Bridging Policy and Technology for a Greener Future with Sebnem Tugce Pala

Welcome to the B2B Growth Blueprint podcast, where we talk with entrepreneurs, founders, and leaders at B2B services, tech, and SaaS companies to learn the systems and processes they've used to create success for their business. We'll also learn from marketing and sales experts to provide insights to help you grow your business. I'm your host, Mark Osborne, and the podcast is brought to you by Modern Revenue strategies and their 10x ROI B2B growth guarantee. Schedule a free diagnostic call to learn the fastest path to double your B2B revenues in just 90 days. Hello and welcome to another episode of the B2B Growth Blueprint podcast. I'm your host, Mark Osborne, and today I'm very excited to welcome my guest. And I'm gonna read this to make sure I get it right. She's got such a beautiful name. Sebnem Tulci Pala, or Seb for short, and I'm going to read her bio because she's done so much. She was born and raised in Turkey. She moved to San Fran Bay Area in 2016 after spending 5 years in 5 different European countries. She's one of few governmental policy wonks that can translate governmental policy into implications for technology companies. She's worked as the Director of Regulatory Affairs at Utility API, and built her consulting company, which we're going to talk about, where she only collaborates with sustainable transportation and climate tech companies in a global environment. Along with her stellar team, she advises her clients on public policy and governmental relations, business strategy, grant writing, and fundraising. She's an advisory board member with Blue Dot, Z Motors, and Coral Change as an advisory board member. She's also an angel investor in Vitalize Angels and a limited partner in Trio VC. A whole lot of stuff there. Her undergraduate is from UC Berkeley. She has 2 different master's degrees, uh, and not to mention speaks 7 different languages. So Seb, thanks so much for joining us.

Thanks for having me, Mark. It's great to be here and I appreciate your time and flexibility once again.

Oh yeah, of course. So you've got such an interesting journey. Tell us more about you and like what you're really passionate about and working on today.

Yeah, definitely. I mean, you read my bio, obviously, but just long story short, I spent amazing time in Europe, and I have background in public policy, government relations. I worked there, and I studied there. So previously, I worked for European Investment Bank, which is the financial institution of European Union, and I also worked for International Labour Organization in Geneva. In 2016, I moved to San Francisco Bay Area. I took some classes from Stanford on science and technology policy, how AI is creating smarter technologies, social policy, economic impacts of AI. And, you know, like, I saw the angle there, like regulations and technological improvements are not moving at the same pace.

Huh.

And like regulations are the key. They are the backbone of the business. And, you know, like, that's, that was like my aha moment. And I said, okay, what about combining my background in public policy with tech? So this is how my journey in the field of sustainable mobility, sustainable transportation space. And, you know, like, since, since childhood, I have always had that passion, you know, like, I have to create an impact, I have to do impactful work. And I believe transportation is one of the fastest and one of the most efficient ways to do it. So, you know, like, it was a combination of my passion for creating a huge impact and, like, again, my passion for transportation, um, you know, like, mobility space. So it's like the best of two worlds. So, and since then, I have been working in this space, uh, and I love it. As you already mentioned, I built my own practice, my own consulting business a while ago, and I'm only collaborating with high-tech startups in this space. I have a team of 7, and like, we are working with the startups and companies all over the world, like from France, from Israel, from United States, from Benin, from Turkey, from Canada. And I love it so far. It's going so well, you know, like every day I'm hustling, but I love what I do and I'm very passionate and this keeps me awake at nights and this gives me all the motivation to work maybe 15 hours per day.

Well, you got such a great broad sort of diverse background and, you know, a lot of our listeners on the show are either entrepreneurs, founders, or operators that are in this, you know, sort of inflection point where, you know, they've grown their business to a certain stage and maybe they're starting to look for investment. You have such a unique perspective on that, both globally as well as here in the United States. And when we were chatting earlier, you were talking about sort of what the investment environment looks like today. And so today it's—

Mm-hmm.

