Title
Brief description
Clean Cities ClimAcclerator is a 9-month accelerator program that targets startups that help cities achieve climate neutrality, particularly through the use and commercialisation of clean technology. The program is focused on system-level innovations and is demand-led, matching startups in an early phase with challenge-owners. The accelerator is run by Impact Hub Vienna and Universidad Politécnica de Madrid.
It has three stages: (1) explore, (2) validate and collaborate, and (3) scale. In the first, startups are given a funding grant of up to €5k (no equity taken) to focus on making sure the solution fits the challenge, to train and network with other ventures, city representatives and investors (also through specific network events). In the second stage, startups are matched with challenge owners to validate the fit of solutions to the specific challenges. Startups can access a funding grant of up to €20,000 in this stage to develop a proof-of-concept plan. This grant is made in the form of a CLIMA-SAFE Investment Agreement (which is in short, a founder-friendly simple agreement for future equity in exchange for a cash and services investment package). In the last stage, startups are given individual support to access investors and new markets.
As a demand-led accelerator, the objective is to create real solutions to real problems. The target is for high-growth projects that already have an existing market footprint and solid team (minimum 2 people) – established or in the process of incorporation, EU SMEs (or global but must establish one in case of becoming a beneficiary).
Keywords
Accelerator; cleantech; urban resilience; sustainability; startup
City/Country
Time period
From 2021 to present
Lever(s)
Methodologies
World Region
Scale(s) of the case analysed
Target audience and dimension
Domain(s) of application
Context addressed
Solution applied
Challenge addressed/ Problem-led approach
Barriers addressed
Main Practices
Impact
Co benefits
Engagement Journey
Impact to climate neutrality
The program is a good example of how the intermediary support system can provide essential support towards boosting solutions that help cities achieve climate neutrality. This is accomplished in several different ways: (1) in scope by focusing on the impact of climate change in urban areas and cleantech commercialisation; (2) in tandem, by being demand-led, allowing challenge owners to direct development and ensure fit to solution; and (3) providing tailored support at different stages in the form of a cash and service package ranging from no-equity grants to founder-friendly grants to training and competence development to networking and market access.
While it is still too early to measure the final impact of its support, its potential impact could be quite vast with a wide portfolio of action. It provides an example of a form of services that could help cities leverage existing assets in strategic efforts, while also increasing the knowledge and competence of the ecosystem. Through this action, the innovation potential not only in terms of entrepreneurial success but also in terms of changes in social practices and behavior can be boosted; both of which are key elements of transitioning to net zero emissions in an inclusive way.
Context & Public policy of reference
Innovative approach(es) addressed
The innovative aspect of this accelerator program is, as already mentioned above, the focus on a specific challenge. The lab focuses its efforts on the impact of climate change in urban areas and cleantech commercialisation. In the latter, it also promotes a form of solution. While targeting a specific challenge is not in itself innovative, the way the program is organized and delivered based on this target is of note. The program is demand-led, meaning that startups are contextualized in the first stage within identified challenges and then matched with challenge owners in the second in order to (co-)develop proof-of-concept proposals. The partnership is supported also with the view of it continuing after the support of the program. The objective is to ensure that solutions are fit to challenge from the start to increase potential impact.
The grant funding scheme is also interesting, providing different levels of grant and commitment at the different stages. In the first stage, startups are given a non-equity grant to diagnose fit and in the second an innovative founder-friendly grant is given that gives support to the team in exchange for future equity (€50,000 value; 24-month long-stop date; no valuation cap; 20% discount rate; no most-favoured nation clause).
Initiator
The accelerator is run by Impact Hub Vienna and Universidad Politécnica de Madrid, in partnership with EIT Climate-KIC. The cities of Vienna and Madrid are closely linked with the program, hosting the events and whose portfolios provided the base of the challenges.
Stakeholder networks and organisational model
Stakeholder | Role [accountable, consulted, informed] |
Impact Hub Vienna | Provide acceleration support in terms of services but also in managing the program; act as network connector between different actors: startups, cities, challenge owners, investors, etc |
Universidad Politécnica de Madrid | Provide acceleration support in terms of services but also in managing the program; act as a network connector between different actors: startups, cities, challenge owners, investors, etc. |
EIT Climate-KIC | Provides grant investment and network connections to investment circles (Climate-KIC investment network) and other knowledge networks (e.g. ClimateHIVE); support with EU policies and affairs |
City of Vienna | Host networking and training events; provide municipal insight on specific challenge portfolios to keep the solutions grounded in real challenges |
City of Madrid | Host networking and training events; provide municipal insight on specific challenge portfolios to keep the solutions grounded in real challenges |
Climate startups | Refine and develop their solution according to the needs of the challenge; commercialise and scale
|
Challenge owners | Bring knowledge and perspective of the challenge’s needs and opportunities; make connections with other actors in the challenge space |
Mentors | Provide technology support and market information and insights provide connections with their own networks; support, when appropriate, the start of pilots or proof-of-concepts within city councils |
Pool of Jury Members | Accelerator partners, entrepreneurs, investors and knowledge experts who evaluate applications to the program |
International Speakers | Provide insight and training in key areas of development from business acumen to sustainability topics |
Democratic Purpose
Participant Recruitment
nteraction between participants
Resources
Key enablers
Political: The accelerator program will run best if the challenges are rooted in real problems that cities are facing. Partnering with the city (or the main actor in the specific context of action) helps ensure that actions are aligned with strategic goals and opportunities as well as addressing the real needs of the city and its citizens. For this, the accelerator is directly linked to the cities of Vienna and Madrid.
Economic: The presence of an investor partner – like EIT Climate KIC – is a huge asset in a program like this as it provides the financial support to truly accelerate solutions to market. Likewise, the program depends on access to networks of investors and new markets. Innovative financing schemes, like Climate-SAFE, are also big incentives for onboarding truly innovative startups with high growth potential.
Social: While not explicit, it is clear that climate solutions – especially in the urban context – will need to account for citizens and the general public. It is unclear if a co-design element is part of the training and development process of the program, but would definitely be an asset in other similar programs.
Technical: The accelerator aims to promote cleantech and provides mentors and instructors who are able to provide guidance. Support is given remotely through IT tools and the accelerator has a website for mostly informative purposes.
Legal: Support is provided to startups on EU Policy and Affairs in the Climate-SAFE package.
Key inhibiting factors
Political: Insufficient buy-in from partners, especially the city, would hinder the effectiveness of the accelerator.
Economic: The program requires financial investment of startups, making an investor a key partner for success.
Drawbacks/pros/cons of the solutions (after implementation)
The program has just closed its second call. It is still early to understand any potential impacts.
Scalability
The approach is quite easily scaled and is mostly dependent on finding strong partners and tapping into and connecting existing networks. It is mostly about harnessing (or creating) the ecosystem around specific solutions to accelerate their commercialisation and impact.
Key lessons
Main positive lessons/opportunities identified
- Acceleration of high impact and high growth solutions for climate neutrality in urban contexts through demand-led support and matching
- Targeted and effective support at each stage (service + grant mix)
- Easily replicable in other contexts
Main failures/barriers identified
- Vulnerable to loss of key “founding” partners
- Dependent on strong networks of partners (challenge owners, investment circles, mentors, etc.)
Indicators
Number of startups in each stage of investment
Breadth of portfolio by challenge area
Amount of investments
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