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Why We Invested in Kubik: A Glimpse Into Endgame's Climate Tech Investment Strategy

At Endgame Capital, our climate tech investments are guided by the pursuit of substantial impact and returns. We commit to companies that tackle significant problems—with Kubik, we found a venture poised to make a groundbreaking impact in both the enviornment and financial returns.

Kubik Team
Kubik Team

The Opportunity in Climate and Construction

The urgency of the climate crisis necessitates a technological revolution. Technologies to mitigate this crisis exist; they require the right environment to mature. The construction sector, characterized by its traditionalism and sensitivity to costs, is ripe for innovation. Cement alone contributes to 7% of global greenhouse gas emissions. Meanwhile, the demand for housing is surging, with an estimated need for 100 million new homes in Africa by 2030, representing a financial opportunity in the hundreds of billions.

Kubik: A Model of Product Disruption

Kubik falls under one of our core investment focuses—optimizing product value chains through innovative green design. Utilizing upcycled plastic waste, Kubik’s building materials emit 85% less CO2, cost 40% less, and double the building speed compared to traditional materials. This places Kubik at the intersection of environmental impact and economic advantage.

Evaluating Impact

Kubik excels in areas critical to our investment philosophy:

  • CO2 Reduction & Mitigation: Substituting cement and steel with less pollutive materials.

  • Waste Reduction: Transforming hard-to-recycle plastics into valuable construction resources.

  • Social Impact: Collaborating with social enterprises to improve economic conditions by ensuring fair pricing and creating jobs.

  • Addressing Basic Human Needs: Alleviating housing shortages and enhancing life quality for potentially a billion people.

Financial Viability

Financially, we look for ventures where the unit economics make sense along the value chain for all players to make widespread adoption possible. In this case: 1) cost of plastic trash feedstock, 2) price of Kubiks’ materials to buyers, and 3) cost of labor for buyers. All together, the final cost must be at or below parity compared to incumbent building materials. This holistic approach ensures not only sustainability but profitability.

Stage of Development

Our approach favors technologies that are science and engineering de-risked and advancing towards commercialization. Kubik has crossed these milestones, securing endorsements from key customers and initiating production in their new Addis Ababa facility. Despite Ethiopia's uncertain investment environment, Kubik's ability to form strong local partnerships and excel in this market reinforces our confidence in their potential across Africa.

The Founding Team

We invest in founders who are visionaries and storytellers, dedicated to solving profound societal issues. The Kubik team embodies this ethos, marked by their ethical standards and alignment with our core values. Their diversity and exceptional ability to navigate the industry landscape further solidify their role as leaders.

Our Role as Partners

Leveraging our syndicate founders, investors, and networks, we accelerate climate technologies toward commercial viability. Beyond capital, Endgame Capital actively enhances a company's growth trajectory through mentorship and strategic connections. We saw a clear fit with our networks in the construction sector and access to a commercial talent pool in major Africa hubs which will benefit Kubik in the long run.

Our commitment to Kubik is a testament to our belief in their potential to not only succeed financially but also to forge significant, lasting impacts on the planet and its people.

Link to TechCrunch seed round annoucement: click here.


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