3rd quarter of 2024, and you talked about how there were some changes kind of post-pandemic and kind of leading to where we are today. Why don't you share a little bit of your perspective on what the investment environment looks like today in the sort of VC early-stage investment?

Yeah, definitely. Thank you for your question. So, I mean, obviously, as I have been collaborating with high-tech startups for a while now, then it comes a point, okay, you have to skin in the game. And you have to learn more about investment, you know, like you have to learn more about investing, how to choose the companies, how to be part of angel investment communities or like VCs. And I think like this started for me 2 years ago exactly. And that being said, I became part of like Vitalize Angels. So it's like angel investor community that I really love. And so far I have invested in 10 startups. So basically they choose the startups for us and there's a threshold like when it comes to an amount and when we hit that threshold, we became part of that startup. Basically we are investing in that particular startup as an angel investor. This is the first case. And the second case is last year, I'm so proud to say that I became a limited partner for Trio VC, which was founded by 3 amazing women in Miami, in Florida, and they are mostly targeting Turkish startups, like startups founded by Turkish founders or like with an origin in Turkey, and they just want to support these startups and they want to help them grow their business and scale their business in the US, and this is my very first-time experience as a limited partner. I love it even more, uh, because like this opens more doors for me. I mean, this also scales the conversation when I'm speaking with startups or like other, other investors or like, let's say, uh, venture capital firms. Um, so when it comes to, uh, investment scenario or like the current situation, you know, things have changed a lot. with the pandemic. So from my own perspective, I can clearly tell you there is a clear line between before pandemic and after pandemic. You know, in the beginning of the pandemic, I think in Q1, people, and in most cases like startup founders or like investors, they don't know like what kind of a future lies ahead. You know, like they didn't know.

A lot of uncertainty.

Yeah, exactly. Lots of uncertainty, lots of ambiguity. They didn't know what to do. And then, you know, like, they saw some other investors, like, they are— their peers are investing actively, and they felt all that FOMO, you know. And I think, like, this was— we have seen an amazing increase in investments. So, like, VCs were being very generous Because like they didn't, they didn't want to miss the opportunities. They didn't want to fall behind. And again, that led to an amazing increase in valuations. And with all those valuations, with the, with all that hype, most of the companies have announced their IPO with SPACs.

Yeah.

And this created a huge bubble. And right now we are experiencing the adverse impacts, like negative impacts of that bubble. Unfortunately, exactly. But maybe this is an opportunity in disguise, uh, because like, again, you know, uh, right now maybe, uh, I, I can, I can clearly see that like investors are being more cautious, they are more attentive, and they are just, um, making sure that like they are taking the right steps. So, and they are looking for startups which have traction and which have fun to write product, which have built an amazing team. So these are the stuff that I can tell you about the current situation in the investment world.

Really interesting. Well, and also like if you think about kind of the macro factors, like, you know, for decades, we essentially had free money because the interest rates were so low, which led to a lot of investing based on spec and a lot of investors not wanting to, you know, get left behind. But since interest rates have raised, it's really put a lot more emphasis on making the right investments. They're gonna have that fast return. And it's interesting that you talk about, you know, traction where they, they've really got that product market fit. And they, they've, they're really delivering not just an idea, but actually a business. So as, you know, companies that might be listening or, you know, founders, entrepreneurs, as they're thinking about how to attract investment in this type of environment, how do they demonstrate that they do have traction? What's the right way for them to really show we're not just an idea? We have the things that make us, you know, valuable in this environment.

Yeah, exactly. To start with, you know, these days we are mostly focusing on software companies because investors, they really love that flexibility and agility, adaptability, you know, like these are the core values. And that being said, like you can pivot easily, first thing first. And the second thing, as I told you before, they are looking for traction, but there are some ways to build that traction or like have that traction. And I believe in most cases this comes from relationships and again, like having the right product, like product fit.

Mm-hmm.

