Why We’re Betting on Climate Founders with Battle Scars

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The climate industry is rapidly evolving. Looking at the past decade—and honestly, even just the past few weeks—it’s clear that climate is a long-term game. But that also means navigating a constantly changing market. Political and economic shifts are creating confusion, and many climate companies are facing hard decisions. Some need to raise more capital to reach their next milestone, while others are rethinking their approach.

At Equal, we’ve seen this before. As long-term investors, we know that volatility isn’t a signal to step back—it’s an invitation to lean in. The biggest opportunities often emerge when others pull away, and history has shown that those who stay the course can capture real value. As Rick recently said, "So many folks who claimed to be climate advocates, and were bidding up prices over the last few years, have moved onto the next shiny thing. Good riddance!"...at Equal, we’re not going anywhere.

Why We're Not Afraid of Companies with Battle Scars

In today’s environment, many founders are realizing their original hypotheses no longer hold true. Some companies that previously raised Series A+ rounds are now restructuring or raising capital at terms that feel more like a fresh Seed round. Others need to recapitalize entirely to reset their trajectory. These situations are tough, but oftentimes we have seen these tough situations as breakthrough moments for top performing companies.

That’s why we actively seek out Phoenix Rounds—working with teams that have earned their battle scars. We like to back founders with these deep market insights who are ready to take a big next step. These aren’t bridge rounds meant to extend runway. They’re about rethinking the business, adapting to new realities, and making the big moves that can define a category.

This can be defined as a challenging moment in climate, but it’s also an opportunity. We’re open to working with great teams as they navigate this market—because the companies that make it through will be the ones shaping climate’s future.

If you’re a climate founder figuring out your next big swing, let’s chat: grace@equal.vc