Smart Money, Real Impact 2150's Rahul Parekh on how founders can master their first raise, why "no" doesn't mean never, and the climate tech trends he's betting on.

What does it take to get a "yes" from a climate tech VC? According to Rahul Parekh, Partner at early-stage investment firm 2150, it's less about polished decks and more about clarity, traction, and purpose. Based in London but backing ventures across Europe and beyond, 2150 focuses on startups solving some of the toughest urban and environmental challenges - from waste to energy to infrastructure.

Entrepreneur UK spoke to Parekh about what he looks for in a pitch, how founders should respond to rejection, and why AI applied to the physical world might be the next frontier in climate innovation.

What are the top three things founders should focus on when preparing to raise their first round of funding?
Clarity of vision: Be able to explain the problem you're solving, why it matters, and why you are the right team to solve it - in one or two sentences.
Evidence of traction: There doesn't need to be big revenue if the business is still early, but at least there should be proof that customers care - such as pilots, LOIs, waitlists, partnerships, or engaged users.
Fundraising narrative: Build a clear story about how this funding round gets you to the next set of milestones. Investors want to know what progress their money will buy and how it will contribute to the long term vision of the business (i.e. is it capital to help get the company to the next funding round or to scale up the business through marketing/sales, capex or working capital).

When evaluating early-stage start-ups, what key factors do you prioritise?
Team: This is the first and most important factor. Generally the best founders are able to make very complex concepts seem easy. Some of the things we evaluate here are the experience of the founding team (e.g. relevant industry or second-time founder?), if they have deep insight into the problem, whether they are resilient, and if they can consistently attract great talent.
Market & timing: Is the opportunity genuinely big, and is now the right moment for this solution to scale?
Mission alignment: At 2150, we focus on startups that will make cities more sustainable, resilient, and future-proof - so we look for both financial returns and real-world impact.

How should founders handle a "no" from an investor?
Don't take it personally: A "no" often reflects fit, timing, or fund strategy - not necessarily a judgment on you as a founder.
Seek feedback: Ask politely why they passed. Even short insights might help refine your approach.
Keep the door open: The best founders circle back when they've hit a new milestone - and often, those conversations turn into a "yes" later.

What's the best way to build long-term relationships, even if they don't secure investment straight away?
Stay in touch: Send occasional, concise updates with your progress. It keeps you on the radar.
Ask for advice sparingly but thoughtfully: Investors are more likely to engage when they see their input is valued and acted upon.
Be authentic: Relationships are built on trust, not constant pitching. Share challenges as well as wins.

What start-up sector or trend excites you the most at the moment, and why?
AI for Climate and Infrastructure. AI applied to physical industries - energy, buildings, mobility - is one of the most exciting shifts right now. It's helping to optimise massive, complex systems where small efficiency gains mean huge cost (and carbon) savings.

Which start-up that you funded this year excite you the most, and why?
Metycle: We recently invested into Metycle, which is digitising the $500bn scrap metal market. Metals are infinitely recyclable but the market is fragmented, opaque and inefficient. Metycle is bringing transparency and traceability to a supply chain that underpins everything from construction to autos to electronics.