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Silicon Valley Going Green We are at the beginning of a fast and deep transformation of our societies – deep decarbonization. Like most disruptions, this is being driven by the convergence of several key technologies. This era will closely parallel the digital disruption of information technology. Just as computers and the Internet enabled countless new business models that collectively have had a transformative impact upon the global economy, so too will this ‘green’ transformation create unmatched opportunities for innovation and entrepreneurship.
The climate tech ecosystem in Silicon Valley are key partners in getting to zero. Combatting climate change will require significant transformative thinking, and that is what the Silicon Valley mind-set is associated with. Aiming big and pursuing innovative technologies. The stories of how Silicon Valley entrepreneurs have disrupted entire industries are well-documented and relevant to understand in order to see how The Future of Climate Tech can unfold in Silicon Valley. Within the past few years, climate tech has taken off in the ecosystem across worldclass research institutions, investors, startups and BigCorp. Some observations about current developments and trends; LARGE AMOUNTS ARE INVESTED INTO TECH FOCUSING ON REDUCING EMISSIONS AND RESOURCE INTENSITY. Within climate tech investments, mega-rounds, unicorn births in 2021, and (the increasingly popular) SPAC investment vehicles are especially related to renewable
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energy, energy storage, and the electrification of transportation and operations. INVESTORS ARE INCREASINGLY PLACING BETS ON CARBON REMOVAL. Annual funding to startups in the carbon removal / carbon capture, utilization, and storage (CCUS) space in 2021 is at a record high and more than double funding raised in 2020. THE SMART, GREEN GRID Grid tech and renewable energy management start-ups are attracting investment as utilities work to upgrade both hardware and software in their efforts to decarbonize the grid. ANNUAL ENERGY STORAGE FUNDING AND DEALS HAVE ALREADY REACHED A NEW PEAK IN 2021. So far in 2021, mega-rounds related to energy storage companies have increased, and investors are eager to fund expanding research into manufacturing and recycling of batteries.
