EXTANTIA FLAGSHIP
Extantia Flagship is our direct investment strategy. We back daring entrepreneurs whose breakthrough ventures can significantly reduce emissions and accelerate the transition to a decarbonised society.
INVESTMENT PRINCIPLES
Getting to net zero will require many technologies. You can think of it as a puzzle made of differently sized pieces. At Extantia, we look for the largest pieces of the puzzle. Meaning, companies with a minimum emissions reduction potential (ERP) of 100 Mt of CO2e p.a. by 2050 and ideally higher. You can read more on how we measure in the EPIC section.
We focus mainly on European companies (Brits, Swiss, Israeli founders we consider you Europeans) but occasionally invest globally.
Just like in the financial world, where a dollar today is worth more than a dollar tomorrow, greenhouse gas emissions cut today are worth more than cuts promised in the future. This is due to the escalating risks associated with climate change (“Time Value of Carbon”). Therefore, we don’t just look at HOW MUCH carbon a technology can abate in total, but also at WHEN it will be able to do so at scale. By way of example, nuclear fusion technology has a high carbon math score but will take decades to get out of the lab and be applied at scale.
We write checks between €1M–4M depending on the stage of the company and whether we are leading the round or not.
Our sweet spot are Seed and Series A financing rounds, but often in climate tech this may be misleading. We like to use a method originally developed by NASA in the 1970s for space exploration technologies. The Technology Readiness Level (TRL) method measures the maturity level of a technology throughout its research, development and deployment phase progression. TRLs are based on a scale from 1 to 9, with 1-3 being the “Research” stage (working in the labs on grams of carbon), 4-6 representing “Development” (going up to kilograms), and grades 7-9 being actual “Deployment” (scaling to tons in commercial first-of-a-kind plant and up to Nth-of-a-kind in, then, bankable technology). At Extantia we invest in companies that achieved a minimum of TRL 4 with preference to TRL 5-7. As a rule of thumb, we will invest in a low TRL only if the Carbon Math is high. In higher TRLs, we accept lower Carbon Math but then the Time-to-Impact needs to be earlier
It’s been proven that a strong syndication can improve the performance of the company. We are big believers in syndicating with like-minded investors to deliver more value to our founders. If we are the lead investor, then we will first sign with you a term sheet and then together build a syndication for the round.
WHAT YOU CAN EXPECT FROM US
1. We are here for you! Once invested, we are partners and fellow travellers on your journey. You are part of the Extantia family and can tap into any resource we have.
2. We have been there. As a team of entrepreneurs we understand what you are going through and can share best practices. We have managed large teams, grown sales from 0 to millions, and exited companies for healthy valuations.
3. Go-to service providers. Over the years we developed a rolodex of trusted people that can help you grow the business. Be it headhunting, marketing, or tax and legal, we will connect you with whom we consider the best of the best.
4. Boilerplates. We have templates for almost everything, including (but not limited to…) board presentations, ESG policies, and captable management. We are happy to share them all. Many you can already find on the website.
FLAGSHIP PORTFOLIO
