Climactic, an early-stage venture firm, has launched Material Scale, a new project aimed at supporting climate tech startups in the apparel industry to navigate the critical phase known as the ‘valley of death.’
Startups often struggle post-prototype phase to scale up production and achieve market viability. Climactic co-founder Josh Felser highlighted the hurdles faced by startups, particularly those in the physical goods sector, including the challenge of securing customers for novel materials.
Unlike software companies that can operate at negative margins initially, material startups encounter skepticism from markets due to concerns about production scalability. To address this issue, Felser initiated Material Scale to provide startups with a reliable customer base.
Felser’s expertise as a climate tech investor positions him well to identify startups that could benefit from established customers. By bridging the gap between innovative materials and market acceptance, Material Scale aims to propel climate tech ventures past the critical early-stage obstacles.
Source: TechCrunch