“As I’ve spent more time in agriculture, I’ve started questioning where the ‘move fast, break things’ mentality actually fits in a physical world of investing. There are fundamental constraints like seasonality and regulatory approval that mean you can’t quite go at the same pace. But that’s not necessarily a bad thing, it’s just a different thing, and a lot of what we spend our time wrestling with is how do you innovate amidst those constraints or even turn them into strengths. ”
— Sarah Nolet
In climate investing, credibility is often associated with breakthrough technologies or large-scale energy infrastructure. This episode challenges that assumption by asking a different question: what if some of the most compelling climate investment opportunities lie within the everyday realities of farming?
My guest this week is Sarah Nolet, Co-Founder and General Partner at Tenacious Ventures. With a background that spans systems engineering, hands-on farming experience, and venture capital, Sarah now leads an investment firm focused on building climate resilience across global agri-food systems.
In our conversation on Sustainable & Responsible Investing 360, Sarah explains why traditional venture capital models often struggle in agriculture, and why solutions must be designed around the physical constraints farmers face every day.
We also discuss:
- Why the “productive middle” of commercial agriculture offers significant climate and investment return potential
- How organizing investment theses around enduring market needs helps avoid technology hype cycles
- Why measuring real climate outcomes, not just sustainability practices, creates stronger alignment between impact and financial performance
The conversation reframes climate-smart agriculture as a pragmatic investment opportunity, one where improving farmer economics can drive both measurable climate outcomes and competitive venture returns.
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Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Castbox, YouTube Music, Amazon Music, or on your favorite podcast platform. You can watch the interview on YouTube here.
What was your favorite quote or lesson from this episode? Please let me know in the comments.
SHOW NOTES:
[07:21] Design Technology Around Real Farming Constraints
[31:36] The “Productive Middle” Offers the Greatest Climate and Investment Potential
[37:17] Breaking the False Trade-Off Between Sustainability and Profitability
[45:45] Invest Around Market Needs, Not Technology Hype Cycles
[58:21] Reserve Capital to Survive Agriculture’s “Hardware Valley of Death”
[01:14:59] Measure Climate Outcomes, Not Just Sustainability Practices
Additional Resources:
MORE QUOTES FROM THE INTERVIEWS:
“If you can have both financial returns and impact, it’s one plus one equals three. In food and agriculture, there has often been a tradeoff where we have to pick between expensive regenerative food or cheap commodity food. But I don’t believe that tradeoff has to exist, and in breaking that tradeoff, you’re actually creating an economic opportunity that drives return. ”
— Sarah Nolet
“In food and ag, there is more opportunity for transformation of atoms and molecules because of how food and agriculture physically work. When something really works, farmers adopt it faster than basically anyone else, faster than the iPhone. GPS on tractors and GMO seeds moved the needle and adopted rapidly, so you have to understand the system to see that high CAC and slower adoption can still work with higher lifetime value. ”
— Sarah Nolet
