Why Startups Are Key to Climate Solutions

ABOUT MICHELLE TSCHUMI

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We work closely with Michelle Tschumi as she is on the commission board of KlimUp and serves as a jury expert. Her role involves evaluating startups’ potential for environmental impact and business success, helping to decide which startups receive access to KlimUp, a non-dilutive grant of up to CHF 250’000. The Climate Tech Program gives early-stage startups the strongest possible launchpad to close their pre-seed round quickly, on founder-friendly terms, and with top-tier investors at your side. Find out more here.

We talked to Michelle Tschumi about how ZKB supports startups combating climate change. She is the Head of Startup Finance at Zürcher Kantonalbank (ZKB), overseeing the bank’s involvement in fostering and financing innovative startups. She plays a significant role in the Swiss startup ecosystem, particularly in climate-tech and sustainability-focused ventures. Michelle’s expertise and position at ZKB make her highly influential in the Swiss startup scene, particularly in steering investment towards companies that aim to make a positive environmental impact.

We spoke with Michelle and asked why startups are key to climate solutions and what ZKB’s role is in the Climate Tech Program.

INTERVIEW WITH MICHELLE TSCHUMI

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How does climate-tech align with the overall strategy and values of Zürcher Kantonalbank?

As part of our mandate to serve the canton, we are committed to making a strong contribution to sustainability. Through our Startup Finance Team, we aim to increasingly invest in sustainable start-ups. The KlimUp program allows us to engage with Climate-Tech start-ups early on, maintaining a dialogue with them, and investing in those that align with our investment strategy.

What motivated Zürcher Kantonalbank to support the KlimUp program? 

Several key factors influenced the decision: On the one hand, ZKB maintains a continuous dialogue with the city and canton to support joint innovation initiatives. Additionally, we have been long-standing partners with Bluelion. Both Bluelion, as the implementation partner of the initiative and the city of Zurich actively engaged with us. It quickly became evident that we wanted to be part of the program, with Start-up Finance being the appropriate business unit to support the selected start-ups in their further development.

What impact do you hope the KlimUp program will have on the start-ups it supports?

The initiative is already demonstrating its effectiveness in increasing visibility for the critical issue of climate-tech and the participating start-ups. The financial resources provided by the program serve as vital catalysts for the start-ups’ upcoming development phases. Furthermore, the KlimUp community, including Bluelion experts, the city, and the expert jury, provides invaluable support. Feedback during the application process aids in start-up growth, networking events foster important connections—especially with investors—and peer exchanges encourage mutual learning. The knowledge and network offered by this community are fundamental pillars of the program.

With five other experts on the KlimUp jury alongside you, how intense do the discussions become when selecting start-ups for the program?

We sometimes have heated discussions—more than you might think—because we all bring different experiences and opinions to the table during the application evaluations. However, I find these discussions to be very constructive and of high quality. The start-ups selected for the program have undergone a multi-stage evaluation, which serves as a significant seal of quality. As a jury member, I greatly appreciate the expertise of my colleagues and always look forward to our discussions.

In your role as Head of Start-up Finance at Zürcher Kantonalbank: How important is the potential social or environmental impact of a start-up when evaluating potential investments? 

At Start-up Finance, we evaluate the impact component of a start-up during our due diligence process. However, we also thoroughly examine the strength of the team, the innovation, technology, market potential, and financial achievements to date. The impact component alone is not sufficient. Our goal is to support start-ups that can achieve long-term success and address a relevant problem over time.

What role do you believe start-ups should play in the fight against climate change? 

I believe that start-ups play a crucial role as innovation drivers in addressing the climate challenges of our time. Start-ups that can quickly scale their solutions have the potential to merge with large corporations, creating even greater impact through partnerships. Additionally, corporate giants are often inspired by start-up innovations to rethink their products and processes. While policymakers are important, we shouldn’t wait for regulations but rather push forward with innovative ideas. That’s why, at Start-up Finance, we’re committed to investing in and supporting innovative climate-tech start-ups as long-term partners.

How can start-ups contribute uniquely to this global challenge compared to larger, established companies? 

Start-ups are inherently more agile, able to quickly pilot, adapt, and elevate their solutions. Without this speed and focus on problem-solving and customer needs, they risk being overtaken by competitors or copied by large corporations. Start-ups are also bolder, rethinking problems and solutions with a healthy approach to failure. This makes them, in my opinion, some of the most important players, if not the most crucial, in addressing climate change.

How do you envision the future of climate-tech funding and support evolving? 

I believe that there is still untapped potential in Switzerland when it comes to funding climate-tech start-ups. However, there are now exciting grants and investors, like us, who are committed to investing in innovative start-ups. Programs like KlimUp are crucial in providing the necessary media exposure to attract even more capital into this important sector.

What’s the most surprising or innovative climate-tech solution you’ve come across? 

We have recently invested in the startup Unbound Potential as part of our match-making agreement with KlimUp. I am very impressed by Unbound Potential’s mission to set up a large-scale energy storage system. Beyond Unbound Potential, I’m also enthusiastic about other innovative ideas such as Climate Change AI, Carbon Removal Technologies, Foodtech or Power Transformation in general. These sectors are full of potential and creativity, and they inspire me greatly.