“Let’s just focus on building the product first.”
Many climate tech startups start out with this philosophy.
So the company throws all of its money, time, and new hires into product development.
This could go on for years, to be honest.
The problem is, a great product isn’t enough.
It’s not enough to draw in a steady stream of customers.
And it’s not enough to prove value to investors.
In fact, Ocean Tomo, a part of J.S. Held – a leader in intellectual property research – has reported that intangible assets account for 90% of all business value.
Those intangible assets could range from copyrights and trademarks to the company’s brand as a whole.
Other sources like The Economist have suggested that last one there – brand – represents a whopping 20-40% of a company’s overall valuation.
So of course climate tech companies should build incredible products, but not at the expense of building an incredible brand.
In the end, their brand could become a significantly more valuable asset than the product itself.