Much of climate tech focuses on reducing emissions and resource intensity.

Most climate tech mega-rounds, SPACs, and unicorn births in 2021 are related to energy — specifically, renewable energy, energy storage, and the electrification of transportation and operations. 

Investors are increasingly placing bets on carbon capture, utilization, and storage (CCUS).

Annual funding to startups in the CCUS space in 2021 YTD is at a record high of $708M — more than double funding raised in 2020. Deals also jumped year-over-year, from 40 deals in 2020 to 69 deals in 2021.

Annual energy storage funding and deals have already reached a new peak of $15.3B in 2021 YTD. 

So far in 2021, mega-rounds related to energy storage companies have increased, as EVs become price-competitive to ICE vehicles. Investors are eager to fund expanding research into, manufacturing of, and recycling of EV batteries. 

Circular economy momentum is building, as companies look to reduce their resource use. Although material innovation takes a long time, companies with notable breakthroughs, like battery recycling company Redwood Materials, are rapidly raising mega-rounds. Other companies, like Solidia Technologies and Fortera, are raising formidable sums for their tech that reduces water usage.