Many academics when hearing the term “graduation rate” envision the early exits by student/athletes to the NBA or NFL. Indeed, Pomp and Circumstance may never fill the ears of undergrads destined to be stars in professional sports. However, Pure Green Cement pays more attention to a different “graduation rate” – the transition of academic research from seed financing to a higher funding level.
The tens of billions of dollars funneled to applied academic research almost always starts at seed level. Government grants along with private foundation and industry largesse are the main sources of this key financial tinder. These benefactor parties help research graduate into the market and provide key solutions to complex problems. The progression from research to start up to commercial entity is arduous and risk laden. Yet, to legitimately flip the tassel and transition research to enterprise is both achievable and vital in the quest for solutions to pressing societal needs.
PGC pays close attention to this type of graduation rate. We cull through vast amounts of data related to climate tech research and its early funding. Our parallel involvement with the venture capital community has revealed a systemic and cyclical disconnect that can and should be fixed.
The recent review report by Sightline, Climate Tech Investment Trends 2023 notes that “Graduation (seed to Series A financing) rates have declined since 2022. The proportion of companies that were able to progress to a later-stage of funding reached 37% in H1’2022 at the peak of the market but has since fallen to 20% in the most recent 6 months.” This trend indicates that even more research is failing to gain entry to the market. See the full report here: https://www.ctvc.co/32bn-and-30-drop-as-market-hits-pause-in-2023/
Even during the present lull in venture capital activity, academic researchers set on the right course can find funding from willing financiers. The right course requires a cogent plan from the start and willingness and commitment to seek and use all the resources which provide the path to the next levels of financial support. There is no better diploma for researchers than a large private sector check. The market’s acceptance of their meaningful hard work is the ultimate summa cum laude validation.