And again, like choosing the right investors as well, you know. Um, and choosing the right market, like that we have already mentioned. So for example, what I can tell, um, or like highlight from my previous experience, so this is, this is my 2 cents for the startups. You, they shouldn't jump in, you know, like, um, they should also make sure that like they are choosing the right investors because like this is like choosing your husband or your wife. This is like a marriage, so this is not something that you can get divorced easily. So okay, you are looking for an investment, but you have to make sure that like your VC or your investor has relevant experience, expertise, and they have the right or like beneficial relationships for you.

Yeah.

Because like they will be the gatekeeper for you, you know, like They will be opening their doors and they will be making some intros for you. This is the first thing. And the second thing is you have to check whether like your invest, your venture capital has invested in the right companies, you know, like they have a good track record because like their portfolio companies can potentially be your business partners, right? And again, the third thing is, I think like we can largely talk about networking, you know, with that investment, you know, like with that accelerator, with that angel investor, this will also lead to another thing, like it will also create their own wind and it will come with that.

Interesting. One of the things that, that we've seen, I'd be curious about your perspective on this, is that it's a lot easier for, you know, VC or even angel funds to come into a company when they can really demonstrate that they've got systems. So it's not just that they got lucky or they had a connection in an industry that led to one big client, but they actually have a system for attracting the right prospects, accelerating those best opportunities to the sales pipeline, activating clients to reduce churn, to activate sort of growth. And when they have that sort of written down in a really concrete way that they can demonstrate, it's not just luck, it's not just some connections that we had, but we actually have a system that scales, that makes it a lot easier for investment dollars to come in.

Exactly. I mean, you have to invest in those relationships and networking, you know, like meaningful conversations, authentic relationships. I mean, after all, like business means relationships, right? You have to know how to build those relationships and keep them and like maintain them and leverage them later on. So I mean, as an angel investor, I'm making intros for the companies that I have invested so far through Vitalize Angels and like this also applies to my experience with 3oVC because it's all about warm introductions. It's all about who you know. Yeah. Because idea, okay, that's great, you can have it, everyone has an idea, but how you will put into practice, how you will, how will you build that team and how will you benefit from existing relationships? If not, how will you build those relationships, right? I mean, after all, like, we are human beings and we are emotional, you know, you can have the right product, you can tap in the right market, But if you don't know how to survive there, like you can't generate any traction and you cannot build a good business there.

Yeah, that's really interesting to think about, not just sort of having a business plan of, well, if you were to invest, here's how we'd spend the dollars, but also if you were to invest, here's how we'd leverage your network and talk about, you know, the portfolio companies that might exist, the potential partnerships or, how you could add value to those companies in the portfolio or how they could add value to you. So there's really this synergistic relationship beyond just the dollars and actually into the business platform as well.

Exactly. And also, like, some funds are very specific, you know, some love sustainability, some love fintech, some love healthcare, some love infrastructure, AI. So based on your technology, you have to do your research, definitely do your homework first, and then you come up with a list. You should make sure to have a target list, and then maybe you can reach out to those VCs and, you know, like have the introductory call with them. I mean, even, you know, like getting on the call takes a lot of time and effort, so I completely understand, but you have to make sure that like you are prepared for that and you have the right team, you have the right product, and again, like you have that passion, you know, passion is the key.

Well, and it's so interesting you talk about this ability to be agile and, you know, the design thinking that is, you know, now so prevalent that, you know, even probably a decade or so ago, it was just kind of getting there, but it was the new way to do things. Whereas now it like, it really is the way. And on this show, we have a lot of sort of early stage entrepreneurs and operators that come on. And all of them talk about, you know, getting out of the building and getting that feedback from customers and how that shapes everything that they do on an ongoing basis. And really the ability to have systems that allow, and obviously we have a perspective on, you know, marketing and sales being a really important part of that, but having a system where you're not just out there doing a demo, you're using every demo opportunity to learn more about, well, what features would they want? What's the consistent theme of what they ask for? And really, you know, having that be integral to how you operate your business so that you're not just, well, we go off and we build what we think people want, and then we come back and sell it. But instead, it's we have a system in place that allows us to get intel from the marketplace to then guide our product vision to take it where the market really wants it to go.

Yeah. Right. Totally. I totally agree with you, Mark. Yeah. Right.

