Alex Piskunov has invested in early deeptech and growth-stage deeptech. His time has also been spent across the US, Western Europe, and Southeast Asia.
Age old question from a fresh POV: What's the right capital stack for deeptech as we scale?
Let's dive in.
In this week's issue
- Why US investors discount traction they can't check
- Two founders on whether anyone wants to be the fifth customer
- Six funders open for applications
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FOUNDER LESSON OF THE WEEK
Traction in Ohio could count for more
Alex has backed deep tech in Southeast Asia, Eastern Europe, and Latin America. He says funds in the US don't weigh traction abroad the way they weigh a deal at home.
“They don't really consider traction in Malaysia or Vietnam or South Korea on the same level as they consider traction in Ohio or Massachusetts.”
Alex Piskunov, deep tech investor
His reason is simple. A US fund raises from Western investors and a customer close to home is “not only easier to understand but also easier to control.” Abroad, they sometimes can't diligence it properly at all.
He also sees a tailwind for building here. With the push on manufacturing, defense tech, and dual-use technology, he says places like Arizona and Ohio are having “almost a second resurgence.”
Consider your investor's investors when choosing capital.
LOOKING BACK
Does anyone want to be fifth?
Two founders hit the same wall and got opposite answers on the other side of it.
Vik Chaudhry sells AI inspection software to utilities. Once the first two signed, the line formed.
“No one wants to be the first and second customers for a new technology, but everyone wants to be the fourth and the fifth.”
Vik Chaudhry, Buzz Solutions
Thomas Nann builds grid-scale flow batteries. His first unit is deployed and the line hasn't formed.
“No one wants to be the second, third and fourth and fifth either.”
Thomas Nann, Allegro Energy
Martin Gross, who treats wastewater with algae, says only one thing moves the first unit.
“Serial number one doesn't happen fast because everyone's scared of it.”
Martin Gross, GWT
I think it comes down to what the buyer is stuck with if it fails. Software can be switched off. A battery on the grid can't, so the fifth buyer still feels like the first.
FUNDING OPPORTUNITY
Six funders open for applications
Three programs close within five weeks, and three funds that closed in September are taking founder inquiries now.
- Activate Fellowship ($100K a year plus $100K R&D support) backs scientists commercializing a hardware technology for the first time; applications close October 30.
- NSF SBIR/STTR (up to $305K Phase I) funds US small businesses building next-generation scientific instrumentation and experimental platforms; proposals due November 4.
- EPA SBIR ($100K Phase I) funds small businesses on water reuse monitoring and PFAS removal from sludge and groundwater; proposals close November 8.
- Energy Revolution Ventures (Fund II, targeting $50M) backs Seed and Series A energy storage, grid and advanced materials founders; its contact page takes pitch decks.
- Matter Venture Partners ($450M, Fund II) backs HardTech entrepreneurs; its website contact form accepts startups seeking funding now.
- Pulse Fund ($63M, Fund I) backs scalable climate companies across energy transition, infrastructure, food, agriculture and mobility; startup investment inquiries welcome.
BRANCHES
- MISO proposes fast-track large load, generation study process (3 min)
- PGW upgrading infrastructure to cut a small fraction of its climate pollution (3 min)
- Senate permitting bill would expand federal role in transmission siting (5 min)
- Newsom finally says yes to virtual power plants (5 min)
- FERC chair slams PJM 'mess' as country's largest grid operator delays power auction (5 min)
- Microplastics found in waterways throughout the Philly region; environmentalists call for plastics crackdown (5 min)
- Vistra in Line for $4.2B DOE Loan Package to Uprate Nuclear Plants in Ohio and Pennsylvania (9 min)
- The specter of 'forever chemicals' looms over Pennsylvania's rural communities (12 min)
CLOSER
If you're working on storage in the mod atlantic region, come find me in December.
Dec 8 ~ the Utility Innovation Summit: Battery Storage.
Know someone on your team who owns this problem? Forward it to them.
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With love, Blake
See you next week!
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