🌍 Six predictions for climate tech and VC in 2024 (Issue #136)

Plus, 6.6% of US climate tech VC funding goes to female-founded companies. Physical clutter, mental clutter. Bingo (?!) for New Year's Resolutions.

Jan 09, 2024

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Today’s topics.

Six predictions for climate tech and VC in 2024
6.6% of US climate tech VC funding goes to female-founded companies
Bingo (?!) for New Year’s Resolutions
Physical clutter, mental clutter

1. Six predictions for climate tech and VC in 2024.

‘Tis the season for trying to see the future.

And likely being wrong.

But no one cares about that because we dislike uncertainty right now.

And by putting things on paper, we might just rally to make the good ones happen.

Here are three sources with examples:

24 Climate Predictions for 2024 (Grist)

A new climate corps will turn young people’s anxiety into action — The American Climate Corps will officially kick off in the summer of 2024, sending 20,000 18- to 26-year-olds across the country to install solar projects, mitigate wildfire risk, and make homes more energy-efficient.
“Greenhushing” spreads as companies seek to dodge lawsuits — Amid new regulations against false environmental marketing and a pileup of greenwashing lawsuits, more corporations will join in hiding their climate commitments to avoid scrutiny. In 2023, when 1 in 5 companies declined to publicly release their sustainability targets.

2024 Energy Predictions (Forbes)

Billions spent on real estate to build electric vehicle charging infrastructure — Some $1 billion will be spent on acquiring real estate for fleet charging facilities within the next year, and at least double that will be spent on public charging station sites.
A “fierce fight” over the Inflation Reduction Act’s 45V clean hydrogen tax credits — 45V is the world’s largest clean hydrogen production subsidy. They are uncapped and expected to pay hundreds of billions to the nascent industry. Treasury published proposed guidance defining how hydrogen projects should account for their emissions, raising a challenge for electrolytic hydrogen projects, eligible for the generous top credit.

2024 US Venture Capital Outlook (Pitchbook)

Flat or declining interest rates in 2024 will lead to an increase in US VC deal activity with nontraditional VC investor participation.
Dry powder remains high, with more than 4,000 VC funds raised since the beginning of 2020. Strong companies can use the slow market to separate from the competition.

2. 6.6% of US climate tech VC funding went to female-founded companies in 2023.

That’s just 21 out of 319 climate tech funding rounds, according to Pitchbook.

Crunhbase’s analysis put that embarrassing number a little higher at 10%.

Yikes.

Despite that, data shows good financial reasons to change this.

Female-founded companies generate twice as much revenue per dollar invested than male-founded companies, according to a Boston Consulting Group study of five years of data.
A Pitchbook study found that female-founded startups have a 12-year streak of exiting faster than male-founded ones — an average of 7.2 years to 8.1, respectively.

The article’s author, Leah Garden, asks:

Know of a female-founded climate startup that has bucked the trend? Share your feedback: leahg@greenbiz.com.

Leah, you’re in luck.

In addition to the many of you dear readers who hopefully respond to her, I’ll be sending her the names of these women leaders who are members of our climate CEO peer group community at Entrepreneurs for Impact.

Nicole Poindexter, Cofounder and CEO of Energicity — VC-backed developer of solar and storage minigrids in West Africa
Natalie King - Founder & CEO — Dunamis Clean Energy Partners (150-person MBE-certified green energy firm specializing in energy efficiency and EV solutions for businesses and utilities) and Dunamis Charge (the first African American woman-owned EV charger manufacturer)
Megan O'Connor - Cofounder and CEO of Nth Cycle — VC-backed tech decarbonizing the critical mineral supply chain in energy storage and electric vehicles
Kameale Terry - Cofounder and CEO at ChargerHelp! — VC-backed tech enabling on-demand repair of electric vehicle charging stations, with 1,000+ technicians trained
Adrienne Pierce - CEO of New Sun Road — VC-backed Public Benefit Corp providing remote monitoring and controls for 700+ microgrids around the world
Helen Bertelli - Cofounder of Women in Climate Tech — Rallying 2,000+ women to level up and lead businesses to greater climate solutions
Lauren Salz - Cofounder and CEO of Sealed — VC-backed solutions for residential energy efficiency and turnkey financing
Stacy Flynn - Cofounder and CEO of Evrnu — VC-backed tech that recycles cotton garment waste to create premium renewable fiber
Amanda Hall - Founder and CEO of Summit Nanotech — VC-backed tech that mines lithium ion in brine using nanotechnology with less energy and water requirements
Michelle Egger - Founder and investor in biotech — I can’t tell you her next big gig, but watch out world!