Episode 56: "Hard Tech Is Hard, But So Is Software” | Industrial Sustainability VC Anthony Del Porto on Finding Step-Change Value in Hard Tech, Why the Valley of Death Is Shrinking, and Where he’s Seeing Alpha in 2026

Today's episode explores three ideas that caught my attention:

1. Green premium is a deal killer – Anthony won't touch deals where eco-friendliness costs more (end state). If the sustainable solution isn't also the economically superior one, it won't easily scale.
2. Tech transfer done right – Hearing Anthony describe how he’s seen universities claim 50% equity and “blow up” a cap table from day 1 highlights how critical doing tech transfer “right” is for the industrial sustainability ecosystem.
3. The “valley of death” is shrinking – Fascinating insight into where Anthony sees the next wave of hard tech financing coming from, including why the "valley of death" between VC and institutional debt is beginning to close.

I explore these ideas and more with a mechanical engineer-turned-COO-turned VC, Anthony Del Porto. He began his career as a mechanical engineer doing industrial process automation –  literally walking factory floors, building custom machines, and watching firsthand how the physical world gets made. After a pivot into fintech as COO of an early-stage startup, he developed a dual lens that's rare in early-stage investing: deep technical credibility in hard, physical systems combined with firsthand experience navigating the chaos of a high-growth software company. He now runs BetterWay, a pre-seed VC firm focused exclusively on industrial sustainability – funding startups that are both environmentally superior and economically compelling, a combination he argues is the only kind worth backing.

During our conversation, Anthony shares:

1. A framework for evaluating whether a sustainability startup can actually compete on price.
2. Why circular economy startups are uniquely insulated from tariff risk and supply chain volatility.
3. The specific reason he looks for startups that can be profitable at small scale before building a large plant.

Connect with Anthony

LinkedIn | Website

Stuff We Reference

• DexMat
• Ravel
• Third Sphere

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All opinions are personal and may not reflect the views of The Diligent Observer. Not investment advice.