CleanTech Investment in Scotland | Season 1 - Episode 3 | Invest2Scale Podcast

Investor Scale Podcast – Episode: Scaling CleanTech: What Investors Are Looking For with Robert Hokin of Greenbackers

In this episode of the Investor Scale Podcast, host Ewan Anderson speaks with Robert Hokin, Managing Partner at Greenbackers Investment Capital—a specialist investor network focused on cleantech and climate innovation. With decades of experience across technology, finance, and mergers and acquisitions, Robert shares practical insights into what makes a cleantech business “oven-ready” for funding.

From product-market fit to team strength and market size, Robert breaks down the key investor criteria for climate and renewable ventures. He also offers a candid view of Scotland’s clean energy potential—explaining why the region is rich in talent and innovation, but still needs more coordination and policy support to hit net zero targets.

Packed with honest reflections, this episode is a must-listen for founders navigating the cleantech investment landscape and for ecosystem players working to position Scotland as a global green energy leader.

Transcript

Ewan (00:07):

Hi, and welcome back to the Investor Scale podcast. We are joined by Robert Hogan, who is from Green Backers. Robert, welcome along.

Robert (00:15):

Hi, thanks for having me here again. Tuition 

Ewan (00:17):

No problem. Do you want to tell us a little bit about Green Backers and what your role is there?

Robert (00:22):

Well, I'm managing partner of Green Backers. I founded the company about 14 years ago. I'm from Chicago, in case you haven't clocked the accent. I've been in the UK for 35 years, always in technology and finance. I started out my corporate career in m and a with some big brands, A, B, B, and Marconi. And then I came into the Cleantech space about 20 years ago. I saw the opportunity there. And Green Backers is basically a capital conduit. So what we do is we introduce funds to what we call oven ready ventures, ventures to funds, and we make deals happen in the climate and clean tech space. The nature of the check sizes or the type of deals that we do are primarily seed stage series A, B, and C. So deals up to about 50 million.

Ewan (01:12):

Right, okay. So it's interesting that there's different levels of what you're doing there and obviously the terminology means different things in different places based on the levels of business that are going through. But so what sort of criteria are you looking for in these companies when they're starting to scale? What sort of things are you looking for?

Robert (01:28):

It's a good question and we are a reflection of the funds that we are speaking to all the time, who are looking at these companies that we are presenting to them. We have a deal platform, a digital deal platform that we use to kind of bring the two tribes together. So we're looking for a number of things. We're looking at product market fit. So in other words, they have a technology that is ready to go or pretty much ready to go. We're looking at some level of revenue or close to revenue or the funds are looking for some, what I would call market validation so that the stuff works and that they can deploy it. We're looking at the management team and their ability to execute. We're looking for the addressable market. Is it sufficiently large? Is that going to excite investors? Or if it's too small, it's going to turn 'em off. So we're looking at quite a number of factors. We actually put ventures when they approach us for funding support through their paces.

Ewan (02:28):

Indeed, if

Robert (02:29):

We don't think that they're investible,

Ewan (02:31):

We

Robert (02:31):

Don't take 'em forward. There's no point.

Ewan (02:33):

Okay. So interestingly, actually talked about the founding team and obviously the product market fit, and we've just had a presentation from Shane there about some of these companies really need to understand their, really have themselves in a good position to be able to go forward. Do you find a lot of the companies in Scotland are ready when they come to speak to you? Or is it a case of go away, come back and here's a few ideas, a few thoughts to get yourself the right

Robert (02:58):

Place? A bit of a mix. So first and foremost, there is no shortage of clean tech talent in Scotland. We've seen some great companies. We continue to see some great companies and we're tracking guys that aren't quite of and ready. They're not quite baked enough for us to take forward as on a funding campaign. So we track those guys. So we never say get lost to anybody, but we're very keen to ensure that whatever we do to help them, there's going to be a positive outcome. And in their case, it's an introduction to a fund that's going to reinvest.

Ewan (03:34):

Well, that's what I was going to say. That journey is, do you help these guys along? Do you give them that advice as if they're not quite ready, they're not quite oven ready, that support a bit of advice? Like you say, you don't just kick them out and

Robert (03:47):

Send them on their way. We do. We have an expectation that they have. If they've raised a funding round before, if they're not just a bootstrap startup and they've never raised a funding round, they probably won't have the level of, I don't like to use the word sophistication, but the level of experience that's needed. They need to understand what the process is. We'll coach 'em. We sit on every investor call

(04:11):

That

(04:11):

They will have. So it is not to hold our hands, but to steer the conversation, to make a warm introduction, to make that meeting matter, and also to follow up after the call where a lot of things get broken. Lack of follow up, both on the fund side and the venture side, so we make sure that it happens.

Ewan (04:32):

And in terms of some of the sectors that you're looking at now, obviously Scotland has a strong wind power sector, I suppose, but are there other sectors you've seen that are starting to grow and you think there's maybe real opportunities there?

