Every six months, Valo welcomes a rotation partner from Fortum Energy in the spirit of sharing insights, initiating pilots with startups, identifying technology innovation, and expanding our networks. Rotation partners come from a variety of business and technical backgrounds, each bringing a unique subject matter expertise to our team. In turn, we bring them into our research, sourcing, and diligence processes as a firm located in the heart of Silicon Valley. This is a reflection from a recent rotation partner, Anton Gustavsson.
My rotation at Valo Ventures was an inspiring immersion into the heart of Silicon Valley’s startup ecosystem. Before heading to California, I held a business development role on Fortum’s Consumer Solutions team in Stockholm. My ambition was for the rotation experience to help me uncover the “secret recipes” of innovation success and bring these insights back to Fortum in the Nordics.
Reflecting on my experience, three takeaways stand out about how investors, startups, and corporates allocate their time and accrue learnings, which I believe are pivotal ingredients to our collective success.
Lesson 1: Build a Global Network of Reciprocal Insight Sharing
One of the reasons Fortum engages in this rotation program with Valo is to expand our network in the US, and I now recognize how valuable this is when executed with intention and substance.
My rotation underscored the vital role of a collaborative ecosystem between startups and established corporations in cleantech. Both entrepreneurs and investors place high value on cultivating and leveraging their extended networks. I learned that network building is a strategic and systematic process rather than a random one and that these efforts are not simply for the sake of building a network; it is about consistently tapping into that network for knowledge sharing and resources, which both expedites projects and enhances decision-making.
Expanding and utilizing contacts beyond one’s organization offered considerable advantages, providing a more holistic perspective on problems, feedback for solutions, and potential partnerships. This is very much tied to the collaborative nature of Valo and Silicon Valley at large that I witnessed.
Lesson 2: Make Piloting Frictionless and Fast
Established corporations such as Fortum contribute critical resources, infrastructure, and brand recognition, acting as a stabilizing force for climate tech startups during their challenging early stages. Through collaborative efforts and constructive pilots, startups can access a broader market, receive valuable feedback from a real customer, and gain essential support to navigate critical junctures. This reciprocal relationship also benefits incumbents by accelerating the corporate innovation process. It positions them at the forefront of cleantech development through invaluable insights, cutting-edge technology, and timely trends. It also increases their rate of response to future market developments.
For success, both parties need to have a clear set of qualifying pilot parameters, process stage gates, decision structures, dedicated team members, and articulated outcomes to maximize their chances of success. Valo established the Valo Piloting Network (VPN) at Fortum to accomplish this with Fortum. The VPN features a designated representative from each Fortum business unit, a monthly cadence of meetings to review the pipeline, and a continuous team dialogue around how to match Fortum’s strategic priorities with startups’ technologies and stages. Asset owners like Fortum can also help startups scale more quickly by partnering with them on pilots. Seeing an entrepreneur’s point of view firsthand on the challenges and rewards of piloting their technology with a corporate partner like Fortum made it clear how important it is to make decisions quickly and not waste an entrepreneur’s time.
Over the course of six years together, Valo has introduced over 900 qualified startups to Fortum, Fortum has done an in-depth review of over 300 of these startups, and Fortum’s teams have completed 25 valuable pilots.
Lesson 3: Embrace a Speed and Scale Mindset
When confronted with challenges or pivotal decisions, many teams, including Valo, showcased an ability to avoid getting mired in complexity. Their thorough research and expansive knowledge base gave them the ability to view situations from a high-level perspective when needed, rather than being overwhelmed by details, which in turn accelerated their decision-making.
Entrepreneurs and venture firms like Valo demonstrate a keen awareness of the value of streamlined decision-making processes. Speed to market can often make a critical difference in a startup’s survival. This, coupled with a forward-leaning attitude and unwavering enthusiasm in the face of challenges, is a key secret to success. The lack of agility is often mentioned as a less flattering characteristic within large corporations, where pivotal decisions tend to get dragged out in complex approval processes. There are cultural learnings from the venture world to be applied here, as larger incumbents strive to compete and stay relevant.
Curiosity emerged as another trait that I believe contributes to the success of investors and startups in Silicon Valley. I was impressed by the considerable time allocated to staying abreast of geopolitical, policy, and technology sector developments in the world. Learning to maintain a broad scope in my insight scouting is a practice I intend to continue, as it fosters a holistic and profound understanding of all domains.
In Summary
The opportunity to bring my family along on this journey added an extra layer of significance to this rotation.
Breaking free from the daily routine at home in Sweden and embarking on new adventures together was a transformative experience as a family. We drew inspiration from the new surroundings and people, spending weekends exploring California’s national parks, beaches, and cities. Despite the brevity of our time there, our family found our own little community and sense of belonging.
In this environment, I discovered mentors everywhere, working alongside the Valo team and engaging with purpose-driven entrepreneurs passionate about the intersection of business and the environment.
I am grateful that Fortum fosters its connection with the startup world through Valo, and believe more than ever that it is a critical path to not only remaining relevant but also creating change.
