VivaTech 2021: Perspectives on investing in the ecological transition

How to screen and scale-up the best tech solutions for a sustainable future? At the occasion of the fifth edition of Viva Technology, Europe’s biggest start-up and tech event, we met two insiders of BNP Paribas’ start-up strategy and ecosystem to understand their perspective on investing in sustainable technologies: Laura Wirsztel, Investment Director for Principal Investments – Ecological Transition Capital, and Marième Rocchi, Head of Company Engagement Projects & Partnerships for BNP Paribas CIB.

What are BNP Paribas’ investment and partnership strategies for tech start-ups?

Laura Wirsztel: We are investing initial tickets of €1m to €5m in early to late stage startups involved in the ecological transition. Our target is to build a diversified portfolio ranging from lower risk, fast-growing software-technology companies to higher risk, higher impact, disruptive deep tech companies. In terms of geographies, we are focusing mainly on Europe and the United States. Making sure the solution answers a material and global need is crucial. We focus on scalable business models that can be replicated in numerous jurisdictions (at European scale but also backing solutions that are “ocean-crossing” material). Our investments are mainly in Series A to D equity rounds and our capital aims at accelerating the growth of startups and their commercial development or industrialization.

Marième Rocchi: Beyond direct investments described by Laura and depending on the maturity of the start-ups, BNP Paribas can introduce also them in our ecosystems and partnerships. We have a start-up incubator, the WAI – standing for We Are Innovation. When it’s the right time, BNP Paribas can open the doors of its networks of established corporations, institutions, cities – who are already our clients and partners. Our goal is to sparkle the strategic dialogue about their respective needs and solutions, to accelerate their development and then altogether, to embrace even faster the sustainable challenges. Another concrete example, we presented several start-ups to the Solar Impulse Foundation to get labelled as efficient, clean and profitable solutions with a positive impact on environment and quality of life.

How do you get involved with sustainable start-ups?

L.W.: We are screening hundreds of investment opportunities each year and are selecting a few in which we deploy capital. As such, we have directly invested in ten companies located in the US and Europe on various topics such as energy storage, energy efficiency or sustainable mobility. Our team is also an indirect investor in close to 25 sustainable start-ups thanks to its investments in funds dedicated to the energy transition in Europe and the US.

When we invest in Europe, we usually take a Board of Director position as this enables us to have a close proximity with the management team and add value to the companies we invest in. As a Bank, we also have specific banking services dedicated to French start-ups (including credit lines) as well as more standard products that can support their growth (export finance, leasing, etc.). We also aim at providing visibility for the start-ups we invest in, for example by showcasing them in large conferences such as Vivatech.

M.R.: We constantly aimed at having concrete actions and testing new or disruptive solutions. For instance, BNP Paribas is also a long lasting partner of Movin’On, an international ecosystem on Sustainable Mobility, alongside of more than 250 companies. In this framework, our Community of Interest on Energy Efficiency intends to foster concrete collaborations to boost business opportunities and generate gains for its members, be they revenues for start-ups providing Energy Efficiency solutions or savings for companies implementing them.

Another interesting example is the partnership of BNP Paribas CIB IT with the start-up 2CRSI, whose Direct Liquid Cooling solution helps reducing our servers farms’ carbon footprint. Less electricity is consumed overall, to keep microprocessors at the same temperature and to warm the rest of the buildings, as the heat is recycled.

From your perspective, what is the main interest of an event like Viva Technology? What opportunities do you seek there?

L.W.: By gathering investors, corporates and start-ups, Vivatech allows us to discuss with many stakeholders in a short amount of time and exchange on current technology and market trends. This is a great opportunity to better explain our investment strategy and BNP Paribas’ commitment to sustainability as well as meet with start-ups that could tomorrow become part of our portfolio. Meeting in person is important, and attending such conferences can allow multiple meetings in an informal way, fostering idea exchanges and market insight.

M.R.: Indeed, VivaTech is a hub of innovation, where to get an up-to-date understanding of tech actors and engage discussions with them. It is very inspiring to meet professionals at the forefront of key macro-trends and disruptions. Such events are catalyzers for future partnerships, enabling to enlarge our network, to break silos and to connect the dots to speed up not only our Bank’s transformation, but also our clients’ transformations. In the global momentum to fight climate change, disruptive technologies are key to bring new solutions, especially when it comes to reach net zero target, but also, as an economic ecosystem, we need to find new business models to preserve resources.

How do you see the road ahead?

M.R.: Tech companies are key to disrupt, change the world and tackle climate change, but innovation is also a matter of information and opinion sharing with every contributor of the ecosystem: clients, partners and employees. It is often a simple process based on trust, communication, continuous improvement and frugality. VivaTech is the perfect place for this, where business meets innovation.

L.W.: This is an exciting time to invest in the ecological transition where profound changes in consumer expectations, evolution of the regulatory framework, and increasing sustainability commitments from large corporates will support the emergence and growth of innovative solutions in favor of the environment. BNP Paribas, thanks to its principal investment activity today and to the BNP Paribas Solar Impulse Venture Fund tomorrow, will continue investing in innovative start-ups, working on new services or disruptive technologies, that will contribute to the achievement of eight of the United Nations Sustainable Development Goals.