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The ideal VC startups are low capex, high ROIC companies. Energy almost universally requires massive capex to achieve a dime in revenue, and capital intensity
by hodder 1mo ago
The ideal VC startups are low capex, high ROIC companies.
Energy almost universally requires massive capex to achieve a dime in revenue, and capital intensity never really subsides. YC has funded energy focused startups in the past (eg. Oklo and Helion), but it certainly cannot compete with the kind of scale and ROIC you can achieve in the digital world. Energy is difficult for seed investors.
- NarcisMirandes 1mo agoOk. It makes sense. YC is not the best place for this kind of companies. Let's see if I understand your point and also to clarify for other people: - Low capex = the startup doesn't need much money invested in physical assets such as factories, machinery, warehouses, or equipment. - High ROIC = high Return on Invested Capital. The company generates a lot of profit relative to the capital it needs to operate. - A VC wants a startup that can grow enormously without requiring enormous amounts of additional capital. YC focus on VC money. Correct?