Siam Capital talks about sustainability in VC investing

Investing in sustainability does not result in a trade-off that impacts returns. On the contrary, it represents one of the greatest opportunities for wealth creation, says Sita Chantramonklasri, founder and general partner of New York-based venture capital firm Siam Capital.

“People have always thought about sustainability as some sort of active trade-off. The reality is no sustainable solution is viable in the long run if it’s not also cost-competitive,” Chantramonklasri told PitchBook on the sidelines of the Web Summit tech conference in Lisbon, Portugal, on Nov. 4.

 

Founded in 2021, Siam Capital focuses on backing startups in the consumer technology and sustainability sectors. The firm’s recent investments include e-bike maker Cowboy; Evereden, a producer of anti-allergy baby skincare products; and Helaina, a producer of synthetic breast milk.

Chantramonklasri notes that while consumers are unlikely to switch to sustainable alternatives if that means paying a higher price, there are now many examples of businesses offering sustainable and cost-effective alternatives.

“It’s not just about climate. It’s not just about energy. It’s about preparing for this next wave of transition,” Chantramonklasri added, noting the importance of innovations in areas like agtech—one of Siam’s first investments was Ecovative, a company that uses mycelium to develop textiles, sustainable packaging and alternatives to plastic.

“We have this hypothesis that we’re going to run out of arable land. Resources are going to be depleted. How do we find different solutions that are also more cost competitive, better for the consumer, but also better for the planet?”