A climate tech path to sustainable growth
Key takeaways
01
Investments in climate tech are increasing
VC funding is up by 122% from 2015-2020 in transportation and logistics.
02
Costs to deploy cleantech are decreasing
Solar, wind, and storage, are competitive with fossil fuels on a cost basis. As a result, innovators of cleantech can deploy products faster at less cost – increasing adoption.
03
Electrification can make a huge impact on reducing GHG emissions
73% of greenhouse gas emissions are coming from energy: Transportation, homes and buildings and industrial processes. There’s an opportunity to decrease emissions by ~70% via decarbonizing the grid with electrification.
Investments are increasing
VC funding is up by 122% from 2015-2020 in transportation and logistics. Public and government policies, along with private investments have created climate change awareness.
Costs are decreasing
Traditionally the costs related to cleantech were high. Solar, wind, and storage, are competitive with fossil fuels on a cost basis. The upside? Innovators of cleantech can deploy products faster at less cost – increasing adoption.
Climate tech investments
Steady increase in VC investments into the climate tech niche: Current forecast is $50B by the end of 2021.
Cash runway by sector
The increase in VC funding for climate tech companies has led to more cash on hand and generally higher cash runways, although with slightly lower ranges than more traditional tech.
SPACs on the rise
$6.4B total capital raised for VC-backed climate-tech companies. Climate tech companies are leveraging SPACs for liquidity and capital, allowing them to prioritize technological development and commercialization rather than fundraising.
Reducing greenhouse gas emissions
73% of greenhouse gas emissions are coming from energy: Transportation, homes and buildings and industrial processes. There’s an opportunity to decrease emissions by ~70% via decarbonizing the grid with electrification.
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Written and researched by SVB experts
SVB's Climate Technology & Sustainability practice partners with innovators whose passion and purpose lie in building businesses to develop sustainable resources and protect our planet.
