VCs are Backing Climate Tech Companies – It’s Time to Get on Board!
At Greenough Communications, we are passionate about clean tech and our climate transition practice. With clients such as IntegrityNext, Ameresco, the International District Energy Association (IDEA), we know – and believe – that climate tech is not a fad, and we’re here for it! Tracking our carbon and emissions is not just something we discuss in our work, it’s also something we are passionate about as people outside of the office.
We recently checked out PitchBook’s Carbon & Emissions Tech Report for Q1 2024, and the trends and opportunities presented for VCs are eye-opening. What are we most eager, anxious, and excited about?
- This quarter, VC deal value reached 37.9% for a total of $2.8 billion.
- Deal count fell to a seven-quarter low, from a record high of 305 in Q4 2023 to 243 in Q1 2024.
- In Q1 2024, six deals closed exceeded $100 million, and 14 deals raised $50 million or more.
What companies are receiving this VC backing? Natron – a sodium-ion battery manufacturer received $189.3 million in Series BB funding. Ascend Elements – a battery recycling technology developer based in Massachusetts – received an additional $160.2 million in funding. Lilac Solutions and Instagrid also took home some big funding this quarter, as well, but Northvolt ranks highest with the most VC money raised to date ($6.8675 billion).
So, what does this mean for climate tech? VCs supporting companies of this nature is a huge sign that the market stands behind these initiatives to help the future of our planet. Seed rounds of $5 million became the norm in the past few years, but seeing this uptick in the hundreds of millions for cleantech companies is extremely promising. Intel’s startup accelerator for early-stage deep tech companies, Intel Ignite, supports this narrative, noting that “supersized” seeds should be sticking around for a while.
From our client portfolio, we recently sat down with Dan Clevenger, Partner at Foley Hoag, who works closely with companies of all sizes across public offerings, M&A and other types of exits. Dan noted that “climate tech is not a passing fad, it’s here to stay. It is economically and societally important. The companies that can support it and are at an appropriate stage in their life cycle will move forward with an IPO.”
Intel Ignite recently teamed up with Two Lanterns Venture Partners and MIT for an event at MIT Media Lab to talk all about the future of AI and innovation. The event featured a panel of VCs, including John Harthorne, Founder and Managing Director of Two Lanterns and Founder and former CEO of Mass Challenge; Mike Troiano, Partner at G20 Ventures; Alex Finkelstein, Co-Founder at Spark Capital; Patricia Geli, Founding General Partner & COO at C10 Labs; and Maia Heymann, Co-Founder and General Partner at Converge VC.
So, what are VCs looking for in a startup as they make decisions about how to invest their money?
- AI is hot – the panelists agreed that the rise of AI is fundamentally different from past tech boom and bust cycles, and that AI is here to stay. As Finklestein noted, AI, as a technology and as a game-changing moment, “is different, it’s real and it’s happening now.”
- Staying true to who you are as an entrepreneur – Heymann urged entrepreneurs to remember to put themselves forward and talk about what makes them “uniquely qualified to build a business in that specific space. We say two things matter – market and team, and so really being able to communicate that unique insight that the founding team has to build that product and bring it to market.”
- Helping founders get from from Seed to Series A – This is a central aspect of the Intel Ignite program and is often a difficult transition for founders. “Startups run on acts of individual heroism, while businesses run on systems and processes that produce predictable outcomes,” said Troiano. “As a founder, thinking systematically about the way you do things can help with this transition and that it’s necessary for founders at Series A to have predictable systems and processes that enable you to scale the revenue line.” Otherwise, Troiano said, “you’re pouring water into a leaky bucket.”
Our main takeaway? Move fast but move cautiously. This is an exciting time for clean tech, and we know much will shake out in an election year, as well. Keep your eyes on this industry right now!
What our clients say
Ameresco
Leila Dillon, SVP, Corporate Marketing and Communications
It's clear that the Greenough Communications team has a deep understanding of the clean tech and climate transition spaces. Within the first month of working together, they were able to land interviews with The Washington Post, The New York Times and Canary Media, just to name a few! Since working together, we've seen our media coverage and quality increase significantly across the board. We value Greenough's partnership are looking forward to our continued work together.
Boston Micro Fabrication
Laura Galloway, Marketing Director
As a small marketing team, having an agency partner that feels like a true extension of my team is invaluable. The Greenough Communications team is professional, responsive and has taken the time to understand our business, putting our brand in front of the customers who matter for our growth. I’ve been very happy with our first year of partnership and look forward to future success.
Acrolinx
Mariana Just, Vice President, Marketing
We started working with Greenough Communications over a year ago, and it's been a fantastic journey. They really understand who we are at Acrolinx and what we want to say. Their ability to amplify our message in a crowded AI space has been impressive, delivering solid media results in the outlets that matter, securing the AI Breakthrough Award, and boosting our executive team's social media presence. As we continue our partnership, we're excited about expanding our reach and market presence, building upon our refreshed positioning and messaging with Greenough's expertise guiding us every step of the way.
IQE
Steven Curwood, Director of Corporate Marketing
At IQE, one of our goals is to demystify the vital role compound semiconductors play in the industry and the future of innovation. As we aim to broaden our brand's reach in the U.S. market, finding an agency that understands our technology and the intricacies of our work is crucial. Greenough Communications stood out as that agency from the start. In the short time we've worked together, they've already validated our choice with opportunities in key media, including CNBC, NPR, and the U.S. trade media that will move the needle for our brand and message. There's much ahead for us, and we're excited to have the Greenough team by our side.
Arbella Insurance
John Donohue, CEO
Our Greenough team has excelled in learning our business and our challenges and has been extremely effective in developing and executing a PR strategy that helps drive our success.
Wolters Kluwer Health
André Rebelo, Global Marketing Communications & Public Relations
Our Greenough team has been a strategic asset in sustaining targeted growth in our PR and external communications. The team really operates like an extension of our internal team, aligned and effective. They've deftly balanced the needs of multiple sub-groups' objectives and needs, getting great results in the publications our customers read.
GlobalFoundries
Laurie Kelly, Chief Communications Officer
Greenough Communications has been more than just a PR agency for us at GlobalFoundries; they've been true partners. From navigating our IPO to driving impactful education campaigns like the one leading up to the passage of the CHIPS Act, they've been instrumental in showing the world our leadership role in this new technology era. Their knack for building connections with the industry and our team, including our executives, has been impressive. Every year, we throw new challenges their way, and they keep delivering. As we move ahead together, we're excited to keep pushing the boundaries, sharpening our brand narrative, and taking our brand awareness to the next level.
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