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๐—š๐—ฟ๐—ฒ๐—ฒ๐—ป ๐—ฃ๐—ฟ๐—ฒ๐—บ๐—ถ๐˜‚๐—บ๐˜€ ๐—ฎ๐—ป๐—ฑ ๐Ÿญ๐Ÿฌ๐˜… ๐—ฉ๐—ฎ๐—น๐˜‚๐—ฒ

Writer: Emin AskerovEmin Askerov

Imagine itโ€™s 2008, and Tesla is unveiling the Roadsterโ€”a sleek electric car that doesnโ€™t ask you to compromise. Itโ€™s fast, luxurious, andโ€”surpriseโ€”doesnโ€™t cost more than a comparable sports car. Tesla didnโ€™t market it as a โ€œgreen vehicleโ€ with a hefty price tag to save the planet. Instead, it sold status, performance, and design while quietly slipping in a climate solution. Thatโ€™s the power of a 10x value proposition versus relying on a green premium.


๐—ช๐—ต๐—ฎ๐˜โ€™๐˜€ย ๐˜๐—ต๐—ฒย ๐——๐—ถ๐—ณ๐—ณ๐—ฒ๐—ฟ๐—ฒ๐—ป๐—ฐ๐—ฒ?

* ๐—š๐—ฟ๐—ฒ๐—ฒ๐—ปย ๐—ฃ๐—ฟ๐—ฒ๐—บ๐—ถ๐˜‚๐—บ: Charges extra for being environmentally friendly, relying on customersโ€™ willingness to pay more to โ€œdo the right thing.โ€ The reality is that itโ€™s an added cost that most people avoid unless required by regulations. A good example is solar and wind energy in the past few decades. Their prices were often fixed in so-called power-purchase agreements, and they were several orders of magnitude higher than prices from conventional energy sources like coal and gas.ย 

* ๐Ÿญ๐Ÿฌ๐˜…ย ๐—ฉ๐—ฎ๐—น๐˜‚๐—ฒ: Offers a product or service thatโ€™s 10 times better in performance, cost, or experience than existing options. Customers flock to it because it solves a problem or enhances their lives or their business in a clear, undeniable way.


Tesla succeeded because it understood this fundamental truth: People donโ€™t buy products just because theyโ€™re greenโ€”they buy them because theyโ€™re better.


๐—›๐—ผ๐˜„ย ๐˜๐—ผย ๐—ž๐—ป๐—ผ๐˜„ย ๐—œ๐—ณย ๐—ฌ๐—ผ๐˜‚ย ๐—›๐—ฎ๐˜ƒ๐—ฒย ๐—ฎย ๐Ÿญ๐Ÿฌ๐˜…ย ๐—ฃ๐—ฟ๐—ผ๐—ฝ๐—ผ๐˜€๐—ถ๐˜๐—ถ๐—ผ๐—ป?

1๏ธโƒฃ ๐—ฆ๐˜๐—ฎ๐˜๐˜‚๐˜€: Does your product elevate your customerโ€™s position or prestige? Tesla nailed this by making EVs a luxury symbol. Leonardo DiCaprio ditched his Prius the moment Roadster became available.

2๏ธโƒฃ ๐—ฆ๐—ฎ๐—ณ๐—ฒ๐˜๐˜†: Can your product make customers feel safer or more secure? Think of energy-as-a-service or manufacturing-as-a-service business models that avoid CAPEX or disaster-proof technologies.

3๏ธโƒฃ ๐—ช๐—ฒ๐—ฎ๐—น๐˜๐—ต: The basic one - does it deliver 10x financial returns? In Climatetech this would usually mean cost savings or a completely new market opportunity. Iโ€™ve seen a lot of startups offering 30% cost savings, that got nowhere.ย 

You have a scalable value proposition if your cleantech startup can deliver 10x in one of these areas.


๐—ง๐—ต๐—ฒย ๐—ง๐—ฎ๐—ธ๐—ฒ๐—ฎ๐˜„๐—ฎ๐˜†

So, what would it be - A Christmas tree or presents? If your climate tech startup leans heavily on green premiums, rethink your strategy. Focus on delivering a 10x value proposition in status, safety, or wealth. Thatโ€™s how youโ€™ll attract mainstream customers, secure investor confidence, and achieve scale.


Want more insights on scaling cleantech? Follow me here for deep dives into what makes scaleups work. Merry Christmas, and letโ€™s build the futureโ€”10x better!


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© Emin Askerov, 2023.

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