If you think green tech is fading, take a look at the Q3 figures from Pitchbook. VC investments in green tech surged 50% in Q3 2024 compared to Q2, reaching a massive $6.4B. Here’s where the money is flowing:
💸 𝗤𝟯’𝘀 𝗚𝗿𝗲𝗲𝗻 𝗧𝗲𝗰𝗵 𝗗𝗮𝗿𝗹𝗶𝗻𝗴𝘀:
1️⃣ 𝗛𝘆𝗱𝗿𝗼𝗴𝗲𝗻: The juggernauts Mobii Green Energy (Taiwan) and China Hydrogen Energy Technology raised $3B between them.
2️⃣ 𝗚𝗿𝗶𝗱 𝗜𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲: Pulled in a solid $1.2B.
3️⃣ 𝗗𝗶𝘀𝗽𝗮𝘁𝗰𝗵𝗮𝗯𝗹𝗲 𝗘𝗻𝗲𝗿𝗴𝘆 (nuclear fusion and fission): $818.9M.
4️⃣ 𝗜𝗻𝘁𝗲𝗿𝗺𝗶𝘁𝘁𝗲𝗻𝘁 𝗥𝗲𝗻𝗲𝘄𝗮𝗯𝗹𝗲𝘀: Just shy of $500M.
For the year so far, 2024’s total green tech deal value stands at $15B, poised to surpass 2023’s $18.3B total. On a trailing 12-month basis, here’s how sectors rank:
🔥 𝗩𝗖’𝘀 𝗟𝗼𝗻𝗴-𝗧𝗲𝗿𝗺 𝗙𝗮𝘃𝗼𝗿𝗶𝘁𝗲𝘀:
1️⃣ 𝗚𝗿𝗶𝗱 𝗜𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲: $6.3B.
2️⃣ 𝗖𝗹𝗲𝗮𝗻 𝗙𝘂𝗲𝗹𝘀: $6.1B.
3️⃣ 𝗜𝗻𝘁𝗲𝗿𝗺𝗶𝘁𝘁𝗲𝗻𝘁 𝗥𝗲𝗻𝗲𝘄𝗮𝗯𝗹𝗲𝘀: $5.1B.
𝗪𝗵𝗮𝘁’𝘀 𝗖𝗮𝘁𝗰𝗵𝗶𝗻𝗴 𝗠𝘆 𝗘𝘆𝗲?
* 𝗚𝗿𝗶𝗱 𝗜𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 𝗥𝗶𝘀𝗶𝗻𝗴: It’s great to see VCs finally pouring money into grids. With intermittent renewables growing fast, robust grid investments were inevitable. This is the next big frontier.
* 𝗖𝗹𝗲𝗮𝗻 𝗙𝘂𝗲𝗹𝘀: Let’s just say I wouldn’t park my money there. But hey, it’s their cash, and they’re free to lose it however they like.
* 𝗡𝘂𝗰𝗹𝗲𝗮𝗿’𝘀 𝗖𝗼𝗺𝗲𝗯𝗮𝗰𝗸: Fusion and fission both saw strong momentum in Q3. Fusion is the classic ultra-long-term VC bet (15+ years), while fission is proving its potential for near-term growth. Curious? Check out the nuclear section of my blog for a deeper dive.
🛑 𝗔 𝗙𝗶𝗻𝗮𝗹 𝗥𝗲𝗺𝗶𝗻𝗱𝗲𝗿:
Northvolt, crowned in the Pitchbook report as the #1 VC-backed clean tech energy company with $6.8B raised, shows that even the biggest players aren’t immune to failure. A billion-dollar Series C doesn’t guarantee a happily-ever-after.
💬 Let me know what you think of these numbers. Are VCs making the right bets, or are we headed for another wave of “Clean Fools”? Follow me here or head over to my blog for more insights on cleantech investments, energy transitions, and scaling startups. 🌍