For over 10 years, Cycle Momentum has been running acceleration and open innovation programs to support the growth of climate tech entrepreneurs, helping them secure funding and bring their solutions to market. We foster essential collaborations between startups and industry players to accelerate commercialization. Through our programs, we guide founders in refining their pitch, exploring funding opportunities, and developing a strong go-to-market strategy.

By Maëlle Morin, Investor Community Lead at Cycle Momentum – Jennifer McDonald, Senior VP, Investments at Cycle Momentum & Thibault Beudin, Communication Officer at Cycle Momentum

In 2024, we launched Origo, an investment matching program designed to support pre-seed and seed-stage climate tech startups in Quebec. By engaging with founders from the earliest stages, we play an active role in their fundraising journey while providing strategic guidance through our accelerator programs.

The entrepreneurs interviewed in this article are part of Origo’s investment portfolio, including four alumni of Cycle Momentum’s acceleration programs. They share their firsthand experiences with early-stage fundraising—insights that will help you navigate today’s funding landscape, sharpen your strategy, and stay ahead of the game.

 

INTRODUCTION

Raising funds as an early-stage climate tech entrepreneur in Canada has never been easy, and this is true now, more than ever. With artificial intelligence dominating investor attention and political uncertainties looming (hello, “drill, baby, drill”), securing the right funding can feel like an uphill battle.

To find out how to navigate this shifting landscape, we turned to the entrepreneurs at Origo, Cycle Momentum’s investment program, who’ve successfully navigated these waters. Patrick Racine (Chillskyn), Amanda Truscott (Rithmik Solutions), Jennifer Cote (Opalia), Wayne McIntyre (Relocalize), and Patrick Charest (Aplantex) shared their hard-earned insights—so you can take notes and avoid common pitfalls.

Hard Tech vs. Software: Different Investment Realities

Hard tech is a pillar of Climate tech. Compared to software, hard tech often requires long development and testing timelines that extend well beyond the investment horizons and exit strategies of traditional angel or venture investors. This creates unique funding challenges that entrepreneurs must navigate carefully.

Lack of Early-Stage Funding: A Critical Gap

While Canadian cleantech investment overall has remained stable, seed-stage deals plummeted by 69% between Q2 2023 and Q2 2024. Specifically in Québec, Seed-stage venture deals dropped by more than half year-over-year, with dollars invested dropping by a sharp two-thirds.(BetaKit, 2025) Réseau Capital has tracked a weakening pre-seed and seed-stage landscape for entrepreneurs in Québec since Q1 2023 (Réseau Capital, 2025).

Adding to the challenge, less than half of Canadian hard-tech climate pre-seed and seed rounds in 2022 were led by Canadian firms. This lack of local investment leadership can make it harder for startups to attract international investors, as many prefer to follow a Canadian lead. (MaRS, 2025)

This funding gap poses a serious risk: without early support, fledgling hard-tech ventures struggle to reach commercialization. This is a burden on early stage start-ups that would have otherwise progressed beyond, impacting the pipeline health of future later stage companies. The consequences? Fewer made-in-Canada solutions, lost job creation, and missed economic opportunities as promising companies seek better support abroad.(MaRS, 2025)

The U.S. Political Landscape: A New Challenge for Canadian Entrepreneurs

Trump’s “Trade War” has put additional pressure on the Canadian economy, with trade between the two countries accounting for 77% of total Canadian goods exports and 63% of imports. Meanwhile, the U.S. market remains less reliant on Canada, with only 18% of its exports and 14% of its imports coming from its northern neighbor.(ScotiaBank, 2025)

With climate-focused policies seemingly on the chopping block, Canadian cleantech and hard-tech entrepreneurs face new obstacles: the U.S., once the most accessible and lucrative market for scaling, may no longer be a viable option. Investors there may be less eager to support cross-border ventures, and supply chain disruptions could further complicate operations for startups sourcing materials from the U.S.

Quebec: A Rising Climate Tech Hub

Quebec is emerging as a stronghold for climate solutions, with 26.4% of its total venture capital investment in 2023/2024 YTD directed toward climate tech—nearly double the global average of 13.6%. (Dealroom.co, 2024)

This distinctive investment culture might make Quebec a particularly strong ecosystem for cleantech entrepreneurs, where investors are more attuned to the realities and long-term potential of climate innovation.

Still, how can early-stage startups continue to thrive in this evolving environment?

We’re bringing you an inside look at the fundraising journey—directly from the entrepreneurs who’ve been in the trenches. Their insights will help you navigate this new reality, refine your strategy, and stay ahead of the curve.

 

BEFORE FUNDRAISING: WHAT WORKED, WHAT DIDN’T?

One thing became clear from our discussions: simplicity and clarity are your best allies. A strong, fact-based problem and solution statement will dismantle doubts and capture investor interest. But what else?

