors for applications such as carbon capture is challenged by the country’s lack of large-scale facilities to house them.

Limited risk appetite for projects with long gestation periods (often the case for early-stage climate tech ventures) and a high dependence on foreign supply chains (e.g. for EV batteries) are further challenges.

Beyond advising its portfolio companies on business strategy, Theia believes its power lies in bringing together the entire climate tech investment ecosystem to tackle systemic challenges. Forging new connections within its wide network of entrepreneurs, R&D leaders, and investors with diverse risk appetites helps to create the conditions for India’s climate innovators to thrive.

So, how does one lead a successful career in clean tech VC? Sharma believes there is no one-size-fits-all approach. 

Contrary to popular opinion, you don’t need to be an engineer to understand whether or not a clean tech business will succeed. “No one is going to ask you what equation is happening in nuclear fission to make an investment decision,” Sharma says. “The most important thing is curiosity to learn the business.”

Stepping into the shoes of a founder is a great way to gain insight. Understanding this perspective by engaging with a wide range of founders, learning from their successes and – crucially - their failures, can only be helpful. 

Understanding the clean tech investment landscape is also essential. Podcasts are Sharma’s medium of choice for staying up to date with the industry – Climate Rising by Harvard Business School and TILclimate by MIT are his favourites.

“As investors, we need to earn the right to advise the portfolio company,” Sharma says. For aspiring VCs, that means remembering that founders have far more at stake than you do. Adding real value can only be achieved through curiosity, humility, and hard-earned insight.