If I had to link these investments with one theme it would be software’s role in accelerating the scaled deployment of hardware - an insight catalyzed by the work of Tyler on our team.
From 2005-2010, we witnessed steep declines in the cost of hardware such as the servers that enable cloud computing, the processors that power our computers and phones, and the cameras that allow us to take near unlimited photos.
As a result, demand for these products skyrocketed and software scaled new capabilities to the masses. Application programming interfaces (APIs) connected software automatically and software developer tools became one of the best returning sectors in venture.
Fast forward to today and a similar pattern is emerging in energy and industrial technology. Solar, batteries, and sensors are all rapidly declining in price, and end users are purchasing them at record rates.
Enter software once again. Firms like Aurora Solar and Twaice make it possible to meet record levels of demand without sacrificing quality of service and increase productivity of those in the field which in turn decreases the total cost to serve end users.
Net, lower hardware cost drives consumer demand and software enables us to serve it. I suspect this theme will play out multiple times in the energy transition and create new opportunities of massive scale.