Scaling Tables for Green Chemistry: Added Value for Entrepreneurs and Investors!

29-01-2024

On January 24, GCNE organized four so-called Scaling Tables. During a Scaling Table, various financiers from the Financial Engine Block Green Chemistry, in this case, Rabobank, InvestNL, InnovationQuarter, NOM, Capricorn, LIOF, BOM, RVO, NLC, EIB, OostNL, and Polestar Capital, Business Angels Connect, brainstorm about the scaling process and financing strategy of green chemistry cases, specifically GrownBio, Pegasus Materials, Thoriant, and CashewShellBioRefinery.

During a 2-hour interactive session, the entrepreneur presents their current situation and ambitions. The financiers present engage in discussions to share perspectives regarding the desired scaling process and financing strategy. Experience shows that in this approach, financiers learn collectively, and the entrepreneur receives highly valuable input for their scaling process.

Interesting lessons for entrepreneurs this time:

  1. Even if you want to bring multiple product-market combinations to market, focus on one. Experience shows that entrepreneurs who do this grow faster.
  2. Entrepreneurs are often driven by impact and technology. Financiers require a well-thought-out approach to demonstrate market commitment. Where is the actual market problem? Is there upcoming legislation aimed at banning polluting alternatives?
  3. Commitment from strategic financiers (from the perspective of raw material suppliers, buyers, or producers/OEMs) is extremely important where the process is risky and has high capital expenditures (capex).
  4. If you want to bring Venture Capital (VC) on board, think big. Is your revenue sufficient to provide the VC with their desired return? Also, consider exit opportunities for a VC. The higher the risk, the "more expensive" the financing. Therefore, ensure that the activities to be financed in a financing round have a similar risk profile. This way, you can prevent financing less risky activities with capital intended for risky activities.
  5. The RVO offers good subsidy programs for scaling in green chemistry. Pay close attention to the conditions and duration of these programs so you can make the most of them.

Are you an entrepreneur or financier in green chemistry, and would you like to join a scaling table? That’s great! GCNE organizes a day each quarter where 3-4 scaling tables are hosted.

Please express your interest to the lead of the financing working group: Angelique Erkenbosch; angelique.erkenbosch@innovationquarter.nl