Climate tech startups, like Rondo Energy specializing in thermal energy batteries, face challenges in securing funding for commercialization. The “commercial valley of death” is a common hurdle for hardware startups, where investors are hesitant to commit due to a lack of proven business models.
Rondo Energy recently secured a deal involving philanthropic grants from Breakthrough Energy Catalyst and the European Investment Bank to finance the installation of their innovative thermal batteries. This unconventional funding approach aims to address the customer adoption stage, showcasing the viability of the startup’s product as a sustainable alternative to fossil fuels.
By providing a grant rather than a loan, Breakthrough Energy Catalyst is pioneering a new model to support later-stage concerns in climate tech development. The project’s success could serve as a template for future investments in groundbreaking technologies.
The three initial customers of Rondo’s thermal batteries, spanning various industries, are crucial in demonstrating the practical application and benefits of the technology. The grant from Catalyst helps mitigate the financial risks associated with implementing new technologies, paving the way for increased infrastructure investment and industry adoption.
Breakthrough Energy Catalyst’s broader goal is to advance the entire climate tech ecosystem by de-risking technologies and inspiring confidence in investors. By setting a precedent with Rondo’s project, they aim to unlock financing opportunities for similar startups and encourage sustainable innovation.
