The return of the GreenTech bubble
The need for new innovations to mitigate greenhouse gas emissions and pollution has never been greater as the world faces the greatest challenge of its generation; the climate crisis. In light of the COP26 summit, world leaders have pledged to introduce green technologies around the world, align standards and coordinate investments to make fossil fuel-powered alternatives more affordable to produce, operate and maintain.
A decade after the famous GreenTech bubble burst, institutional investors are eagerly devoting capital back into the sector. In 2021 alone, green technology companies raised a record-breaking $32 billion, with investment in the GreenTech industry quadrupling since 2016. Whilst Europe is quickly becoming a powerhouse for GreenTech startups, the US dominates the ecosystem, raising the most funding compared to any other country.
“The tech industry plays a fundamentally important role in helping drive forward innovation in the fight against climate change,” said Laura Citron, CEO at London & Partners, in a statement.
From grid support to the Tesla’s of the sky, Storm4 reveal the businesses predicted to boom in the GreenTech industry in 2022.
The startups battling the race to net-zero in the GreenTech industry
The advanced air mobility (AAM) industry is the next revolution in aerospace, attracting more than $5.4 billion in investment in just the first nine months of 2021. Many companies have dived at the chance of taking the lead in this disruptive technology, such as Lilium, which plans to offer its first commercial flights to consumers in 2024.
Unlike existing AAM players, Lilium found its niche by offering a regional intercity service. Its website describes a world in which a future trip from San Francisco to Lake Tahoe takes under an hour by eVTOL aircraft, compared with almost four hours by car.
Founded by Daniel Wiegand (CEO), Sebastian Born, Matthias Meiner and Patrick Nathen in 2015, the German-born startup became ‘Europe’s first flying taxi unicorn’ in 2020.
Commenting on what the industry will look like in the coming years, Daniel Wiegand explains: “I believe by 2030, the AAM industry will really ramp up — that’s when eVTOL aircraft will become a part of everyday life. On the ground today, there’s everything from sports cars to trucks to buses. We will see something similar in the air: there will be eVTOL aircraft used on intercity shuttle routes, which is what Lilium is focused on right now. There will be sightseeing applications, taxi applications, cargo applications, and so on.”
One of the biggest climate tech narratives of 2021 was carbon software. Carbon risk is financial risk, and asset managers, banks and other financial institutions are required to calculate their financed CO2 emissions footprint in a manner that is auditable and compliant with new regulations. Breakthrough technology innovations, such as Persefoni, are doing their part to help accelerate this by equipping organisations with the data necessary to manage and report on both their carbon and financed emissions.
This first-of-its-kind, SaaS platform factors operational and financial activity data in real-time, enabling enterprises to lower environmental impact by turning raw data into actionable insights. Offered as a service, organizations see a full Scope 1-3 map of their carbon footprint, analyzed into consumption buckets that are easy for business unit managers to track and tackle.
Founded by Kentaro Karamorwi (CEO) in 2020, the company raised a monster $101 million Series B round earlier this year, which it claims to be the largest round for a SaaS climate tech company.
Commenting on the huge appetite of the industry, Kentaro Karamorwi explains: “Persefoni has spent considerable effort to bridge the gap between the disparate worlds of Sustainability and Technology, with the goal of combatting climate change worldwide. Our platform is being used by four of the largest global Private Equity firms, like TPG’s $85billion dollar portfolio, and four of the world’s 20 largest banks, along with several global insurance companies and pensions/endowments.”
From EV battery chemistry and recycling to manufacturing and software, many new industries will be needed to fuel the massive transition to a world of electric vehicles. Whilst dozens of companies are tapping into EV charging infrastructure, an important part of the charging puzzle is getting utilities up to speed on demands to plug in. WeaveGrid’s pioneering technology solves this problem, providing automakers with the infrastructure to interface with electric utilities.
WeaveGrid offers vehicle-grid integration smart charging solutions that enable utilities to both provide valuable services to their electric vehicle customers and support the resiliency of the broader grid. Its charging solutions are now deployed by some of the biggest utilities in the U.S, lowering grid infrastructure costs, integrating more renewables, and saving drivers money.
Founded by Apoorv Bhargava (CEO) and John Taggart (CTO) in 2018, WeaveGrid announced its $15 million Series A raise earlier this summer to enable its next stage of growth.
Commenting on the strain EV adoption has on infrastructure, Apoorv Bhargava explains: “A car can be the equivalent of one to two households worth of load, even at a home charging station. And when you’re using a Supercharger, that can be the equivalent of a commercial building.”
- Pivot Bio
Investors have poured a record $7.8 billion into agriculture technology so far this year, amid booming demand for climate-friendly investments, food security and productivity gains. With farmers facing increased pressure to introduce technologies that reduce greenhouse gas emissions and pollutants, California-based Pivot Bio was one of the most notable AgTech startups that piqued interest.
Born out of an ambition to replace synthetic nitrogen fertilizer with a more sustainable and safer tool for farmers, Pivot Bios microbes offer farmers a more efficient and sustainable nitrogen to fuel their crops. The powerful technology decreases and permanently prevents synthetic nitrogen emissions from the environment, potentially avoiding approximately $200 billion of environmental impact.
Founded by Karsten Temme (CEO) and Alvin Tamsir (CSO) in 2019, the startups $430 million raise earlier this year was labelled one of the biggest deals of the AgTech industry in 2021.
Commenting on the functionality of their technology, Karsten Temme explains: “We have solved one of the toughest challenges facing modern agriculture – how to replace synthetic nitrogen with something better. Our microbes empower the world’s farmers to be more productive, profitable, and sustainable.”
With investors continuing to seize opportunities in the growing and profound GreenTech industry, startups like these will become the pioneers in the battle for a sustainable future.
Storm4 are leaders in global GreenTech recruitment, connecting organisations with senior talent to drive their mission of a sustainable future. With institutional backing from Puffin Point Investments, the company has over $3m in Series A funding to disrupt the GreenTech recruitment market. Their highly specialised teams cover key GreenTech skillsets across C-Suite in Product Management, Engineering, Sales, Marketing and Data & Analytics. They are a leading provider of GreenTech-focused information to clients for market compensation and best practice in Diversity, Equity & Inclusion, hiring and retention.