Robert (04:44):

Well, electrons are hot. There's no denying that. And the move on the energy transition from molecules from oil and gas into renewables, whether it's marine renewables or wind renewables or solar renewables, there's some interesting solar projects happening in Scotland. A lot of people think, well, how can you have solar in Scotland? And I wondered about that initially, but there are viable projects happening all over. We're seeing Ag Tech agritech opportunities as well. It's becoming an AI hotbed also AI everything, well, not everything, but when it comes into clean tech, the ability to measure, to manage to tag is very strong. I mean, I have to say we are a global program,

Ewan (05:35):

But

Robert (05:35):

We really lean into Scottish founders and funds.

Ewan (05:40):

And so we were at a conference a few weeks ago and we were just discussing the levels of investment. And there seems to be a feeling that some of the bigger companies are perhaps pulling back on their renewable investment. I just want you to take advantage of the fact that you are an expert in this field. Why do you think, is there a softening of the opinion around renewables in terms of investment? Is there a kind of pullback, a wee bit? Do you see that or is it just a case of is that just paper talk and actually the industry is really thriving.

Robert (06:11):

I don't dismiss it, but we just don't see it. And the reason that we don't see it is because, again, our program is global. So we don't just campaign Scottish startups, scale ups to Scottish funds.

(06:24):

We

(06:25):

Take 'em well, the funds are everywhere, all over the world. We've got 4,000 funds in our universe that we have. It's kind of like our own homegrown version of Hurst. We speak to these funds, we understand what they're investing in. We've got a deal platform for 300 of them. It's a safe space for them to meet our opportunities, our deals. And that represents on its own billions of pounds of investments. So no, I think although a particular sector might not be hot or sexy, there will be an investor, there'll be a fund somewhere that focuses on it. So our message to founding teams is don't give up, keep pushing, but understand the market, understand the funds and their areas of focus. That's what we try to do on their behalf.

Ewan (07:17):

So in terms of the Scottish ecosystem and the companies that are in this area, what sort of advice would you give them to try and make themselves more attractive to some of these funds that you're talking to?

Robert (07:29):

Well, that's number one. Be short, concise. There are a number of evidence points that we've heard today during the forum. Have an advisory board. It doesn't necessarily cost a lot to do that. Be surprised on the number of companies that don't opt to have strong advisors to help them steer through the shoals. And also investor questions as well. One question, and it gets under my skin a little bit, one of the best programs in the UK for Scottish companies is the enterprise investment scheme.

(08:06):

We ask that every conversation. You'd be surprised under the level and the number of companies, it's like, oh yeah, I've got to get around to doing that. That is absolutely critical for the funds that qualify under the EIS scheme for any kind of angel investment or angel syndicate investment. And it is a weak spot, I think, for a lot of companies. And not every company will qualify for that, but it is certainly something to look at. Another thing is, and I think I mentioned this during the plenary, the Global Scott network is a hell of a

(08:45):

Resource

(08:46):

To find. These are expats Scotts, it is work in the diaspora of Scottish executives around the world that want to give back something positive. Now, that could be an advisor or it could be an introduction to a private funder that mattered. I would always advise startups to sweat the resources. And there is a surplus of accelerator support. You've got Scottish Enterprise, SDI Highlands and Islands Soci. You've got all these support agencies. I would observe as an expat, as an outsider coming into this environment. I've only been here 35 years, but I would suggest that it's a little disorganized

Ewan (09:35):

Really.

Robert (09:35):

And I would love to see greater organization from all the delivery agencies to make sure that the Team Scotland approaches realizing that it happens

Ewan (09:46):

A bit more coordination.

Robert (09:47):

Yes,

Ewan (09:48):

Definitely. What are the challenges? Obviously we have set some ambitious targets around 2030 and in 20 25, 20 45. What can we do as a renewable energy sector to try and to help us achieve that?

Robert (10:05):

I think this is where government has to add a level of support. Countries of innovation don't happen accidentally. Public policy has the ability to really spur and incentivize greater investment, innovation, job creation. I'd like to see it more than it's doing currently. I don't like to see rollback on

(10:24):

Targets.

(10:25):

I'd like to see greater levels of investment. Scotland certainly has the technology and the talent to be market leaders in this space. Why aren't they? Can be. They should be. And hopefully if we're all working together, they will

Ewan (10:38):

Be. Great. And just one final one, just around, if somebody is looking at, come and speak to Greenback, what sort of thing, what can they do to tip your interest?

Robert (10:48):

Greenbacks.com, we have an open door policy for companies to approach us. We're going to make you fill out a form. It'll take you five minutes to do it, upload your pitch deck. We review our deals every Wednesday. There's even countdown timer on

Ewan (11:03):

The website. Your website. Yeah.

Robert (11:04):

Yeah. So every seven days we are reviewing, as I said, we don't tell anybody to get lost. If we don't think that we're the guys to help, we'll do our best to route them to sources of help. We have an ecosystem of support partners, not for capital, but for other things such as foreign exchange, for grant funding, for human capital resources, you name it. Even for EIS support. So if they don't have the support that they need, we can help route them to it.

Ewan (11:36):

Brilliant.

Robert (11:36):

And they can get that without, even, without becoming a client. We just do that as part of what we do.

Ewan (11:43):

Thank you very much for your team, Robert. That was really good.

Robert (11:45):

Appreciate. It's been a pleasure. Thank you for having me.

Ewan (11:47):

That's great.