Innovation Bre8k: 1/13 - 1/24/25
AI Transformation, Rethinking Sustainability, and Pitching to Investors
Every week-ish Anim8 Collective curates insights into business growth and strategy, emerging technology, leadership and change management, networking and collaboration, and sustainability. Take an Innovation Bre8k with these top picks!
Recently we covered:
🤖 AI isn't just tech—it's a transformative force.
🌱"Put the puzzle back the wrong way."🌻
🚀When pitching a company, you are not pitching your product to a customer.
💡Is sustainability undergoing a rebrand?
📈 Is Sustainability Losing Momentum?
This post is written from the perspective of Anim8 Collective founder, Sarah O’Sell’s experiences.
🤖 AI isn't just tech—it's a transformative force.
But deploying AI effectively requires understanding its critical capabilities, maturity models, and differences from standard digital transformation IT projects.
🧠 Here's what to focus on:
1️⃣ Strategic Alignment
Does your AI strategy align with business goals? Are you solving the right problems?2️⃣ Data Readiness
Clean, structured, and accessible data is key. Invest in data pipelines and governance.3️⃣ Change Management
Technology adoption hinges on people. Build a culture that embraces AI.4️⃣ Continuous Learning
AI evolves. Your systems and teams should too. Invest in education, training, and iteration.
👉 Dive into this article on the AI Maturity Framework from Emerj: https://emerj.com/what-makes-ai-and-it-different/
I'm taking Allie K. Miller's AI for Business Leaders course right now and this article by Daniel Faggella was one of our resources. I appreciate the focus on building an effective AI skills foundation for the long term in an organization!
🌱"Put the puzzle back the wrong way."🌻
One of my favorite sections from "Failed It!" by Erik Kessels. In many ways, it represents the state of sustainability right now.
The section goes on to say, "You'd be forgiven for thinking there's not much one can learn from piecing together a massive jigsaw puzzle that, when completed, reveals a cheerful unicorn in repose... perfection, fragmentation, perfection. It's a satisfying sequence." Much like the processes and frameworks we've collectively constructed for approaching sustainability, these are under harsh criticism right now due to their perceived "burdens" on business and undergoing massive disruption.
📸 Artist Kent Rogowski discovered that puzzle companies use the same die cuts across their designs, ushering in a new paradigm of "Perfection, fragmentation, stunning imperfection." The section goes on to say, "Carve things up. Break things down. Scatter the pieces. Throw away the instructions and put the pieces back together in whatever way you damn well please, all the while remembering that things that aren't meant to go together can still work together."
💡The optimism I have for this moment of devaluation, deconstruction, and broken-record questioning of the sustainability function is that we will build it back better. It's important to recognize the criticism even if it may be exaggerated and in cases completely unfounded falsities - this just means that change is in demand. Sustainability is not a question, it's 360 reality and will persist as a framework for operating a business in our interconnected reality on Earth with Humanity.
The way we operate the puzzle of that framework is transforming and I envision a tomorrow where a sustainability-first mindset will become embedded across every function and role in business. Business models will shift into better alignment with the reality-driven necessity of the circular economy. This will be enabled at scale by assistive, automation, and AI technologies, data stream orchestration to finally gain visibility across departments as well as externally, regulatory moves, and most importantly 🙌individuals waking up to their collective agency💪 to define their role's sustainability contributions, flow into other roles across the workforce/stakeholder network, and act as a force for change.
Sustainability is not the responsibility of an often under-resourced team anymore - it's part of ALL of our jobs.
🚀When pitching a company, you are not pitching your product to a customer.
You are pitching the value of your business to an owner. Your "what" is ROI in X time and you better be willing to pivot. The "how" is the iterative process of business systems design and engineering that you will journey on with business owners during the investment term.
To investors, the "product" they are buying includes:
+ business model
+ business technology
+ output capacity and quality of the team
The "product" customers are buying is only a lure for cash flow.