And we actually see that's one of the most important things that companies can do in the marketing and sales space is attracting those right prospects because the ones that kind of align with your product vision of where you think the marketplace is going so that you can kind of co-create and partner together rather than, you know, if you don't have the right systems in place, you're sort of stuck with the table scraps or the customers that you're competitors don't want, and they're likely to want you to customize your product or move in a different direction from what you know the marketplace wants. So having those systems is, is really vital there.

Yeah, yeah, yeah, totally.

So I know you're really passionate about the sort of sustainability and mobility transportation space. Tell us about something that's on the horizon in that space or, or within your practice, uh, that you're really excited about.

Yeah, definitely. So I mean, it's one of the key topics these days, you know, sustainability, clean technology, AI. These are the keywords, these are the fancy or like buzzwords, let me put that way, we are using these days.

Sure.

I'm really passionate about sustainability, as mentioned earlier, but I'm pretty niche, pretty Like my expertise is very niche, or like my consulting company is very boutique in the way that I only collaborate with sustainable mobility, sustainable transportation companies like electric scooters, e-bikes, electric vehicles, electric vehicle charging station companies, autonomous drones, autonomous vehicles, or let's say companies that are targeting this space, this ecosystem. So, you know, like thanks to Biden administration, funding opportunities were just amazing. So it was a great way for mobility or transportation companies to generate revenue or like reduce their CapEx through the incentives and rebates. Or like funding opportunities, grant opportunities given by Biden administration. So what I'm seeing from my clients, they are all chasing these funding opportunities and they want to get most out of it. This is the first thing. And the second thing is I see an increase in, you know, like in, in the, like, VCs focusing on only sustainability, only climate tech. So I know, like, at least 3 or 5, uh, from my network, uh, funds focusing on sustainability. This is amazing, you know, like, because, uh, it's not all about money, it's not all about business. Again, it's all about creating an impact, you know, like doing contributing to public good, you know, and I love it. And other than that, you know, e-scooters, e-bikes, the market has saturated a bit, to be honest with you.

Sure.

But still electric vehicles, electric vehicle charging stations, or like technologies focusing on this space, they have done so much and still a lot. They still have a lot to offer. And then, you know, like when I was a kid, I was watching JetBots and it became real right now. Like we will see electric vertical takeoff landing vehicles soon, basically flying air taxis.

Sure.

Autonomously electric. This is amazing. And like we will see autonomous delivery robots, like delivery vehicles on our streets, like bringing our burrito. to us, which is amazing. Or like autonomous drones delivering, uh, I don't know, packages that we can use in infrastructure, in construction. So like these are the current trends, um, and I, I really love it. And I really love supporting companies, uh, with my services, like with market research, business strategy, uh, grant writing, fundraising. public policy. Of course, like, this is a heavily regulated industry, and you have to make sure that, like, you are staying on top of things when it comes to regulations and legislations. So this is, this is what I can tell you more about my practice, my services, and the current trends that I see in the ecosystem.

So interesting. Well, and obviously, like, this— the aha moment that you described earlier of recognizing the intersection of kind of that Public policy, as well as the technology. You're really sitting at a very interesting nexus at a very interesting time. So, so let's say some of our listeners are innovating in this space and, you know, potentially ready for some investment. How, how could they get in touch with you?

So they can always reach out to me through LinkedIn, and I have my own website. And I can also give you my email address for sure.

Yeah, we'll put that in the show notes so that folks can contact you.

Please do. I appreciate it.

So, Seb, thank you so much for joining us today. It's been a super interesting and enlightening conversation. You paint such an inspiring picture of a world where there are, you know, low environmental impact autonomous drones and taxis taking us everywhere and I can't wait to live in that clean world, especially being here in LA where we are notorious for our smog problems. So excited to have you on, excited for our conversation. Thanks so much for joining us today.

Thank you so much for this engaging conversation. So it's great to share all these insights with you, and I hope to, you know, like, I hope to see each other again very soon.

We'll see you soon.

Thank you.

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