Most institutional investors have a financial thesis. They invest in what they know best. The verticals can change and they often do when certain industries start to amplify. Sustainability is definitely the in buzz word category these days. That is a very very good thing.
What inevitability takes place is that people try to build businesses with new verbiage. For instance, a few years ago many had added private internal currencies to their decks. It didn’t change the business but tried to grab some investment capital on the amplification of crypto-currencies.
We are seeing that again in the sustainability space. New consumer product companies who are working on products that are sustainable because overtime the container disintegrates does not constitute as anything but a smart consumer product company. Will that change the way they sell and market the product or get funded? Doubtfully. It is just a new lipstick color in a better casing.
It is almost impossible to change consumer behavior. When it comes to sustainability, it is about science. Creating back end products for the same price such as biodegradable plastic so every company changes their packaging because the consumer wants it and it makes financial sense.
I am quite interested in seeing what constitutes as sustainable as VC’s begin to spend a lot of time and capital in this space.