Investing in Clean Energy Innovation Keynote

Written By: Lauren Zhuang 

Clean energy may be one of the most important investment frontiers of our generation. At the Investing in Clean Energy Innovation Keynote, three investors from across the capital spectrum gave a behind-the-scenes look at how climate-tech deals actually get done. 

The panel brought together: 

• Terry Kellogg, SOM/ YSE’00 (Managing Director, Helios Climate Ventures) 

• Amy Duffuor (Co-Founder and General Partner, Azolla Ventures) 

• Rakesh Shankar, SOM’09 (Partner, NextGen Investments, Antin Infrastructure Partners) 

This panel was moderated by Steph Speirs, YC’07 (Lecturer at the Yale School of Management and Host of the Future in Bloom podcast). Together, they painted a picture of a sector entering its next evolutionary phase: bigger, more disciplined, and more exciting than ever. 

Amy Duffuor’s fund focuses on pre-seed and Series A companies in the U.S. Amy emphasized a 15-year fund horizon aimed at building large, self-sustaining enterprises. Her Limited Partner (LP) base, which consists of the investors in her fund such as U.S. foundations and corporations, expects long-term climate impact alongside financial returns. 

Focusing on technical Series B and growth-stage climate technology, Terry Kellogg’s fund, Helios Climate Ventures, is backed by multiple family offices. The fund has flexibility to invest in technically complex, pre-revenue businesses and supports them through later rounds, including Series C and D. While geographically open, its investment activity is primarily focused in North America, not exclusively Canada. 

Rakesh Shankar invests in Later Stage & Infrastructure, from Series C onward, as well as in broader energy-transition infrastructure such as waste, carbon management, water, and renewable power. His LPs include pension funds across the U.S., Europe, and Canada—institutions prioritizing predictable, long-term returns. 

A fund’s behavior is shaped well before any checks are written, with its limited partners setting the tone from the start.  

Family offices like Terry’s tend to think in decades rather than quarters. They’re comfortable giving companies the time they need and are often willing to accept softer financial returns if the climate impact is meaningful. Foundations and corporates, as Amy described, come in with a clearly defined mission. They expect the fund to stay tightly aligned with climate goals and to show measurable progress toward them. Pension funds, represented by Rakesh, operate under a different mandate: protect beneficiaries, manage risk carefully, and back solutions that can scale commercially. 

Amy also pointed out that while traditional Venture Capital firms aim for exits within 12–15 years, climate tech rarely fits that timeline. These innovations usually require more patience and deeper alignment with LP expectations than the standard venture model was built for. Together, these LP types shape how the fund behaves: the risks it’s willing to take, how long it can wait, and what “success” is supposed to look like. 

The panel also outlined how climate-tech investing has evolved from its early days to the current moment. Climate Tech 1.0 was dominated by capital-intensive, hardware-heavy ventures that often depended on subsidies to survive. Climate Tech 2.0 brought a shift toward greater capital efficiency, tighter system integration, and the addition of software layers, similar to how the internet progressed from basic infrastructure to applications built on top of it. Currently, as the sector moves into a 3.0 phase, the flood of capital in 2021–22 has created both momentum and a higher bar for discipline, with investors paying more attention to fundamentals than to flashy fundraising. Across the discussion, one theme kept coming up: companies need to resist becoming “fundraising machines” and instead focus on building real businesses with sound unit economics. 

Disciplined risk assessment is highlighted by the panel to be essential in climate-tech investing, though the emphasis shifts by stage. Rakesh noted that at later stages, the biggest challenge is scaleup risk, which is where outside technical experts come in and scrutinize whether the management team has the credibility and adaptability to navigate growth. Amy emphasized that at the early stage, founder quality is paramount—she looks for coachability, a clear plan for deploying VC capital, a technology that’s genuinely 10x better than alternatives, and a credible path to strong unit economics. Terry added that long-term success also depends on less tangible factors: disciplined fundraising habits, a healthy culture, strong talent retention, and a coherent strategic vision. 

The panel also underscored several structural hurdles facing the sector. Policy swings can abruptly stall commercial traction, while interconnection backlogs continue to delay the rollout of renewable projects. They also noted that climate-related behavior change tends to be slow, often requiring persistent education and meaningful incentives. At the same time, targeted policy shifts, such as California’s updated geothermal regulations that opened the door for companies like Fervo, show how changes in law can rapidly redefine market dynamics. 

The panel wrapped up with straightforward guidance for anyone looking to break into climate venture. First, know which corner of the industry interests you as the roles and skills differ meaningfully. Most VC hiring still comes from two routes: traditional finance backgrounds like Investment Banking (IB) or Private Equity (PE), or deep domain expertise. When reaching out, avoid vague “let’s chat” requests; be specific, prepared, and respectful of people’s time. They stressed the value of a growth mindset, reliability, and consistently showing up in ways that add value. Authenticity also came up repeatedly: don’t pretend to be someone you’re not. Instead, lean into what genuinely motivates you. Terry noted that AI is already reshaping analyst work, especially around memo drafting and synthesis. Therefore, the ability to make judgments, curiosity, and strong interpersonal skills are more important than ever. 

The keynote offered a compelling look into a climate-tech sector that is not merely growing, but fundamentally professionalizing. What emerged was a portrait of a market moving past the volatility of early cycles and into a phase where patience, rigor, and institutional-grade discipline increasingly define success. In this “third wave” of climate innovation, capital is no longer chasing novelty alone. Investors are prioritizing technologies with credible commercial pathways, founders who can translate scientific breakthroughs into operational excellence, and business models resilient enough to withstand policy shifts and capital market cycles. The conversation underscored a critical insight: the future of clean energy will be shaped not only by transformative technologies, but by the investors and operators capable of scaling them into durable, globally integrated infrastructure.