Today, I'd like to highlight a great article from TechCrunch that I came across regarding the rise of "deepwashing" amongst the ClimateTech sector.
The article, written by Craig Douglas, a partner at World Fund, a VC firm that invests in climate technologies with significant climate performance potential (CPP), outlines the deepwashing trend and how it is manifesting in the climate tech sector.
Here's the TLDR summary for those not interested (although I highly recommend the read for all):
Deep Tech refers to companies that deeply transform entire industries or even the world with their proposed solutions. Typically, this goes hand-in-hand with ClimateTech companies, as their solutions often offer new ways to conquer old problems more sustainably, offering another path to adapt to the Sustainable Transformation.
However, at least in European climate tech funding, there is a recent trend of "deepwashing." Deepwashing is where firms pitch their products as deep tech - innovative and transformative to global challenges, with a product that lacks the science to make those meaningful changes. It doesn't have to be Elizabeth Holmes and Theranos' level of misconception to qualify as deepwashing. However, making claims that your product is deeptech without the ability to deliver, even with a good product, will present problems in the future.
Some climate-focused startups exaggerate their technological advancements, raising money by presenting themselves as more transformative than they actually are, with a product that will never transform industries and tackle global challenges.
This is an issue I'd like to explore more and present examples of deepwashing in the climate sector. But for now, I really wanted to highlight this article. Investors should be cautious of startups making profoundly transformative changes, and founders should be careful. If you have a product with the science and research to back your transformation claims, by all means, go ahead. But if you don't, deepwashing will provide obstacles in your path when it comes time to deliver.
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