One of the bigger surprises for me is how much dealflow at Energize continues to come from Europe. If you know the energy markets, it makes some sense:
- Higher incumbent energy prices allows faster payback from new energy products
- Greater adoption of EVs and associated incentives in select regions (Nordics) and immense investments in German automotive OEMs
- Greater local policies around carbon credits and emissions penalties
- Greater use of public transit and other shared economy products
- Longer time with competitive energy markets and customer marketing / incentives
Given those characteristics, there are a number of companies in the European markets that are offering products that will soon fit well once North America’s energy profile catches up. This was the case with Nozomi Networks, TWAICE, and Beekeeper. We will probably have around 25% of our investments going forward have headquarters in Europe or the UK.
If you are an entrepreneur in the region looking for access to North American capital, consider us open and interested. We have a number of European co-investors we really respect and hope to do more with them as well.