Investing in Climate Technology with Drew D’Alelio

April 19th’s Social Impact Lab featured Drew D'Alelio, a 2022 graduate of both the Yale School of Management and the Jackson School of Global Affairs. Drew currently works at Connecticut Innovations (CI) as part of the team that manages the organization's new Climate Tech Fund.

To start off, Drew gave us an overview of CI's history and mission. CI has been Connecticut's venture capital arm for over 30 years, with $500 million in assets under management. Historically they focused on life sciences and software but are beginning to branch into climate technology. One thing that sets CI apart is its focus on investing in double- and triple-bottom lines, meaning they seek financial returns, job creation, and economic impact as well as climate benefits from their investments.

Next, Drew took us through the process of building a new fund at CI. He emphasized the importance of defining the problem and determining CI's niche, developing investment theses by sector, and understanding key stakeholders and CI's value-add. It was fascinating to see how much thought and effort go into building a successful fund.

To give us a taste of what he does on a day-to-day basis, Drew presented a sample investment and walked us through the due diligence process, including the types of questions he asks. He looks for strong intellectual property, first-mover advantages, large potential markets, and strong teams. He also watches for key risks such as technology development, market stability, and regulatory environments. It was enlightening to hear about how he uses what he learned at Yale in his first post-graduate, professional role.

Drew then asked the group to evaluate the sample investment and led a lively discussion about its pros and cons, the interactive session allowing students to engage with the topic and share their thoughts. Students appreciated the opportunity to apply their own SOM knowledge to Drew’s mini case study. We were inspired by the real-life relevance of investment fundamentals in an “& Society” context.

Overall, Drew's presentation was incredibly informative and engaging. He gave us a behind-the-scenes look at what it takes to build a successful fund and make impactful investments.