Key takeaways from the European Venture Fair 2024

The 23rd European Venture Fair was a huge success, with 175 investors convening from around the world to drive real change towards a sustainable future.

Here are the key takeaways from the event:

Keynote speaker, Michael Liebreich:

There is no “EV slowdown”. More than 50% of the cars sold in China recently had a plug. Legacy car companies are simply scrambling to compete, and consumers in the West are taking the hit from higher prices due to tariffs.
We are in the early stages of the “Great Hydrogen Reset”: it’s more expensive to produce than anyone predicted, including McKinsey, the Hydrogen Council and BloombergNEF. It’s also more expensive than predicted to transport, store, distribute and to use.
We would need trillions of dollars of gap closing money to reach the EU’s 20 million tons of hydrogen by 2030 target, but all that is available is some 10s of billions. So people need to reset and create a new hydrogen strategy that is realistic and effective.

The future of Sustainable Aviation Fuels:

Airlines must pursue SAF to decarbonize their sector.
Even with the technology available, SAF routes must secure limited feedstocks, for example non-fossil CO2 and hydrogen for e-fuels, or waste oils, which may limit scalability and/or cost competitiveness. In particular, the market environment for renewable energy and limited access to low-cost green hydrogen, makes the cost of e-SAF production still challenging.
While regulation is making progress, getting investment secured for the projects, both for incumbents and start-ups, remains the largest challenge.
The key to scale is a bit of everything: sufficient regulation, plus willing investors, plus quality producers of SAF, plus consumers/airlines who need to be prepared to offtake at higher prices.

A splash in the face: industry awakes to water scarcity:

We are at a tipping point where water has moved from the Sustainability Officer’s desk to the CFO’s desk, meaning that water is a substantial risk for over two-thirds of companies around the globe.
Focusing on water scarcity is not enough. The problem is 3-fold: companies must address areas where there is not only too little water, but also too much water, or water that is too polluted.
While putting a price on water remains a challenge, corporations can have a huge impact in water stressed regions around the world through reducing water use intensity, replenishing more water than they consume, engaging in policy making, and by investing in innovation.

Carbon removal & capture:

We need carbon removal & capture in addition to other decarbonization initiatives in order to reach 2050 targets.
A mix of solutions is imperative, as different regions need different implementations. Today, geological carbon has the highest permanence. Measurability, permanence, additionality and cost will be key drivers of deployment.
We need everyone to work together to make carbon removal & capture happen: innovators, corporates, off takers, regulators and policy incentives.

Preparing your portfolio company for an exit:

Plan for your exit from the first day you invest and make relationships early.
Reach out to potential acquirers at least a year before you want to exit.
Have a strong CFO from early on in your portfolio company.
Be prepared for the process to take longer, because there are fewer buyers on the market and the due diligence process could take up to 6 months.