Environmental entrepreneurship has tremendous potential to deliver radical and disruptive technology innovation that can safeguard our biosphere. However, we lack insights into how green ventures can cultivate dynamic capabilities that allow these ventures to thrive. The existing dynamic capability framework does not adequately capture the unique challenges and opportunities facing early-stage green ventures. Consequently, in this study we ask: what are the micro-foundations underpinning dynamic capabilities in early-stage green ventures? How are these dynamic capabilities cultivated? How do these dynamic capabilities correspond to and co-develop with external factors in flux when disruptive green innovation is commercialized? This paper is based on an exploratory case study of 14 ventures developing green innovations in the biofuel, bioenergy, biochemistry, and biomaterial sectors. Our study conceptualizes the micro-foundations of dynamic capabilities related to sensing, seizing, and reconfiguring capabilities. Moreover, it develops a detailed and comprehensive framework of dynamic capability building for early-stage green ventures, which links internal dynamic capability building processes with influential external factors in flux.