Who do you trust, Grovers?

Two founders published this week, selling products that could not be less alike.

Blake Anderson (yes, another Blake) runs software for small water utilities. Daniel Betts builds air conditioners that store energy. Both got their first yes the same way.

Let's dive in.

In this week's issue

  • How Blake and Daniel both borrowed trust to scale
  • Three guests on whether the data center load is actually real
  • Every water system in Pennsylvania under the clock

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FOUNDER LESSON OF THE WEEK

Borrow the trust you don't have yet

Selling something new to a buyer who cannot afford for it to fail is the hardest problem in this business.

Daniel Betts borrowed from the states. Before Blue Frontier's first building went live in 2024, the unit ran through test-bed programs in New York and California for third-party validation of its performance. He also picked what buyers already knew how to buy ~ a standard 20-ton dedicated outdoor air system.

“If you have innovation that doesn't cross-hatch with existing market and market dynamics and processes, you have to recreate them all from scratch.”
Daniel Betts, Blue Frontier

Blake Anderson borrowed from his own customers ~ stay with me.

His team runs a long trial on purpose and expects to lose money or break even in the first year of a sale so the utilities that sign actually use the thing.

Then those customers became the sales team. Last year 40% of sales came from organic referrals.

“They have to want it. I would say that's the biggest thing.”
Blake Anderson, Ziptility

If your buyer can't afford for you to fail, your first job is finding someone they already trust to vouch for you.

Both of these made me think about the creative ways a founder should start collecting those borrowed yeses. To be explored in future episodes.

Fixing the Water Infrastructure Data Gap | Blake Anderson, Ziptility | The Grove
Blake Anderson connects rural water operations, GIS asset management, and funding readiness through lessons from Mogan Water Management and Ziptility.
Pod Disco
A New Way to Cool Buildings | Daniel Betts, CEO & Founder @ Blue Frontier | The Grove
Daniel Betts explains how Blue Frontier turns AC into grid storage, why peak cooling sets grid size, and why commercial buildings come first.
Pod Disco

LOOKING BACK

Is the data center load real?

Everyone is planning around it. The people closest to the queue are not all convinced.

“Went from $28 one year, $270 the next year to $333.”
Stephen Bennett, PJM, on capacity prices
“Almost like a replay of where things were 50, 60 years ago ~ that load growth again because of data centers.”
Yangbo Du, who thinks a center built today may be obsolete in three
Developers are “submitting interconnection requests to like five different” utilities for the same project.
Emily Moini, Nira Energy

The prices are real, however, they are predictive. Whether the load behind the proposed projects one day becomes real is a different question.

MARKET OPPORTUNITY

Moneyyy for water systems in PA

PENNVEST approved $559.7 million in January for improvements to water infrastrctuure and testing in PA.

This is its largest round ever: 36 projects across 25 counties, with PFAS removal funded in Bucks, Chester and Montgomery, and lead lines in Pittsburgh and Wilkinsburg-Penn.

BRANCHES

CLOSER

Dec 5 ~ the Electric Utility Innovation Summit.

Register

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Podcast Guests

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With love, Blake

See you next week!