The real product is the business itself. That is what I am excited about innovating for, and I am incredibly impressed by Katherine Homuth and the SRTX team for their tenacity and ingenuity in building this business.
👉 Check out their pitch here: https://www.linkedin.com/posts/katherinehomuth_publicsrtx-teaser-deck-activity-7284604066989551617-QDHs?utm_source=share&utm_medium=member_desktop
I wish I could make intros although my network is majority early stage to series A investors.
Their pitch does not mention sustainability at all until the very last line on slide 10. I'm hearing of other founders in the space looking to rebrand as a pure value play and need to check this research before posting about it but I'm seeing that sustainability-focused investing was massively down in 2024. What a time for me to try to go into business for that space! 😂
SRTX has a hot LIVE real-world working tech and data-driven production system that will transform the entire textile lifecycle, AND they are doing it with sustainability in mind. This is a winning investment for localization and resiliency of production.
💡Is sustainability undergoing a rebrand?
Are we dropping "green" words and entire programs built around them? I was reviewing recent news for our upcoming panel on AI & Automation for sustainability on Thursday and came across this Harvard Business Review article.
I've also been seeing companies in the space that have a very real and intentional sustainability angle "neutral-wash," bury the sustainability mention, or even seek to overtly appeal to the new administration. These days it seems like the media networks all consulted the same PR agency for recent executive language.
Sustainability programs exist because we are facing a very real reality of human and environmental crises. These compounding factors have a direct impact on business. There is plenty of proof and case studies for what's working + scaling right now. I think there are ways to keep these programs alive by translating phrases while remaining grounded in the very real reality of risk to business profitability, customer trust, and longevity.
This doesn't need to mean hiding, stopping programs, or a divestment lurch. That's what happened in 2024. As the HBR article states "This situation is dangerous and frankly surreal since our environmental and social challenges are only getting more obvious and more expensive."
Any business that cuts sustainability programs right now is dismantling its future and our collective future.
🌻Spontaneous thoughts while running🏃♀️
📈 Is Sustainability Losing Momentum?
Here’s What’s Happening:
📉 Global sustainability funding has taken a massive hit.
According to Crunchbase, funding for sustainability startups dropped by 47%, falling from $55.7B in 2022 to significantly lower levels in 2024.
📊 Investor priorities are shifting.
The Stanford Graduate School of Business reports that Millennial and Gen Z investors focused on ESG (Environmental, Social, and Governance) have dwindled. Only 11% now say fund managers should push for ESG practices—down from 44% in 2022.
🚪 Sustainable funds are exiting the market.
Morningstar found that only 10 new sustainable funds launched in 2024, while 71 funds merged or liquidated, and 24 dropped their ESG focus altogether.
Why the Decline?
📈 Rising interest rates make sustainable projects less attractive.
🗂️ Complicated ESG reporting requirements are frustrating stakeholders.
⚖️ Investors want proof of ROI in sustainability programs before committing.
What is Winning?
🪄Good for the Economy & Environment, Job-Creating, Innovative
🌲Appeals to Stewardship, Conservation, and Care for Lands & Waters
🪨Resource Scarcity & National Resilience Through Circular Economy
Top Sectors to Watch
👍Renewable energy expansion solutions
⚡Electrification of Infrastructure
💨Carbon Capture & Utilization [important!]
🔋Energy Storage Technology
🤖Smart Agriculture
🌴Forest Conservation & Regenerative Reforestation
🌊Wetlands Restoration
🐟Sustainable Fisheries Management
🌎Land Trusts and Conservation Easements
🌾Regenerative Agriculture
♻️Advanced Recycling Technologies [typically go to market through quality control in existing supply chains]
🔌Critical Mineral Recovery & Urban Mining
💧Decentralized Water Solutions
🧩Modular Product Design [necessary for repair, remanufacturing, and disassembly for recycling]
🍩Business Model Systems Engineering [necessary for product lifecycle transformation & extended value streams]
