The U.S. startup ecosystem is experiencing a significant shift in which companies attract early-stage investment. After a decade that saw “software eat the world,” VCs are taking a closer look at more tactile industries such as hardware, defense, space, energy and robotics.
That propulsive energy has encouraged Treble to launch a new Hardtech Practice Group—led by vice president and head of our San Francisco office, Will Kruisbrink—ushering a new chapter at the agency.
Clean and renewable technologies are a huge part of this shift. The launch of this practice group follows just a few years after more than two dozen CEOs at major tech companies worldwide pledged in 2021 to the UN that they would aim to slash their carbon emissions by up to 45% by 2030.
The technology sector, in general, is directly responsible for between 2.3 and 3.7% of global CO2 emissions, which a 2019 report noted was comparable to CO2 emissions from the entire aviation industry. This is precisely where hardtech can become more of a solution in addressing environmental goals.
The clients we support in the hardtech space are working on challenging entrenched industries that haven’t innovated in decades, often with environmentally and fiscally disastrous results.
In a Q&A, Will details why 2024 is the ideal time to launch this new arm of our growing agency.
Q: Why is Treble launching this practice group now? Why is this the right time?
A: It just seems like after a decade of investing in SaaS companies, the venture industry, led initially by partners such as Katherine Boyle at a16z, wants to invest more in physical technologies. That interest has been further sharpened by legislation such as the Inflation Reduction Act, which has spurred investment in hardtech businesses.
Many of these companies are tackling some of our hardest problems, such as the clean energy transition, electrification, defense and aerospace manufacturing. Furthermore, private enterprise’s domination of space over the past decade, led by SpaceX, has led to a proliferation of companies in the aerospace industry.
Q: What challenges is the hardtech sector facing right now, and how will that evolve?
A: Manufacturing is, by nature, more capital intensive; large upfront investments can take years to return profits. Meanwhile, stricter regulatory requirements make hardtech riskier and prone to unforeseen delays.
These longer investment timelines come as a stagnant IPO market has seen VC investments stretch into decades before investors see a return. Strong marketing efforts and sound communication strategies can directly impact revenue for early-stage hardtech companies, shortening the time to profits.
Meanwhile, hardtech VCs need to quantify regulatory and supply chain risk. The added complexity of government regulations and global politics affecting supply chains makes hardtech investment even harder to underwrite. These longer timelines and riskier macroeconomic forces make hardware investment particularly perilous.
Firms that can help hardtech businesses navigate these choppy waters will be in high demand.
Q: How can hardtech help solve global climate and energy challenges?
A: Many hardtech founders started building their companies out of a desire to help solve our climate crisis. Either by electrifying various industries or figuring out how to reduce our economy’s reliance on fossil fuels through other means, hardtech founders understand massive industrial changes will be required to remove carbon-intensive fuels from our economy.
Meanwhile, other founders got their start in space, working at companies such as SpaceX, Varda Space Industries and Astranis, developing tech that will take us back to the Moon and even further to Mars. There’s a long history of technologies originally designed for use in space that ultimately found a use back on Earth.
Q: What sets Treble apart in this space as a PR and media strategy leader?
A: Hardtech is hard. Often, the companies operate in complex industries with intricate networks of OEMs, partners and suppliers. Treble has always supported technical B2B brands’ communication needs. We also know how to work with highly specific trade journals and analysts covering technical industries.
Treble is the premier earned media B2B technology public relations agency that has, since its founding, successfully seen clients through to dozens of exits. We’ve held longtime relationships with hardtech companies and industry experts, as well as with media experts, communications and content minds, and journalists, which allows us to clearly strategize how to gain meaningful media attention for our clients.