Beyond sustainability

This post is by Collab Fund from Collab Fund

At Collaborative Fund, we’ve taken our Villain Test—a measure of business viability in the eyes of the most profit-driven investors—and applied it to the burgeoning regenerative economy. As we venture deeper into 2024, we’re convinced that the companies set to lead the charge are those committed not just to sustainability but to regeneration: leaving the planet in a markedly better state than they found it.

The Five Pillars of Regenerative Success

We evaluate potential through a critical lens, asking: Commercial traction. Does the regenerative solution have a near-term path to revenue(s)? We do this to account for a conservative context where corporations may be less willing to take a longer view on the impact of a new technology. Scalability and repeatability. Can the solution be replicated without too much customer hand-holding? Can it serve a range of customer sizes, industries, and regions across the lifetime of the company? Path to competitive margins. How much will it cost the company to serve these customers in the long run? Marginal costs are a constant consideration for venture backed companies, and increasingly so as it relates to climate companies. Key stakeholder risk. Is this solution being championed by the Chief Impact Officer, or by the Chief Commercial Officer? Recognizing who the key stakeholders are that are championing the solution within customer segments is important to consider for the longevity of the solution and its integration into the everyday operations of the business. Market Momentum. Does this solution address an emerging problem for (Read more…)