“Hope is not a strategy” – Sonny, F1 Movie.

Each year at Climate Week we have a simple goal – share a key challenge facing climate startups and any insights we’ve learned from our portfolio founders and community. If you’re reading this, you’ve probably helped us develop the insights we share. Thank you.

We also have a LOT of portfolio updates. Here we go.

3 years of climate week lukewarm takes

At this year’s NY Climate Week we introduced our Speedstrap Playbook, but how have our previous hot takes played out?

Last year, we discussed the need for climate exits and how that might come about. In the last few weeks alone, we’ve seen 3 portfolio teams announce M&A exits and one begin their IPO roadshow. Unsurprisingly, 2 of the teams are working on adaptation and resilience. 3 of the 4 are focused on AI or robotics.

• Firmus joined Bluebeam
• Rachio is now part of Rainbird
• Urbint is being acquired by Itron
• REDACTED launches their IPO roadshow this quarter

In 2023, we focused on the capital stack. Since then, private credit has exploded in scale and scope. We now have companies using private credit as early as seed stage for everything from fleet finance to cash advances for grants. Our climate week presentation breaks down private credit providers we’re tracking.

Both of these themes led naturally to our biggest change – Plan A is now profitable growth, with series A raise being plan B. Or as we call it, Speedstrapping. We hope to have more success stories in 12 months from our Speedstrap Playbook. It’s the logical next step for founders, we think because above all it protects common stock holders who tend to be the biggest losers when teams are convinced to raise money they never needed.

Opportunities 

Revivn is looking for a Director of Sales and a GTM Engineer in NY to help them cement their leadership role in electronics waste management. Gradient is looking for an Electric Engineer to continue accelerating deployment of self-installed heatpump, and Mill is seeking an AI Engineer to make composting in your home even more magical. Cove is looking for an Architectural Designer to help them meet demand across multiple projects. Kiwibot is looking for a head of product as they expand deployment of delivery and logistics robots. Shellworks is looking for a marketing manager to help them replace traditional plastics with a high performance alternative that doesn’t produce microplastics as it disappears gracefully.

There are many more ways to make a difference in climate by helping us fill the 188 open roles across our portfolio.

Lots of Portfolio News

The assault on climate action continues in the US and EU focus shifts to defense. Some climate solutions won’t make it, but many are following classic S-curve disruption. They’re simply faster, better and cheaper and so there are many notable wins across the portfolio.

Climate mitigation continues to speed up. Demand for Cove’s AI enabled architecture services are surging. They more than tripled the number of residential units in a high profile architecture project – a win for the developer and climate (higher density). Flair took the grand prize at the 2025 CEE Integrated Home Competition solidifying their leadership position among professional HVAC installers as they simply installs and grid services integration.

Renewell added California to the growing list of states where it will be legal to convert idle oil and gas wells to energy storage (already legal in Colorado and New Mexico). Wright Electric launched DenseGen 3750, a new generator that delivers 3.75 megawatts of power in a standard 20-foot ISO container. Building on the same platform they developed to electrify aircraft like the C-130. Nevoya was named winner of the GMA’s RFP for book and claim in trucking assuring that they will be the largest electric trucking company in North America. And it’s not your imagination, Onewheels seem to be everywhere – even Tesla is getting in on the action.

Nears Space Labs took the main stage at the Axios AI+ Summit as they emerged as the goto solution for high resolution, high frequency imaging and analysis for insurers. And Sonic Fire ran a series of successful demos of their acoustic fire suppression in California as they onboard their first customers.

Finally, it’s a fascinating time for materials that displace fossil fuels. They’re starting to win, not just on price, but because they’re just better. Shellworks completely avoids microplastics, so they’re seeing a surge in interest beyond sustainability – customers now understand the direct health benefits. And Swellcycle has their first bio-based 3d printed boards in the world getting fantastic feedback because they’re better for shapers (board designers) and they’re quickly winning fans with surfers but also newer board sports from SUP to foils.

There is more, but we’re just not allowed to share, yet.

Third Sphere News

We love our work with founders, but we do have other interests. Shaun and his team, Outrun Carbon finished their first 24 Hours of Lemons, coming first of the rookie teams and 8th in their class. In proper Lemon’s spirit, there was bribery, bad driving and silly penalties. It wasn’t all play, the team used AI throughout and has some interesting takes on where AI thrives and where it’s going to cause real race car engineers to LOL. And it was fun to promote a few of our startups in a world that too often takes sponsorship dollars from the merchants of doubt.

Meanwhile, Miela’s back from putting her structural engineering to the “wind test” at Burning Man. (p.s. there was a whole camp for One Wheels this year).

If you are in SF on October 18th, please stop by to support Stonly in his Muay Thai bout. Fight training has been an entrepreneurial refresher in its own way; full of challenges, pivots, a need for relentless focus, and many moments when you maybe should’ve given up but the growth you get from giving everything you can to get the win, even when there’s only a 50% chance you will, is worth it.

Best.

Third Sphere Team

P.S. This is the 609th week since we sent our first update. If you know someone who might enjoy, please ask them to get in touch – the takes will remain luke warm, so please consider forwarding.

P.P.S If you think of any founders we should meet, please hit reply and let us know. We invest in pre-seed companies that have a deep understanding of their customer and are building for speed and scale. We exist to help enhance the likelihood of success for startups that help align human systems with planetary systems. 

Did someone forward this email to you? Here’s how you make sure not to miss the next one.

You can find our previous updates here.