Jennifer Cote – Opalia, Pitching at Cycle Momentum’s recent Feu Vert event

Refining your pitch

Patrick R. shares: “Initially, we focused heavily on the uniqueness of our technology, assuming that would be the primary hook. However, we realized investors—especially in the current investment climate—care much more about commercial traction milestones. We had to refine our pitch to highlight the milestones and the activity that went along with it. You need to start early… but not too early.”

Amanda adds that being open to investor feedback early on strengthens your pitch. So why wait? Engage investors and refine your message before you go all in!

Timing and networking

Your outreach should align with key business milestones. Investors are looking for proof of traction. As Wayne puts it: “Use traction and execution. We always raise after achieving a significant milestone or new value-creating event.”

Jennifer took networking to the next level, attending conferences and meeting investors long before her company had a product to pitch. This strategy paid off, especially given her company’s long R&D cycle: “You have to create the timing by building relationships ahead of time, making good progress in the lab, and then lining up everything to make your fundraise happen.”

 

PITCHING AND NEGOTIATING: DOS AND DON’TS

DOs:

  • Know your non-negotiables. Jennifer advises setting clear boundaries so you can compromise on less critical aspects. 
  • Highlight commercial viability. Patrick R. stresses: “Focus on how your business makes money—unit economics matter. Investors want a Green Discount, not a Green Premium.” 
  • Be efficient in discussions. Patrick R. and Patrick C. both recommend aligning early on investor involvement post-funding. 
  • Leverage third-party validation. Wayne suggests using endorsements or major milestones as negotiation leverage.
  • Create competition. Having multiple investors at the table builds enthusiasm and strengthens your position.

 

DON’Ts:

  • Be inflexible. Jennifer reminds us: “Investment is about partnerships. You have to be open to feedback and willing to adapt.” 
  • Rush to close. Fundraising is a marathon, not a sprint. Patrick R. advises: “Good investors bring more than capital—take time to find the right fit.” 
  • Assume investors understand your solution. Always connect the dots for them, helping them grasp the full potential of your innovation. It is not totally about selling, it is about bringing them to the same level of knowledge as you.

 

WHAT SETS CLIMATE TECH INVESTORS APART?

While all investors seek returns, climate tech investors stand out in a few key ways:

  • Longer time horizons. 

Climate solutions often require extended R&D phases. Jennifer notes that compared to generalist investors, climate investors are more comfortable with pre-revenue startups. 

  • Realistic expectations. 

“AI has shifted perceptions about what is ‘high growth’ to almost unrealistic expectations,” says Wayne. Climate investors tend to have a more grounded view. 

  • Impact-driven focus. 

“They care about CO₂ reduction, sustainability outcomes, and require a strong understanding of unit economics and customer benefits,” shares Patrick R. 

  • IP matters. 

Amanda points out that climate investors place high value on intellectual property as a long-term asset.

That said, not all experiences are the same. Patrick C. saw little difference, noting that core investor expectations and processes remain similar across sectors.

The members of our Circle of Partner Funds – March 2025

LIFE AFTER FUNDRAISING: WHAT CHANGES?

Strategy evolution

Post-investment, many founders found their strategies evolving with investor input—often for the better. Jennifer explains: “It makes the job less lonely and less stressful because you have people to go to for advice on things!” But she also cautions that conflicting advice can arise, reminding founders that they, ultimately, steer the ship.

Time commitment

Managing investor relations is a major post-funding responsibility. Wayne warns that bringing more stakeholders to the table means more coordination, not less. Amanda adds that “investors can be pretty exacting in terms of information requirements.”

Relationships matter

At the heart of it all? Balance. Amanda shares that while investor scrutiny can feel intense, “it has been a much more supportive and collaborative relationship than I’ve heard such relationships sometimes are.” The right investors make all the difference.

 

FINAL ADVICE: WHAT WOULD YOU DO DIFFERENTLY?

  • Jennifer Cote,  Opalia: “Always more networking and meeting more people!” 
  • Wayne McIntyre, Relocalize: “Leverage your investors’ networks to accelerate your fundraising process.” 
  • Patrick Racine, Chillskyn: “Start engaging investors earlier—even before actively raising”. Also: “Push harder on non-dilutive funding alongside equity financing.” 
  • Amanda Truscott, Rithmik: “Rejection is part of the game…Dust yourself off, take feedback under consideration, and keep going”.
  • Patrick Charest, Aplantex: “Be more direct when engaging investors.” Also: “Don’t rely too much on investors who haven’t given clear responses—hope is not a strategy.” (Hope is not a substitute for preparation)

 

WHAT TO RETAIN? 

  • Stick to the fact, show progress and clearly define your path to growth when sharing your business idea
  • Diversify your funding sources including non-dilutive options to extend your runway.
  • Build and nurture every relationship—connections can open unexpected doors.
  • Stay flexible and open to feedback when interacting with investors, but remember: you’re the one steering the ship.

Feeling inspired? Get in touch with Cycle Momentum, take these insights and put them into action. Engage with investors, refine your pitch, and most importantly—keep building meaningful relationships. The road to success in climate tech is long, but with the right strategy and the right investors, you can make it happen.

 

RESOURCES