Third Derivative

High-Level Overview

Third Derivative (D3) is an open, collaborative climate tech ecosystem founded by RMI and New Energy Nexus to accelerate the rate of climate innovation by rapidly finding, funding, and scaling startups globally.[1][2] Its mission centers on bridging finance and resource gaps for climate tech entrepreneurs through a flexible 18-month accelerator program that unites startups with $4T in corporate partner market cap, $7B in investor assets under management across five continents, and over 110 startups tackling emissions across all major sectors.[1][2][6] D3's investment philosophy emphasizes an inclusive, vertically integrated model focusing on hard tech and deep science in hard-to-abate sectors, providing bespoke mentoring, investor introductions, corporate access, and coaching to help startups navigate "valleys of death" from formation to scalable market delivery.[2][5][6] This has fostered significant impact on the startup ecosystem by powering portfolio companies addressing challenges in electrification, sustainable materials, agriculture, energy efficiency, and more, while enabling corporates like Shell, FedEx, and Engie to scout de-risked innovations.[2][4]

Origin Story

Third Derivative was established by RMI (Rocky Mountain Institute) and New Energy Nexus to address the unique barriers facing climate tech startups, such as complex value chains, engineering hurdles, and policy landscapes that favor incumbents and stifle diversity.[1][6] Launched around 2020, it began with an inaugural cohort that included early participants like an energy capsule rental startup, providing immediate access to funding, mentors, and corporates.[6] Key figures include endorsements from RMI's Amory Lovins and portfolio CEOs like Nick Chadwick of Mission Zero Technologies, highlighting its evolution from a targeted accelerator to a global engine uniting startups, investors, corporates, and experts.[2][6] This backstory reflects a response to the need for "applied hope" in deploying climate technologies faster, growing into a network with quarterly admissions and cross-continental reach.[2][4]

Core Differentiators

• Unique Investment Model: Flexible, bespoke 18-month accelerator with targeted introductions to mentors, investors, and corporates, tailored to startups' needs rather than rigid programs, focusing on hard-to-abate sectors like decarbonization and critical minerals.[2][6]
• Network Strength: Access to $4T corporate market cap (e.g., Shell Ventures, FedEx, Engie, TechEnergy Ventures), $7B AUM investors across five continents, and diverse mentors from entrepreneurs to policy experts, enabling early diligence and de-risked deal flow.[1][2][4]
• Track Record: Over 110 startups in portfolio, including Cell Propulsion (electric trucks in India), CERT Systems (CO2-to-ethylene), Dimensional Energy (defossilizing hydrocarbons), and Torus Robotics (efficient motors), with quarterly cohorts and proven scaling support.[2][3]
• Operating Support: Rigorous vetting, business/technical coaching, and collaborative ecosystem that demystifies climate tech for partners, accelerating market entry and impact as praised by founders for resources during critical early stages.[2][4][6]

Role in the Broader Tech Landscape

Third Derivative rides the urgent wave of climate tech innovation, targeting "hard-to-abate" sectors like industrial decarbonization, sustainable agriculture, and electrification amid global net-zero pressures.[2][3][6] Its timing aligns with escalating regulatory demands, policy shifts, and market forces favoring deep-tech solutions—such as breakthroughs in carbon capture, low-carbon metals, and regenerative ag—that incumbents struggle to deliver alone.[1][3] By connecting vetted startups to trillion-dollar corporates and global investors, D3 influences the ecosystem through de-risked pilots, cross-partner collaborations (e.g., Latin American climate tech via TechEnergy Ventures), and market transformation, powering scalable solutions across emissions sectors.[2][4] This positions it as a pivotal "engine for climate innovation," countering startup isolation and accelerating deployment in a landscape where diversity and speed are critical for equitable transitions.[5][6]

Quick Take & Future Outlook

Third Derivative is primed to expand its quarterly cohorts and portfolio, deepening ties in emerging markets like Latin America while scaling initiatives like the Clean Mobile Power program amid rising demand for hydrogen, clean fuels, and sustainable minerals.[3][4] Trends like AI-driven agriculture (e.g., Digital Harvest), metal fuels (Metal Light), and waste heat recovery will shape its trajectory, bolstered by policy tailwinds and corporate net-zero commitments.[2][3][6] Its influence may evolve into a dominant hub for global climate tech, potentially influencing investment norms by prioritizing inclusive, high-impact scaling—ultimately moving markets toward an equitable climate future as envisioned from its founding mission.[1][2]