The Canadian company that has set the country’s record from release to unicorn status in the shortest time is not in the software field. It’s not even in the field of fintech or biotechnology. It is in the field of climate technology, and more specifically, it is committed to the green building industry, reducing the carbon footprint of buildings occupied by Starbucks Cafes, Popeye, Marriott Courtyard and other cafes.
NissiIt was announced this month that it had raised US$45 million and reached a valuation of US$1 billion. This is just one of the latest examples of the great success of climate technology companies.
The Pacific Northwest-home to well-known technology giants such as Amazon, Microsoft and Boeing-is now promoting the growth of emerging climate technology giants. According to GeekWire’s analysis, climate technology companies in Washington, Oregon, and British Columbia have accumulated approximately $2 billion in venture capital equity. More than half of this has been raised since the beginning of 2020.
Since its establishment in 2019, Nexii, headquartered in Vancouver, British Columbia, has received a total of US$128 million in funding. It has 350 employees.
“Nexii is part of this wave of change that aims to make [construction] The industry is more efficient, greener and more affordable,” said Gregor Robertson, Executive Vice President of Strategy and Partnerships. “We need to achieve all these goals together to truly change the industry successfully.”
The construction sector is not the only one facing this challenge. As the world scrambles to stop carbon emissions from all possible sources—including construction, transportation, electricity, and agriculture—basically every industry needs to embrace its own “wave of change” and find ways to save the planet.Experts around the world agree that we need to reach Be carbon neutral by 2050 To avoid the most catastrophic impact of climate change.
Investors are fully supporting the field in an unprecedented way. According to statistics, in the first six months of 2021, international clean technology companies received 14.2 billion U.S. dollars in funding-a figure slightly lower than the total venture capital investment for the whole year of last year. PitchBook’s research.
The local climate technology companies that have raised the most funds since their inception include:
- ESS company, An Oregon company that produces long-lasting iron flow batteries, Listed Passed a merger with a special purpose acquisition company (SPAC) in May; the company is valued at more than $1 billion
- Universal Fusion, A BC company that develops commercial-scale fusion power plants, has raised $260.7 million
- NuScale power supply, A company located in Portland, Oregon, invested $236 million to build a small modular nuclear reactor
- Rad Power Bike, A Seattle startup selling electric bicycles, has raised $175 million
- Swant, A BC company with technology that can capture carbon from industrial sources, the company has raised $150 million
GeekWire has discovered more than 30 companies developing climate-friendly technologies that have already received venture capital.
The leaders of Climate Technologies said that a series of factors are driving success. Their innovation has curbed carbon emissions, but equally important is that they have reduced costs for customers. Coupled with the pressure of consumers to reduce their environmental impact and develop stronger climate-related policies.
This is just the beginning of a surge in funding. Venture capitalists, private equity firms, and large companies are all raising millions or billions of dollars worth of climate technology funds to support companies in this field.
Despite the tremendous growth in investment in this industry, it still accounts for only a small portion of venture capital. Pitchbook reports that in the United States, climate technology only accounts for 2% of venture capital technology transactions and 7% of allocated capital.
There are more than a dozen climate technology companies in the Pacific Northwest that are under development, but have yet to raise venture capital funds.
Climate technology is “very mainstream, very at the forefront of investors’ minds—sustainability-oriented investors or mainstream venture capital firms,” said founder and CEO Bryce Smith. Ten levels of energy“Today, it is considered a must-have space for most investors, which is very different from five years ago.”
LevelTen is a Seattle-based company established in 2016 to promote the purchase of renewable energy. It recently announced a new round of venture capital with a total capital of US$62.3 million.
Part of the amazing thing about climate technology companies in the region is the range of innovations being developed and commercialized. Some borrowed from the historical advantages of the Northwest, including aviation and maritime fields. Others were spun off from institutions such as the University of Washington, Washington State University, and the Pacific Northwest National Laboratory. Some startups reflect the areas of expertise of these sites, including batteries, software engineering, and agriculture.
“If I can say something to this group collectively, it is how different and diverse the solutions people are developing,” said David Kenny, executive Director VertueLab, A Portland-based non-profit organization that supports early-stage climate technology startups.
Columbia Power Technology Company, or C-power supply, It is a wave energy company spun off from Oregon State University. The business was established in 2008 with the original aim of creating a large offshore wave farm to power the grid, but the vision proved to be too ambitious.
Five years ago, C-Power started a project to generate a small amount of clean energy to charge offshore vessels, underwater vehicles and equipment.
“The ocean is an energy desert,” said the CEO Rester Leatherman.
Therefore, C-Power wants to create an energy oasis in the marine environment. Its new focus includes combining data server and transmission functions with clean power production.This fall the company is deploy One of the autonomous offshore power systems that conducted sea trials at the U.S. Naval Proving Ground in Hawaii. Lesemann also tried to raise venture capital (C-Power raised $10.2 million in the past, plus $30 million in grants from federal agencies). The company is accepting the first orders from commercial customers.
“The pipe must start to fill up,” Leatherman said. “This is a fusion of the value propositions of decarbonization and lower operating costs.”
David Grist, Managing director of Seattle SJF Venture Capital Company, Has been investing in impact-focused companies for more than two decades. He sees that many companies in the field of climate technology have strong business models and strong economic power-companies like C-Power, LevelTen, and Nexii are looking for a fusion between financial success and decarbonization.
Among local companies, SJF Ventures invested in Kent, Washington Novinim, A company that restores underground cables, and reports that it has reduced carbon emissions by 660,000 metric tons. The innovations Griest saw from climate technology companies gave him hope for the future of the planet.
“I am on the optimistic side,” Grist said. “I continue to be inspired every day. That’s what excites me, just seeing what is emerging and all these great new ideas. Entrepreneurs continue to inspire us.”